Integrated Annual Report 2022 
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Integrated Annual 
Report 2022 
Disclaimer  
This Integrated Annual Report 2022 has been translated into English solely for 
the convenience of the international reader. In the event of conflict or 
inconsistency between the terms used in the Italian version of the report and the 
English version, the Italian version shall prevail, as the Italian version constitutes 
the sole official document compliant with the provisions of the Commission 
Delegated Regulation (EU) 2019/815.

Integrated Annual Report 2022 
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TABLE OF CONTENTS 
GUIDE TO THE DOCUMENT ..................................................................................................................... 5 
LETTER TO STAKEHOLDERS ..................................................................................................................... 8 
REPORT ON OPERATION AT 31 DECEMBER 2022 ................................................................................... 11 
PART 1 – GROUP PROFILE, STRATEGY AND RESULTS ......................................................................................... 12 
GROUP PROFILE ....................................................................................................................................... 13 
Profile ....................................................................................................................................................................... 14 
Business Model ........................................................................................................................................................ 17 
STRATEGY AND OUTLOOK ........................................................................................................................... 19 
Trend and vision to 2030 .......................................................................................................................................... 20 
Materiality Analysis ................................................................................................................................................. 24 
Be Tomorrow – Leonardo 2030 Strategic Plan ......................................................................................................... 26 
Objectives and Sustainability Plan ........................................................................................................................... 28 
Guidance 2023 ......................................................................................................................................................... 32 
GROUP RESULTS AND FINANCIAL POSITION ..................................................................................................... 33 
2022 Performance and financial results .................................................................................................................. 34 
ESG performance indicators ..................................................................................................................................... 43 
SEGMENT RESULTS AND OUTLOOK ................................................................................................................ 47 
Key Performance Indicators by segment .................................................................................................................. 48 
1. Helicopters ........................................................................................................................................................... 49 
2. Defence Electronics & Security ............................................................................................................................. 51 
3. Aircraft ................................................................................................................................................................. 56 
4. Aerostructures ...................................................................................................................................................... 59 
5. Space .................................................................................................................................................................... 62 
"NON-GAAP" ALTERNATIVE PERFORMANCE INDICATORS .................................................................................. 65 
INDUSTRIAL AND FINANCIAL TRANSACTIONS .................................................................................................... 69 
OTHER INFORMATION ............................................................................................................................... 74 
Other performance indicators .................................................................................................................................. 75 
Related-Party transactions ...................................................................................................................................... 75 
CONSOB Market Regulation no. 20249/2017, Article 15 ......................................................................................... 76 
Information pursuant to articles 70 and 71 of Issuers' Regulations ........................................................................ 76 
PART 2 – CONSOLIDATED NON-FINANCIAL STATEMENT (NFS) ........................................................................... 77 
GOVERNANCE.......................................................................................................................................... 78 
Corporate Governance ............................................................................................................................................. 80 
Responsible business conduct .................................................................................................................................. 83 
Risk management .................................................................................................................................................... 90 
Stakeholder engagement ....................................................................................................................................... 100 
PEOPLE ................................................................................................................................................ 102 
Inclusion and employment protection ................................................................................................................... 104 
Welfare and Well-being ......................................................................................................................................... 108 
Enhancement of people and skills .......................................................................................................................... 110 
Health and safety ................................................................................................................................................... 115 
Respect for human rights ....................................................................................................................................... 117

Integrated Annual Report 2022 
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PLANET ................................................................................................................................................ 120 
Decarbonisation path ............................................................................................................................................. 122 
Circular Economy ................................................................................................................................................... 129 
Natural Resources Management In Industrial Processes ....................................................................................... 132 
PROSPERITY .......................................................................................................................................... 137 
Technological Innovation ....................................................................................................................................... 139 
Leonardo for the National Recovery and Resilience Plan (NRRP) .......................................................................... 153 
Supply chain value .................................................................................................................................................. 156 
Customer intimacy, quality and safety................................................................................................................... 165 
Value for territories and communities ................................................................................................................... 170 
CORRELATION TABLE – NON-FINANCIAL STATEMENT .......................................................................... 176 
INDEPENDENT AUDITORS' REPORTS ON THE NON-FINANCIAL STATEMENT AND ON THE SELECTION OF INDICATORS AT 31 
DECEMBER 2022 .................................................................................................................................... 179 
PART 3 – OTHER INFORMATION OF THE REPORT ON OPERATIONS........................................................ 180 
PERFORMANCE OF THE PARENT COMPANY ................................................................................................... 181 
RECONCILIATION OF NET PROFIT AND SHAREHOLDERS' EQUITY OF THE GROUP PARENT WITH THE CONSOLIDATED FIGURES AT 
31 DECEMBER 2022 ............................................................................................................................... 187 
PROPOSAL TO THE SHAREHOLDERS' MEETING ............................................................................................... 188 
CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2022 ........................................................ 189 
CONSOLIDATED ACCOUNTING STATEMENTS................................................................................................... 190 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2022 .................................................... 195 
ATTACHMENTS ...................................................................................................................................... 269 
STATEMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 154-BIS, PARAGRAPH 5 OF LEGISLATIVE 
DECREE 58/98 AS AMENDED .................................................................................................................... 277 
INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022 ............ 278 
SEPARATE FINANCIAL STATEMENT AT 31 DECEMBER 2022 LEONARDO - SOCIETÀ PER AZIONI .............. 279 
ACCOUNTING STATEMENTS TO THE SEPARATE FINANCIAL STATEMENTS AT 31 DECEMBER 2022 ................................. 280 
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AT 31 DECEMBER 2022 ........................................................... 285 
PROPOSAL TO THE SHAREHOLDERS’ MEETING ............................................................................................... 331 
ATTACHMENT: DISCLOSURE EX-LEGE 124/2017 ............................................................................................ 332 
STATEMENT ON THE SEPARATE FINANCIAL STATEMENTS PURSUANT TO ART. 154-BIS, PARAGRAPH 5 OF LEGISLATIVE DECREE 
58/98 AS AMENDED ............................................................................................................................... 345 
INDEPENDENT AUDITOR’S REPORT ON THE SEPARATE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022 ................... 346 
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’ MEETING ............................................. 347 
INFORMATION PURSUANT TO ARTICLE 149 DUODECIES OF THE ISSUER REGULATION ................................................ 348 
ANNEX TO THE REPORT ON OPERATIONS - NOTES TO THE NFS ............................................................ 349 
METHODOLOGY NOTE OF THE NFS ............................................................................................................. 350

Integrated Annual Report 2022 
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Sustainability Governance...................................................................................................................................... 351 
Materiality analysis ................................................................................................................................................ 352 
Reporting scope ..................................................................................................................................................... 354 
INDICATORS – DETAILS ............................................................................................................................. 356 
GRI indicators ......................................................................................................................................................... 356 
Other Indicators ..................................................................................................................................................... 369 
CONTENT INDEXES .................................................................................................................................. 376 
GRI Content Index .................................................................................................................................................. 376 
SASB Content Index ................................................................................................................................................ 393 
TCFD (Task Force on Climate-related Financial Disclosures) Content Index ........................................................... 395 
INFORMATION ON EU TAXONOMY FOR SUSTAINABLE ACTIVITIES ....................................................................... 396 
Regulatory Framework........................................................................................................................................... 396 
Taxonomy and the Aerospace, Defence & Security Sector ..................................................................................... 397 
Leonardo Reporting ............................................................................................................................................... 397

Integrated Annual Report 2022 
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GUIDE TO THE DOCUMENT

Integrated Annual Report 2022 
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Since 2020 Leonardo (hereinafter also referred to as the Group, the Enterprise or the Company) has adopted 
an integrated approach to reporting financial performance and environmental, social and governance (ESG) 
information, with the aim of offering in a single document a complete, measurable and transparent view of 
the value generated by the company. The Integrated Annual Report describes in fact the development 
strategies of Leonardo, driven by the vision for the next years expressed in the “Be Tomorrow – Leonardo 
2030” Strategic Plan, and the performance achieved, the way in which the company creates innovative 
solutions with its supply chain partners and the scientific research ecosystem, operating responsibly in the 
countries where it is present, and enhancing the value of all its capital, people and expertise, technology and 
intellectual property, financial resources, industrial assets, relations and partnerships, energy and natural 
resources. 
The Integrated Annual Report is composed of:  
> 
the Report on Operations, which includes the Consolidated Non-Financial Statement (NFS) pursuant 
to Legislative Decree 254/2016, prepared in accordance with the GRI Sustainability Reporting 
Standards of the Global Reporting Initiative (GRI), including the correlation table and the 
methodology note of the NFS; 
> 
the Consolidated Financial Statements; 
> 
the Separate Financial Statements of Leonardo SpA. 
Leonardo’s decision to integrate financial performance and ESG information somewhat anticipates what is 
envisaged by the Corporate Sustainability Reporting Directive, the new European directive on sustainability 
reporting that will gradually come into force in 2025 and will require companies to publish sustainability 
disclosures in the Report on Operations. With this obligation, the European Union intends to pursue the goal 
of making the links between financial and sustainability information clearer and more evident while 
increasing its availability, accessibility and reliability. 
In preparing the Integrated Annual Report, the following have been taken into account: the priorities 
reported by ESMA (European Securities and Markets Authority) for financial statements prepared according 
to the International Financial Reporting Standards (IFRS) and for non-financial disclosures, the Integrated 
Reporting Framework, the standards of the Sustainability Accounting Standards Board (SASB) for the 
Aerospace & Defence sector, the Sustainable Development Goals (SDGs), the Ten Principles of the UN Global 
Compact, the recommendations of the Task Force on Climate–related Financial Disclosure (TCFD) and the 
core metrics laid down in the White Paper “Measuring Stakeholder Capitalism - Towards Common Metrics 
and Consistent Reporting of Sustainable Value Creation” del World Economic Forum (WEF), as based on four 
pillars: Governance, People, Planet and Prosperity. 
The GRI, SASB, and TCFD content indices in the section of Annex attached to the Report on Operations – 
Notes to the NFS allow you to identify content with respect to the respective standards or recommendations. 
Furthermore, in 2022, a selection of indicators (ref. Annex attached to the Report on Operations – Notes to 
the NFS) was subjected to full examination (reasonable assurance) for the second year running, as required 
by the International Standard on “Assurance Engagements ISAE 3000 (Revised) - Assurance Engagements 
Other than Audits or Reviews of Historical Financial Information” (hereinafter “ISAE 3000 Revised”), issued 
by the International Auditing and Assurance Standards Board (IAASB), on the part of EY S.p.A.. The audit was 
carried out according to the procedures set out in the “Independent Auditors’ Report of the Non-Financial 
Statement at 31 December 2022”, which is included herein.

Integrated Annual Report 2022 
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Content of the Integrated Annual Report 2022 
 
Table of contents  
Financial Information 
NFS Information 
Report on operations at 31 December 2022 
● 
● 
Group profile  
● 
● 
Strategy and outlook 
● 
● 
Group results and financial position  
● 
● 
Segment results and outlook 
● 
 
“Non-GAAP” alternative performance indicators  
● 
 
Industrial and financial performance  
● 
 
Other information 
● 
 
Governance 
 
● 
People 
 
● 
Planet 
 
● 
Prosperity 
 
● 
Correlation table – NFS 
 
● 
Performance of the Parent Company  
● 
 
Consolidated Financial Statements at 31 December 2022 
● 
 
Separate Financial Statements at 31 December 2022 
Leonardo SpA 
● 
 
Annex to the Report on Operations – Notes to the NFS  
 
●

Integrated Annual Report 2022 
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LETTER TO STAKEHOLDERS

Integrated Annual Report 2022 
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For Leonardo, 2022 was an important year. We have once again achieved, and in some cases exceeded, the 
objectives set. We have delivered results that further confirm the validity of our strategic path. 
Indeed, thanks to the actions undertaken since 2018, Leonardo has strengthened its competitiveness and 
consolidated its role as a top player in Aerospace, Defence and Security at a global level. Today we are a more 
solid, resilient, sustainable, innovative company, ready to face challenges and seize future opportunities. 
Orders show significant growth of over 20% compared to 2021, with a value of over €17 billion, increasing 
our backlog to over 37 billion. There are positive trends in all our business areas, confirming the commercial 
solidity of the Group and the validity of the diversified offer of products, systems and solutions that meet the 
complex operational requirements of customers, guaranteeing interoperability and multi-domain 
capabilities. 
Revenues showed a solid growth trend, which in 2022 was more than 4% thanks, in particular, to Helicopters 
and Electronics for Defence and Security. 
EBITA showed a double-digit increase again driven by Defence and Security Electronics, in particular thanks 
to the European component, bringing the ROS above 8%. The positive trend of EBITA is even more marked, 
equal to around 14%, if we consider the inclusion of charges related to the COVID emergency as now 
recurring costs. 
The net result, which grew significantly, benefited from the capital gain realized from the sale of some 
Leonardo DRS businesses. 
An important part of the Group’s financial performance was the improvement in cash generation. Cash flow 
(FOCF) grew by 158%, demonstrating the Group's ability to consolidate the efficiency path undertaken, 
structurally increasing cash generation. 
The significant cash generation and the disposals of Leonardo DRS businesses have allowed the Group to 
continue along the path of reducing the Group's net debt, down by 3.4% compared to 2021, and at the same 
time to strengthen the core business through the purchase of 25.1% of the German Hensoldt and the 
consolidation of the Israeli RADA in the subsidiary Leonardo DRS. 
Our investment in Hensoldt is a catalyst for forging a closer partnership that will further strengthen both our 
positions in the growing defence electronics market: it will enable us to create value for customers and 
partners through the pooling of strengths complementary products of the two companies, while preserving 
national technologies and capabilities. This investment reflects our vision of the importance of building closer 
cooperation in the European Aerospace and Defence industry and Leonardo's determination to play an active 
role in its long-term development. 
The merger of RADA into Leonardo DRS, and the consequent listing of the company, represents a significant 
and strategic step forward, allowing the Group to achieve a unique positioning in the tactical radar segment, 
guaranteeing a stable domestic presence in the Israeli industrial context and supporting the development of 
Leonardo's international market. 
All of this progress was underpinned by the strengthening of the Group’s operating performance, the 
rationalization and efficiency of working capital, a careful investment policy and an efficient financial 
strategy. 
In consideration of the performance and the confidence in our future growth path, we have again proposed 
the payment of a dividend of 0.14 euros per share. 
The results achieved are even more significant in the light of a general and national economic framework 
characterized by inflationary pressures on energy and raw material costs: our results demonstrate the solidity 
of the Group's industrial strengths and the ability to react and adapt to complex challenges, as already 
demonstrated during the pandemic period. 
In this context, we continued to pursue with determination our objectives in terms of improving our 
competitive positioning in international markets and the creation of long-term value. 
There were also many actions that we implemented in the ESG area, supporting the Business Plan’s priorities, 
with the aim of "protecting people and the planet, guaranteeing defence and security, with long-term

Integrated Annual Report 2022 
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benefits in terms of development technology, innovation and progress”. These were, in fact, some of the 
topics covered on the occasion of the first ESG Investor Day in which Leonardo presented significant results 
on decarbonisation, sustainable innovation, diversity and inclusion, attraction of talent and valorisation of 
people. 
Scope 1 + 2 CO2 emissions were further significantly reduced by 15% compared to 2021, in particular thanks 
to the commitment to replace SF6 in the helicopter sector and to initiatives for greater energy efficiency. 
We have further strengthened the decarbonization journey by announcing a commitment to the Science 
Based Target initiative, a path on which we will work together with our key suppliers and our customers to 
reduce emissions along our value chain. 
We have made significant progress in terms of social impact starting from the hiring of around five thousand 
people, with an acceleration on the stabilization of employment contracts and a focus on young people under 
the age of 30 who, this year, represent 44% of new hires. We continued to support the training of our people, 
worked on reducing injuries and pushed for the promotion of an inclusive work environment: the presence 
of women in managerial positions has increased, today 18.6% of the total number of executives and middle 
managers, and the recruitment of women with a STEM degree, whose ratio to total recruitment with a STEM 
degree is now 22%. 
We have continued to integrate ESG objectives into financial instruments and into the management 
remuneration plan, demonstrating a leadership that has once again been recognized worldwide by the main 
sustainability ratings, rankings and indices. 
During 2022, we continued to work with the United Nations Global Compact, of which we have been 
members since 2018. Since last year, we have been on the Board of Directors of the Global Compact Network 
Italy Foundation, which allows us to actively contribute on sustainability discussions. 
Today Leonardo is a leading international leader in the Aerospace Defence & Security sector, a solid and 
global Group, a leader in European collaboration programs, an industrial engine for the development of 
territories, synonymous with innovation and high technology, in line with the strategic objectives of Be-
Tomorrow Leonardo 2030. 
We have continued to deliver on all our promises and we continue to be confident in the path we have taken. 
With this, and the fundamental contribution of all 51,000 of our people, we are confident that we can face 
and gain from the great technological challenges in today’s world and thus confirm the positive evolution of 
recent years.

Report on Operation at 31 December 2022 
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REPORT ON OPERATION AT 31 DECEMBER 2022

Report on Operation at 31 December 2022 
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PART 1 – GROUP PROFILE, STRATEGY AND RESULTS

Report on Operation at 31 December 2022 
13 
 
 
GROUP PROFILE 
 
 
 
 
✓ PROFILE 
✓ BUSINESS MODEL

Report on Operation at 31 December 2022 
14 
 
UNITED STATES OF AMERICA
EMPLOYEES: 7,143
UNITED KINGDOM
EMPLOYEES: 7,540
ITALY
EMPLOYEES: 32,327
POLAND
EMPLOYEES: 2,578
REST OF THE WORLD
EMPLOYEES: 1,556
ISRAEL
EMPLOYEES: 248
PROFILE 
 
 
 
 
 
 
                                                                                                                           
     
 
 
 
 
 
 
 
Leonardo operates in 150 countries in the world offering customised solutions and innovative, value-added 
after-sales support services in order to be a trusted partner for its customers. It competes in the most 
important international markets by leveraging technology and product leadership in its business areas 
(Helicopters, Aircraft, Aerostructures, Electronics, Cyber Security and Space). 
 
ESG Leadership 2022 
Sustainability Leader in the Dow Jones 
Sustainability Indices of S&P Global for 
13 years, with the highest score in the 
Aerospace and Defence sector for the 
fourth year running2. 
Among the companies included in the 
MIB ESG INDEX of the Italian Stock 
Exchange (Euronext), the first Italian 
blue-chip index dedicated to the 40 
companies with the best ESG 
performance3. 
Confirmed among the leaders in the 
fight against climate change by CDP (no 
profit international organisation), 
among the best Aerospace & Defence 
companies. 
Ranked in A band in the Defence 
Companies Index on Anti-Corruption 
and Corporate Transparency (DCI) of 
Transparency International. 
Included in the Bloomberg Gender-
Equality Index 2023 for the third year. 
Assigned an A ESG rating by MSCI. 
 
 
                                                           
1 Following the merger of Israeli RADA into Leonardo DRS. 
2 Evaluation based on the data of the Corporate Sustainability Assessment (CSA), as of 16 December 2022. 
3 Review dated December 2022. 
Leonardo is an industrial and technological leader in the Aerospace, 
Defence & Security sector, with a strong industrial footprint in Italy, 
the United Kingdom, the United States, Poland, Israel1 and a 
widespread sales network at international level. 
 
 
Revenues 
€ 14.7 bil. 
New orders 
€ 17.3 bil. 
EBITA 
€ 1.2 bil. 
Backlog 
€ 37.5 bil. 
R&D 
€2.0 bil. 
Employees 
51,392

Report on Operation at 31 December 2022 
15 
 
Leonardo share price4 
 
                                                           
4 Performance of the Leonardo stock from January 2022 to 28 February 2023 compared to the European sector index Bloomberg EMEA Aerospace & 
Defense (BEUAERO, A&D EU) and to the main Italian and European stock market indices: the index of the 40 main securities of the Milan Stock 
Exchange (FTSE -MIB) and the index representative of the 600 largest stocks in Europe (STOXX Europe 600). 
 
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
Jan-22 Feb-22Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23
Leonardo +68.5%
FTSEMIB +0.5%
STOXX 600 -5.5%
A&D EU +14.6%
 
 
 
 
 
 
14%
11%
27%
22%
26%
Revenues by geographic area
Italy
United Kingdom
United States
Rest of Europe
Rest of the world
31%
45%
21%
3%
Revenues by sector
Helicopters
Defence
Electronics and
Security
Aircraft
Aerostructures
30.2%
51.8%
17.5%
0.5%
Shareholders
Ministry of Economy
and Finance
Institutional
Retail Investors
Company related
holdings
53.0%
17.6%
7.2%
6.9%
9.7%
5.6%
Institutional shareholders by geographical 
area
North America
United Kingdom
France
Italy
Rest of Europe
Rest of the world
83%
17%
Defense / Civil turnover
Defense
Civil
88%
12%
Governmental / Non governmental 
turnover
Governmental
Non governmental

Report on Operation at 31 December 2022 
16 
 
Business sectors 
Leonardo is organised into five business Sectors5. It also operates through subsidiaries, such as Leonardo DRS 
(Defence Electronics), joint ventures and investees. 
SECTORS 
RESULTS 2022  
(€mil.) 
DIVISIONS 
MAIN LEGAL ENTITY 
MAIN 
COUNTRIES 
Helicopters 
 
ORDERS 
6,060 
BACKLOG 
13,614 
Helicopters Division 
Leonardo SpA 
Leonardo UK Ltd 
PZL-Swidnik SA 
AgustaWestland Philadelphia 
Kopter Group AG 
Italy 
United Kingdom 
Poland 
United States 
Switzerland 
REVENUES 
4,547 
EBITA 
415 
Electronics  
Defence & 
Security 
 
ORDERS 
8,558 
BACKLOG 
15,160 
Electronics Division 
Leonardo SpA 
Leonardo UK Ltd 
Leonardo DRS  
Cyber Security Division 
Leonardo SpA 
Leonardo UK Ltd 
 
MBDA (25%*) 
Elettronica SpA (31.33%) 
Hensoldt AG (25.1%)6 
Italy 
United Kingdom 
United States 
Germany 
Israel  
Canada 
France 
REVENUES 
7,212 
EBITA 
805 
Aircraft 
 
ORDERS 
2,800 
BACKLOG 
8,554 
Aircraft Division 
Leonardo SpA 
GIE ATR (50%*) 
Italy 
France 
REVENUES 
3,085 
EBITA 
415 
Aerostructures 
 
ORDERS 
420 
BACKLOG 
1,075 
Aerostructures Division 
Leonardo SpA 
Italy 
REVENUES 
475 
EBITA 
(183) 
Space 
 
EBITA  
31 
 
Telespazio (67%*) 
Thales Alenia Space (33%*) 
Avio SpA (29.63%) 
Italy 
France 
 
(*) Joint Venture. 
Other main subsidiaries and investee: Leonardo Global Solutions SpA, NHIndustries SAS., Orizzonte Sistemi Navali SpA.   
 
 
                                                           
5 The sectors are five following the split between Aircraft and Aerostructures, while the Space sector is consolidated under the equity method and 
does not contribute to the Group revenues. 
6 The transaction was finalised in January 2022.

Report on Operation at 31 December 2022 
17 
 
BUSINESS MODEL 
Research & Development  
Innovation, technology and sustainability are the factors 
underlying Leonardo’s strategy which are integrated with each 
other and on which its competitiveness and future growth are 
founded. In line with the “Be Tomorrow-Leonardo 2030” 
strategic plan, the company’s objective is to become a driver of 
innovation, through the creation of an ecosystem centred on 
the research for product development and on technological 
research. 
€bil. 2.0 in R&D and product 
engineering  
 
Collaborations with 90 universities 
and research centres in the world 
 
 
 
Solutions and customer support  
Leonardo business model aims at partnerships with customers 
offering customised products and solutions, as well as value-
added and innovative post-sale support services: from the offer 
of integrated services to the ongoing update of hardware and 
software, whereby it ensures its customers a long-lasting 
performance, to training programs necessary to keep a direct 
contact with end-users and feed long-term strategic 
relationships. The business model is based on the capital that 
the company is committed to enhancing - people and skills, 
technologies and intellectual property, financial resources, 
industrial assets, relations and partnerships, energy and 
natural resources - to create long-term value. 
About 48,000 training hours through 
flight simulators  
 
More than 13,000 pilots and 
operators of helicopters and aircraft 
trained  
 
1st in the ProPilot’s ranking for 
quality of after-sales support and in 
the Product Support Survey’s 
ranking of AIN (Aviation 
International News) 
Data 2022

Report on Operation at 31 December 2022 
18 
 
 
 
2022 data
IMPACTS
BUSINESS MODEL
CAPITALS
PEOPLE AND SKILLS 
•
51,392 employees
•
12,200 people in R&D and engineering
FINANCIAL RESOURCES
•
€9.5 billion in purchase of goods and 
services
•
€4.1 billion personnel cost
•
€10.7 billion of net invested capital
TECHNOLOGIES AND INTELLECTUAL 
PROPERTY 
•
6.2 petaflop of computing power
•
27.1 petabyte of storage capacity
•
11 Leonardo Labs
INDUSTRIAL ASSETS
•
105 sites and main plants
•
€487 million investments in tangible 
assets
RELATIONS AND COLLABORATIONS 
•
90 Universities and research centres 
•
10,500 suppliers
ENERGY AND NATURAL RESOURCES
•
79% of electricity from renewable 
sources
•
51% of waste recovered
Business sector
RoS
Backlog
13.5%
11.2%
9.1%
40%
35%
22%
BACKLOG
€37.5 mld
REVENUES
€14.7 mld
People
Planet
Prosperity
(38.5%)
3%
The order backlog ensures a 
coverage in terms of equivalent 
production equal to about
2.5 years
MAIN TRENDS
Digital, environmental and 
technological transition 
Reduction in strategic 
dependence
Stakeholder capitalism and 
sustainable finance
Geopolitical tensions
Big data and security
New skills and 
inclusion 
Operations
Solutions and customer support
R&D
Investments on people and 
competencies
Energy and industrial efficiency
Sustainable supply chain
€1.8 billionin R&D
28% of revenues from Customer 
Support, Service and Training
Global
Driver of innovation
Strategic vision: Leonardo-Be Tomorrow 2030
Solid
•
4,989 new hires, 59% hold a STEM 
qualification, 44% under 30 and 
24% women
•
1.1 million hours of training 
delivered to employees
•
966  training opportunities including 
internship, apprenticeship, 
traineeship and school-to-work 
alternation programmes
•
-19% reduction in the injury rate 
compared to 2021
•
55% of sources of financing linked 
to ESG parameters
•
82% of purchases related to 
domestic markets
•
30% of investors are signatories to 
PRI
•
Solutions for security and progress 
in 150 countries
•
15% intensity of scope 1 and 2 
CO2e emissions reduction (LB) (*)
•
15% scope 1 and 2 CO2e emissions 
reduction (MB) 
•
4% intensity of waste produced 
reduction (*)
•
13% intensity of water 
withdrawals reduction (*)
•
7% intensity of energy 
consumption reduction (*)
(*) calculated on revenues and vs 2021

Report on Operation at 31 December 2022 
19 
 
 
STRATEGY AND OUTLOOK 
 
 
 
 
✓ TREND AND VISION TO 2030 
✓ MATERIALITY ANALYSIS 
✓ “BE TOMORROW – LEONARDO 2030” STRATEGIC PLAN  
✓ SUSTAINABILITY PLAN 
✓ 2023 GUIDANCE

Report on Operation at 31 December 2022 
20 
 
 
TREND AND VISION TO 2030 
The markets in which Leonardo operates, both nationally and internationally, are characterised by highly 
complex ongoing transformation processes and an ever-increasing level of competition, which is exacerbated 
by the entry of new players coming from countries that did not traditionally have an AD&S industry, but 
which are now growing, even in emerging technology segments, beginning to cover domestic demand and 
sometimes even entering the international market with increasing success: among these we can mention 
South Korea, Turkey, Iran and Brazil.  
In addition, there are players from adjacent civil and commercial sectors with established expertise in 
innovative technologies, such as Artificial Intelligence (AI) and Quantum Computing, which are capable of 
affecting the traditional power relations and dynamics of the AD&S industry with effects on competitive 
pressure and, consequently, on prices and margins. 
The continuing health crisis linked to the Covid-19 pandemic was added to by an international political and 
economic scene in 2022, which is not only evolving on an ongoing basis, but even further deteriorating, 
including as a result of the Russian-Ukrainian conflict. 
This new scenario is highlighted by the neologism "permacrisis", declared "word of the year 2022"7, meaning 
an "extended period of instability and insecurity", which was particularly characterised in the past year by 
the Russian-Ukrainian conflict, as well as by a significant increase in political and economic tensions in the 
Indo-Pacific region and the return of high inflation rates after a 40-year absence in the world's major 
economies and the exacerbation of the climate crisis. This situation confirms the profound and lasting change 
in the pre-existing balances, which started in 2020, leading to an epochal paradigm shift at a technological, 
cultural, social and economic level, the effects of which will still continue for a long time.  
In this scenario, Leonardo pursues its objectives concerning the improvement in the competitive positioning 
on international markets, and the creation of long-term value through responsible business conduct, the 
ongoing monitoring and an effective management of risks and opportunities, the protection of business 
continuity, a growing integration of sustainability into its business and listening to and collaborating with 
stakeholders.  
The processes and technological solutions developed by the Group are marked by a sustainable and inclusive 
development, in support of double transition, both digital and ecological, with the aim of safeguarding 
citizens, companies, institutions, territories and strategic infrastructures, which are increasingly exposed to 
the fragility of systems. However, the same solutions take on additional significance in the context of the 
political crises mentioned above, as they are dedicated to contributing significantly to the security and 
sustainability of the citizens and institutions in the states to which they are provided. 
The main trends and Leonardo’s position, which is dealt with in detail in the reference paragraphs, are 
reported below. 
 
 
 
 
                                                           
7 The Collins Word of the Year 2022 - https://www.collinsdictionary.com/woty.

Report on Operation at 31 December 2022 
21 
 
 
 
 
                                                           
8 Source: Jane’s Defence Budgets worldwide. 
9 Source: Sipri. 
10 Source: Gartner, Statista, IoT analytics. 
11 Source: SdxCentral, PwC. 
12 Source: Gartner data processing. 
Main trends 
Leonardo’s position   
Geopolitical tensions – The invasion of Ukraine by the Russian Federation was a disruptive 
event, with both short- and long-term effects. The most direct consequences are an 
increased focus on security and defence issues in the political debate and sharp growth 
compared to the past in the defence budgets of major countries (primarily NATO-
European countries). 
> 
In 2021 the world military spending reached USDbil. 2,090, up by 7% compared 
to 20208.  
> 
In 2021 there were: at least 46 active armed conflicts (1 less compared to the 
previous year) and 63 multilateral peace operations (1 more compared to the 
previous year)9. 
> 
In 2022 the areas of friction in the immediate vicinity of Europe – in addition to 
the return of high-intensity war in Europe with the Russian-Ukrainian war - were 
primarily related to regional crises in the Enlarged Mediterranean area, namely 
Libya, Syria, Iran and Yemen, with new sparks in Nagorno-Karabakh.  The Indo-
Pacific region became the scenario of greatest attention by the U.S. and other 
Allies in the region.  
> 
Segment results and outlook 
> 
Respect for human rights 
> 
Customer intimacy, quality and safety 
Big data and security – The scenario has been characterised by a renewed focus on the 
management of borders, citizen and traveller information, clinical and health data and 
information dissemination, especially through social channels: the main social networks 
have proposed and implemented technological and organisational evolutions. Security 
and big data technologies will be increasingly important to manage risks, flows and 
sensitive information and this area is precisely the object of various projects in Europe 
with regard to the industrial sector and B2B: among these, for example, the Data Act and 
European Alliance for Industrial Data, Edge and Cloud, Gaia-X and Catena-X. 
> 
It is estimated that more than 25 billion Internet of Things (IoT) devices, of which 
about 15 billion connected10, were active in 2022, with a market value of more 
than USDbil. 1,000, of which about 75% was of consumer-type11. 
> 
In 2022, the IoT security market value was estimated at about USDbil. 3.512, 
confirming the need to increase the security of new data generation and 
processing technologies.  
> 
Leonardo for the Recovery and 
Resilience Plan (NRRP) 
> 
Technological innovation 
> 
Cybersecurity and data protection 
Digital and environmental transition – The economic recovery is driven by digital and 
environmental transitions, accelerated by urgency and extraordinary programmes (such 
as the European Recovery and Resilience Facility, which translates in Italy into the National 
Recovery and Resilience Plan - NRRP), with the aim of being the engine of a new 
technological development. The European quest for technological sovereignty to be 
understood as an effective and equitable collaboration with allied industries and 
countries, for supply chain security and optimisation of investments in disruptive 
technology, may entail positive implications for the AD&S sector, and more so in the 
defence sector. Even before the Ukraine crisis, the issue was in fact at the centre of the 
> 
Leonardo for the Recovery and 
Resilience Plan (NRRP)  
> 
Be tomorrow – Leonardo 2030 
Strategic Plan 
> 
Sustainability Plan  
> 
Decarbonisation path

Report on Operation at 31 December 2022 
22 
 
 
                                                           
13 Source: “The net-zero transition. What it would cost, what it could bring” – McKinsey. 
14 Source: Destination 2050 website. 
15 Source: IHS markit, New York Times 
16 Source: The Economist, New York Times 
debate in the AD&S industry to support the renewed strategic ambition of Europe and its 
member states, including at international level. 
> 
To achieve Net Zero Transition, investments of USDbil. 275,000 will be required 
globally over the period from 2021 to 2050, equal to an average of USDbil. 9,200 
per year 13. 
> 
Air transport is essential for economic and social development, ensuring global 
connections. With the Destination 2050 initiative, the five major European 
aviation associations committed to achieve “net zero CO2 emissions” in the 
European civil aviation sector within 205014; a similar commitment was 
undertaken first by the International Air Transport Association (IATA) and then 
by the International Civil Aviation Organization (ICAO) in October 2022, thus 
aligning the goals of industry and national governments. 
> 
The European Union has for the first time launched projects and allocated funds 
to incentivise joint procurement of defence solutions and equipment, thus 
accelerating the technology transition in the sector, although it has not yet 
increased its investment. 
> 
Technological innovation  
Reducing strategic dependencies – The Ukrainian crisis has led, among indirect effects, to 
shocks with regard to the procurement of energy resources and various raw materials for 
the precision engineering industry, bringing out the importance of the concept of strategic 
independence, which had already emerged during the pandemic crisis with the disruption 
of global supply chains. Technologies that, along with process innovation, have continued 
to be the drivers of institutional, business and individual resilience, are also being 
characterized as one of the tools of geopolitics, offering new strategic significance to 
investments in frontier technology and a key role for companies in hi-tech sectors. 
> 
In the automotive market, lower demand for high-volume (about 3,000 chips 
per vehicle), low-value-added automotive components has resulted in 
manufacturers losing priority to the growing demand for chips for higher value-
added solutions (smartphones and computers)15. In 2022, the importance of 
establishing a footprint in the business segment of semiconductor supply chain 
was further reaffirmed by the investment plans of the European Union (Chips 
Act) and the U.S. (Chips & Science Act) and, even more so, by the export control 
project put in place by the U.S. to limit Chinese access to the most advanced 
semiconductors.  
> 
The prolonged closure of Chinese plants hit by the pandemic has resulted in a 
reduction in supply, the effects of which have been much more pronounced 
considering the lack of corresponding reduction in Western demand16. These 
impacts, in the upstream of the value chain distribution, were in addition to 
those resulting from congestion at ports as early as from 2021, caused by 
increased shipments and labour shortages.  
> 
Supply chain value 
> 
Business continuity 
Stakeholder capitalism, integrated sustainability and sustainable finance - There is an 
unprecedented awareness of and commitment to sustainability issues, with respect to which 
companies and financial institutions are being called upon to direct their strategies. The growing 
integration of ESG factors into business strategies and processes also involves the AD&S sector, 
which must be recognised as a key sector for sustainability from an environmental and social 
perspective. 
> 
The recently approved or pending European legislation (i.e., Corporate Sustainability 
Reporting Directive, Corporate Sustainability Due Diligence Directive) leads entities 
> 
Sustainability plan 
> 
Financial planning and 
investment management 
> 
Profile (Shareholders 
composition)

Report on Operation at 31 December 2022 
23 
 
 
 
                                                           
17 Source: PRI website. 
18 Source: Strategic Intelligence World Economic Forum. 
19 Source: cybersecurity360. 
20 Source: National Cybersecurity Agency. 
towards full integration of sustainability into strategy and management decisions on 
the part of European companies. 
> 
Following the European Council's conclusions published in March 2022 on the need to
facilitate access to private financing for the defence sector, the European Defence 
Agency (EDA) launched a study aimed at analysing the business in the defence sector 
in relation to ESG criteria and the objectives set out in the relevant frameworks, 
measuring their contribution. 
> 
As of 2022, the investors that are signatories of the Principles of Responsible 
Investment supported by the United Nations were more than 4,900, and managed 
assets under management for more than USDbil. 121,000 according to the ESG 
criteria17. 
> 
Information on EU Taxonomy 
for sustainable activities 
New skills and inclusion – The implementation and management of ecological and digital 
transition requires widespread development of new skills, scientific and digital above all, on
which the competitiveness of businesses depends. The reskilling of workforce and the 
promotion of gender equality are among the main levers on which to act in the A&D sector. 
> 
In Europe and the United States, demand for physical and manual skills in repeatable 
tasks is expected to decline by 30% over the next decade, according to McKinsey, while 
demand for technological skills such as programming is expected to grow by more 
than 50%. 
> 
By 2025, some 85 million jobs could be lost due to the emerging division of labour 
between humans, machines and algorithms, according to a World Economic Forum 
report released in 202018. 
> 
In the next three years, about 3.5 million jobs related to cyber security will remain 
unfilled globally19, while companies and Public Authorities will need about 100 
thousand new cyber security experts in Italy20. 
> 
Sustainability plan 
> 
Inclusion and employment 
protection 
> 
Enhancement of people and 
skills  
> 
Technological innovation   
> 
Value for territories and 
communities

Report on Operation at 31 December 2022 
24 
 
MATERIALITY ANALYSIS  
The strength of a business model leverages stakeholder engagement, dialogue and listening, which is an 
element that Leonardo places at the center of its vision. With this in mind, Leonardo conducts annually the 
materiality analysis, which is a process aimed at integrating the perspective of internal and external 
stakeholders into the Group's strategy. The process makes it possible to identify risks and opportunities 
associated with the organization's impacts on the economy, the planet and people and the company's ability 
to create value in the short, medium and long term. 
The material topics that emerge from the process are a key element to guiding the definition of corporate 
strategy, as well as the assessment of risks and opportunities related to each topic. In line with the 
requirements of the GRI standards, the list of material topics - defined on the basis of the impacts of the 
Group and its value chain - emerges from an in-depth analysis based on an approach that integrates a data-
driven methodology with extensive consultation with external stakeholders and top management. 
  
List of material topics 
PILLAR 
TOPICS 
Governance 
Responsible and ethical business conduct 21 
Business continuity 22 
Sound Corporate Governance 
 
People 
Working conditions, health and safety  
Skill management and talent attraction  
Active support in developing skills in the STEM area 
Diversity and inclusion 
 
Planet 
Environmental impact of the use of materials  
Natural resources management and conservation of ecosystems  
Climate change, adaptation/mitigation  
Development of Earth observation technologies  
 
Prosperity 
Citizen security 
Solutions’ quality, security and performance  
Cyber security and data protection 23 
R&D, innovation and advanced technology 24 
Sustainable supply chain  
Customer relations  
Digital transformation25 
                                                           
21   This topic is also covered in the pillar People. 
22   This topic is also covered in the pillar People. 
23   This topic is also covered in the pillar Governance. 
24   This topic is also covered in the pillar Planet. 
25   This topic is also covered in the pillar People and Planet.

Report on Operation at 31 December 2022 
25 
 
In 2022, Leonardo strengthened the materiality analysis by intensifying and deepening the dialogue with its 
stakeholders. With the support of a group of experts and the involvement of key stakeholders, Leonardo has 
made its materiality analysis process more robust, including in view of a profoundly evolving regulatory 
environment and reporting standards. With respect to the process of previous years, which focused on the 
dimension of "materiality" and comparing the internal and external perspective, the methodology adopted 
for the 2022 materiality analysis is based on the "impact" perspective of the Group and its value chain, in 
accordance with the GRI Universal Standards 2021.  
After an in-depth preliminary analysis and the organisation of two focus groups with key Leonardo 
stakeholders, one in Italy and one in the United Kingdom, the positive and negative impacts, both potential 
and current, were identified, which are generated by the Group along the entire value chain. These were 
then prioritised through stakeholder and top management consultation, which was subsequently added to 
by extensive data-driven document analysis. 
The process led to the definition of material topics. In particular, the most significant impacts and, 
consequently, the related material topics are aligned with Leonardo's core business, reflecting the current 
security scenario, the technology and innovation sphere, elements related to working conditions and 
business integrity. In addition, any issue concerning climate change mitigation and adaptation remains a key 
matter, as emerging from the stakeholder consultation. The results of the analysis will support and help guide 
the identification of strategic objectives, the definition of the Sustainability Plan and reporting. 
During the 2022 materiality process, a preliminary reflection on dual materiality was also initiated with the 
stakeholders involved. The evidence that emerged will direct the integration of future regulatory 
requirements, especially at the European level with the Corporate Sustainability Reporting Directive, within 
the scope of Leonardo's processes.

Report on Operation at 31 December 2022 
26 
 
BE TOMORROW – LEONARDO 2030 STRATEGIC PLAN 
In 2020 Leonardo launched the “Be Tomorrow – Leonardo 2030” Plan, a renewed strategic vision projected 
over the next years, even to adapt periodically and with the necessary flexibility to the changing relevant 
context, leveraging its technology skills, as well as its human and intellectual capital. 
“Be Tomorrow – Leonardo 2030” identifies the Group’s strategic guidelines, with the aim of making the 
company even more solid, global and a driver of innovation. 
Strategic 
guidelines 
Solid 
Investment grade 
Profitable 
Solid cash conversion capacity 
 
Global 
World leading company in 
Helicopters and in Simulation and 
Training solutions 
Number one in Europe in Defence 
Electronics  
Key player in international 
cooperation programmes in 
Aeronautics  
European key player in Unmanned 
systems and solutions in all 
domains  
Partner to Security Institutions 
National leading partner for 
infrastructure and land monitoring 
(Global Monitoring) 
National partner for the 
implementation of the NRRP 
 
Driver of innovation 
Fully digitalised in all processes, 
production and offering 
Engine of an innovative eco-
system on cross-sector technology 
Leading benchmark in green 
innovation in the AD&S sector 
 
This ambitious objective is based on three main lines of sustainable growth: 
Strengthen Our Core - Further strengthen our core business and operations, including through a more 
focused and homogeneous portfolio of activities: 
> 
increasing the critical mass in strategic areas, in particular Helicopters, Electronics, Cyber security and 
Unmanned vehicles, to strengthen its organisation and gain leadership positions at international 
level; 
> 
strengthening its footprint in global markets; 
> 
evolving its business approach from being a supplier of products to becoming a global partner. 
Transform to Grow – Transform processes to make the organisation more modern and flexible and seize new 
opportunities:  
> 
diversifying the business portfolio, enhancing cross-sector and distinctive competencies - 
Digitisation, Command and Control, Connectivity, Cyber Security; 
> 
meeting the needs of our customers more and more efficiently, with innovative service-based offer 
models (X-as-a-Service), measuring customer satisfaction on an ongoing basis and excellence in 
Simulation & Training solutions and systems;

Report on Operation at 31 December 2022 
27 
 
> 
investing in people and skills to be able to support business ambitions. 
Master the New – Create new technologies and new high-tech markets to lead innovation: 
> 
through Leonardo Labs, technology incubators for the development of innovative competencies 
across all the Group's business; 
> 
increasing the share of investments in research activities; 
> 
focusing on Intelligent Autonomous Systems to achieve leadership in all domains. 
On this basis, Leonardo, as a leading industrial and technological company, intends to act as a driver for 
development to give its contribution to global safety and progress: 
> 
by contributing to digital independence and autonomy in a pan-European view; 
> 
by supporting technological sovereignty as a vital condition for the growth of the Company and of 
the countries in which it operates; 
> 
by promoting a new approach to sustainability, integrated across the business, which is outlined in 
the Sustainability Plan, in terms of technological and process innovation, inspired by the SDGs of the 
United Nations 2030 Agenda and the guidelines of the European Green Deal; 
> 
by developing new capabilities, both in civil and military sectors, in order to respond to the challenges 
posed by the complexity of the digital era: interdependence, interrelationship and speed of 
evolution. 
With these aims in mind, Leonardo has concentrated its attention on the implementation of the Strategic 
Plan in the last two years, driven by the principle of selectivity and focus, thus allowing results to be achieved 
in line with or above pre-pandemic levels and key strategic projects to be successfully put in place. 
Key strategic 
projects 2020-
2022 
 
Strengthen Our Core 
✓ Partner of the Global Combat 
Air Programme (GCAP) 
✓ Acquisition of 30% of GEM 
✓ Acquisition and merger of 
Kopter 
✓ Acquisition of 70% of Alea 
✓ Acquisition of 25% of Hensoldt 
✓ Completion of the merger of 
RADA into Leonardo DRS and 
of its automatic listing  
 
Transform to Grow 
✓ Launch of the LEAP 
programme for supply chain 
development  
✓ Creation of Integrated Flight 
Training School (IFTS) 
✓ Relaunch plan for 
Aerostructures 
✓ Industrial reorganisation of 
Electronics Division 
✓ Launch of the X-2030 platform 
✓ Creation of the National 
Competence Hub for 
Digitalisation  
✓ Proposal for a new offer for 
Global Monitoring 
 
 
Master the New 
✓ Creation of Leonardo Labs 
✓ Leadership in ESG ratings and 
indexes 
✓ Sustainability operational 
model adopted by the Group 
✓ Commitment to the Science-
Based Target project 
✓ Participation in the Skydweller 
programme 
✓ Operation of davinci-1 
supercomputer 
✓ Launch of the Cyber & Security 
Academy 
✓ Launch of the Business 
Innovation Factory 
✓ Setting out a holistic strategy 
in the Unmanned systems 
segment

Report on Operation at 31 December 2022 
28 
 
OBJECTIVES AND SUSTAINABILITY PLAN 
PILLAR 
OBJECTIVES 
PROGRESS 
TARGET YEAR 
SDG/Material topics 
Governance 
Extending Trade Compliance Directive to the Group 
2022 
 
 
Sound corporate governance 
Responsible and ethic 
business conduct 
Expanding the business compliance training to other 
types of third parties (distributors/resellers), making 
it a mandatory prerequisite for the completion of 
the engagement 
 
2022 
Renewal/maintenance of the ISO 37001:2016 “Anti-
Bribery Management System” certification 
 
2023 
People 
More than 100 training hours per employee in the 
period 2018-2022 
 
2022 
 
 
 
 
 
 
Diversity and inclusion 
Skills management and 
talent attraction  
Active support for the 
development of STEM skills 
Under 30 equal to at least 40% of total new hires 
2022 
Women equal to at least 32% of total new hiresI 
2022 
2025 
Women equal to 30% of total new hires in STEM 
areas 
 
2025 
20% female representation at management levels 
2025 
Women equal to 20% of total employees 
2025 
27% of women in succession plans 
2025 
Planet 
10% reduction in consumption of electricity 
withdrawn from external grid II 
 
2025 
 
 
 
 
 
 
Fighting climate change, 
adaptation and mitigation, 
Environmental impact of 
materials use 
50% reduction in Scope 1 + Scope 2 emissions 
(market based) III 
 
2030 
25% reduction in water withdrawals IV 
2030 
15% reduction in the amount of waste produced IV 
 
2030 
Prosperity 
Managing more than 75% of the value of orders 
placed by Leonardo Divisions with digital 
collaboration platforms V 
 
2022 
 
 
 
 
 
 
 
 
 
Sustainable supply chain 
R&D, innovation and 
advanced technology 
Cyber security and data 
protection  
Digital transformation 
Implementing supply chain development 
programmes and medium/long-term partnerships, 
focused on SMEs, to improve business sustainability 
 
2023 
Raising awareness of/delivering training on SDGs 
and supporting tools for reporting to more than 80% 
of key suppliers (over 500 suppliers) 
 
2023 
100% of LEAP partners with set targets and plans on 
green energy, CO2 emission reduction, waste 
recycling, water consumption 
 
2023 
Increasing computing power by 40% per capita Vi 
2025 
Increasing storage capacity by 40% per capita Vi 
 
2025 
I The 2022 target is calculated excluding blue collar workers; the 2025 target is calculated on 
total recruitment. 
II Calculated in relation to revenues. 2019 year baseline. 
III Reduction in absolute value. 2020 year baseline. 
IV Reduction in absolute value. 2019 year baseline. 
V Includes recurring suppliers. Leonardo DRS is not included in the scope. 
VI Calculated as the number of flops (Floating Point Operations Per Second) and 
bytes in relation to employees in Italy. 2020 year baseline. 
 Objective achieved 
 
On track 
 
Objective not achieved 
          Objective updated

Report on Operation at 31 December 2022 
29 
 
The economic, geopolitical and pandemic changes taking place globally have made the transition process to 
sustainability necessary and no longer postponable: companies have a key role, alongside institutions and 
civil society, in preserving the future and security of the planet and its inhabitants. The pursuit of the 
Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and the integration of 
environmental, social and governance (ESG) dimensions into business are principles that guide the actions 
Leonardo has outlined to pursue sustainable success, a key element of the “Be Tomorrow - Leonardo 2030” 
Strategic Plan. 
In this sense, the sustainability goals defined by Leonardo underpin long-term growth and demonstrate the 
Company's commitment to its stakeholders with regard to ESG issues. In 2022, Leonardo gave further 
impetus to its sustainability strategy, committing itself, as part of the Science Based Target initiative, to define 
an ambitious target to reduce direct and indirect CO2 emissions, in line with the targets set in the Paris 
agreement. Further acceleration was given with regard to water consumption and waste production, for 
which the reduction targets were updated to absolute and no longer intensity targets. This change is a key 
step in the strategy of decoupling industrial growth from environmental impact. 
The Leonardo sustainable goals cover People, Planet, Prosperity and Governance dimensions with specific 
monitoring targets and related KPIs for each area.  
The Sustainability Plan 
The Sustainability Plan translates the Group's sustainability vision and objectives into projects and initiatives 
that can be measured in the short, medium and long-term, through a structured model guided by a data-
driven approach. The Plan, focusing on the entire value chain, - from research and development to 
operations, from customer support solutions to social impacts - is divided into 8 clusters, each of which 
includes specific projects, measured by KPIs acting on the ESG pillars. 
The Plan has a three-year duration and, in line with Leonardo's sustainability operating model, is subject to 
an annual review and update process to better target the strategy and initiatives. During 2022, the Plan was 
further strengthened, in line with the guidelines provided in the 2021 materiality analysis, through initiatives 
that respond to stakeholder demands, with the aim of translating sustainability into competitive advantage 
and mitigating risks. 
The 2022 Plan includes a total of 100 projects distributed on the eight clusters and classified in two main 
types: the “tactical” ones, which look at short- to medium-term benefits and contribute to the achievement 
of the Group's Sustainability Goals (48 projects), and the “transformative” ones, which will produce medium- 
to long-term impacts (52 projects), intervening, in particular, on the sustainability of the products and 
services provided by the Group. The Plan’s performance is measured, mainly within the context of tactical 
projects, through specific ESG KPIs that are monitored also in order to achieve Sustainability Goals. The 
robustness, consistency and coherence of ESG data are ensured by a bottom-up collection and verification 
process. Both progress data on single projects and economic data are collected and analysed to verify the 
performance of the activity and to direct actions and resources towards the achievement of the objectives 
communicated to stakeholders.

Report on Operation at 31 December 2022 
30 
 
 
 
The Plan focuses on six core SDGs: development of competencies (SDG 4), creation of decent work and growth of partners (SDG 8), support to innovation and 
digital transformation (SDG 9), development of solutions for the security of people, infrastructures and territories (SDG 11) and climate action (SDG 13), adding 
sustainable production models (SDG 12) to its business activity. The Plan also has significant impact on additional SDGs: the reduction of food waste (SDG 2), the 
development of solutions to combat health emergencies and promote well-being initiatives for people (SDG 3), the promotion of a culture that fosters gender 
equality (SDG 5), water resource optimization (SDG 6), energy efficiency and the higher use of renewable sources (SDG7), the mitigation of environmental impact 
on the seas and in support of biodiversity (SDGs 14, 15), the continuous strengthening of the responsible business model and the protection of human rights 
(SDG 16).
Governance
(1) The association between clusters and pillars is made according to impact and 
prevalence criteria
Pillar
Main guidelines of the Sustainability Plan
The Sustainability Plan
clusters, value chain and pillars (1)
Impact on
SDGs
Planet
Prosperity
People
Decarbonisation
› Identify and implement emission reduction initiatives along the value chain.
› Improve energy efficiency initiatives.
Reducing environmental impact and improving circularity
› Reduce, reuse, recycle waste; encourage plasticless and paperless projects.
› Reduce water withdrawals and improve water efficiency.
› Improve circularity.
Sustainable supply chain
› Promote the sustainable development of the supply chain.
› Strengthen the digitisation of purchases.
› Define measures to prevent ESG risks in the supply chain.
Sustainability solutions
› Develop solutions for the protection of people and territories (e.g. for agriculture, 
forestry and environmental protection).
› Develop low-emission solutions for the transport sector.
› Develop solutions for Industry 4.0.
Business integrity
› Improve control and governance of commercial transactions.
› Strengthen the evaluation and monitoring of human right issues.
Diversity and inclusion, training and STEM
› Promote gender equality.
› Spread sustainability culture.
› Strengthen STEM programmes.
Core
Altri
Research and 
Innovation
Energy and 
industrial 
efficiency
Environmental
management 
and
Circular
economy
Sustainable supply 
chain
Mobility solutions
and Security 
Systems
Business 
integrity and 
Human rights
Social 
commitment, 
Scientific 
citizenship and 
Inclusion
Earth 
observation
and Emergency 
management
100 sustainability
projects

Report on Operation at 31 December 2022 
31 
 
The following is a summary of the progress of the Sustainability Plan, on each of the pillars. 
 
Pillar 
Progress of the Plan  
Governance 
The Governance and People pillars are associated with initiatives aimed at strengthening business integrity and 
respect for human rights and those related to social engagement, promoting scientific citizenship and inclusion, 
encapsulated in the following clusters:  
> 
business integrity and human rights – It Includes some of the initiatives that underpin the responsible 
business model. Among them are trade compliance guidelines that have been integrated with the Human 
Rights Impact Assessment tool, which aims to assess the main risk factors of human rights violations in 
Sensitive Countries and along the value chain. 
People 
> 
Social Engagement, scientific citizenship and inclusion – It encapsulates initiatives to spread a culture of 
sustainability, stimulate engagement, promote STEM disciplines, and foster diversity and inclusion. 
Among major projects in 2022 are the provision of a sustainability course for all employees, the 
development of succession plans, which would be also aimed at strengthening gender equality, and 
initiatives for schools, such as the Role model project, STEM Lab, and the Young Cybersecurity Academy. 
In addition, the Group's social commitment is also strengthened through technology transfer of company 
know-how. Emblematic in this context is the project with the start-up Avanchair, which aims to provide 
people with disabilities and caregivers with support that can improve everyday life. 
Planet 
The Planet pillar is impacted by the Sustainability Plan's projects ranging from research and development to 
operations, through sustainable supply chain and solutions, grouped according to the following clusters: 
> 
Research and development – It includes most of the Plan's transformation initiatives linked to long-term 
goals, such as reducing the environmental impact of operations through technological innovations, the 
use of new materials, and the development of new technology aimed at reducing the Group's carbon 
footprint. These include projects in line with the commitment to SBTi, such as the Next Generation 
Tiltrotor, virtual training technologies, the use of Sustainable Aviation Fuels, and the development of new 
thermoplastic materials. 
> 
Energy and Industrial Efficiency – It encompasses all tactical projects aimed at streamlining operations, 
improving industrial performance, decarbonising production activities, and reducing energy consumption. 
During 2022, Leonardo achieved notable results, reducing CO2 emissions in a significant manner, thanks 
to the contribution given by initiatives such as the LED full potential programme, the replacement of gas 
SF6 in the helicopter production cycle, and energy efficiency measures. 
> 
Environmental management and circular economy – It contains tactical initiatives aimed at minimising 
environmental impacts and fostering the transition to a circular economy model. Among the major 
projects in 2022 are recycling of carbon fiber composite materials and of WEEE (Waste from Electrical and 
Electronic Equipment), as well as initiatives aimed at decreasing water withdrawals and waste, and 
reducing the use of plastics. 
Prosperity 
Notwithstanding the significant interconnections with the Planet pillar, the Prosperity pillar is impacted by 
initiatives that mainly concern the sustainable supply chain and the services and solutions made available by the 
Group that enable sustainability, mainly belonging to the following clusters:  
> 
Sustainable Supply Chain – It encapsulates the Plan's projects involving Leonardo's suppliers - mostly 
SMEs - in initiatives focused on digital transformation, cyber security, and social and environmental 
responsibility. During 2022, for example, specific training initiatives were conducted to improve suppliers' 
awareness of ESG issues and related sustainability performance, even with a view to decarbonisation. 
> 
Earth observation and Emergency management – It contains projects that can monitor the condition of 
the planet and improve the lives of citizens. These include satellite monitoring for precision agriculture 
and that of infrastructure, Space Situational Awareness, monitoring for climate change, and the 
development of digital platforms for coordinating interventions in emergency and disaster situations. 
> 
Mobility solutions and Safety systems – It includes cutting-edge technologies to enable sustainable and 
safe mobility. These include smart mobility solutions, which, through the use of technology such as 5G 
and Machine Learning algorithms, enable improved efficiency in public transport, or digital platforms for 
improving efficiency and safety of company operations (EMODS).

Report on Operation at 31 December 2022 
32 
 
GUIDANCE 2023 
The expected 2023 performance confirms the sustainable growth path accompanied by increasing 
profitability and cash flow generation, notwithstanding a context characterized by higher macroeconomic 
and geopolitical uncertainties. 
The actions promptly implemented by the Group allow the mitigation of effects generated by inflationary 
pressures due to the Russia-Ukraine conflict. 
Based on the current assessment of the effects deriving from the geopolitical situation on supply chain, 
inflation and global economy, and assuming no additional major deterioration, Leonardo expects to deliver 
in 2023: 
• 
High level of New Order Intake of ca. 17 € billion, confirming a strong positioning of the Group's products 
and solutions and presence in key markets 
• 
Revenues of € 15.0 – 15.6 billion, up compared to 2022, thanks to the contribution of new orders and 
the development of portfolio activities on defence/governmental programmes 
• 
increasing profitability, with EBITA of € 1,260 – 1,310 million, driven by growth in volumes and continued 
solid industrial profitability of the main business areas, despite the mix effect of programmes still under 
development and relevant shares of prime contractor revenues; the estimate still reflects some pressure 
in the civil Aeronautics, mainly Aerostructures, despite a gradual improvement year over year 
• 
FOCF of ca. € 600 million, with the defence/governmental business guaranteeing solid cash generation, 
while Aerostructures continues to absorb cash although slightly less than 2022 
• 
Group Net Debt of ca. € 2.6 billion, driven by cash flow generation and assuming dividend payment of 
€0.14 per share and new leases for ca € 100 mln 
 
 
FY 2022 
FY2023 Guidance (1) 
New Orders (€bn) 
 
17.3 
ca. 17 
Revenues (€bn) 
14.7 
15.0 – 15.6 
EBITA (€mln.) 
 
1.218 
1.260 - 1.310 
FOCF (€mln.) 
539 
ca. 600 
Group Net debt (€bn.) 
3.0 
ca. 2.6 (2) 
 
2023 exchange rate assumptions: € / USD = 1.10 and € / GBP = 0.87 
1) Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy 
and assuming no additional major deterioration 
2) Assuming dividend payment and new leases for ca 100 mln

Report on Operation at 31 December 2022 
33 
 
 
GROUP RESULTS AND FINANCIAL POSITION 
 
 
✓ 2022  PERFORMANCE AND FINANCIAL RESULTS 
✓ ESG PERFORMANCE INDICATORS

Report on Operation at 31 December 2022 
34 
 
2022 PERFORMANCE AND FINANCIAL RESULTS 
The performance and financial results for 2022 confirm the path to growth and increase in the profitability 
and cash flows that the Group has been embarked on since 2018. 
New Orders showed sharp growth, coming to over €bil. 17, up by more than 20% compared to 2021 and 
consolidating the portfolio at over €bil. 37. This positive performance was recorded in all business areas to a 
various extent, confirming the Group's commercial strength and the effectiveness of its diversified and multi-
domain offering of products, systems and solutions that meet the complex operational requirements 
imposed by its Customers. 
Revenues show an increase of more than 4%, which has now been consolidated over the years, in particular 
as a result of the ongoing positive performance of Helicopters and of Defense Electronics & Security, which 
offset the decline recorded in Aircraft in 2022, as well as of the lower contribution deriving from the sale of 
subsidiary Global Enterprise Solutions. 
EBITA showed a significant double-digit increase, which was driven by Defense Electronics & Security, with 
the European component giving a large contribution, thus bringing ROS to exceed the 8% threshold. The 
positive performance of EBITA compared with the previous year is even more pronounced, equal to about 
14%, if we consider that, unlike 2021, EBITA for the year includes the charges related to the COVID emergency 
as costs that are now recurring in nature, as clearly shown by the related restated figure for 2021 in the 
summary table of the Group's KPIs.  
The 2022 net result also benefitted from the capital gain realised with regard to the sales of the businesses 
of Leonardo DRS (Global Enterprise Solutions and Advanced Acoustic Concepts) described in the section on 
“Industrial transactions”. 
The financial performance was particularly substantial and significant with cash flow (FOCF) showing an 
increase of 158%, demonstrating the Group’s ability to put its efficiency plan on a robust footing, thus 
boosting cash generation in terms of structure.  
The Group Net Debt showed a reduction of 3.4% compared to 2021, coming to €bil. 3; the significant cash 
generation and the proceeds from the sale of Global Enterprise Solutions and of the Advanced Acoustic 
Concepts Joint Venture allowed the Group to continue on the path to reduce its debt while strengthening 
the core business through the acquisition of 25.1% in the German company Hensoldt, the pro-quota profit 
of which is recognised under consolidated EBITA for 2022, and through consolidating the Israeli company 
RADA into the subsidiary Leonardo DRS’ financial statements. 
The results that have been achieved are even more important in consideration of the lower contribution 
deriving from the sale of the Global Enterprise Solutions business of subsidiary Leonardo DRS during the year; 
they bear witness above all to the soundness of the Group's industrial structure, despite a general and 
national economic framework characterised by inflationary pressures on prices of energy and raw materials, 
as well as Leonardo’s ability to respond to challenges which it already demonstrated during the period of 
pandemic.

Report on Operation at 31 December 2022 
35 
 
Key Performance Indicators (KPI) 
The KPIs for the period and the main changes in the Group's performance are shown below (for the definition 
of ratios, reference should be made to the paragraph on Non-GAAP Alternative Performance Indicators). 
Insights into the Business sectors performance are dealt with in the specific section dedicated to the trend in 
each of them. 
2021 
2022 
Change 
New orders 
14,307
17,266
20.7% 
Order backlog 
35,534
37,506
5.5% 
Revenues 
14,135
14,713
4.1% 
EBITDA 
1,626
1,763
8.4% 
EBITA 
1,123
1,218
8.5% 
EBITA Restated (*) 
1,069
1,218
13.9% 
ROS 
7.9% 
8.3% 
0.4 p.p. 
ROS Restated (*) 
7.6% 
8.3% 
0.7 p.p. 
EBIT 
911
961
5.5% 
EBIT Margin 
6.4% 
6.5% 
0.1 p.p. 
Net result before extraordinary transactions 
587
697
18.7% 
Net result 
587
932
58.8% 
Group Net Debt 
3,122
3,016
(3.4%) 
FOCF 
209
539
157.9% 
ROI 
12.4% 
12.0% 
(0.4) p.p. 
 
(*): 
EBITA and ROS have been restated to include charges related to the COVID emergency, which until the 2021 financial statements were 
excluded from these indicators as they were classified as 'non-recurring charges'(€mil. 54 in 2021). 
The Group data do not include the contribution given by the Joint Ventures (JVs) and associates invested in by the Group (mainly including GIE-ATR in 
the Aircraft sector, MBDA and Hensoldt in the Defence Electronics & Security sector and JVs in the Space sector). The Group’s business conducted 
through the JVs and associates and their strategic and financial importance remain unchanged, while for reporting purposes the contribution given by 
the aforesaid companies is only recognised at the level of profitability ratios (EBITA, EBIT and Net Result) as a result of the valuation at equity and, 
from a financial point of view, limited to the dividends collected. In 2022 the Group strategic JVs and associates recorded total revenues of €bil. 3.0 
(€bil. 2.5 in 2021) as concerns Leonardo’s share: as a result, the Group’s aggregate pro-forma revenues would come to about €bil. 17.7 (€bil. 16.6 in 
2021). 
 
As previously mentioned, the 2021 figures shown above include the contribution given by the GES business 
for 12 months. In order to make the Group's performance of operations more comparable, which, conversely, 
includes the contribution given by this business for only 7 months in 2022, some performance indicators for 
the comparative period, excluding the months from August to December 2021, are reported below: 
           2021 Reported     2021 Isoperimeter                             2022                        Change 
New orders 
14,307 
14,267
17,266
21.0% 
Revenues 
14,135 
14,050
14,713
4.7% 
EBITA 
1,123 
1,114
1,218
9.3% 
EBITA Restated (*) 
1,069 
1,060
1,218
14.9% 
ROS 
7.9% 
7.9%
8.3%
0.4 p.p. 
ROS Restated (*) 
7.6% 
7.5%
8.3%
0.8 p.p. 
FOCF 
209 
188
539
186.7% 
 
(*): Figures have been restated to include charges related to the COVID emergency, which until the 2021 financial statements (€mil. 54) were excluded 
from these indicators as they were classified as 'non-recurring charges'.

Report on Operation at 31 December 2022 
36 
 
 
Commercial and business performance 
 The following graphs show the performance of the four main business and economic ratios in the last 5 
years, which highlight the continued growth achieved by the Group. 
  
New orders came to €bil. 17.3, showing significant growth of 20.7% (21% on a like-for-like perimeter) 
compared to 2021, even thanks to the contract signed with the Polish Ministry of Defence for the AW149 
helicopters worth €bil. 1.4 and to the contribution given by Defense Electronics & Security in its U.S. 
component. More generally, the trend in new orders in the five-year period from 2018 to 2022 clearly 
highlights the effectiveness of the Leonardo Group's commercial offer thanks to the widespread geographic 
distribution of its sales organisation and the competitiveness of a diversified offering of products and multi-
domain solutions in the market of Aerospace and Defense, both military and commercial, which, even in the 
absence of large one-shot orders, allows the growth in portfolio of future activities. 
Diversification of supply, geographic distribution, quality of products and integrated solutions that meet the 
complex operational requirements imposed by the customers, and innovation are the Group's sound 
distinguishing features that have enabled it to strengthen and expand the Group's market share during the 
aforesaid five-year period marked by global shocks of great importance and impact such as the pandemic, 
the changed international geopolitical environment, and the inflationary repercussions on prices of energy 
and raw materials. 
The order backlog ensures a coverage in terms of equivalent production equal to about 2.5 years. The book-
to-bill ratio (the ratio of New Orders for the period to Revenues) was equal to about 1.2.  
Revenues (€bil. 14.7) showed a positive trend with an increase of 4.1% (4.7% on a like-for-like perimeter) 
compared to 2021 (€bil. 14.1), mainly due to the performance of Helicopters and Defense Electronics, in both 
the European and U.S. components. The civil component of Aerostructures also showed signs of recovery. As 
a result of the growth of the Order Backlog mentioned above, the Leonardo Group has been able to raise its 
level of operation, year-on-year and on an ongoing basis while boosting Revenues by almost €bil. 2.5 (+20%) 
over the five-year period mentioned above. Despite the inevitable downturns in the period of pandemic as a 
result of the restrictions imposed by government authorities and the decline in production volumes in the 
civil aviation sector, the Leonardo Group has been able to put in place any necessary action while showing 
capacity to respond and adapt to the complex events that have occurred. This made it possible to limit the 
impacts during the period, on the one hand, and on the other, to enable a rapid recovery in business volumes 
as confirmed by the 2022 results. 
EBITA, equal to €mil. 1,218, recorded an increase of 13.9% compared with the Restated figure for 2021 (€mil. 
1,069) (+14.9% on a like-for-like perimeter), with ROS coming to 8.3%, showing an improvement of 0.7 p.p. 
vis-à-vis the comparative Restated figure. As stated above, the comparative values have been restated to 
make them more comparable with the trend in the current period, which also includes the charges related 
1,155
1,262
1,024
1,326
1,401
1,120
1,251
938
1,123
1,218
800
900
1,000
1,100
1,200
1,300
1,400
1,500
2018
2019
2020
2021
2022
EBITA
Pro-forma senza Aero
12,240
13,784
13,410
14,135
14,713
12,000
12,500
13,000
13,500
14,000
14,500
15,000
2018
2019
2020
2021
2022
Revenues
36,118
36,513
35,516
35,534
37,506
15,124
14,105
13,754
14,307
17,266
10,000
20,000
30,000
2018
2019
2020
2021
2022
New orders and backlog
Order backlog
New orders

Report on Operation at 31 December 2022 
37 
 
to the COVID-19 emergency (classified as non-recurring costs in 2021, equal to €mil. 54). As regards this 
indicator too, the trend in the five-year period from 2018 to 2022 shows continuous growth, with the 
exception of the period of pandemic and excluding the effects reflected in the civil aviation business. The 
gradual recovery of profitability as a result of the efficiency improvement actions with specific regard to the 
Aerostructures production organization and the gradual recovery in the civil aviation market allow today to 
achieve Group results in line with the pre-pandemic periods, which are well above these levels if the 
Aerostructures business is excluded. 
EBIT, equal to €mil. 961, benefitted from an improved EBITA compared to 2021 (€mil. 911). Restructuring 
costs, which were higher than in 2021, included the estimated charges in connection with the execution of 
the agreement for the early retirement of personnel serving in the Corporate and Staff functions on a national 
basis. The 2021 figure, on the other hand, mainly incorporated the effect of the agreement governing, with 
a more limited scope of application, the early retirement of the Aerostructures division's workforce on a 
voluntary basis.  
Non-recurring costs for the period were significantly affected by the write-down of the exposure to the 
countries involved in the conflict existing between Russia and Ukraine - for an amount of €mil. 36 - and by 
transaction costs that were related to the completion of the acquisition of the Israeli company RADA and the 
subsequent listing of Leonardo DRS for €mil. 31. On the contrary, the 2021 figure included charges associated 
with the settlement of the Indian case, in addition to the aforesaid charges related to the COVID-19 
emergency. 
The Net result before extraordinary transactions, equal to €mil. 697 (€mil. 587 in the comparative period), 
benefitted from the EBIT performance, as well as from a lower impact of tax charges while reflecting the 
adverse effect due to charges related to the repurchase of USD-denominated bonds, which was carried out 
by Leonardo US Holding LLC and is described in greater detail in “Financial transactions.” 
The Net Result, amounting to €mil. 932 (€mil. 587 in 2021), reflects the capital gain obtained from the sales 
of Leonardo DRS Global Enterprise Solutions and Advanced Acoustic Concepts businesses set out in the 
section of “Industrial Transactions”. 
It should be noted that the comparison with 2021 is affected by the lower contribution from the sales of 
Global Enterprise Solutions and AAC, which only contributed to the 2022 figures until July, with the former 
being instead consolidated on a line-by-line basis for the entire 2021 financial year and the latter according 
to the equity method.

Report on Operation at 31 December 2022 
38 
 
Reclassified income statement 
(€ millions) 
Note 
2021 
 
2022 
 
Change 
 % Change 
 
Revenues 
14,135
 
14,713
578
4.1%
Purchase and personnel expenses 
(*) 
(12,575)
 
(12,976)
Other net operating income/(expenses) 
(**) 
(58)
 
(106)
Equity-accounted strategic investments 
(***) 
124
 
132
Amortisation, depreciation and write-offs 
(****) 
(503)
 
(545)
EBITA 
1,123
 
1,218
95
8.5%
ROS 
7.9%
 
8.3%
0.4 p.p.
EBITA Restated 
1,069 
1,218
149
13.9%
ROS Restated 
7.6% 
8.3%
0.7 p.p.
Impairment 
-
 
-
Non-recurring income/(expenses) 
(101)
 
(114)
Restructuring costs 
 
(89)
 
(119)
Amortisation of intangible assets acquired as 
part of business combinations 
 
(22)
 
(24)
EBIT 
911
 
961
50
5.5%
EBIT Margin 
6.4%
 
6.5%
0.1 p.p.
Net financial income/(expenses) 
(*****) 
(158)
 
(213)
Income taxes 
 
(166)
 
(51)
 
 
Net result before extraordinary transactions 
 
587
 
697
110
18.7%
 
 
Net result related to discontinued operations 
and extraordinary transactions 
(******) 
-
 
235
Net result 
587
 
932
345
58.8%
 
Notes to the reconciliation between the reclassified income statement and the statutory income statement (for more details, reference should be made 
to the Note on "Non-GAAP alternative performance indicators”): 
(*) 
Includes “Purchases and Personnel expense” (excluding restructuring costs and non-recurring costs) and “Accruals (reversals) for onerous 
contracts (final losses on orders).” 
(**) 
Includes the net amount of “Other operating income” and “Other operating expenses” (excluding restructuring costs, non-recurring 
income/(expense) and accruals (reversals) for onerous contracts (final losses on orders). 
(***) 
Includes the effects of the valuation at equity, classified under the “Share of profits (losses) of equity-accounted investees”, of strategic 
investments only; 
(****) 
Includes “Amortisation, depreciation and impairment losses and value adjustments to financial assets”, excluding the amortisation charge 
referable to intangible assets acquired as part of business combinations, goodwill impairment and write-downs regarded as “Non-recurring 
costs”; 
(*****) 
Includes “Financial income”, “Financial expense” (net of the gains and losses relating to extraordinary transactions) and “Share of profits 
(losses) of equity-accounted investees” (net of the results of strategic investments). 
(******) Includes “Profit (loss) from discontinued operations” and Gains and losses relating to extraordinary transactions (key acquisitions and 
disposals).

Report on Operation at 31 December 2022 
39 
 
Financial performance 
The FOCF of €mil. 539 showed an increase of 157.9% compared to 2021 (€mil. 209) (+186.7% on a like-for-
like perimeter), confirming the positive trend that had already been reported during the first nine months of 
the year. As already noted for economic indicators, the trend over the 5 years, reported in the graph below, 
shows a significant improvement in performance that far exceeds the pre-pandemic results, including for this 
financial indicator. The results that have been achieved are due to the actions aimed at strengthening the 
performance of operations, streamlining and making working capital more efficient, a careful investment 
policy in a period of business growth and an efficient financial strategy. 
Below is the trend of the Free Operating Cash Flow over the five-year period: 
 
 
Reclassified cash flow statement 
(€ millions) 
Note 
2021 
 
2022 
 
Change 
 
% 
Change 
 
 
 
 
 
 
 
 
 
Cash flows generated from operating activities 
(*) 
742 
 
1,163 
 
421 
 
56.7% 
Dividends received 
 
63 
 
133 
 
 
 
 
Cash flows from ordinary investing activities 
(**) 
(596) 
 
(757) 
 
 
 
 
Free Operating Cash Flow (FOCF) 
 
209 
 
539 
 
330 
 
157.9% 
 
 
 
 
 
 
 
 
 
Strategic transactions 
(***) 
(19) 
 
(172) 
 
 
 
 
Change in other investing activities 
(****) 
11 
 
(6) 
 
 
 
 
Net change in borrowings 
 
30 
 
(1,322) 
 
 
 
 
Dividends paid 
 
- 
 
(80) 
 
 
 
 
Net increase (decrease) in cash and cash equivalents 
 
231 
 
(1,041) 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents at 1 January 
 
2,213 
 
2,479 
 
 
 
 
Exchange rate differences and other changes 
 
35 
 
73 
 
 
 
 
Cash and cash equivalents at 31 December 
 
2,479 
 
1,511 
 
 
 
 
  
Notes on the reconciliation between the reclassified cash flow and the statutory cash flow: 
(*) 
Includes “Cash flows generated from (used in) operating activities”, excluding debt payments pursuant to Law 808/1985; 
(**) 
Includes “Cash flow generated from (used in) investing activities”, including debt payments pursuant to Law 808/1985 and net of dividends 
collected; 
(***) 
Includes “Other investing or divesting activities” classified as “Strategic transactions”; 
(****) 
Includes “Other investing or divesting activities”, excluding dividends collected and the effect of transactions classified as “Strategic 
transactions”. 
 
 
 
336
241
40
209
539
-
100
200
300
400
500
600
700
2018
2019
2020
2021
2022
FOCF

Report on Operation at 31 December 2022 
40 
 
The Group Net Debt, equal to €mil. 3,016, showed an improvement compared to 31 December 2021 (€mil. 
3,122); the figure benefitted from the aforesaid trend in the FOCF while also including the financial effects of 
the transactions that are described below: 
• 
the acquisition of the investment in Hensoldt AG for €mil. 616, including any related transaction costs, 
which was completed in January 2022; 
• 
the disposals, finalised in July, by the US subsidiary Leonardo DRS involving the Global Enterprise 
Solutions (GES) business to SES and of the investment in the Advanced Acoustic Concepts Joint venture 
(AAC) to TDSI, a subsidiary of the French company Thales, for a total amount of USDmil. 468, before 
tax and after transaction costs; 
• 
the dividend that was paid in July for €mil. 80; 
• 
the execution of new lease agreements for €mil. 80; 
• 
the payment of charges related to the make-whole repurchase of the U.S. bonds illustrated in the 
section of "financial transactions", the translation of foreign currency positions and other minor effects 
for a total amount of €mil. 101. 
 
Changes in Group Net Debt 
 
 
 
3,122 
3,016 
539
172
80
80
101
31 December 2021
FOCF
Strategic transactions
Dividends paid
New contract leasing
submission
Other effect and
exchange rate
31 December 2022

Report on Operation at 31 December 2022 
41 
 
Reclassified statement of financial position 
(€ millions) 
Note 
31 December 2021 
 
31 December 2022 
 
 
 
 
Non-current assets 
 
12,810
 
13,943
Non-current liabilities 
 
(2,216)  
(2,174)
Capital assets 
(*) 
10,594  
11,769
 
 
Inventories 
(**) 
1,292
 
975
Trade receivables 
 
3,203
 
3,338
Trade payables 
 
(3,372)  
(3,054)
Working capital 
 
1,123  
1,259
Provisions for short-term risks and charges 
 
(1,111)  
(1,078)
Other net current assets (liabilities) 
(***) 
(1,046)  
(1,260)
Net working capital 
 
(1,034)
 
(1,079)
 
 
Net invested capital 
 
9,560  
10,690
 
 
Equity attributable to the Owners of the Parent 
 
6,428
 
7,183
Equity attributable to non-controlling interests 
 
27  
516
Equity 
 
6,455  
7,699
 
 
Group Net Debt 
 
3,122  
3,016
 
 
Net (assets)/liabilities held for sale 
(****) 
(17)
 
(25)
  
Notes to the reconciliation between the reclassified and the statutory statements of financial position (for more details, reference should be made to the 
Note on "Non-GAAP alternative performance indicators”: 
(*) 
Includes all non-current assets and all non-current liabilities, excluding “Non-current loans and borrowings” and the main non-current loans
and receivables. 
(**) 
Includes “Inventories”, “Contract Assets” and “Contract Liabilities. 
(***) 
Includes “Income tax receivables” and “Other current assets” (excluding “Hedging derivatives in respect of debt items”), net of “Income tax
payables” and “Other current liabilities” (excluding “Hedging derivatives in respect of debt items”). 
(****) 
Includes the net amount of “Non-current assets held for sale” and “Liabilities associated with assets held for sale”. 
 
The increase in non-current assets essentially reflects the above-mentioned acquisition of the equity interest 
in Hensoldt.

Report on Operation at 31 December 2022 
42 
 
Group Net Debt 
(€ millions) 
31 December 
2021 
of which current  
31 December 
2022 
of which current 
 
 
 
 
 
Bonds 
2,481 
626
1,628 
36 
Bank debt 
1,648 
49
1,350 
71 
Cash and cash equivalents 
(2,479) 
(2,479)
(1,511) 
(1,511) 
Net bank debt and bonds 
1,650 
1,467 
 
 
 
 
Current loans and receivables from related parties 
(45) 
(45)
(56) 
(56) 
Other current loans and receivables 
(16) 
(16)
(49) 
(49) 
Current loans and receivables and securities 
(61) 
(105) 
 
 
 
 
Hedging derivatives in respect of debt items 
(8) 
(8)
19 
19 
Related party lease liabilities 
30 
4
24 
4 
Other related party borrowings 
856 
756
962 
862 
Lease liabilities 
538 
78
546 
74 
Other borrowings 
117 
45
103 
35 
 
 
 
Group Net Debt 
3,122 
3,016 
 
 
The reconciliation with the net financial position required by CONSOB Communication no. DEM/6064293 of 28 July 2006, updated by the provisions 
of ESMA Guideline 32-382-1138 of 4 March 2021 as implemented by CONSOB warning notice no. 5/21 of 29 April 2021, is provided in Note 21 of 
the Consolidated Financial Statements. 
 
As detailed in the section on “Financial transactions”, to which reference should be made: 
• 
“Bonds” show a reduction as a result of the subsequent repayment by Leonardo S.p.A. of bonds for a 
remaining nominal amount of €mil. 556, which reached its natural expiry in January, as well as of the 
full early repayment by subsidiary Leonardo US Holding of bonds listed on the U.S. market due 2039 
and 2040, for a total remaining nominal value of USDmil. 305; 
• 
the decrease in “Bank debt” reflects the early repayment of the Term Loan of €mil. 500, taken out in 
2018 and expiring in November 2023, which is partially offset by the use of the new Term Loan taken 
out by Leonardo DRS at the same time as the completion of the merger with the Israeli company RADA 
and its simultaneous listing on NASDAQ (as well as on TASE).  
 
As at 31 December 2022 Leonardo S.p.A. had sources of liquidity available for a total of about €mil. 4,210 to 
meet the financing needs of the Group’s recurring operations, broken down as follows:  
• 
an ESG-linked Revolving Credit Facility totalling €mil. 2,400, divided into two tranches; 
• 
additional unconfirmed short-term lines of credit of about €mil. 810; 
• 
a framework Programme for the issuance of Commercial Papers on the European market (Multi-
Currency Commercial Paper Programme), for a maximum amount of €bil. 1.  
 
Leonardo DRS has a Revolving Credit Facility available for an amount of USDmil 275, which was also entered 
into at the same time as the completion of the merger with RADA. 
All the aforementioned sources had not been used as at the reporting date of these financial statements.  
Leonardo US Holding has short-term revocable lines of credit in dollars, which are guaranteed by Leonardo 
Spa, for a total counter-value equal to €mil. 178, and which had been used for a total counter-value equal to 
€mil. 38 at 31 December 2022.  
Finally, Leonardo S.p.A.has unconfirmed lines of credit for guarantees for a total of €mil. 9,678, an amount 
of €mil. 2,513 of which was available at 31 December 2022.

Report on Operation at 31 December 2022 
43 
 
ESG PERFORMANCE INDICATORS 
The ESG KPIs for the period and the main changes that characterised the Group’s performance are reported 
below. More details of the management of these indicators are provided in the People, Planet and Prosperity 
sections. 
 
 
 
 
2021 
2022 
Change 
Social 
 
 
 
Workforce (no.) 
50,413 
51,392 
1.9% 
Employees under 30 on total employees (%) 
10.4 
11.2 
0.8 p.p. 
Women in managerial positions on total managers and junior managers (%) 
18.0 
18.7 
0.7 p.p. 
Hires under 30 on total hires (%) 
42.2 
43.9 
1.7 p.p. 
Women hires on total hires (%) 
23.7 
24.1 
0.4 p.p. 
Women hires with STEM degree on total hires with STEM degree (%) 
19.4 
22.1 
2.7 p.p. 
Average hours of training per employee (no.) 
31.8 
20.6 
(35.2%) 
Injury rate (injuries per 1,000,000 worked hours) 
2.91 
2.35 
(19.2%) 
Employees at ISO 45001-certified sites on total employees (%) 
78 
80 
2 p.p. 
Innovation 
 
 
 
Total R&D expenses (€ million) 
1,803 
2,003 
11.1% 
Computing power per capita (Gigaflops on no. of Italian employees) 
194 
190 
(1.9%) 
Data storage capacity per capita (Gigabyte on no. of Italian employees) 
857 
840 
(2.0%) 
Environmental 
 
 
 
Energy consumption intensity (MJ/euro) on revenues 
0.40 
0.37 
(7.0%) 
Water withdrawals intensity on revenues (l/€) 
0.42 
0.36 
(13.1%) 
Waste produced intensity on revenues (g/€) 
2.11 
2.04 
(3.6%) 
Scope 1 and 2 (market-based) CO2 emissions (ktons) 
325 
277 
(14.8%) 
Scope 1 and 2 CO2 emissions intensity on revenues (g/€) location based 
33.88 
28.96 
(14.5%) 
Employees at ISO 14001-certified sites on total employees (%) 
77 
75 
(2) p.p. 
 
 
 
 
The reported indicators are part of the Consolidated Non-financial Statement 
 
 
 
  
 
In 2022, the workforce showed an increase (+979) compared to 2021, mainly concentrated in Italy, boosted 
by the stabilisation of the employment contracts. In other countries, the workforce remained substantially 
in line with the previous year despite the changes in the US scope. 
The target of recruiting employees under 30 years of age, accounting for about 44% of total hires in 2022, 
was fully achieved. The total number of employees under 30 rose from 8.2% in 2017 to 11.2% in 2022.  
The commitment to creating an environment which enhances gender diversity is witnessed by the increase 
in the number of female managers, who achieved 18.7% of the total number of executives and middle 
managers, and by the new female hires with STEM degrees, the ratio of which to total hires of workers with 
STEM degrees is almost 3 percentage points higher compared to 2021, standing at 22% in 2022. Moreover, 
the 2025 target of women equal to at least 32% of total new hires has been confirmed. 
The injury rate showed a reduction of about 19% compared to 2021, a decline much more significant 
compared to the pre-pandemic levels (-54% against 2017). The company's commitment continues to extend 
the sites that are ISO 45001 certified with a health and safety management system where, as of today, 80% 
of employees work (56% in 2017). 
The 2022 figure on training hours, even if higher than the 2018-202 average, is lower than 2021, when the 
Aerostructures sector launched a relevant upskilling plan funded by the “Fondo Nuove Competenze” in order

Report on Operation at 31 December 2022 
44 
 
to enhance business-related skills, also considering the changed conditions in the Aeronautics market, 
significantly affected by the consequences of the pandemic. This extraordinary activity influences the trend 
of the 2022 workforce of the Aerostructures sector which amounted to 4,143 people, 7.3% lower than in 
2021 and 10.9% lower than the average for the three-year period 2018-2020. 
Total R&D expenses accounted for 13.6% of revenues, allowing the Group to invest in internal developments 
and external collaborations, including with customers, with the objective of fuelling the product portfolio 
and improving competitiveness.  
The considerable reduction in CO2 emissions (Scope 1 and Scope 2), in absolute and relative terms, is mainly 
related to the progressive replacement of SF6 gas with a gas with minimal environmental impact, used as an 
inert substance within the helicopter production in a specific manufacturing process. 
The other environmental and energy efficiency indicators (linked to water withdrawals, waste produced and 
energy consumption) also showed an improvement, confirming the company's commitment to reducing 
impacts, a commitment that is also reflected in the objectives set out in the Group’s sustainability plan.  
Computing power and data storage capacity showed a trend in line with the company’s plan, which calls for 
the implementation of updating and upgrading cycles in 2024. The slight percentage reduction on the quota 
per employee is exclusively due to the increase in the company’s population. 
Finally, from 2021, on a voluntary basis, Leonardo has required to the Independent Legal Auditors to perform 
the full assurance (“Reasonable assurance engagement”) on a set of non-financial performance indicators 
(ESG) that are considered important and strategic for the Group.26 
In order to provide a complete view of the sustainable development path undertaken by Leonardo, below 
there is an outline of the evolution of the main ESG metrics over the 2018-2022 period. Leonardo's industrial 
plan relating to this time horizon has incorporated for the first time the sustainability strategy and defined 
the areas of intervention and related actions to be implemented. The sustainability objectives illustrated in 
the “Strategy and Outlook” chapter extend the scope of these areas, with a horizon up to 2030. Further 
details are also given in the “People” and “Planet” chapters. 
 
                                                           
26 For more details, see the Methodology Note of the NFS.

Report on Operation at 31 December 2022 
45 
 
AREAS 
 
        PERFORMANCE IN THE 2018-2022 PERIOD 
Enhance human capital 
> 
Workforce up by 6,258 people (+14% vs 2017) 
> 
About 22,000 people hired in the period 
Attract and promote talents 
> 
Hired more than 9,200 employees under 30  
> 
Under 30 employees from 8.2% in 2017 to 11.2% of the workforce in 2022 
(+2,072 employees under 30) 
Foster an inclusive environment  
> 
Above 4,900 women hired 
> 
Female managers from 15.1% in 2017 to 18.7% of total executives and 
middle managers in 2022 (+455 female managers) 
Extend the adoption of certified health 
and safety management systems 
> 
80% of employees work at sites with certified H&S management systems 
(56% in 2017) 
> 
Injury rate reduced by 53% (vs 2017) 
> 
75% of employees work at sites with certified environmental management 
systems (66% in 2017) 
Make efficient the processes to reduce 
energy consumption and CO2 emissions 
and environmental impacts 
> 
24% reduction in the intensity of energy consumption  
> 
37% reduction in the intensity of Scope 1 and Scope 2 CO2 emissions 
(location based) 
> 
26% reduction in the intensity of waste produced 
> 
30% reduction in the intensity of water withdrawals 
Intensity calculated on revenues and versus 2017 data 
 
 
 
Financial planning and investment management  
Leonardo's investments have a direct and indirect impact on various industrial sectors and areas of society, 
looking across the board at the needs of customers, citizens and territories and contributing to achieving the 
Sustainable Development Goals (SDGs). 
Financial planning and investment choices are aimed at supporting the Group's Industrial Plan and the vision 
expressed in the “Be Tomorrow – Leonardo 2030” plan, while taking account of the identified risks and 
opportunities, the ongoing monitoring of market trends and binding and non-binding regulations, as well as 
stakeholder expectations. The evaluation and selection of investments takes into account strategic, 
economic-financial, technical, commercial and sustainability parameters.  
Furthermore, within the scope of the participation in the CFO Coalition of the UN Global Compact, Leonardo 
supports the Principles on Integrated SDG Investments and Finance to contribute to creating a sustainable 
financial model for the prosperity of businesses and communities. 
 
Leonardo supports the Principles on 
Integrated SDG Investments and 
Finance of the Global Compact act 
 50% of investments in 2022-2024 to 
achieving SDGs 
 
55% of total sources of financing 
linked to ESG parameters, for a 
total of €bil. 3.26

Report on Operation at 31 December 2022 
46 
 
At the end of 2022, 55% of the total sources of financing available to the Group are linked to ESG 
parameters. This result was achieved thanks to: 
> 
the execution of the first ESG-linked Revolving Credit Facility, amounting to €bil. 2.4,  
> 
the first ESG Term Loan, amounting to €mil. 600, 
> 
 the first ESG-linked loan granted by the European Investment Bank, amounting to €mil. 260.  
All sources described above are linked to specific KPIs, including the reduction in CO2 emissions through eco-
efficiency of industrial processes, the promotion of female employment with STEM27 degrees, and the 
increase in Leonardo's per capita computing power as a key enabler and booster in research, numerical 
simulation, big data analytics and artificial intelligence. 
As regards capital allocation, Leonardo set the objective of having at least 50% of investments in support of 
the SDGs in 2022-2024 out of a total investment value of approximately €mil. 700-800 per year, including 
capitalised R&D expenses, capital expenditures (CapEx), Tooling and other investments in intangibles. In 
particular, the main impacts reported for the investments are linked to SDG 8 "Decent work and economic 
growth", SDG 9 "Industry, Innovation & Infrastructure" and SDG 11 "Sustainable Cities & Communities", 
giving a direct contribution to strengthening innovation processes, developing the supply chain, creating 
skilled jobs and to continuous research into innovative solutions for the society, the environment and the 
safety of people, infrastructures and territories. 
 
 
                                                           
27 For more details, please see Industrial and Financial Operations paragraph.

Report on Operation at 31 December 2022 
47 
 
 
SEGMENT RESULTS AND OUTLOOK  
 
 
 
 
 
 
 
✓ KEY PERFORMANCE INDICATORS BY SECTOR  
✓ 1. HELICOPTERS 
✓ 2. DEFENCE ELECTRONICS & SECURITY  
✓ 3. AIRCRAFT  
✓ 4. AEROSTRUCTURES 
✓ 5. SPACE

Report on Operation at 31 December 2022 
48 
 
KEY PERFORMANCE INDICATORS BY SEGMENT 
Leonardo continued the path to growth in all sectors of its core business, returning to competitive levels 
when compared to the pre-pandemic scenario. The Key Performance Indicators of the business Sectors are 
reported below while pointing out that - starting with these financial statements - the Group has set out a 
method of representing its performance that is increasingly consistent with corporate strategies and 
underlying business dynamics. The performance in the segments will therefore be represented and 
commented on with reference to the operating sectors of Helicopters, Defence Electronics and Security, 
Aircraft, Aerostructures and Space (Helicopters, Defence Electronics and Security, Aeronautics and Space in 
the 2021 financial statements, which were restated to facilitate the performance comparison).  
December 2021 
December 2021 
New orders 
Order backlog 
Revenues 
EBITA 
ROS % 
Helicopters 
4,370
12,377 
4,157
406
9.8% 
Defense Electronics & Security 
7,579
14,237 
6,944
703
10.1% 
Aircrafts 
2,668
8,896 
3,268
410
12.5% 
- of which GIE ATR 
 
(24)
 
Aerostructures 
365
1,126 
442
(203)
(45.9%) 
Space 
-
- 
-
62
n.a. 
Other activities 
102
59 
377
(255)
(67.6%) 
Eliminations 
(777)
(1,161) 
(1,053)
-
n.a. 
Total 
14,307
35,534 
14,135
1,123
7.9% 
 
 
December 2022 
December 2022 
New orders 
Order backlog 
Revenues 
EBITA 
ROS % 
Helicopters 
6,060
13,614 
4,547
415
9.1% 
Defense Electronics & Security 
8,558
15,160 
7,212
805
11.2% 
Aircrafts 
2,800
8,554 
3,085
415
13.5% 
- of which GIE ATR 
 
(6)
 
Aerostructures 
420
1,075 
475
(183)
(38.5%) 
Space 
-
- 
-
31
n.a. 
Other activities 
400
360 
579
(265)
(45.8%) 
Eliminations 
(972)
(1,257) 
(1,185)
-
n.a. 
Total 
17,266
37,506 
14,713
1,218
8.3% 
 
 
Change % 
Change % 
New orders 
Order backlog 
Revenues 
EBITA 
ROS % 
Helicopters 
38.7%
10.0% 
9.4%
2.2%
(0.7) p.p. 
Defense Electronics & Security 
12.9%
6.5% 
3.9%
14.5%
1.1 p.p. 
Aircrafts 
4.9%
(3.8%) 
(5.6%)
1.2%
1.0 p.p. 
- of which GIE ATR 
 
75.0%
 
Aerostructures 
15.1%
(4.5%) 
7.5%
9.9%
7.4 p.p. 
Space 
n.a.
n.a. 
n.a.
(50.0%)
n.a. 
Other activities 
292.2%
510.2% 
53.6%
(3.9%)
21.8 p.p. 
Eliminations 
(25.1%)
(8.3%) 
(12.5%)
n.a.
n.a. 
Total 
20.7%
5.5% 
4.1%
8.5%
0.4 p.p. 
 
 
 
The business sectors are commented on below in terms of competitive position, financial performance, total 
market28 and research & development. It should be noted that Leonardo has the objective of strengthening 
its positioning in the more attractive markets in which the portfolio of its products can benefit from its specific 
                                                           
28 Information processed by Leonardo on the basis of Jane’s data.

Report on Operation at 31 December 2022 
49 
 
competitive advantage: the considerations reported below relate to the analysis of the present competitive 
position, based on these two dimensions. 
 
1. HELICOPTERS 
Leonardo is a leading group in the rotary wing sector at global level, delivering excellence in products 
worldwide. In the defence sector, Leonardo has recognised expertise in multi-role (thanks to the 
development of dual-use platforms, as well as specialised ones), naval and combat applications, while its own 
leadership remains on a sound footing in various applications such as Emergency Medical Service (EMS) 
missions, Law Enforcement, offshore (Oil & Gas and Offshore Wind) and passenger transport in the civil 
market. On this last front Leonardo relies on its well-established expertise gained over the years, in particular 
thanks to the AW109 models in the past and, more recently, AW139, AW189 and AW169.  
The trend in 2022 showed a good performance in the Sector, with Revenues and EBITA on the rise in line 
with the plan expectations and a particularly substantial amount of New Orders, showing an increase of 39% 
compared to 2021, with the acquisition of the major contract for the supply of AW149 helicopters to the 
Polish Ministry of Defence and confirming recovery in the commercial aviation business segment. 149 new 
helicopters were delivered in the period compared to 128 recorded in 2021. 
Below is the performance of the sector during the last 5 years: 
 
  
  
 
 
New orders. They were on the rise as a result of major orders gained from both governments, mainly thanks 
to the recognition of the aforesaid order for Poland, and in the commercial aviation business segment. 
Among the main acquisitions for the period we must note: 
• 
the aforementioned contract for the supply of 32 AW149 multi-role helicopters to the Polish Ministry 
of Defence; 
• 
the contract with the Canadian Department of National Defence for the Cormorant Mid Life Upgrade 
(CMLU) programme relating to the modernization and expansion of the fleet of Search and Rescue 
(SaR) AW101/CH-149 "Cormorant" helicopters; 
• 
the fourth order under the TH-73A (AW119) programme for the US Navy, with 26 additional 
helicopters; 
• 
the Italian contracts for the supply of 20 AW119Kx helicopters to the Carabinieri Corps, 10 AW139 
helicopters to the Fire Brigade and 4 additional AW169 LUH helicopters to the Army; 
• 
the contract concerning the supply of 6 AW189 helicopters for the Rescue and Salvage Bureau of the 
Chinese Ministry of Transport; 
• 
the contract for the Mid Life Upgrade (MLU) of 1 AW101 helicopter for a foreign customer; 
• 
the contract for 5 AW119Kx helicopters for Israel; 
• 
the order for 4 AW609 convertiplanes and various orders for AW139 helicopters for commercial use. 
 
Revenues. They were on the rise, mainly due to the greater activities on the NH90 programme for Qatar,  
6,208
4,641
4,494
4,370
6,060
3,000
4,000
5,000
6,000
7,000
2018
2019
2020
2021
2022
New orders
3,810
4,025
3,972
4,157
4,547
3,000
3,500
4,000
4,500
5,000
2018
2019
2020
2021
2022
Revenues
359
431
383
406
415
300
350
400
450
2018
2019
2020
2021
2022
EBITA

Report on Operation at 31 December 2022 
50 
 
on the TH-73A (AW119) programme for the US Navy, on the AW169 line and on the CS&T front. 
 
EBITA. It showed an increase as a result of the higher volumes, with a stable profitability, if pass-through 
revenues are excluded. 
 
Total market of the sector and 2023 Outlook  
Market (*) 
2022-2031 
CAGR 2022-2031
Impact on the businesses in which Leonardo operates 
€bil. 33 
+3.5% 
Civil sector: 
The market of civil helicopters – both private, public, and parapublic - which was heavily 
hit by the pandemic is expected to recover, driven by the EMS (Emergency Medical 
Services), SAR (Search and Rescue) and Law Enforcement segments. The Oil & Gas 
segment, which has been declining in the past years due to lower energy prices, shows 
signs of recovery, driven by higher prices due to the energy crisis. Even for the passenger 
transport segment, which was equally affected by the pandemic, there is a recovery in 
the second half of the reporting period due to the resumption in passenger transport 
and the renewal of related fleets. 
€bil. 114 
-3.3% 
Defence sector: 
The market is estimated to grow in the first part at the beginning of the period under 
analysis, due to the ageing of many fleets, with a replacement process that is already 
underway in the main countries (e.g. United States, United Kingdom, France). Such 
process will slow down at the end of the period under consideration, with a tendency to
carry out only the necessary upgrades of the platforms in operation, while waiting for 
the availability of the new generation of medium multi-role machines, based on new 
technologies, which is expected at the beginning of the new decade. 
 
(*) deliveries of new helicopters only 
 
The positive performance of the Sector will continue in 2023, with a further high level of new orders expected 
in both the government and civil aviation segments and expected confirmation of the growth trend in 
deliveries and revenues. Profitability also remained at good levels as a result of the actions taken to limit the 
impact of inflationary pressure and the optimisation of the production processes. 
Research, development and product engineering  
Research into the field of helicopters as well is increasingly oriented towards sustainability, in line with the 
European Green Deal plan, which sets out a roadmap for environmental objectives for 2050. In taking part in 
European programs such as Clean Aviation and SESAR 3, which are the successors of Clean Sky 2 and SESAR 
2020, Leonardo is developing and will develop technologies and solutions to reduce emissions. Aircraft 
electrification and digitalisation are the other areas in research in this sector that will have favourable impacts 
also in terms of security, growth and profitability.  
The race to digitalisation is a further key aspect in all the product’s life cycle: from design, with the 
introduction of digital certification criteria (Certification-by-Simulation), to advanced manufacturing systems 
(Digital Factory), autonomous flight operations and customer support, with the application of advanced Big 
Data & Analytics algorithms for diagnostics and predictive maintenance. Furthermore, other digital 
instruments have been developed for the training of pilots and to ease the work of maintenance workers and 
fleet managers using enhanced reality instruments for remote maintenance operations. Again within the 
digitalisation of processes, work commenced on the development of the Digital Twin of the helicopter, which 
exploits research into the simulation of the Leonardo Lab for Future Rotorcraft Technologies and the 
advanced calculation capabilities of the supercomputer davinci-1. Digitalisation also plays a key role in the

Report on Operation at 31 December 2022 
51 
 
definition of Life Cycle Assessment (LCA) methodologies that Leonardo is establishing to analyse the 
environmental impact of its helicopters, putting eco-design at the heart of new product development. 
Leonardo is also considering the development of a hybrid/electric propulsion system for light helicopters, 
which will be implemented through the construction of a demonstrator equipped with hybrid-electric 
propulsion, envisaging an architecture that allows for further future developments, including fuel cells. This 
demonstrator will be a first platform of a family of new light aircraft equipped with a conventional 
architecture but with non-conventional propulsion and will also allow the validation and certification process 
to be supported, while considering that regulations to govern new propulsion systems are still under 
development. 
The authorisation to operate its fleet by using Sustainable Aviation Fuels (SAFs) is another avenue Leonardo 
is already pursuing to reduce the environmental impact of its products. 12 models of Leonardo helicopters 
are to date compatible to fly with a SAF blend of up to 50%. In 2023, Leonardo will play a leading role in the 
launch of the long-term "EU Next Generation Rotorcraft Technologies Project (ENGRT)", which aims to lay 
the foundation for the development of the next generation of European military rotary-wing aircraft as part 
of the collaborative framework with key European industrial players funded by the European Defence Fund 
(EDF). 
 
Next Generation Civil Tiltrotor (NGCTR) - Leonardo is developing 
a new model of a more efficient, eco-friendly next generation civil 
tiltrotor within the Clean Sky 2 Programme, with the objective of 
reducing CO2 emissions up to 50% and noise emissions by 30% in 
the take-off phase and up to 75% in the flyover condition 
compared to the average values of rotary-wing aircraft that are 
currently on the market. Leonardo develops eco-design 
approaches to the development of specific NGCTR sub-systems 
within the Programme. Life Cycle Assessment (LCA) models have 
been developed to quantify the environmental benefits obtained 
from the design of additive manufacturing transmission 
components and composite wing structures. Supported by 
detailed LCA models, eco-design approaches will be gradually 
extended to more complex macro-systems of products in the 
Helicopter Division. Based on these activities, Leonardo will 
implement, in the future, an approach in line with the standards 
ISO 14040 and 14044, delivering training to the main partners in 
order to gather the data required for LCA assessments. 
 
Aircraft electrification - Research projects, in collaboration with 
the Leonardo Labs, for the introduction of new power generation 
and distribution systems for primary functions, such as in-flight 
power control, and in critical systems, such as rotor anti-icing 
systems, will allow greater operational flexibility, efficiency and 
cost reduction to be obtained, all in accordance with the most 
stringent safety requirements. 
2. DEFENCE ELECTRONICS & SECURITY  
Leonardo designs, develops and manufactures advanced defence solutions in the air, land, sea, space and 
cyber domains, for the security of national borders and the management of complex civil infrastructures 
while being able to take on a different role depending on contexts and contracts, from main contractor and 
provider of complete systems to provider of apparatuses. 
As for this sector, Leonardo participates in the main national strategic programmes and in major international 
programmes, and is a technology partner of Governments, Defence Authorities, Institutions and Enterprises. 
Developments in 2022 – Helicopters

Report on Operation at 31 December 2022 
52 
 
In particular, among the applications in the land domain, Leonardo’s portfolio includes battlefield command 
and control and air and border defence systems, as well as weapon and ammunitions systems.  
In the naval domain integrated systems are particularly important for combat and maritime surveillance, 
installed both on board naval ships and in the command and control centres, and weapon and protection 
systems for naval ships, completed by simulation and training solutions. 
Leonardo creates advanced avionic solutions in the aircraft and space areas for surveillance and combat, the 
latest generation of manned and unmanned aircraft, both company-owned and third-party vehicles, and 
components for satellites or interplanetary probes. As far as security is concerned, areas of greatest interest 
are focused on solutions for the protection of cities, territories, borders, major events and critical 
infrastructure, based on advanced information analysis systems and secure communications.  
Below is the performance of the sector during the last 5 years: 
  
  
 
 
2022 was characterised by an excellent business performance and volumes of Revenues on the rise compared 
to 2021 while also benefitting from a positive impact arising from the USD/€ exchange rate on all the main 
indicators, even though in 2022 the business perimeter was affected by the deconsolidation of the 
Automation business from its scope of operations (the Automation business was consolidated in the “Other 
activities” starting from 1 January 2022), and the sale of the GES business of subsidiary Leonardo DRS, which 
occurred in August. Margins were on the rise almost in most of the main business areas with specific regard 
to the European component. 
Moreover, MBDA recorded an outstanding performance on key Economic and Financial indicators. In terms 
of sales, acquisitions were significantly higher than last year with a Book-to-Bill greater than 2, increasing the 
order backlog which now exceeds 5 years of operation and with profitability that is also growing due to a 
good execution of export programmes in the portfolio. 
 
 
4,409
4,444
5,392
5,392
5,628
2,438
2,611
2,194
2,194
2,997
6,823
7,022
7,374
7,579
8,558
1,400
2,400
3,400
4,400
5,400
6,400
7,400
8,400
2018
2019
2020
2021
2022
New orders
DES Europe
Leonardo DRS
Segment
4,011
4,289
4,147
4,519
4,712
1,980
2,438
2,414
2,434
2,558
5,953
6,7…
6,525
6,944
7,212
1,400
2,400
3,400
4,400
5,400
6,400
7,400
2018
2019
2020
2021
2022
Revenues
DES Europe
Leonardo DRS
Segment
394
427
360
485
553
128
186
177
218
252
522
613
537
703
805
0
100
200
300
400
500
600
700
800
2018
2019
2020
2021
2022
EBITA
DES Europe
Leonardo DRS
Segment

Report on Operation at 31 December 2022 
53 
 
 
Key Performance Indicators for the sector 
 
December 2021 
New orders 
Revenues 
EBITA 
ROS % 
DES Europe 
5,392
4,519 
485
10.7%
Leonardo DRS 
2,194
2,434 
218
9.0%
Eliminations 
(7)
(9) 
-
n.a.
Total 
7,579
6,944 
703
10.1%
 
December 2022 
New orders 
Revenues 
EBITA 
ROS % 
DES Europe 
5,628
4,712 
553
11.7%
Leonardo DRS 
2,997
2,558 
252
9.8%
Eliminations 
(67)
(58) 
-
n.a.
Total 
8,558
7,212 
805
11.2%
 
Change % 
New orders 
Revenues 
EBITA 
ROS % 
DES Europe 
4.4%
4.3% 
14.0%
1.0 p.p.
Leonardo DRS 
36.6%
5.1% 
15.6%
0.8 p.p.
Eliminations 
(857.1%)
(544.4%) 
n.a.
n.a.
Total 
12.9%
3.9% 
14.5%
1.1 p.p.
 
 
Leonardo DRS data in USD 
 
New orders 
Revenues 
EBITA 
ROS % 
DRS ($mil.) December 2021 
2,595 
2,879
258
9.0% 
DRS ($mil.) December 2022 
3,156 
2,693
265
9.8% 
 
New Orders. Acquisitions of new orders showed a significant increase, with book-to-bill above 1 in all the 
main business areas, and with specific regard to Defence Systems. 
The main acquisitions in the period concerned the Electronics Division and included the order for the supply 
of naval guns and related logistic support, with which four F126-class frigates for the German Navy will be 
equipped, the order for the provision of a combat system and related logistics services for a special 
operations support unit, to support underwater operations and to rescue damaged submarines (Special and 
Diving Operations - Submarine Rescue Ship, SDO-SuRS). As part of the larger Halcon programme, we note the 
order for the supply of electronic countermeasures and self-protection systems to remove noise and 
neutralise threats which will equip 20 Typhoon aircraft, which are due to replace part of the fleet of the 
Boeing EF-18 Hornets currently used by the Spanish Ministry of Defence. As regards Leonardo DRS, additional 
orders were gained in the four key technology areas of advanced sensors, network computing, force 
protection and electric generation and propulsion.  
Revenues. They were on the rise, mainly due to higher volumes in the European component and with specific 
regard to the UK Electronics and Defense Systems business, which also recorded an increase in pass-through 
activities. As regards Leonardo DRS, there was a decline in volumes due to certain postponements in the 
supply chain, which were more than offset by the positive effect of the USD/€ exchange rate. 
EBITA. This increased in all the main European business areas. As regards DRS, a positive trend was confirmed 
despite lower volumes, which were more than offset by the positive effect of the USD/€ exchange rate, and 
in spite of the different scope of operations as mentioned above.

Report on Operation at 31 December 2022 
54 
 
Total market of the sector and 2023 Outlook 
Market (*) 
2022-2031 CAGR  2022-2031
Impact on the businesses in which Leonardo operates 
€bil. 3,165 
4.7% 
Civil sector:  
Ever-growing demand, driven by strong expectations related to the digitization of the 
public sector, the data economy in the private sector, and increasing needs in terms of 
physical and digital protection for borders and cities, critical infrastructure and 
institutions. 
Defence sector: 
In the Air domain, we must note the growth in the avionics, electronic warfare and AESA 
(Active Electronically Scanned Array) radar systems, driven by growing demand for air 
combat systems. 
In the Land domain, we must note the growth in C4ISR (Command, Control, 
Communications, Computers, Intelligence, Surveillance and Reconnaissance) systems, 
radar and communication systems in the face of increasing geopolitical tensions and
threats to security; there was also a growing demand for systems to counter threats 
from unmanned aircraft (Counter Unmanned Aerial Systems). 
In the Naval domain, we must note the growth in demand for command and control and 
integrated solutions for radar and electronic warfare systems; new programmes for 
naval surface and underwater vessels will drive demand for artillery and related 
ammunition; and, for the underwater segment, demand for torpedoes. 
 
A further increase in volumes and profitability supported by improved execution of backlog programmes and 
prompt implementation of industrial investments is expected in 2023, in a market environment that might 
still be affected by inflation and difficulties in the procurement of materials. 
Research, development and product engineering 
A fundamentally important challenge for the Defence Electronics & Security sector is to gain the utmost 
benefit from research and the latest technological innovations, many of which have come into being in 
commercial and civil contexts. To this effect, artificial intelligence, quantum sensing and security, big data 
analytics, 5G and 6G communications, robotics and blockchain will be the technologies that are most 
important to implement in Defence platforms and operating systems, together with the development of 
technologies that enable product size, weight and power (SWaP) to be reduced and extend the autonomy of 
platforms and systems. 
In response to requirements for system transformation, digitalisation and cyber resilience will be essential 
elements for technological development and in order to remain competitive. The R&D and product 
engineering activities that are carried out by Leonardo aim to insert these technologies in its products in an 
increasingly efficient manner, to meet a growing need for security and resilience, in synergy with the Group's 
Sustainability Plan. 
As for development, great importance is attached to national and international defence programmes, 
including: the Eurofighter Typhoon for the Mid Life Update phase, Forza NEC (Network Enabled Capabilities) 
for the modernisation of the Italian Armed Forces, the "Naval Law" for the Italian Navy's Multipurpose 
Offshore Patrol Vessels (PPA, Pattugliatori Polivalenti d'Altura) and the sixth-generation GCAP fighter aircraft, 
the development of Software Defined Radio systems and new broadband waveforms, sensors, terminals and 
networks (narrowband and broadband on LTE (Long-Term Evolution) / 5G networks), network computing 
and cloud computing, as well as the evolution of receiver products within the scope of the Galileo program 
of PRS (Public Regulated Service) geo-localisation, which are the main areas of research in the field of 
professional communications systems and secure satellite communications, with applications for public

Report on Operation at 31 December 2022 
55 
 
security and defence. It should be noted that the Electronics Division participates in the European military 
research and development programmes, such as the EDF (European Defence Fund 2021-2027) programmes 
and, previously, the EDIDP (European Defence Industrial Development Programme 2019-2020) programmes, 
with the aim to increase the competitiveness, efficiency and innovation of European Defence at both 
technological and industrial level and thus make it autonomous with respect to countries that are outside 
the European Union. 
Investments are aimed at a broad range of products and services: avionic, ground and naval radar systems, 
unmanned systems in the domains of air, land and sea, guided ammunition, development of ground, naval 
and underwater weapon and defence systems, integrated mission systems (including anti-drone technology), 
Electronic Warfare and laser and electro-optical systems, logistics 4.0 for the Air Force and other Armed 
Forces, integrated physical security solutions for critical infrastructure with command and control platform, 
and products for baggage and parcel handling. 
In the field of cyber security and intelligence services, Leonardo is continuing to invest to expand its 
professional consulting solutions such as the risk assessment, professional services to third parties for the 
design and development of cyber security solutions and systems, the management of security services 
delivered through proprietary infrastructure for monitoring (SOC - Security Operations Centre), response 
(CERT - Cyber Emergency Readiness Team) and identification of threats (Threat Intelligence) and training 
(Cyber trainer and Cyber Range).  
For energy conservation, of particular importance is the application of the new DTA radio base access station 
to Critical Communications solutions, which were finalised in 2022 with state-of-the-art HW technologies. In 
addition, in 2022 Leonardo finalized the management of electricity and continued upgrades for efficient gas 
and water management in the EMODS (Energy Management Optimization & Decision Support) product in 
order to meet the environmental and energy management requirements of its customers. In particular, 
efficient power management is now being applied in the Defence sector in the deployment of tactical military 
bases and in eco-friendly barracks for the future.   
 
Falco family – Leonardo is currently the only company in Europe 
able to offer a complete UAS package including aircraft, sensors, 
mission system and control station, characterised by a high degree 
of technological innovation. FALCO is the ancestor of the family, a 
tactical UAS designed to collect information and identify targets in 
real time, used by several international customers who also deploy 
it under extreme weather conditions. FALCO was followed by the 
FALCO EVO “heavy” version, improved in terms of aerodynamic 
efficiency and amount of fuel that could be carried, which has also 
been flying in Europe supporting maritime surveillance operations, 
starting with the European FRONTEX mission. The latest 
generation of the Falco family is the new system Falco Xplorer, the
largest ever manufactured, meeting the needs and mission 
requirements of customers in the military and civil sectors. The 
system is designed by Leonardo, from the fuselage to the sensor 
suite, the mission system and the ground control station. All the 
systems can also be used as a service managed and operated by 
Leonardo. 
Global Combat Air Programme (GCAP) – The Electronics Division 
of Leonardo is engaged in the development of future technologies, 
knowledge, capability and know-how for the sixth-generation 
fighter aircraft, which will operate in the scenarios of 2040 and 
later. Leonardo is developing vital technologies such as ISANKE & 
ICS (Integrated Sensing And Non Kinetic Effects & Integrated 
Communication System) that will provide the next generation of 
sensors and communication systems, in addition to open system 
architectures that will enable these technologies to be inserted in 
a digital platform. 
 
Developments 2022 - Electronics

Report on Operation at 31 December 2022 
56 
 
Cyber resilience of products - The significant increase in attacks 
against public and private targets, above all through Ramsonware 
tools used for extortion activities and to threaten the business 
continuity of the organisations under attack, has significantly 
boosted the development of solutions for the cyber resilience of 
products in the Cyber Security Division and of the entire Group, 
both through the development of an advanced Cyber Threat 
Intelligence platform ("Cyber Information superiority") and 
through the integration, into the products, of a proprietary EDR 
(Endpoint Detection and Response) that is capable of ensuring 
ongoing monitoring and analysis of the most advanced threats. 
Secure Cloud Management Platform - In order to ensure the 
security and effective interoperability of Public Administration 
data, including through Cloud Based application platforms, work 
has commenced on the development of a Secure Cloud 
Management platform for Multi Cloud environments, as well as on 
tools and methodologies to support the migration strategy to the 
Cloud, which may also be used to support the National Strategic 
Hub (NSH) financed with funds under the NRRP. 
3. AIRCRAFT  
The market is divided into two macro-segments, defence and civil, characterized by very different dynamics. 
As regards the defence segment, there is an increase in demand, in particular for combat aircraft, driven by 
international tensions and the technological evolution of platforms.  
In the field of military aircraft, Leonardo confirms itself as a major player, active in all generations of air 
platforms, from the Typhoon, which remains, with more than 580 units produced and 680 ordered, one of 
the most appreciated 4+ generation multi-role fighters, to the production part of the 5th-generation F-35A 
and F-35B multi-role fighters, and to the new 6th-generation fighter, the Global Compact Air Programme 
(GCAP), previously known as Tempest, which will operate within a "system of systems", on which Leonardo 
is working together with other industrial partners in the United Kingdom and Japan.  
In the field of regional civil aircraft, Leonardo strengthens its market leadership in the regional transport 
segment with the best seller turboprop aircraft ATR, which may further benefit from the main competitor's 
decision to postpone the implementation of a new platform of similar engines. 
 
Below is the performance of the sector during the last 5 years: 
 
 
 
 
The Sector confirms high profitability with a substantial performance in the military business. 
From a production point of view, for the military programmes 43 wings and 14 final assemblies were 
delivered to Lockheed Martin under the F-35 programme (43 wings and 12 final assemblies delivered in 
2021), in addition to 4 Typhoon aircraft delivered to Kuwait (additional to the 2 aircraft delivered in 2021). 
 
GIE ATR: 
• 
The consortium is gradually increasing production volumes thanks to the resumption of passenger 
traffic; 
1,700
1,904
2,031
2,668
2,800
1,400
1,800
2,200
2,600
3,000
2018
2019
2020
2021
2022
New orders
1,932
2,329
2,634
3,268
3,085
1,500
1,900
2,300
2,700
3,100
3,500
2018
2019
2020
2021
2022
Revenues
266
320
340
434
421
97
53
(69)
(24)
(6)
363 
373 
271 
410 
415 
(200)
(100)
-
100
200
300
400
500
600
2018
2019
2020
2021
2022
EBITA
Ai rc rafts
GIE ATR
Settore
Developments in 2022 – Cybersecurity

Report on Operation at 31 December 2022 
57 
 
− 
25 deliveries were made, down compared to 31 made in 2021, which were facilitated by the stock 
accumulated during the period of pandemic; 
• 
Improving thanks to improved profitability and the effects of contractual restatements during the year. 
 
Key Performance Indicators for the sector 
 
 
December 2021 
New orders 
Revenues 
EBITA 
ROS % 
Aircrafts 
2,668
3,268 
434
13.3%
GIE ATR 
-
- 
(24)
n.a.
Total 
2,668
3,268 
410
12.5%
 
December 2022 
New orders 
Revenues 
EBITA 
ROS % 
Aircrafts 
2,800
3,085 
421
13.6%
GIE ATR 
-
- 
(6)
n.a.
Total 
2,800
3,085 
415
13.5%
 
Change % 
New orders 
Revenues 
EBITA 
ROS % 
Aircrafts 
4.9%
(5.6%) 
(3.0%)
0.3 p.p.
GIE ATR 
n.a.
n.a. 
75.0%
n.a.
Total 
4.9%
(5.6%) 
1.2%
1.0 p.p.
 
 
New Orders: they were slightly higher than in 2021 as a result of the completion of 20 export Typhoon aircraft 
for Spain, of the C-27J aircraft to the Slovenian MoD within a G-to-G context, the first phase of design of the 
remotely-piloted aircraft system Euromale and the order for avionics modernization of the C-27J fleet for the 
Italian Air Force, in addition to other orders for logistic support programmes for the Typhoon aircraft. 
Revenues. They showed a slight reduction compared to 2021 due to lower production volumes under the 
Kuwait programme and postponements on some export orders, which were partially offset by higher 
volumes on JSF and C-27J programs, in addition to the beginning of activities on Euromale programme. 
EBITA. It was on the rise as a result of a higher contribution given by the GIE-ATR consortium. Specifically: 
• 
a high level of profitability was confirmed for the Aircraft Division, which was mainly supported by the 
international Typhoon programmes;  
• 
the GIE-ATR consortium recorded higher results compared to those of 2021 thanks to the improved 
profitability and the effects from contractual redefinitions made during the year.

Report on Operation at 31 December 2022 
58 
 
Total market of the sector and 2023 Outlook 
Market (*) 
2022-2031 
CAGR  2022-
2031 
Impact on the businesses in which Leonardo operates 
Civil 
€bil. 1,079 
6.0% 
Civil sector: see the Aerostructures sector. 
Defence 
€bil. 753 
7.3% 
Defence sector: more than half of the world's demand for military aircraft - manned and 
unmanned - will be concentrated in the USA, in the Indo-Pacific region and Europe, with 
combat air systems dominating the market, based on next-generation platforms such as
F-35, Tempest/Global Combat Air Programme and Future Combat Air System 
(FCAS/SCAF). Demand for combat aircraft will grow, as will demand for trainer aircraft,
driven by the significant progress towards the sixth generation and the introduction of 
multi-aircraft systems, which will result in a substantial evolution in flight operations and 
therefore the need for pilot training. 
 
(*) The “Civil” market includes commercial aircraft, aerostructures and components, net of MRO services. The “Defence” market includes 
manned and unmanned aircraft, net of logistic support services 
In 2023, with reference to the Aircraft business, an increase is expected in acquisitions in the export market 
of proprietary platforms, confirming the substantial contributions for the F-35 and EFA KW international 
cooperation programmes. A significant recovery in deliveries is expected for the GIE Consortium.  
Research, development and product engineering 
In the aeronautics sector, products increasingly evolve towards complex systems that integrate high-tech 
components and systems and enable their functionality, even within highly integrated and cyber resilient 
multi-domain environments. The next generation of aeronautical products/systems will need to be able to 
meet even more stringent requirements in terms of product quality, cost competitiveness and sustainability 
across the lifecycle. 
In fact, R&D activities have also been extended to the implementation of methodologies and the 
development of technologies that foster a reduction in environmental impact and the application of circular 
economy logics; this approach has also been implemented at the production sites. The areas that are most 
investigated are digitalisation, which involves all company processes and the entire product life cycle, 
electrification for sustainable mobility, autonomy, simulation and innovative materials and production 
processes. Technological developments and growth in the areas mentioned above are supported through 
enabling technologies such as Artificial Intelligence (AI) and High Performance Computing (HPC).  
Leonardo is committed to actively supporting technological transformation and growth with research 
investments financed in the civil sector at national (Innovation for Nacelles - I4N) and European (Clean Sky, 
SESAR 3) level, aimed at producing technologies capable of enabling the development of solutions with 
reduced environmental impact in line with the principles of the Green Deal, and at developing innovative 
solutions in the Defence sector by enhancing the opportunities of the European Defence Fund. 
R&D investments create value for Leonardo on a wide-ranging basis by providing the expertise and footprint 
in the technological frontier in order to ensure the competitiveness of current and future products and 
services. For example, work has been commenced for the development of the Digital Twin (as a research 
area of Leonardo Labs) for the aircraft that exploits the advanced simulation capabilities of the davinci-1 
supercomputer.

Report on Operation at 31 December 2022 
59 
 
Eurofighter Kuwait – 4 aircraft were delivered during the year as 
part of the order for the supply of Eurofighter Typhoon aircraft 
to the Kuwait Air Force, with the Aircraft Division acting as prime 
contractor. The configuration of the EFA Kuwait aircraft is the 
most advanced ever produced and incorporates a series of 
additional capabilities and innovations compared to the baseline 
version, including the new ESCAN electronic scanning Radar 
manufactured by the Euroradar consortium led by Leonardo UK. 
M-346 Light Fighter Family of Aircraft – The first six M-346 
aircraft in Light Fighter configuration were delivered to the 
international launch customer as early as in 2021, which, based 
on the trainer, integrate mission capabilities such as radar, self-
protection suite and a range of operational loads. In 2022 four 
aircraft in the trainer version (AJT) were delivered to Poland and 
two to Qatar. 
C-27J Next Generation In 2022, work commenced on the 
development of new versions of C-27J, as well as on a significant 
avionics upgrade. 
Nacelles – Innovation for Nacelles (I4N) is a co-funded project 
that started in October 2019 and operates on four main lines of 
research aimed at the application of new acoustic solutions for 
noise reduction, the qualification and production of components 
with innovative and fire-proof materials, the implementation of 
innovative solutions for thrust reversers and highly automated 
production processes. 
M-345 Dual Role – Work commenced on the development of the 
M-345 Light Fighter aircraft, while enhancing the training functions 
with the inclusion of an advanced tactical simulation system on 
board. This development completes the Family of aircraft offered 
by Leonardo for basic and advanced training, together with the M-
346 LFFA versions. 
International Flight Training School – Within this context worth 
noting is the partnership between the Air Force and Leonardo to 
create an International Flight Training School; during the year the 
courses in Galatina were completed and work commenced on 
delivering the first courses to pilots of foreign customers (Germany, 
Qatar, Singapore and Japan) at the Air Force bases in 
Decimomannu, at the same time as the completion of related 
infrastructure. 
GCAP (Global Combat Air Programme) – Leonardo is engaged in 
the development of future technologies, knowledge, capability and 
know-how for the sixth-generation fighter aircraft, which will 
operate in the scenarios of 2040 and later. The PC2Lab-T laboratory 
was set up in Turin to conduct simulations of the 6th generation 
"system of systems", the first test scenarios, including core 
platforms and unmanned "adjunct" aircraft, were developed and 
work commenced on strategic technological developments in 
Digital Twin mode. 
Euromale – In 2022, the Eurodrone programme was launched to 
develop and produce a European MALE together with France, 
Germany and Spain. 
4. AEROSTRUCTURES 
The civil aviation segment is showing signs of recovery, especially on the single-aisle segment, after the sharp 
fall due to the pandemic that affected the wide-body aircraft segment more than others, which was already 
undergoing a phase of profound change, driven by the search for increasingly eco-sustainable solutions from 
a Green Deal perspective. 
In the segment of aerostructures, Leonardo plays a significant role in the supply of large structural 
components both in traditional materials (aluminium alloys) and in advanced materials (composites and 
hybrids), for the commercial aviation programmes of the main world airliner manufacturers (Boeing and 
Airbus), for 787, 767, A321 and A220 aircraft, respectively, as well as for the production of ATR aircraft. 
 
 
 
 
 
 
 
 
Developments in 2022 - Aircraft

Report on Operation at 31 December 2022 
60 
 
Below is the performance of the sector during the last 5 years: 
 
 
 
The Business Segment shows clear signs of improvement: although the civil aviation market, especially in the 
wide-body segment, is still characterised by a slow post-pandemic recovery and is penalised by the Russian-
Ukrainian conflict, there is a gradual recovery in demand from major customers. There continued to be the 
same conditions, albeit to a lower extent, at the Grottaglie site working at a lower capacity, due to B787. 
From a production point of view, 22 fuselage sections and 13 stabilisers were delivered under the B787 
programme (28 fuselages and 16 stabilisers were delivered in 2021) and 24 fuselages were delivered under 
the ATR programme (15 in 2021).  
 
New Orders: the business segment benefitted from higher orders from customer Airbus for the A220 and 
A321 programmes, confirming the growth trend reported in recent years. On the other hand, demand under 
the programmes with customers GIE-ATR and Boeing remained substantially stable.  
Revenues. They were on the rise as a result of higher deliveries made to the GIE ATR consortium and to a 
higher demand under the programmes with customer Airbus. 
EBITA: the 2022 figure reflects the improvement in the conditions of production sites working at a lower 
capacity compared with 2021.  
 
Total market of the sector and 2023 Outlook  
Market (*) 
2022-2031 
CAGR 
2022-2031 
Impact on the businesses in which Leonardo operates 
Civil 
€bil. 1,079 
 
6.0% 
There is increased demand for new civil aircraft compared to the peak period of the 
pandemic, which also implies increased demand for the supply of both airliner 
aerostructures and of regional aircraft components. All the aviation programs, primarily 
Airbus and Boeing, and to a lesser extent those of ATR, were affected by a sharp decline 
in demand due to Covid-19; estimates indicate a recovery market. 
(*) The “Civil” market includes commercial aircraft, aerostructures and components, net of the MRO services. 
 
In 2023, an increase is expected in volumes linked to higher production rates under the Boeing (i.e. B787) 
and ATR programmes, as is an improvement in profitability due to a reduction in the rate of the main 
production sites working at a lower capacity. 
Research, development and product engineering 
The Aerostructures sector paid great attention to the research and innovation projects envisaged under the 
Sustainability Plan in the aeronautical sector, with particular focus on process improvement and recycling for 
polymeric materials and epoxy matrix composites reinforced with carbon fiber. New Out-of-Autoclave 
processes are being studied for the manufacture of these components with reduced energy consumption 
925
948
581
365
420
200
400
600
800
1,000
2018
2019
2020
2021
2022
New orders
1,020
1,125
819
442
475
200
400
600
800
1,000
1,200
2018
2019
2020
2021
2022
Revenues
(35)
(11)
(86)
(203)
(183)
(220)
(180)
(140)
(100)
(60)
(20)
20
2018
2019
2020
2021
2022
EBITA

Report on Operation at 31 December 2022 
61 
 
that allow the use of easily recyclable technopolymers. As part of sustainable mobility solutions, work has 
been commenced on studies for the industrialisation and production of platforms structures for the Urban 
Air Mobility and HAPS (High Altitude Platform Systems) of the HTA (Heavier Than Air) type. 
Low-cost and recyclable composite lamination tools have been developed and used for the purpose of 
reducing non-recurring program start-up costs. In this way, prototype stages become more cost-effective 
and faster with reduced environmental impacts.  
Studies have also been initiated to use the potential of the davinci-1 for real time monitoring of process 
parameters and part quality, so as to make the process itself stable by avoiding process drifts.  
 
Engineered Materials and Advanced manufacturing processes 
– Work commenced to strengthen and address studies for the 
development of materials and composites for processes with a 
high production rate, as well as of materials within the 
automotive sector. Furthermore, studies were started in the 
field of manufacturing processes that enable efficiency 
improvement and a lower environmental impact through the 
use of robotics and Industry 4.0 solutions. 
Thermoplastic Materials – Leonardo has developed processes 
for 
the 
production 
of 
technopolymer 
and 
standard 
thermoplastic matrix composite parts using both highly 
automated and single-step (press-forming) processes under 
European and Italian funding programmes. It has also started 
studies of Continuous compression molding processes in order 
to improve the mechanical performance of the component and 
launched the R&D campaign of a new thermoplastic material 
(covered by its own patent), which is capable of being used for 
in-situ consolidation, a technology that may allow in the future 
the construction of large and complex structures without the use 
of autoclaves, with benefits in terms of lower energy 
consumption. 
Integrated Smart Assembly factory - Digital twin solutions for 
the assembly of large components. Automatic surface 
generation and shim fabrication using subtractive and additive 
digital technologies. Automatic installation of connecting parts 
with quality control of installations, improving cycle times and 
quality of assemblies. 
Injection molding – Polymer and metal injection molding 
techniques are used to manufacture structural components with 
greater flexibility and lower energy consumption. 
Recyclable Materials - Projects related to recycling and 
repairability of materials, including, for example, the activities 
carried out for the reuse and recycling of carboresins. Under 
collaboration agreements with research institutes, a project has 
been started, which aims to recover fibers by extracting them from 
the composite material and removing the thermoset matrix. The 
fibers recovered in this manner are used in Injection molding 
processes by adding thermoplastic polymers, which can be reused 
and recycled countless times. 
Artificial Intelligence - Study and application of AI algorithms for 
surface defect detection, map analysis related to non-destructive 
testing and defect prevention on laminates. These projects aim to 
further increase the already high quality of products while 
improving the operational comfort of inspectors. In fact, AI-based 
systems assist operators in searching for part defects. 
NEMESI – Work continued on the re-industrialisation of the 
production and redesign line of structural components of ATR 
aircraft according to Industry 4.0 requirements. 
Robots and cobots - Robots and, especially, cobots are used in 
work environments to assist operators in repetitive and low-added-
value operations (e.g., dust extraction and kit making). 
 
 
Developments in 2022 - Aerostructures

Report on Operation at 31 December 2022 
62 
 
5. SPACE 
The sector is of supreme importance, both in the civil and in the defence segment, because it makes it 
possible to carry out ongoing monitoring of the planet's resources, both natural and artificial, as well as to 
offer communication and localisation solutions in remote areas, thus ensuring access to basic services for 
communities and connecting activities and citizens. The market in this sector is divided between upstream 
(manufacturing of space and ground systems), midstream (manufacturing of launch systems and services, 
satellite operations services) and downstream (end-user services, including communication, geoinformation, 
navigation and related infrastructure) activities. 
Leonardo is present in this market through the Space Alliance with Thales - through its investment in Thales 
Alenia Space (33%) and Telespazio (67%), with the abovementioned construction of electronic space systems 
and its investment in Avio (29.63%).  Specifically, Telespazio offers a complete series of services in the main 
operational domains of the space market – from communications to navigation, from Earth observation to 
space exploration. These services support various tasks from supporting healthcare institutions to logistics, 
from monitoring vehicle fleets to monitoring critical infrastructure and hazardous sites, from precision 
agriculture to civil protection, from the prevention of hydrogeological instability and support in caring for 
architectural sites to monitoring natural resources and pollution. These applications have a key role in 
everyday life, in the protection and sustainable development of the Planet, as well as in the safety of citizens, 
readily supporting the Institutions with the capacity to combine big volumes of satellite data and very high 
resolution images with data from land-based sensors, at sea or in aeroplanes, and with archives and social 
media.  
Furthermore, Leonardo manufactures, through the Electronics Division, essential components of space 
systems, such as electro-optical payloads for Earth observation and planetary exploration (e.g., COSMO 
SkyMed, PRISMA, MTG, EarthCare, Rosetta, ExoMars, LISA Pathfinder, BepiColombo), as well as attitude 
sensors and atomic clocks, which are required for satellite navigation systems (e.g. Galileo). 
Below is the performance on the sector during the last 5 years: 
 
The sector underperformed compared to 2021 due to the negative performance of the manufacturing 
segment, which was heavily affected by exogenous factors such as the Russian-Ukrainian crisis, with the 
recognition of charges for risks associated with contracts to Russia, and the increase in inflation. In 2021 the 
manufacturing business, in the Italian component, had also benefitted from the significant effects arising 
from the realignment between the tax and statutory value of goodwill. The business recorded a slightly 
increasing volume of revenues and a profitability that benefitted from the greater contribution given by the 
Observation Exploration and Navigation Domain compared to the Telecommunications Domain. The 
segment of satellite services recorded a good performance in 2022 too, in terms of volumes and a sharply 
increasing result, benefiting from the greater contribution ensured by the Satellite Systems and Operations 
LoB.  
 
58
39
23
62
31
10
20
30
40
50
60
70
2018
2019
2020
2021
2022
EBITA

Report on Operation at 31 December 2022 
63 
 
From an operational point of view, 2022 was characterised by the following events in the manufacturing 
segment: 
• 
the launch of Globalstar, Nilesat, Ses 22, CosmoSkymed (CSG-2) satellites, as well as of two Omni Spark 
1 and 2 nanosatellites, MTG1-I of Meteosat, GSAT0223 of Galileo constellation and of E10B for 
Eutelsat;  
• 
the completion and launch of the PCM18 pressurized cargo module of the CYGNUS shuttle for the ISS. 
In addition, the relevant role of the Italian component of the business in Copernicus is confirmed with 
the acquisition of the later phases of the European programme.  
 
In 2022 the services segment was characterised by the continuation of the provision of services of: 
• 
Operations/Logistics/Networking on the Galileo programme; 
• 
Operations and Logistics on the EGNOS (European Geostationary Navigation Overlay Service) 
programme; 
• 
Maintenance of Italian institutional programmes, both civil (Italian Space Agency) and military, in 
operational condition; 
• 
Engineering and operational support services at sites of international and supranational customers 
(ESA, CNES, Eumetsat) and through foreign subsidiaries; 
• 
Provision of imagery and applications in the field of Earth observation and connectivity services on 
different bandwidths, for institutional and commercial customers. We must also note the activation of 
connectivity services for public education in remote areas of Latin America in 2022. 
Total market of the sector and 2023 Outlook 
Market 2022-
2031 
CAGR         2022-
2031 
Impact on the businesses in which Leonardo operates 
€bil. 1,521 
5.2% 
Manufacturing: Demand growth driven by developments related to the 
miniaturisation, standardisation, and digitisation of satellite solutions. 
Services: The increasing competition associated with the advent of NewSpace 
(private companies established in a sector that was a de facto monopoly of 
governments) has triggered the need for a statutory pattern of service offerings 
in the space sector as well, pushing the market towards increasingly higher value-
added solutions and/or new business models (HTS/IoT for telecommunications, 
data from innovative sensors to be combined with traditional optical sensors for 
Earth observation, and as-a-Service business models for the ground segment). 
 
2023 is expected to be characterised by further growing business volumes supported by a robust backlog, 
showing a gradual increase. Operating profitability is expected to improve as a result of a recovery in the 
manufacturing segment. Excellent fundamentals are confirmed for the satellite services segment in Europe 
and Latin America at operating level, predicting growth in both topline and operating results. 
Research, development and product engineering 
Space infrastructure and technology are an enabling factor, through new services and applications, for the 
attainment of each of the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda. The various geo-
information applications and services that Leonardo is able to provide, in fact, have a strong environmental 
and social impact. The fact that there is such a variety of possible applications shows that Space is, and will 
continue to be, an area of steadily increasing development with a continuous increase in players and services, 
with civil and military applications, borne witness to by the rapidly growing numbers of private firms

Report on Operation at 31 December 2022 
64 
 
operating in all segments of space and which also develop launching or transport technologies that were the 
prerogative of governments for years; these newcomers are now starting to show that they have greater and 
greater business potential, while governments and space agencies increasingly focus their attention on 
exploration and the possible exploitation of extraplanetary resources, taking into high consideration the 
protection of space assets that will contribute thereto. 
Solutions that add satellite navigation to hybrid satellite communications and geoinformation and HPC, 
which, in the near future, will also enable 5G technology and related protocols to be included transparently, 
are confirmed to be the main elements of projects related to the understanding of climate change and 
definition of decision support tools for space exploration, for agro-food policies, and especially in emergency 
management. In addition, quantum communication technologies will be critical in the future to improve the 
protection of critical infrastructure and ultimately the population, thus helping to improve the security of 
production activities and human settlements. 
Moonlight – This is ESA's initiative for the creation of Lunar 
Communications and Navigation Services (LCNS) and the related 
infrastructures to support commercial and institutional missions 
for the exploration of the Earth's satellite, while fostering the 
development of a true Lunar Economy. The project, which is
coordinated by Telespazio and started in 2021, aims, through a 
system of terrestrial stations and a network of satellites that are 
coordinated by the Fucino’s Space Center, to provide 
communication and navigation services to all user missions in the 
cislunar domain; this will decrease the complexity and cost of 
various conventional sensors and communication systems to Earth 
by making navigation signals available to guide orbiters and 
landers/rovers and support communications of future human and 
robotic exploration missions in proximity. As the coordinator of a 
large European consortium, Telespazio S.p.A. in 2022 successfully 
completed the ESA Phase A/B1 feasibility study for: the definition 
of the Moonlight Mission and Service (LCNS) Operational Concept,
the specification of mission, system, space segment, ground, and 
user terminal requirements, the definition of the preliminary 
design development plan for the communication and navigation 
service infrastructure in the cislunar environment. 
Quantum Communication - EuroQCI (European Quantum 
Communication Infrastructure) is a European Commission project 
that aims to build an integrated terrestrial-satellite communication 
network based on quantum technology. The intended application 
is "quantum key distribution," one of the first uses of which is the 
construction of the security infrastructure for the communications 
of the 27 Member States through the new Iris satellite 
constellation planned by the European Commission. In this 
context, Telespazio participated in the preliminary design phases 
of both the EuroQCI programme and its space component, which 
is managed by ESA under the parallel SAGA (Satellite Advanced 
Global Architecture) programme. The future goal is to contribute 
to the realization of the infrastructure and the definition of the 
service, so that it can then bid for its management and operations 
of the space component by exploiting the potential of its own 
space centers. 
Satellites in Agriculture – AGEA (the Italian agricultural 
payments agency) and e-GEOS have developed an automated and 
continuous process that uses data from ESA's Sentinel satellite 
constellation, along with other sources, to verify the correctness of 
the commitments of individual farmers in relation to the subsidies 
provided by the CAP (Common Agricultural Policy), which are also 
linked to the type of crops for which there are both market and 
environmental sustainability requirements. In 2022 the control 
was carried out on more than half of the Italian provincial districts. 
The spatial screening is making more and more available new data 
and indicators, essential to implement agri-environmental, 
forestry and management policies, in line with the mitigation of 
the impact of climate change. 
Space Domain Awareness – These activities are aimed at 
protecting critical space assets from intentional and unintentional 
threats and managing the growing number of orbiting objects. 
During 2022, Telespazio participated in major R&D programmes on
the topic such as, for example, Integral and Spaceways. The former 
aims to define a command and control system for European 
Defences for space awareness work, while the latter focuses on 
civilian aspects of space traffic management. In addition, as part of
its product policy, Telespazio has been advancing the
developments of a digital platform, based on advanced algorithms 
and technologies that enable the fusion of data from different 
sources and the delivery of Space Traffic Management, Space 
Intelligence and Space Weather services in an integrated 
environment that leverages the most advanced Artificial 
Intelligence/Machine Learning technologies and use of neural 
networks. 
Developments in 2022 – Space

Report on Operation at 31 December 2022 
65 
 
"NON-GAAP" ALTERNATIVE PERFORMANCE INDICATORS 
Leonardo’s Management assesses the Group’s performance and that of its business segments based on a 
number of indicators that are not envisaged by the IFRSs. Specifically, EBITA is used as the primary indicator 
of profitability, since it allows us to analyse the Group’s marginality by eliminating the impacts of the volatility 
associated with non-recurring, extraordinary items or items unrelated to ordinary operations. 
As required by CONSOB Communication no. 0092543 of 3 December 2015 in adopting the ESMA 2015/1415 
guidelines on alternative performance indicators, below is a description of the components of each of these 
indicators: 
• 
New orders: this includes contracts entered into with customers during the period that have 
commercial substance and represent an obligation for both parties to fulfil the contract. 
• 
Order backlog: this figure is the sum of the order backlog for the preceding period and new orders, 
less revenues during the reference period. 
• 
EBITDA: this is given by EBITA, as defined below, before amortisation (excluding amortisation of 
intangible assets from business combinations), depreciation and impairment losses (net of those 
relating to goodwill or classified among “non-recurring costs”). 
• 
EBITA: it is arrived at by eliminating from EBIT, as defined below, the following items: 
- 
any impairment in goodwill; 
- 
amortisation and impairment, if any, of the portion of the purchase price allocated to intangible 
assets as part of business combinations, as required by IFRS 3; 
- 
restructuring costs that are a part of defined and significant plans. This item includes personnel 
costs as well as any and all other costs deriving from the reorganisation (e.g. impairment of assets, 
costs for the closure of sites, relocation costs, etc.); 
- 
other non-recurring or unusual costs or income, i.e. connected to particularly significant or 
exceptional events that are not related to the ordinary performance of the business. The item 
includes charges incurred during M&A transactions, charges linked to disposed businesses and/or 
products and systems, and the recognition of losses on contracts that have become onerous as a 
result of non-operating events. 
EBITA is then used to calculate return on sales (ROS) and return on investment (ROI). 
A reconciliation of Income before tax and financial expense, EBIT and EBITA is shown below (the 
reconciliation by segment is reported in Note 8): 
(€ millions) 
2021 
2022 
Income before tax and financial expenses 
787
829 
Equity-accounted strategic investments 
124
132 
EBIT 
911
961 
Amortisation of intangible assets acquired as part of business combinations 
22
24 
Restructuring costs 
89
119 
Non-recurring income 
101
114 
EBITA 
1,123
1,218 
 
Non-recurring costs for the period mainly reflected the write-down of the exposure to the countries 
involved in the conflict existing between Russia and Ukraine (€mil. 36) and the transaction costs related 
to the completion of the acquisition of RADA and subsequent listing of Leonardo DRS (€mil. 31). 
Furthermore, they mainly included, in the comparative period, costs incurred to be in line with the

Report on Operation at 31 December 2022 
66 
 
instructions given by the government on Covid-19 to support the governmental functions in managing 
the emergency, and costs incurred following incurred following the settlement of the Indian case. 
Restructuring costs relate to estimated charges in connection with the aforementioned Fornero Act. 
With reference to the period under comparison, they were associated with the agreements governing 
the early retirement of the Aerostructures division’s workforce on a voluntary basis. 
• 
Return on Sales (ROS): this is calculated as the ratio of EBITA to revenue. 
• 
EBIT: this is obtained by adding to Income before tax and financial expenses (defined as earnings 
before “financial income and expense”, “share of profits (losses) of equity-accounted investees”, 
“income taxes” and “Profit (loss) from discontinued operations”) the Group’s share of profit in the 
results of its strategic investees (MBDA, GIE ATR, TAS, Telespazio and Hensoldt), reported in the “share 
of profits (losses) of equity-accounted investees”. The indicator only included the Group’s share of the 
results achieved by the strategic Joint Ventures (MBDA, GIE ATR, TAS and Telespazio) until the financial 
statements at 31 December 2021. 
• 
Net result before extraordinary transactions: this is the Net Result before the result from discontinued 
operations and the effects of the extraordinary transactions (key acquisitions and disposals). Below is 
the reconciliation: 
 
(€ millions) 
2021 
2022 
Net result 
587
932 
Effect on extraordinary transactions 
-
(235) 
Net result before extraordinary transactions 
587
697 
 
• 
Group Net Debt: this includes cash, financial receivables and current securities, net of (current and 
non-current) loans and borrowings and of the fair value of foreign exchange derivatives covering 
financial debt items, as well as the main non-current receivables. The reconciliation with the net 
financial position required by the CONSOB communication no. DEM/6064293 of 28 July 2006 and 
updated in accordance with the ESMA guidelines 32-382-1138 of 4 March 2021 as implemented in the 
CONSOB warning notice no. 5/21 of 29 April 2021 is reported in Note 21 of consolidated financial 
statements. 
• 
Free Operating Cash-Flow (FOCF): this is the sum of the cash flows generated by (used in) operating 
activities (excluding the changes in the Group Net Debt), the cash flows generated by (used in) ordinary 
investing activities (investment and divestment of intangible assets, property, plant and equipment, 
and equity investments, net of cash flows from the purchase or sale of equity investments that, due to 
their nature or significance, are considered “strategic investments”) and dividends received. The 
calculation of FOCF is presented in the reclassified statement of cash flows shown in the section “Group 
results and financial position”. 
• 
Return on Investments (ROI): this is calculated as the ratio of EBITA to the average net capital invested 
in the two comparative periods. 
• 
Funds From Operations (FFO): this is cash flow generated by (used in) operating activities net of 
changes in working capital and the repayment of debts under Law 808/1985, included within “Cash 
flow from ordinary investing activities” in the reclassified statement of cash flows. The FFO also 
includes dividends received.

Report on Operation at 31 December 2022 
67 
 
• 
Return on Equity (ROE): this is calculated as the ratio of the net result before extraordinary 
transactions for the financial period to the average value of equity in the two comparative periods. 
• 
Net interest: this is calculated as the sum of the items “Interest”, “Premiums (paid) received on IRSs” 
and “Commissions on borrowings” (see the Note on “Financial income and expense” of the 
consolidated financial statements). 
Below are also provided the reconciliation statements between the items in the reclassified tables reported 
in the Report on Operations and the accounting statements shown in the notes to consolidated financial 
statements: 
  
Scheme 
PPA amortis. 
Restruct. and non 
recurring costs strategic JVs 
Onerous 
contracts 
(losses at 
completion) 
Extraord. 
transactions. 
Reclassified 
scheme 
Revenues 
14,713
 
 
14,713 
Purchase and personnel expenses 
(13,154)
161 
 
17
(12,976) 
Other net operating 
income/(expenses) 
(103)
14 
 
(17)
(106) 
Equity-accounted strategic 
investments 
 
132 
132 
Amortisation, depreciation and write-
offs 
(627)
24
58 
 
(545) 
EBITA 
 
 
1,218 
 
 
 
Non-recurring income/(expenses) 
(114) 
 
(114) 
Restructuring costs 
(119) 
 
(119) 
Amortisation of intangible assets 
acquired as part of business 
combinations 
(24)
 
 
(24) 
EBIT 
 
 
961 
 
 
 
Net financial income/(expenses) 
154
 
(132) 
(235)
(213) 
Income taxes 
(51)
 
 
(51) 
Net result before extraordinary 
transactions 
 
 
697 
Net result related to discontinued 
operations and extraordinary 
transactions 
-
 
 
235
235 
Net result 
932
 
 
932 
 
 
 
Scheme 
Financial 
receivables 
and cash 
Financial 
payables 
Hedging 
derivatives 
on debt 
items 
 Reclassified 
scheme 
 
 
 
Non-current assets 
13,943  
 
13,943
Non-current liabilities 
(5,705)  
3,531
 
(2,174)
Capital assets 
 
 
11,769
 
 
 
Current assets 
14,602  
(1,616)
(1)
 
12,985
Current liabilities 
(15,166)  
1,082
20
 
(14,064)
Net working capital 
 
 
(1,079)
 
 
 
Total equity 
7,699  
 
7,699
 
 
 
Group Net Debt 
 
(1,616)
4,613
19
 
3,016
 
 
 
Net (assets)/liabilities held for sale 
(25)  
 
(25)

Report on Operation at 31 December 2022 
68 
 
 
Scheme 
 
Dividends 
received 
Cash out 
from Law 
no. 808/85 
payables 
Strategic 
investments 
 
Reclassified 
scheme 
 
 
 
 
 
 
 
 
Cash flows generated (used) from operating activities 
 
1,152  
11
 
1,163
Dividends received 
 
 
133
 
133
Investments in property, plant and equipment and intangible assets 
(762) 
 
Sales of property, plant and equipment and intangible assets 
16 
 
Cash flows from ordinary investing activities 
(746) 
(11)
 
(757)
Free Operating Cash Flow (FOCF) 
 
 
539
Strategic transactions 
 
(172)
 
(172)
Other investing activities 
(45)  
(133)
172
 
(6)
Cash flows generated (used) from investing activities 
(791)  
 
Bond redemption 
(841) 
 
BEI Loan and Term Loan repayment 
(547) 
 
Net change in other borrowings 
66 
 
Net change in borrowings 
(1,322) 
 
(1,322)
Dividends paid 
(80)  
 
(80)
Cash flows generated (used) from financing activities 
(1,402)  
 
Net increase (decrease) in cash and cash equivalents 
(1,041)  
 
(1,041)
Exchange rate differences and other changes 
73  
 
73
Cash and cash equivalents at 1 January 
2,479  
 
2,479
Cash and cash equivalents at 31 December 
1,511  
-
-
 
1,511

Report on Operation at 31 December 2022 
69 
 
 
INDUSTRIAL AND FINANCIAL TRANSACTIONS 
 
Industrial transactions. The major industrial transactions that took place in 2022 are described below: 
• 
Acquisition of the stake in Hensoldt AG. On 3 January 2022 there was the completion of the 
acquisition from Square Lux Holding II S.à r.l., a company controlled by funds advised by Kohlberg 
Kravis & Roberts & Co. L.P., concerning a 25.1% stake in Hensoldt AG, which is the leading German 
player in the field of sensor solutions for defence and security applications, with an ever-expanding 
portfolio in sensors, data management and robotics, at a price of €mil. 606 (excluding transaction 
costs). The transaction is an important step towards achieving the strategic objective of acquiring a 
leading position in the European Defense Electronics market, as defined in the “Be Tomorrow – 
Leonardo 2030” Plan, and reflects Leonardo’s determination to play a leading role in the ongoing 
consolidation process, also with a view to future cooperation programmes at continental level; 
• 
National Strategic Hub for the Cloud. On 11 July 2022, following the exercise of the pre-emption 
right,  in compliance with the applicable legislation and the tender documentation, the partnership 
composed of TIM, Leonardo, Cassa Depositi e Prestiti (CDP, through the subsidiary CDP Equity) and 
Sogei, was notified of the award of the tender for the design, creation and management of the Polo 
Strategico Nazionale (PSN) [National Strategic Hub - NSH] infrastructure to supply cloud services for 
the Public Administration. On 4 August, a company was set up between the members of the 
partnership in the form of an Italian law stock company, with a view to ensuring the highest possible 
level of data  efficiency, security and reliability to support the Public Administration. On 24 August, 
the company PSN signed the Convention with the Department for Digital Transformation of the 
Presidency of the Council of Ministers for the assignment of the infrastructure under a 13-year 
concession; 
• 
Sale of Global Enterprise Solutions (GES). On 22 March 2022 the US subsidiary Leonardo       DRS signed 
a binding agreement to sell its Global Enterprise Solutions (GES) business to  SES S.A. for USDmil. 450, 
gross of taxes. GES is the largest provider of commercial satellite communications for the US 
government and offers mission-critical communications and global-class security solutions. The 
closing of the transaction occurred on 1 August 2022; 
• 
Sale of equity investment in JV Advanced Acoustic Concepts (AAC). On 26 April 2022 the US 
subsidiary Leonardo DRS signed an agreement to sell its investment in the Advanced Acoustic 
Concepts (AAC) Joint Venture to TDSI, a subsidiary of the French company Thales, thus marking a 
further step in the process of refocusing DRS' business portfolio. The US company AAC is active in the 
sector of advanced sonar, training and knowledge management systems. The company works with 
the US Navy as a contractor in the US sector, providing innovative systems and solutions in the 
underwater sensor domain. The closing of the transaction occurred on 27 July 2022; 
• 
Acquisition of RADA and listing of Leonardo DRS. On 29 November 2022 Leonardo announced the 
completion of the merger between the US subsidiary Leonardo DRS, Inc. (“Leonardo DRS”) and the 
Israeli company RADA Electronic Industries Ltd. (“RADA”), listed on NASDAQ and the Tel Aviv Stock 
Exchange (“TASE”), with a market capitalisation that fluctuated between USDmil. 500 and USDmil. 
600 million during the year. RADA is active in the business of short-range, low-cost tactical defence 
radars, particularly suitable for land-based Short Range Air Defense and Counter-UAV applications. 
RADA’s products constitute a strategic expansion of DRS and the Leonardo Group’s portfolio by 
completing the offering of sensors on board land vehicles and have different functional and 
configuration features from the radars that are currently in the portfolio of the Electronics division 
of Leonardo and of Hensoldt, thus making them complementary in an integrated offering

Report on Operation at 31 December 2022 
70 
 
perspective. This transaction also enables Leonardo to establish a concrete footprint in Israel, in line 
with its objective of international expansion. Through this operation, RADA has lost its status as a 
listed company and has become a wholly owned subsidiary of DRS, which has then been listed on the 
stock exchange. Leonardo continues to hold an 80.5% stake (fully diluted) in Leonardo DRS, through 
the US subsidiary Leonardo US Holding, while the remaining 19.5% is in the hands of the present 
shareholders of RADA. The shares of Leonardo DRS were listed on NASDAQ and the Tel Aviv Stock 
Exchange with the symbol "DRS" as from the start of trading operations on NASDAQ on 29 November 
2022 and on the TASE on 30 November 2022; 
• 
Transfer of the ATM business unit on the part of Selex ES, Inc. On 7 November 2022 Leonardo signed 
an agreement to transfer the air navigation radio aid (ATM or Air Traffic Management) business of 
Selex ES Inc., a US wholly-owned subsidiary, to Indra Air Traffic, Inc., which is wholly owned by the 
Spanish company Indra Sistemas S.A. The ATM business operations of Selex ES Inc. pertain to the 
operational perimeter of the Electronics Division within the broader Air Traffic Management business 
but are a stand-alone business with no intercompany synergies. The closing of the transaction is 
expected to take place in the first semester of 2023. 
On 8 February 2022 Leonardo interrupted the process of selecting a partner for the automation business, as 
none of the parties that had expressed interest could guarantee the requirements of a long-term vision and 
an adequate investment plan that Leonardo had always considered to be essential elements. Leonardo is 
completing the analysis process to identify targeted actions on processes, organisation and governance in 
order to better face the reference market. 
 
The process of merging the operations carried out by Leonardo in the US into a single legal entity was also 
initiated during 2022. The project, which will see its completion in the course of 2023, provides for two 
companies - Leonardo DRS and Leonardo US Corporation – to report to Leonardo US Holding, which will 
directly or indirectly hold all the U.S. companies, except for Leonardo US Electronics, which for the time being 
will remain directly invested in by Leonardo UK. In this context, the following transactions were completed 
during 2022: 
• 
Leonardo US Corporation was set up; 
• 
Leonardo S.p.A. transferred 50% of its investment in Leonardo US Holding to Leonardo International; 
• 
Leonardo US Holding contributed its investment in Leonardo US Aircraft to Leonardo US Corporation; 
• 
Leonardo S.p.A. contributed its investment in AgustaWestland Philadelphia Corporation to Leonardo 
US Holding. The investment was then subsequently transferred by Leonardo US Holding to Leonardo 
US Corporation. 
 
Finally, it should be noted that in December 2022 – in implementing a protocol of intent signed with the 
national trade unions on early retirements under Article 4 of Law 92/2012 (Fornero Act) - an agreement was 
executed, which involved up to a maximum of no. 400 employees in the Corporate and Staff functions of 
Leonardo S.p.A., Leonardo Global Solutions and Leonardo Logistics for whom the requirements will be met 
for retirement by 30 November 2028, with exits planned in the two-year period from 2023 to 2024, together 
with the definition of the terms and conditions for joining the scheme. A similar agreement was signed with 
the union representatives of the executive staff, up to a maximum of 45 managers. In February 2023, the 
collection of expressions of interest was completed. By the end of April 2023, the Italian Social Security 
Institute [INPS] will verify whether requirements are met for the staff members who expressed their interest

Report on Operation at 31 December 2022 
71 
 
to benefit from early retirement benefits. The charges resulting from this manoeuvre have been preliminarily 
set at €mil. 100. 
 
Financial transactions. During the 2022 financial year Leonardo completed the following capital market 
transactions: 
• 
in January Leonardo repaid the remaining nominal amount of €mil. 556 of the bond issued in 
December 2009, which had reached its natural expiry;  
• 
in November Leonardo entered into a Sustainability-linked loan agreement with the European 
Investment Bank (EIB) for an amount of €mil. 260, in line with the sustainability strategy it pursued,  
• 
aimed at supporting some investment projects envisaged in the Group’s industrial plan. The loan will 
have a term of 12 years and a four-year pre-amortisation period and provides for a margin 
adjustment based on Leonardo’s achievement of certain indicators (KPIs) linked to the ESG goals of 
which: the first one related to the reduction of CO2 emissions through eco-efficiency of industrial 
processes and the second one related to the achievement of ESG-linked technology targets (increase 
in per capita computing power of Leonardo as a key enabler and booster in research, numerical 
simulation, big data analytics and artificial intelligence). The achievement of ESG-linked targets will 
trigger an adjustment to the margin applied to the credit facility; 
• 
in December Leonardo proceeded with the early repayment of the Term Loan of €mil. 500 entered 
into in 2018 and expiring in November 2023; 
• 
in November the subsidiary Leonardo DRS completed the merger with the Israeli company RADA 
listed on the New York and Tel Aviv stock exchanges with consequent provision of an independent 
capital structure, as provided for listed companies in the United States. For this purpose, the 
company signed a loan agreement for a total of USDmil. 500 (including an amount of USDmil. 275 in 
the form of a Revolving Credit Facility and an amount of USDmil. 225 in the form of a Term Loan, with 
a term of 5 years) with a pool of international banks. The partial utilisation of the aforesaid lines 
allowed DRS to pay off the loans existing with the parent company Leonardo US Holding LLC in 
December; 
• 
with abovementioned proceeds, Leonardo US Holding LLC proceeded, again in December, with the 
full early repayment of the remaining amount of its bonds due 2039 and 2040, with a total nominal 
value of USDmil. 305; the transaction was carried out by using the make-whole clause provided for 
in the documentation of the loans themselves. 
In August Leonardo endorsed a framework Programme for the issuance of Commercial Papers on the 
European market (Multi-Currency Commercial Paper Programme), for a maximum amount of €bil. 1, which 
was entirely unused at the date of this report. 
 
Moreover, in June the EMTN (Euro Medium Term Note) programme was renewed for further 12 months, 
which regulates possible bond issues on the European market for a maximum nominal value of €bil. 4. At the 
date of this report, the Programme is used for a total of €bil. 1.6. 
 
The Group’s issues are governed by rules with standard legal clauses for these types of corporate transactions 
on institutional markets that do not require any undertaking with regard to compliance with specific financial 
parameters (financial covenants), but they do require negative pledge and cross-default clauses. Based on 
negative pledge clauses, Group issuers, Leonardo and their “Material Subsidiaries” (companies in which 
Leonardo owns more than 50% of the share capital and the gross revenues and total assets of which

Report on Operation at 31 December 2022 
72 
 
represent at least 10% of consolidated gross revenues and total assets) are expressly prohibited from 
pledging collateral security or other obligations to secure their debt in the form of bonds or listed financial 
instruments or financial instruments that qualify for listing, unless these guarantees are extended to all 
bondholders. Exceptions to this prohibition are securitisation and, as from July 2006, the establishment of 
assets for the use indicated in Article 2447-bis et seq. of the Italian Civil Code. On the contrary, the cross-
default clauses give the bondholders the right to request early redemption of the bonds in their possession 
in the event of default by the Group issuers and/or Leonardo and/or any “Material Subsidiary” that results 
in a failure to make payment beyond pre-set limits.  
 
On the other hand, it should be noted that financial covenants are included both in the ESG-linked Revolving 
Credit Facility and in the ESG-linked Term Loan, which were signed in 2021 and which require Leonardo to 
comply with two Financial ratios (the ratio of Group net debt - excluding payables to the joint ventures MBDA 
and Thales Alenia Space and lease liabilities /EBITDA, including amortisation of the right of use assets, must 
be no higher than 3.75 and the ratio of EBITDA, including amortisation of the right of use assets / Net interest 
must be no lower than 3.25), tested annually based on consolidated data, which were largely complied with 
at 31 December 2022. These covenants are included in the loan agreement with CDP of €mil. 100, as well as 
to all EIB loans in place (they were used for a total amount of €mil. 500 at 31 December 2022). In relation to 
this Annual Financial Report, there was full compliance with the financial covenants (the two ratios are 1.0 
and 16.1, respectively). 
Financial covenants, in line with U.S. standard practices, are also provided for in bank loans granted in favour 
of Leonardo DRS, as mentioned above. Also such financial ratios (Net debt / adj. EBITA no higher than 3.75 
and adj. EBITA /Net interest no lower than 3.0, to be determined based on the data obtainable from the US 
GAAP financial statements of the LDO DRS Group) were met in relation to this Annual Financial Report. 
In addition, there are margin adjustment clauses based on the achievement of certain indicators (KPIs) 
related to ESG objectives under ESG-linked financing agreements recently entered into by Leonardo. 
 
Outstanding bond issues are given a medium/long-term financial credit rating by the international rating 
agencies: Moody’s Investors Service (Moody’s), Standard & Poor’s and Fitch. In view of the operational 
performance Leonardo recorded over the past two years, the favourable conditions in its industry, and the 
improvement in credit metrics they had estimated over the next 12 to 18 months, the agencies upgraded 
Leonardo's outlook in 2022. At the date of presentation of this report, Leonardo’s credit ratings (compared 
to the preceding position) were as follows: 
 
 
Agency 
Last update 
Previous 
 
Updated 
Credit Rating 
Outlook 
 
Credit Rating 
Outlook 
Moody's 
July 2022 
Ba1 
stable 
 
Ba1 
positive 
Standard&Poor's 
May 2022 
BB+ 
stable 
 
BB+ 
positive 
Fitch 
January 2022 
BBB- 
negative 
 
BBB- 
stable 
 
 
With regard to the impact of positive or negative changes in Leonardo’s credit ratings, there are no default 
clauses linked to the credit ratings. The only possible effects deriving from further changes, if any, to the 
credit ratings refer to higher or lower finance costs on certain payables of the Group. Finally, for the sake of 
completeness, it should be noted that the Funding Agreement between MBDA and its shareholders provides,

Report on Operation at 31 December 2022 
73 
 
among other things, that any downgrade of the rating assigned to the shareholders will result in a gradual 
increase in interest rates. Additionally, under a pre-set rating limit (for at least two out of three rating 
agencies: BB- from Standards & Poor's, BB- from Fitch and Ba3 from Moody’s) MBDA is entitled to determine 
the applicable margin each time. Finally, the agreement provides for rating limits the achievement of which 
allows MBDA to request the issue of a bank guarantee from its shareholders.

Report on Operation at 31 December 2022 
74 
 
 
 
OTHER INFORMATION 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
✓ OTHER PERFORMANCE INDICATORS 
✓ RELATED PARTY TRANSACTIONS 
✓ CONSOB – MARKET REGULATION NO. 20249/2017, ART. 15 
✓ INFORMATION PURSUANT TO ARTICLES 70 AND 71 OF ISSUERS' REGULATIONS

Report on Operation at 31 December 2022 
75 
 
OTHER PERFORMANCE INDICATORS 
2021 
2022 
Change 
FFO 
1,448
1,535
6.0% 
ROE 
10.0%
9.8%
(0.2) p.p. 
Net Interest 
(138)
(104)
24.6% 
 
For the definition of indices, reference should be made to the paragraph on “NON-GAAP Alternative 
Performance Indicators”. 
 
RELATED-PARTY TRANSACTIONS 
In 2010 Leonardo adopted a specific “Procedure for Related Parties Transactions” (hereinafter referred to as 
the “Procedure”), which was mostly recently updated in March 2022 pursuant to CONSOB Regulation no. 
17221 of 12 March 2010, as amended and supplemented, containing provisions on “related party 
transactions” (hereinafter referred to as the “Regulation”), as well as in implementation of Article 2391-bis 
of the Italian Civil Code. The abovementioned Procedure is available on the Company’s website 
(www.leonardo.com, under Corporate Governance section, “Related Parties” area”). 
Pursuant to Article 5.8 of the Regulation, during 2022 the following transactions of greater importance, as 
defined by Article 4.1.a of the Regulation and identified by the abovementioned Procedure pursuant to 
Annex 3 attached to the Regulation, were carried out: 
 
Parties to the transaction 
Nature of 
relationship with 
related parties 
Object of the 
transaction 
Consideration for 
the transaction 
Leonardo S.p.A. 
Leonardo 
International S.p.A. 
Subsidiary 
 (100%) 
50% sale of investee 
Leonardo US Holding 
from LDO to LDO 
International 
€mil. 1,735 
Leonardo S.p.A. 
PZL Swidnik 
Subsidiary  
(100%) 
Supply  
contract 
€mil. 1,196 
 
Leonardo S.p.A- 
Electronics Division 
IVECO – Oto Melara 
scarl 
Associated company 
(50%) 
Supply contract 
€mil. 401 
 
Insofar as they were carried out with subsidiaries and associates, the aforesaid transactions benefited from 
the exemption provided for in Article 14.2 of the Regulation, as well as in Article 11.2(e) of the 
aforementioned Procedure. 
Finally, it should be noted that these transactions did not have a material impact on the consolidated results 
for the year and that no changes or developments took place in relation to the related-party transactions 
described in the 2021 Report on Operations.

Report on Operation at 31 December 2022 
76 
 
CONSOB MARKET REGULATION NO. 20249/2017, ARTICLE 15 
In accordance with CONSOB provisions contained in the Market Regulation adopted by CONSOB Resolution 
no. 20249 of 28 December 2017 and subsequently updated by the latest amendments made by Resolution 
no. 21624028 of 103 September December 20192020, Leonardo S.p.a. performed the verifications on the 
Group subsidiaries that were incorporated and are governed under the laws of non-EU Member States and 
that, as a result, were deemed “material” based on the requirements under Article 151 of the Issuers’ 
Regulations adopted with CONSOB Resolution no. 11971 of 14 May 1999, as amended by CONSOB Resolution 
no. 2214421639 21016 of 24 22 July December 20192021. As regards the non-EU foreign subsidiaries 
(Leonardo DRS Inc., Leonardo US Holding Llc., AgustaWestland Philadelphia Co., Leonardo UK Ltd) identified 
based on the above regulations and in compliance with the provisions of local laws, these verifications 
revealed that the administrative and accounting system, which oversees the preparation of Financial Reports, 
falls within the scope of a control environment that is effectively operating and substantially suitable to the 
requirements envisaged in said Article 15. Therefore, it is not necessary to prepare an adaptation plan 
pursuant to the abovementioned article. 
INFORMATION PURSUANT TO ARTICLES 70 AND 71 OF ISSUERS' 
REGULATIONS 
By resolution of the Board of Directors on 23 January 2013, the Company adopted the simplification regime 
under Articles 70/8 and 71/1-bis of the Issuers’ Regulations, adopted with CONSOB Resolution no. 
11971/1999, as subsequently amended and supplemented. By this resolution, the Company chose the option 
to make exceptions to the obligation to issue the documents required by the law when transactions of greater 
importance (such as mergers, spin-offs, capital increases by means of the contribution of assets in kind, 
acquisitions or disposals) occur.

Report on Operation at 31 December 2022 
77 
 
 
PART 2 – CONSOLIDATED NON-FINANCIAL STATEMENT (NFS) 
 
Pursuant to Legislative Decree 254/2016

Report on Operation at 31 December 2022 
78 
 
 
GOVERNANCE 
 
✓ CORPORATE GOVERNANCE 
✓ RESPONSIBLE BUSINESS CONDUCT 
✓ RISK MANAGEMENT 
✓ STAKEHOLDER ENGAGEMENT

Report on Operation at 31 December 2022 
79 
 
Leonardo’s corporate governance is aimed at protecting and maximising the long-term value of the Company 
for the pursuit of sustainable success, via the optimal management of resources with respect to strategic 
objectives, effective company risk control, utmost market transparency and integrity of decision-making 
processes, in the interest of all stakeholders.  
 
Priority topics 
> 
Responsible business conduct 
> 
Business continuity 
> 
Sound corporate governance 
> 
Cybersecurity and data protection 
SDG 
 
 
 
Objectives 
> 
Extending Trade Compliance Directive to the Group 
> 
Expanding the business compliance training to other types of 
third parties (distributors/resellers), making it a mandatory 
prerequisite for the completion of the engagement 
> 
Renewal/maintenance 
of 
ISO 
37001:2016 
Anti-Bribery 
Management System certification 
Progress 
 
 
 
Target year 
2022 
 
2022 
 
2023 
 Objective achieved 
 On track 
 
 
Impact indicators 
42% of women sitting on the Board of 
Directors  
40% on the Board of Statutory 
Auditors 
 
20% of long-term variable 
remuneration and  
10% of short-term variable 
remuneration linked to ESG 
objectives 
 
55% of total financing sources 
linked to ESG parameters, for a 
total of € 3.26 billion 
 
 
Leonardo’s first Investor Day dedicated to ESG topics 
In June 2022 Leonardo organised the first Investor Day devoted entirely to ESG topics, further demonstrating 
the relevance of these issues within the Business Plan. During the event, which was opened by the Chairman 
and the chairs of the Sustainability and Innovation Committee and the Control and Risks Committee, the 
Chief Executive Officer and top managers analysed, across the board, the impact of sustainability issues on 
the business while describing their role in supporting long-term growth, competitiveness, and profitability, 
and how Leonardo contributes to progress and safety in a responsible and innovative manner. Specifically, 
the speakers illustrated how ESG priorities are key to achieving commercial and industrial objectives, 
operating in compliance with all regulations and in every geographical area, working with customers to meet 
and anticipate their needs, investing in innovation and new technology to seize business opportunities, and 
strengthening human capital and skills needed for the future.

Report on Operation at 31 December 2022 
80 
 
CORPORATE GOVERNANCE 
Leonardo’s corporate governance model, based on a traditional organisational structure, complies with the 
Corporate Governance Code (approved by the Corporate Governance Committee and promoted by, among 
others, the Italian Stock Exchange) which is adhered to by the Company and with the international best 
practices.  
As part of this model, the Board of Directors (BoD) is the main body entrusted with the power to define 
business strategy and structures in coherence with the Company’s management and control activities. During 
its term, the BoD may draw on support from the Board internal committees that make proposals and provide 
advice.  
The current BoD was appointed by the Shareholders’ Meeting held on 20 May 2020 for the three-year period 
from 2020 to 2022, in compliance with the criteria for gender, age, skills and experience balance set in the 
policies on diversity. Following its appointment, the Board set up four committees from among its members, 
with functions in the areas of Control and Risks, Remuneration, Nomination and Governance, Sustainability 
and Innovation. 
 
Corporate governance model 
 
 
 
 
LUCIANO CARTA
Chairman
ALESSANDRO PROFUMO
Chief Executive Officer
CARMINE AMERICA 
Director (C,D)
PIERFRANCESCO BARLETTA
Director (A,C)
ELENA COMPARATO
Director (B,C)
DARIO FRIGERIO
Chairman (A)
Director (A, C)
Lead Independent Director
PAOLA GIANNETAKIS
Director (A,D)
FEDERICA GUIDI
Director (B,C)
PATRIZIA MICHELA GIANGUALANO
Chairwoman (B)
Director (B,D)
MAURIZIO PINNARÒ
Chairman (C)
Director (A,C)
FERRUCCIO RESTA
Chairman (D) 
Director (B,D)
MARINA RUBINI
Director (A,B)
Board of Directors
(for the 2020 – 2022 three-year period)
Board of Statutory 
Auditors
(for the 2021 – 2023 three-year period)
Regular Statutory Auditors
LUCA ROSSI  
Chairman
SARA FORNASIERO
AMEDEO SAGRESTANO
LEONARDO QUAGLIATA
ANNA RITA DE MAURO
Alternate Statutory Auditors
EUGENIO PINTO
GIUSEPPE CERATI 
Coordination and
consultation body for the
prevention of corruption*
Independent legal 
auditors
EY S.p.A.
(for the 2021 – 2029 period)
Shareholders’ meeting
Surveillance Body
(for the 2020-2022 three-year 
period)
RAFFAELE SQUITIERI
Chairman
GIORGIO BENI
External member
CHIARA MANCINI
External member
CLAUDIA TEDESCHI
External member
MARCO DI CAPUA
Chief Audit Executive
ANDREA PARRELLA
Group General Counsel
* Made up of Leonardo’s Chairman and of the Chairmen of the Control and Risks 
Committee, of the Board of Statutory Auditors and of the Surveillance Body
A) Control and Risks Committee
B) Remuneration Committee
C) Nomination and Governance 
Committee 
D) Sustainability and Innovation 
Committee
Chief Audit Executive
MARCO DI CAPUA
Officer in charge of 
financial reporting
ALESSANDRA GENCO

Report on Operation at 31 December 2022 
81 
 
Features of the BoD29 
Leonardo 
Average FTSE-MIB30 
Number of Directors  
12 
12 
Number of Directors appointed by minority shareholders  
4 
2 
Number of independent Directors  
9 
8 
Number of women Directors  
5 
5 
Average age  
56 
58 
Average tenure (years) 
4 
5 
Meetings held in 2022 
12 
15 
Attendance rate (%) 
99 
97 
Meetings held by independent Directors  
1 
1 
 
Board committees 
BoD Skills and Experiences 
 
Leonardo has adopted an engagement policy aimed at promoting and regulating opportunities to meet and 
discuss with financial stakeholders ("Engagement Policy for managing the dialogue with the general public of 
shareholders and other stakeholders"). The scope of the policy includes the requests for direct interaction 
with the Company that are submitted by financial stakeholders on issues concerning the economic and 
                                                           
29 The indicators are related to the BoD appointed on 20 May 2020. The attendance rate is calculated as the number of events attended/ number of 
meetings convened. The source of the FTSE MIB data is the 2021 Notes and Studies publication of Assonime on the application of the Corporate 
Governance Code in Italy. 
30 Year 2021. 
) Control and Risks 
b) Remuneration 
c) Nomination 
and Governance  
d) Sustainability 
and Innovation  
Directors: 5 
% independent: 100% 
Meetings held in 2022: 14 
Attendance rate: 97% 
Directors: 5 
% independent: 80% 
Meetings held in 2022: 7 
Attendance rate: 91% 
Directors: 6 
% independent: 83% 
Meetings held in 2022: 8 
Attendance rate: 96% 
Directors: 4 
% independent: 100% 
Meetings held in 2022: 7 
Attendance rate: 100% 
100%
100%
100%
100%
100%
92%
92%
92%
92%
92%
92%
83%
83%
83%
58%
Knowledge of Leonardo's businesses, industry scenarios and strategies
Interpretation of management data and balance sheet of complex industrial realities
Authority and standing-up
Finance, business management and extraordinary operations
Business judgment and analytical and decision-making skills
Strategic planning and assessment
Geopolitics and governmental and institutional relations
Experience with innovation and advanced technologies
Digital IT and cyber security
CSR and ESG
HR and organizational transformation
Experience in business and international multinational companies
Risk oversight/management
Legal and international contracts
Top management positions in comparable listed companies

Report on Operation at 31 December 2022 
82 
 
financial results and outlook, the Industrial and Strategic Plan, corporate governance, social and 
environmental sustainability, the remuneration policy for directors and managers with strategic 
responsibilities, the internal control and risk management system, and the Company's policies on ethics, 
transparency and anti-corruption31. 
 
Remuneration policy 
The objective of the remuneration and incentive policy in 2022 was to attract and motivate people with the 
professional skills to carry out assignments and fulfil responsibilities assigned to them, in line with the 
management’s interests and with the priority objective of creating value in the medium- to long-term. To this 
end, the policy has been designed in order to ensure a balance between the variable component of 
remuneration and the fixed one, while also establishing a balance between short- and long-term incentives, 
and an alignment of the remuneration and incentive system with the pursuit of long-term interests (in terms 
of both economic-financial performance and ESG), ensuring that the variable component of remuneration is 
connected with the results achieved and paying great attention to the objectivity of metrics used to measure 
performance32. In addition to the Chief Executive Officer, population involved in the Short-Term Incentive 
Plan (MBO) of Leonardo Group is equal to about 1,050 Group executives, including Managers with Strategic 
Responsibilities and Top Managers of Leonardo. Population involved in the Long-Term Incentive Plan of 
Leonardo Group is equal to about 215 Group executives, including Managers with Strategic Responsibilities 
and Top Managers of Leonardo. Starting from 2021, middle managers in Italy have been assigned a bonus 
target, as agreed in the Company Supplementary Agreement on 21 May 2021. Furthermore, under the same 
agreement, a portion of the remuneration of all other employees was linked to a variable component 
(performance bonus) related to the Group's results of operations and, depending on the levels, to individual 
performance. 
20% of long-term variable 
remuneration and  
10% of short-term variable 
remuneration linked to ESG objectives 
 
97.78% 
Favourable votes cast by the 2022 
Shareholders’ Meeting on 
Remuneration Policy  
 
39x 
ratio of total CEO remuneration to 
employees’ median remuneration 
 
 
                                                           
31 For more details on the engagement policy, see Corporate Governance report 2023, paragraph “Investor Relations”. 
32 Notably, long term remuneration of CEO and management is tied to the achievement of targets related to CO2 emissions Scope 1 and 2 location-
based, calculated as a ratio to revenues, and to the increase of hires of women with STEM degree. For more details, reference should be made to the 
Remuneration Report 2023.

Report on Operation at 31 December 2022 
83 
 
RESPONSIBLE BUSINESS CONDUCT  
Leonardo acts with integrity and transparency in compliance with regulations and with zero tolerance for any 
type of corruption to ensure the most proper management of the business and to establish relationships of 
trust and collaboration with employees, customers, suppliers and all other counterparties, asked to accept 
and apply the principles and values stated in the Charter of Values, Code of Ethics and other codes of 
conduct33. In conducting its business, Leonardo confirms its commitment to respecting and promoting the 
Ten Principles of the United Nations Global Compact related to human rights, labour, the environment and 
anti-corruption. Leonardo's model for the responsible conduct of business, inspired by national and 
international best practices, is based on company codes of conduct and a system of clear rules, periodically 
updated, that guide compliant and responsible behaviour. Constantly raising the awareness and training of 
employees and third parties, due diligence tools and internal audits, risk assessment methods, in addition to 
the adoption of an increasingly transparent approach on corporate information and processes, help to 
strengthen a governance and management system capable of preventing any possible risk, promoting and 
developing an ethical business culture. Leonardo has also adopted the Common Industry Standards of the 
Aerospace and Defence Industries Association of Europe (ASD) and the Global Principles of Business Ethics 
for the Aerospace and Defence Industry of the International Forum on Business Ethical Conduct (IFBEC) and 
collaborates with TRACE International. 
 
Responsible business conduct model 
 
 
 
 
                                                           
33 Including the Anti-Corruption Code, the Whistleblowing Management Guidelines, Organisational, Management and Control models and 
Compliance Programmes developed in accordance with the applicable regulations of each Country in which the Company operates (Leonardo SpA 
adopted an Organisational, Management and Control Model pursuant to Legislative Decree no. 231/2001). 
• Risk assessment 
• Due diligence 
• Tone from the top
• Awareness-raising and training
• Processes and organisation 
• Codes and rules of conduct
• National and international best 
practices
• Transparency
• Update of regulatory 
framework
• Incentive scheme
• Internal audit
• External controls
• Whistleblowing

Report on Operation at 31 December 2022 
84 
 
 
 
Set rules and expected behaviours    
Guidelines and procedures – main updates   
> 
The 231/2001 Model has been updated following the 
amendments made to Legislative Decree 231/2001, as 
well as the organisational changes that have occurred
since the date of the last update of the Model (17 
December 2020).  
> 
The new company rules have come into force and been 
adopted on the matter of commercial advisors, sales 
promoters, distributors and resellers. 
> 
The new company rules have come into force and been 
adopted on the matter of Trade Compliance, which 
implement the new international norms and standards 
governing smuggling and respect for human rights. 
> 
The procedure on the matter of personnel selection and 
recruitment has been updated. 
> 
The directive on “Safety of workers abroad” has been 
drawn up. 
> 
The Operating Instructions on Supply Chain Security 
Resilience Risk Management have been drawn up. 
> 
The Company Procedure for National Security Checks on 
recruits (including Labs researchers) and/or applicants 
has been set up in accordance with regulatory or 
contractual requirements, identified as applicable in 
relation to privacy, processing of personal data, 
workers’ statute and information security. 
> 
The relevant company regulatory documentation has 
been prepared in the application of the directives issued 
by the Security Information Department (UCSe) for the 
management of classified information in compliance 
with the Company Security Rules and Operating 
Instructions. 
Engage people  
Continuous training  
> 
About 10,000 hours of business compliance training 
delivered to more than 8,900 people in the year. 
> 
More than 25,200 hours of training on national and 
international trade compliance regulations delivered to 
more than 7,000 people from various departments and 
external suppliers and providers.  
> 
More than 1,600 hours of training on Project and 
Enterprise Risk Management delivered to over 300 
people, 
including 
through 
intensive 
operational 
sessions, designed on the peculiar features of each 
operating entity involved.  
> 
More than 23,200 people involved in anti-corruption 
training. 
> 
About 19,350 hours of training delivered on cyber 
security. 
> 
A specific course has been put in place on Travel 
Security: Female Travellers Awareness Training. 
> 
Involvement of employees, both part-time and full-
time, and counterparts in training activities related to 
anti-corruption, business compliance, with respect to 
the values and principles laid down in the Code of Ethics, 
the Charter of Values, and the Supplier Code of Conduct.
> 
Dissemination of security updates in the aerostructures 
division, with specific regard to Social Engineering, the 
espionage threat from Chinese state authorities and 
bodies, and behavioural aspects to be observed in 
relations with the Eastern partner. 
> 
More than 9,000 people trained in the protection of 
classified information. 
> 
More than 30,000 people trained on the General Part 
and Special Parts of Model 231. 
> 
Training courses preparatory to the awarding of the 
assignment have been delivered to 8 resellers and 5 
distributors. 
> 
In the area of Compliance the new training and 
development project was implemented on "Cross-
Training Program," which involved more than 25% of 
the people from Compliance department in the various 
roles provided (participants, internal lecturers and 
experts) in the different phases. There have been 15 
resources trained with a total of 525 hours of training.  
Mitigate and reinforce  
Certifications 
> 
ISO 37001: 2016 “Anti-bribery Management System” 
certification has been maintained following successful 
completion of the annual surveillance audit conducted 
by the Certifying Body. 
> 
ISO 27001 certification of the information security 
management system has been maintained at Group 
Security 
> 
In 2022 no data breaches were detected which 
impacted or originated from company systems relevant 
in accordance with the regulations in force. Data 
breaches were detected on third-party systems 
(unrelated to Leonardo’s management) with potential 
impact on employees' personal data. These events were

Report on Operation at 31 December 2022 
85 
 
 
level and for the perimeter of National Security (Physical 
Security & T.U.L.P.S.). ISO 27701 (Privacy Information 
Management System) and ISO 27035 certifications have 
also been obtained for the Cyber & Information Security 
perimeter. 
> 
FIRST and Trusted Introducer certification of Leonardo's 
CERT (Cyber Emergency Readiness Team) 
was 
maintained, as was the recognition from Carnegie 
Mellon University on the matter of Cyber & Information 
Security. 
> 
ISO 22301 certification has been renewed for both the 
Business Continuity Management System in some 
perimeters involving the Corporate of Leonardo SpA and 
the Genoa, Pomigliano and Chieti Data Centres. 
> 
The Cyber Essentials and Cyber Essentials Plus 
certifications have been renewed for the appropriate 
perimeters of the Cyber, Electronics and Helicopters 
divisions of Leonardo UK, a prerequisite for bidding and 
contracting with UK government agencies. 
> 
Quality certification has been renewed for Internal 
Audit activities. 10 quality reviews have been 
conducted, all of which have obtained General 
Compliance with International standards IIA.  
> 
The Authorised Economic Operator (AEO) certification 
has been maintained. 
> 
The Strategic Industrial Security Clearance (NOSIS) up to 
the TOP SECRET level and NATO/EU/OCCAR/ESA 
qualification have been obtained. 
carefully monitored and addressed in terms of 
information and security actions to protect those 
concerned. Even with reference to the IT and cyber 
security services offered by Leonardo, no data breach 
notices were received in 2022, which involved 
customers' personal data relevant under current 
regulations. 
> 
Developing security risk analysis management tools 
with suppliers and providers. 
> 
Implementing 
an 
incident 
response/prevention 
automation system through malicious IP blocking. 
> 
Searching for, monitoring, and analysing information for 
subsequent collation, integration, interpretation, and 
processing of data useful for threat prevention toward 
assets and employees. 
 
Risk Management 
> 
Updating the regulatory framework dedicated to risk 
management with specific regard to: risk management 
of multi-divisional projects, enterprise risk analysis, 
(including those related to innovation, technology 
exportability, cyber resilience and sustainability) of 
product business plans, Country risk analysis and areas 
exposed to the risk of crimes. 
> 
Continued integration of risk management into business 
processes with simultaneous updating of company rules 
in order to promote risk-based thinking. 
Detect and control  
Risk assessment 
> 
Around 2,100 people involved in risk analysis activities 
related to business processes, investment projects and 
projects in the bidding and execution phase. 
> 
Risk assessment and monitoring activities have been 
carried out for anti-corruption purposes involving more 
than 200 people and using an updated methodology 
with elements to assess each country in which Leonardo 
operates.  
> 
Work has been continued on the Independent Risk 
Review programmes in relation to a selection of 
medium/high-risk projects in which the project team 
has been supported by risk managers who are not 
involved directly in operations. 
> 
Developing the first machine learning engines to 
support risk detection, as part of research and 
development of Artificial Intelligence applications to 
Risk Management with the involvement of Leonardo 
Labs and the Cyber & Security Solutions division. 
Third-party due diligence  
> 
135 due diligence audits on sales promoters, 
commercial 
advisors, 
distributors, 
resellers 
and 
lobbyists. The necessary remedial action has been taken
to mitigate the issues marked with 6 red flags and only 
one has led to the impossibility of awarding the 
assignment. 438 due diligence audits carried out before 
payments to sales promoters, commercial advisors and 
lobbyists.  
> 
More than 380 due diligence audits on potential 
customers, service centres and business partners. 
> 
278 reputational risk reports for sponsorships, supply 
and commercial contracts. 
> 
298 anti-fraud due diligence audits carried out on 
natural and legal persons of interest to Leonardo SpA. 
> 
110 National Security Audits reports.  
> 
Analysing, producing and sharing about 523 threat 
analysis reports with top management and business and 
security operating structures in the domestic and 
international context from more than 1,500 sources. 
Whistleblowing 
> 
41 reports were received in 2022 (53 in 2021), 
concerning the perimeter of both Leonardo SpA and the 
Legal Entities of the Group. Net of 17 reports archived

Report on Operation at 31 December 2022 
86 
 
 
 
Progress of reports received 
 
 
 
 
 
Scope of audits and follow-ups 
 
 
 
 
Anti-corruption, business compliance and third-party risk 
Leonardo has implemented a process for the vetting of counterparties that includes ethical-reputational 
analyses and an in-depth assessment of the risks related to each specific engagement in accordance with 
company rules and in full compliance with applicable regulations. Due diligence audits are also carried out 
on counterparties under industrial offset agreements34. 
In 2022, in continuity with the path it embarked on in 202135, following the issue of the related company 
rules, Leonardo further strengthened the system to identify the level of risk associated with the positions of 
Sales Promotion, Commercial Advisory, Lobbying, Distribution and Reseller. 
                                                           
34 For more details on offsets, reference should be made to the paragraph on Social value and industrial collaboration programmes. 
35 Specifically, Leonardo carried out in 2021 a thorough review of the definitions of the relevant red flags in order to adapt the company's analysis and 
audits to both changes in applicable regulations and experience gained in previous years. 
32%
45%
9%
5% 5%
2%
2%
Relations with suppliers
Personnel selection,
management and development
Management aspects
Assignments and professional
services
HSE & Facility Management
Social Engingeering against third
parties
Other (consulting, privacy,
intellectual property rights)
41 reports
46%
30%
12%
12%
Operational
Compliance
ICT
Financial
106
audits and 
follow-ups
by 
the 
various 
Surveillance 
Bodies 
and 
the 
Whistleblowing Committee, 36% of the reports received
and examined provided evidence, some of which 
partial. 
> 
In 2022, the reports received concerned: personnel 
selection, management and development; relations 
with suppliers; Management issues; HSE and facility 
management; professional assignments and services; 
social Engineering to the detriment of third parties; 
other matters. 
> 
The Whistleblowing Committee examined the results of 
the investigations carried out by the competent 
company functions, with respect of which it did not 
deem necessary to inform the Anti-Corruption unit of 
Leonardo.

Report on Operation at 31 December 2022 
87 
 
189 counterparties  
including sales promoters, 
commercial advisors, distributors, 
resellers and lobbyists, with 
contracts in place, 2 of which for 
offset support  
 
975 due diligence and 
reputational risk analyses 
 carried out on counterparties 
and potential commercial 
partners  
 
More than 300 hours of training  
delivered to sales promoters, 
commercial advisors and lobbyists 
through 151 online courses  
 
Leonardo carries out activities aimed at institutions to support its reputation and business strategy, present 
the company's position on specific issues and seize potential future business opportunities. These activities, 
which are carried out in compliance with current regulations, as well as with the principles and standards of 
conduct set out in Leonardo's Code of Ethics, Anti-Corruption Code and other company rules, mainly consist 
of monitoring specific regulatory developments and organising meetings with government and parliamentary 
representatives on matters of interest. Leonardo’s representatives who carry out these activities are enrolled 
in special public registers.  
With the recent update of its company rules, Leonardo has decided to no longer allow the Italian Group 
companies to sign lobbying contracts. However, this option has been maintained for foreign subsidiaries, 
although only in those countries where the regulations permit the execution of said contracts. The decision 
has been taken on the basis of the current wording of Art. 346-bis of the Italian Criminal Code and in 
consideration of the lack of organic regulations governing lobbying in Italy. 
In 2022, the expenses for lobbying activities carried out exclusively by the Group's foreign subsidiaries in the 
countries in which it is permitted by the relevant regulations in force, amounted to approximately USDmil. 
1.7 (about USDmil. 1.8 in 2021 and 2020) and related to North America (mainly the United States), Poland, 
Germany and Brazil. In particular, among the main areas for which the Group’s foreign subsidiaries made use 
of the support from lobbyists during 2022 are those involving technologies for infrastructure and transport, 
the purchase and/or upgrade of aircraft on the part of government agencies, including those for firefighting, 
search and rescue missions, naval systems and research and development programmes for submarines, 
technology for advanced protection systems, ground-based and satellite communication systems, air 
navigation support tools and laser systems. 
Trade compliance 
Leonardo has set out an internal compliance programme (ICP) - Trade Compliance Program – in order to 
ensure full compliance with applicable laws and the provisions issued by the competent authorities in the 
field of Trade Compliance. The programme allows for the prompt identification and implementation of 
compliance with applicable national, EU and international regulations regarding the export and import of 
defence, dual-use or commercial goods and/or services subject to regulatory requirements, as well as 
obligations related to embargoes, sanctions or other trade restrictions, including political commitments 
made under the Common Foreign and Security Policy (CFSP) framework and international regulations and 
conventions signed by Italy and the European Union36. 
Furthermore, the Trade Compliance Program also provides for due diligence audits on potential customers 
and end-users, verifying whether they are mentioned in restriction lists and additional checks in the case of 
transactions linked to Sensitive Countries, as well as specific checks to verify that internationally recognised 
human rights are respected. In this regard, the Human Rights Impact Assessment (HRIA) tool has been 
introduced as a key element of Leonardo's Trade Compliance Program with the aim of setting out the main 
                                                           
36 Regulations and conventions signed and ratified by Italy include – but are not limited to - the Treaty on the Non-Proliferation of Nuclear Weapons 
(NPT) and the Nuclear Suppliers Group (NSG).

Report on Operation at 31 December 2022 
88 
 
risk factors with reference to the issue of human rights and the potential impact of the activities carried out 
by the company37. 
Cybersecurity and data protection 
Leonardo guarantees the security of data, sensitive information and intellectual property by managing the 
entire cycle from detection of threats to establishing the countermeasures to take in response to attacks that 
have taken place. The cyber defence system provides for specific organisational measures - in compliance 
with regulations and standards that set out specific requirements and time limits for reporting incidents or 
data breaches -, as well as continuous training of operators and operational tools, concentrated in Italy and 
in the United Kingdom, which are updated on an ongoing basis. Leonardo also fosters a cyber risk prevention 
culture both inside the company and towards the outside world through the participation in working groups 
at national and international level, with collaborations involving institutional and governmental players and 
sectors such as telecommunications, banking/finance, energy, manufacturing and services. Courses and 
awareness initiatives are provided periodically on cybersecurity-related issues, including through bulletins 
and news published on the Security Portal accessible from employees. 
 
 
                                                           
37 For more details, reference should be made to the paragraph on the Respect for human rights. 
Cyber, physical and industrial security  
Protection of classified information – Leonardo collaborates with 
key institutional stakeholders to ensure the protection of 
information. With about 800 classified contracts, Leonardo has 
handled more than 10,000 provisional personal security and facility 
security clearances, prepared the related security plans and 
delivered training on a six-monthly basis.  
PSOC (Physical Security Operation Centre) – The PSOC enables all 
alarms and images from the video surveillance systems of more than 
50 Italian sites to be handled centrally. The TSS (Travel Security 
System) has also been integrated, allowing continuous operational 
support in case of alarm, as has the Mosaic application for Security 
Threat Research & Analysis. In addition, the prototype of the 
International Security Kit (ISK) has been completed, which will be 
used to raise the security level of branch offices and representative 
offices abroad through the remote support of the PSOC. 
Response to cyber threats – Leonardo has increased H24 staff in 
service to cope with growing cyber threats, even in relation to the 
Russia-Ukraine conflict. Systems have been put in place to protect 
company devices and automate incident response, thus improving 
response times and process efficiency. 
Cyber protection of assets, networks and information -
Leonardo has designed advanced systems and devices to protect 
company assets, networks and information through innovative 
technologies, which will be used to enhance capabilities to
identify, prevent and manage cyber threats. 
Vulnerability analysis - Leonardo wages various types of cyber 
threat prevention, including exercises with certified and 
international Cyber Defence specialists, security awareness
campaigns for its employees, vulnerability assessments and
penetration tests on specific environments and parts of the 
company infrastructure. Furthermore, activities have been 
carried out to improve the computer security of company 
workstations, even if they are connected remotely to the
company network (smart working).

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Business continuity 
Leonardo guarantees its business continuity and resilience through effective responses and reactions, in 
order to safeguard the sustainability of its business, as well as the reputation and integrity of its organisation, 
in addition to the interests of its stakeholders. The Business Continuity Management System (BCMS), which 
is certified ISO 22301 for some perimeters of the Corporate of Leonardo SpA and for the Genoa, Pomigliano 
and Chieti Data Centres, supports the definition, implementation and handling of procedures that ensure 
continuity of its company processes necessary for priority activities. In accordance with the provisions of 
standard ISO 22301, Leonardo has updated its operational methodology, confirmed in company procedures, 
such as Policies, directives and Operational guidelines. In 2022 Leonardo started the BCMS cycle on the 
perimeters specified by the management. The Business Impact Analysis and related results have allowed 
strategies and solutions to be set out as countermeasures to any possible business disruption, which are 
reported in the Continuity Plans.

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90 
 
RISK MANAGEMENT  
The risk governance model is in line with national and international standards and best practices 38 and is 
compliant with the Corporate Governance Code for Listed Companies, the Organisational, Management and 
Control Model and the Group’s Anti-Corruption Code. It has three levels, provides for clear-cut roles and 
responsibilities for the various departments and ensures a suitable exchange of information flows, to 
guarantee effectiveness. 
Risk governance model 
 
 
The operating risk management, which involves the entire organisation, is based on the identification, 
assessment and monitoring of the enterprise and project risks and the related mitigation plans. It is 
supported by specific methodologies, instruments and metrics for the related analysis and management. The 
processes underlying Project Risk Management and Enterprise Risk Management, which are in turn 
integrated into the company business and support processes, are regularly improved, with the aim of 
innovating and spreading an effective risk-based organisational culture. Risk management processes support, 
in fact, the risk owners, along the entire corporate value chain, in identifying and managing risks and 
opportunities, including those linked to ESG factors. In particular, the Enterprise Risk Management 
methodology fosters the identification and management of the cause-effect link between ESG factors and 
the potential impact on the Company (strategic, operational, financial, compliance and reputational) and 
supports the preparation of the Industrial Plan, which also includes the strategic vision and sustainability 
initiatives. 
Risks for the Group  
The Group is subject to a number of risks that may affect the achievement of its objectives and results. 
Therefore, risk analysis and management processes are implemented systematically, including any related 
treatment action, with specific methodologies and practices that consider the probability of occurrence and 
related impacts in accordance with international regulations and standards. The examination of risks and 
consequent actions reported below is supplemented by the more detailed information provided in Note 37 
of the Consolidated Financial Statements for the component of merely financial risks. 
                                                           
38 Main references: ISO 31000:2018 - Risk Management - Principles and guidelines; PMI - Practice Standard for Project Risk Management; Enterprise 
Risk Management Integrated Framework - CoSO ERM; ISO 37001:2016 - Anti-bribery management system; ISO/IEC 27005:2018 Information Security 
Risk Management. 
The business lines, technical departments and support staff departments
identify, measure and handle project and enterprise risks, with reference
to objectives set and processes managed, adequately reporting to higher
corporate levels.
The BoD defines and supervises the guidelines for the internal control and risk
management system.
The
Control and Risks Committee, the Board of Statutory Auditors and the
Surveillance Body, perform supervisory activities as control bodies.
Group Internal Audit receives the results of the risk assessment and monitoring
activities which it assesses to plan controls.
Second level functions define the processes, procedures and methodologies to
oversee the main risk areas

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Main risks 
Actions 
Conflicts 
and 
geopolitical 
tensions 
increase 
the complexity and 
instability 
of 
the 
global scenario 
The protracted Russian-Ukrainian war and the 
possibility of conflict escalation bring Europe and NATO 
into the centre of growing geopolitical tensions, which 
increase the complexity and instability of the global 
scenario, also from a geo-economic perspective. Faced 
with the new bloc opposition, various countries, 
including some of those closest to the conflict zones in 
Ukraine, are seeking and allocating incremental 
resources for defence, also in the wake of NATO 
objectives with regards to GDP. At the same time, 
markets are experiencing increasing volatility, fuelled by 
repeated phases of insecurity and mistrust on the part 
of citizens and businesses, high levels of inflation, 
restrictive monetary policies and growing public debt, 
which add up to the difficulties and bottlenecks of the 
post-Covid-19 recovery, with respect to which smaller 
companies in particular have already seen deterioration 
in their risk profile. 
The Group has an integrated planning process, 
aimed at supporting the achievement of a 
sustainable competitive advantage, based on an 
in-depth knowledge of the markets and the 
reference scenario, regularly fed by specific 
external analysis activities on the context and its 
evolutionary dynamics. 
 
 
 
The change in the 
level of expenditure 
of 
national 
governments 
and 
public 
institutions 
may affect business 
performance 
The major customers of the Group are national 
Governments or public Institutions. Moreover, the 
Group 
takes 
part 
in 
numerous 
national 
and 
international programmes funded by the European 
Union, governments or multinational collaborations. 
Therefore, it is influenced by economic and geopolitical 
factors at global and regional level, the rating or risk 
profile of countries, the expense policies of the public 
institutions, also for research and development 
programmes funding, in addition to the medium/long-
term plans of the Governments. Increases in defence 
spending, identified by several countries as necessary 
given the rising geopolitical tensions, may lead to peaks 
in demand in the short/medium term and make 
international competition even tighter, benefiting 
companies with more immediately available production 
capacity. 
The 
Group 
pursues 
an 
international 
diversification strategy, placing it in its main 
markets, as well as in emerging markets marked 
by significant growth rates, in the aerospace, 
defence and security sectors. 
Development and production plans are updated 
according to the demand evolution and the 
order trend. 
 
 
 
The Group operates 
in civil sectors that 
are highly exposed 
to growing levels of 
competition 
In the civil sectors, customers’ spending remodulation 
not only gives rise to delays in obtaining new orders or 
falls in the numbers of orders themselves, but also 
affect their economic and financial conditions. These 
sectors are also characterised by the entry and success 
of competitors even from other fields of activity, mostly 
with the help of anti-cyclical M&A transactions carried 
out by international investment funds. 
The market positioning of these players could have an 
impact on the Group's volumes, results and debt, thus 
prospectively enabling a growing competitive challenge 
on government customers. The time-to-market of 
products and their development and upgrade is a 
In addition to balancing its customer portfolio 
suitably 
between 
government 
and 
non-
government entities, the Group systematically 
pursues its objectives in order to increase 
industrial efficiency, diversify its customer base 
and improve its ability to perform contracts, 
while reducing overhead costs with a view to 
enhance its competitive capacity. 
The Group ensures highly qualitative and 
innovative product standards, and an integrated 
value proposition aimed at maintaining its 
technological edge, including thanks to open

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Main risks 
Actions 
critical success factor for market positioning, given the 
strong competitive drive and speed of innovation. 
innovation and the interaction with innovative 
startups and SMEs. 
 
 
 
The 
capacity 
for 
innovation 
and 
growth depends on 
the 
strategic 
planning 
and 
management 
of 
skills 
Incessant technological innovation and the growing 
complexity of the Group's businesses require constant 
alignment of skills, in order to provide high added-value 
products and services. Especially in a market 
environment characterised by sharp demand for 
innovation skills, any shortage of special expertise could 
have impacts on the full achievement of short- and 
medium/long-term 
business 
objectives, 
including 
possible repercussions in terms of time-to-market of 
new products and services, as well as of access to 
emerging business segments. Companies compete for 
skills and talent by leveraging, among other things, the 
distinctiveness of the brand, the ESG (Environmental, 
Social, Governance) profile, the welfare offer and the 
work-life balance, which are positively valued by the 
new generations entering the labour market. 
The 
Group 
monitors 
and 
manages 
competencies and professional skills by means 
of plans of action directed at attracting, 
retaining and motivating its human resources, 
managing talents, providing ongoing specialist 
training and reskilling/upskilling, insourcing core 
competencies and defining succession plans, 
with the gradual adoption of state-of-the-art 
tools of People Analytics and new Lifelong 
Learning development and training platforms 
for all personnel, particularly in the STEM 
(Science, 
Technology, 
Engineering 
& 
Mathematics) area. 
 
 
 
The Group operates 
in some business 
segments 
through 
partnerships or joint 
ventures  
The corporate strategies contemplate the possibility of 
gaining business opportunities partly through joint 
ventures or commercial alliances in order to integrate 
its technology portfolio or strengthen its presence in the 
market. The operation of partnerships and joint 
ventures is subject to both strategic positioning and 
management risks and uncertainties. Divergences can 
arise between partners about the identification and 
achievement of operational and strategic objectives, as 
well as core business operations. 
The Group systematically carries out due 
diligence activities before and after the 
completion of partnerships and joint ventures. 
At this purpose, the active involvement of its top 
management in any related operation is aimed, 
among other things, at directing its strategies 
and identifying and managing any critical issue 
in a timely fashion. 
 
 
 
The 
Group 
is 
exposed to the risk 
of fraud or illegal 
activities on the part 
of employees and 
third parties  
The Group adopts and updates its organisational, 
control, procedural and training system to ensure fraud 
risk monitoring and compliance with any and all anti-
corruption laws applicable in the domestic and foreign 
markets in which it operates. However, the possibility of 
employees or third parties behaving in an ethically 
incorrect or not fully compliant manner cannot be ruled 
out, nor can be ruled out the possibility of judicial 
authorities initiating proceedings aimed at establishing 
any possible liability attributable to the Group, the 
results and timing of which are difficult to determine 
and which might entail temporary suspensions from the 
market concerned. 
The Group has set out a model of responsible 
business 
conduct 
aimed 
at 
preventing, 
identifying and responding to the risk of 
corruption. 
Thanks to its model, Leonardo SpA has reached 
the highest level of Transparency International’s 
Defence Companies Index on Anti-Corruption 
and Corporate Transparency (DCI), in addition to 
having its ISO 37001 certification, the first 
international 
standard 
on 
anti-corruption 
management system, confirmed. Leonardo was 
the first company in the world's top ten in 
Aerospace, Defence and Security to obtain this 
certification. The model also provides for the 
responsible management of the supply chain, 
through 
the 
qualification, 
selection 
and 
management of suppliers, as well as the 
adoption of a risk analysis tool within the scope 
of due diligence audits within the process of

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Main risks 
Actions 
engagement assignation to sales promoters, 
commercial advisor and lobbyists. 
 
 
 
The settlement of 
legal disputes can 
be 
extremely 
complex and might 
require 
a 
considerable period 
of time 
The Group is party to judicial, civil and administrative 
proceedings; for some of these, the Group has 
established specific provisions for risks and charges in 
the consolidated financial statements to cover any 
potential liabilities that could derive. Some of these 
proceedings in which the Group is involved – for which 
a negative outcome is unlikely or that cannot be 
quantified – are not covered by the provisions referred 
to above.  
Further 
developments 
of 
judicial 
proceedings, 
presently unforeseeable and indefinable, together with 
the possible consequential impact on Leonardo’s 
reputation, could also have a significant impact on its 
relationships with customers. 
The Group regularly monitors potential and 
existing disputes, taking the necessary corrective 
actions and adjusting its provisions for risks on a 
quarterly basis. 
 
 
 
The Group operates 
in 
particularly 
complex 
and 
regulated markets, 
which 
require 
compliance 
with 
specific regulations 
(e.g. export control) 
Defence solutions are of particular importance in terms 
of compliance with regulatory obligations and, 
therefore, their export is strictly regulated and is subject 
to prior authorization, based on specific national and 
foreign regulations (such as, for example, Italian Law 
185/1990 and the U.S. ITAR and EAR), as well as to 
customs formalities. 
The prohibition on, limitation or any possible revocation 
(for example in the case of embargoes, geopolitical 
tensions or the occurrence of wars) of export 
authorisations for defence or dual-use products, as well 
as failure to comply with any applicable customs 
regime, may have substantial adverse effects on the 
Group's business, financial 
position, 
results 
of 
operations and cash flows. Moreover, failure to comply 
with these regulations could also make it impossible for 
the Group to operate in specific regulated areas. 
The Group ensures, through specific functions, a 
timely implementation and management of the 
formalities required by the relevant regulations, 
monitoring their updating on an ongoing basis in 
order to allow the day-to-day performance of 
commercial and operational activities, in 
compliance with the provisions of law and with 
any possible authorisation and/or limitation and 
of its Policy of respect for human rights. The 
Group has promptly made arrangements to 
carry out the changes necessary as a result of 
Britain’s exit from the European Union and is 
continuing to follow developments in customs 
regulations in order to carry out the necessary 
modifications immediately. 
 
 
 
Pandemics can have 
time-varying effects 
and lead to systemic 
crises 
A pandemic can undermine people's health to the point 
of jeopardising the resilience of the health and socio-
economic systems of the countries involved, leading to 
systemic or large-scale crises that may take a long time 
to normalise. The duration and magnitude of a 
pandemic depend, among other things, on the 
timeliness and effectiveness of health actions taken at 
global level, the possible mutations of the virus, and the 
coverage and decay of immunisation. A single epidemic 
event not properly addressed at regional or local level 
can quickly turn into a pandemic. 
With particular reference to Covid-19, the Leonardo 
Group performance, in addition to the impact of the 
The Leonardo Group guarantees every possible 
effort to preserve the safety and health of its 
people wherever they are located, in full 
compliance with the relevant regulations. 
The Group maintains specific action plans to 
contain possible impacts of new pandemics and 
relapse into Covid-19. These plans concern, 
among other things: proactive management of 
relations with customers, both institutional and 
non-institutional, thanks to a widespread 
geographic 
presence, 
balanced 
with 
the 
application of tools to virtualise promotion and 
marketing action; reorganisation of production

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Main risks 
Actions 
downturn in the civil aeronautical sector, has been 
affected - and to some extent may still be affected - by 
the variability of certain risk factors, among which the 
economy recovery trend and the market trend, 
asymmetries between demand for and supply of certain 
goods and services, inflationary effects, shortages of 
certain professional skills, the ability of customers and 
suppliers to meet contractual obligations undertaken 
and to undertake new ones, the revision, by customers, 
of purchasing strategies, also by shortening supply 
chains or insourcing services, restrictions, in the event 
of new contagions, resulting from measures to protect 
people's health, with repercussions on the Group's 
commercial and industrial action. 
lines, together with the remotisation of certain 
technical functions and constant monitoring of 
the company's supply chain and procurement 
strategy. 
 
 
 
The Group operates 
through a number of 
industrial plants and 
processes that may 
expose it to risks to 
the 
health 
and 
safety of workers 
and 
to 
environmental risks 
The Group's activities are subject to compliance with 
laws, rules and regulations governing the protection of 
workers’ health and safety. Specifically, Legislative 
Decree 81/2008 provides for a preventive and 
permanent health and safety management system at 
work, through the identification of risk factors and 
sources, the elimination or reduction of risk, the 
ongoing 
monitoring 
of 
preventive 
measures 
implemented, the development of a corporate strategy 
to be implemented through the participation of all 
stakeholders in the working communities.  
The Group's activities are also subject to compliance 
with laws, rules and regulations governing the 
protection of environment and energy management, 
which imply specific environmental permits aimed at 
ensuring the compliance with restrictions and 
conditions on emissions into the atmosphere, water 
discharges, storage and use of chemical or hazardous 
substances (e.g. REACH Regulation and RoHS Directive) 
and waste management and disposal. 
Risks to the workers’ health and safety are based 
on the principle of zero tolerance, in strict 
compliance with the relevant regulations, and 
are managed through targeted risk analyses, 
which take account of injury frequency and 
severity 
rates 
and 
related 
improvement 
objectives, specific action and training plans, 
within the framework of a precise system of 
proxies and powers for each relevant matter, 
aimed at ensuring that the action taken 
complies with the Group’s guidelines. The Group 
also confirms its commitment to extend the 
coverage in terms of Health and Safety System, 
for example through the ISO 45001 certification. 
The Group is also committed to protecting the 
safety of its people working on company sites 
and in direct relations with customers around 
the world from external threats. 
The Group complies with the ever-increasing 
limits 
and 
restrictions 
imposed 
by 
the 
environmental protection regulations as regards 
sites and production processes. The Group also 
confirms its commitment to extend coverage in 
terms of Environmental Management System, 
for example through the ISO 14001 certification. 
The Group regularly performs environmental 
assessments of sites and monitoring, and it also 
takes out specific insurance policies in order to 
mitigate the consequences of unexpected 
events.  
 
 
 
Climate change, the 
protection of the 
environment 
and 
consequent 
new 
The 
transition 
to 
a 
low-carbon 
and 
more 
environmentally sustainable economy may entail risks 
for the company, induced by greater severity of 
environmental and climate policies, disharmony in the 
The Group pursues an industrial strategy aimed 
improving the efficiency of its production 
systems and processes on an ongoing basis for 
the reduction of energy consumption and

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Main risks 
Actions 
developments in the 
scenario concerned 
may require action 
to 
be 
taken 
on 
certain 
types 
of 
processes 
and 
products.  
regulations of 
different countries with related 
competitive asymmetries between companies, the 
progress of the relevant technology or the changing 
confidence of investors and lenders in the relevant 
business. In parallel, the importance of the sustainability 
requirements of the supplier and its supply chain grows 
in customer tenders, while the consumption of energy 
and water resources becomes central along the entire 
value chain of the company. Company processes, 
particularly production processes, as well as products 
and services offered to the market may be affected. 
The impact of climate changes, in addition to modify the 
environmental context, exposes the Company to an 
increased frequency of acute weather events, such as 
floods, storms and wind, as well as droughts and fires, 
which can endanger industrial sites and products being 
prepared. 
atmospheric emissions and, thanks also to the 
participation, as a partner of excellence, in the 
main European programs for research and 
innovation, develops low environmental impact 
technological solutions which are functional to 
the fight against climate change. 
The Group puts measures in place against any 
possible acute or chronic physical risks and has 
specific insurance cover against the possible 
consequences of disastrous climatic or natural 
events. 
 
 
 
Breaches 
of 
information security 
obligations 
can 
cause damage to the 
Group, 
its 
customers 
and 
suppliers and pose a 
threat 
to 
the 
security of citizens 
and 
critical 
infrastructures 
Companies are required to face the risks associated with 
cyber resilience of their products and services and their 
information 
& 
communication 
technology 
infrastructure, taking into account the continuous 
evolution of cyber threats in their numerous forms 
(from advanced persistent threat to the phishing 
campaign), the sophistication of attack strategies and 
the increase in the exposed surface area resulting from, 
among other things, the increasing digitisation of 
processes, products and services for customers, as well 
as the increased use of smart working. The critical 
geopolitical context, the deterioration of relations 
between states or the occurrence of war conflicts may 
increase the scope and number of cyber attacks, aimed 
at institutions and companies. 
Computer incidents and attacks, including any in the 
supply chain, stoppages, leaks of personal data and the 
loss of information that may also be of strategic 
importance may endanger business and even the 
Group’s image, above all in the event of the theft of 
third-party data kept in the Group’s archives.  
The Group manages cyber security through 
dedicated controls and training for the entire 
corporate population, as well as processes, 
procedures and specific technologies for the 
prediction, 
prevention, 
detection 
and 
management of potential threats and for 
responding to them. Leonardo is ISO 27001 
certified 
and 
is 
constantly 
engaged 
in 
management and improvement activities aimed 
at maintaining the certification itself. 
Leonardo 
also 
benefits 
from 
substantial 
experience in the field of cyber security, gained 
on the market through the competent business 
division. 
In 
addition 
to 
a 
continuous 
improvement in the methods of managing 
permissions of access to information, Leonardo 
continues to take any action to extend data and 
information protection and processing methods 
and processes to its own suppliers. 
 
 
 
The 
Group 
could 
encounter 
difficulties 
in 
protecting 
its 
Intellectual 
Property 
Leonardo's success and results also depend on the 
Company's ability to protect the innovations resulting 
from its R&D activities through Intellectual Property. In 
this respect, the Group mainly uses industrial secrets, 
patents, copyrights. Nevertheless, the possibility cannot 
be ruled out that the activity of a “disloyal” employee, 
an improper action of a supplier or a legal but aggressive 
act of a third party may lead to repercussions on the 
company’s Intellectual Property. Furthermore, there is 
a greater risk of counterfeiting in highly technological 
The Group is committed to the continuous 
improvement of its Intellectual Property 
protection processes, from the approval of 
research 
and 
development 
investments, 
through the definition and implementation of 
measures to protect technical information and 
proprietary know-how. Appropriate monitoring 
and surveillance actions are taken to detect any 
infringements 
by 
suppliers, 
partners 
or 
competitors. Of particular importance is the

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Main risks 
Actions 
environments such as that in which Leonardo operates, 
given the high number of patents held by third parties. 
creation, the expansion and the penetration of 
the internal IP Correspondent networks in the 
divisions. 
 
 
 
The Group provides 
highly 
complex 
products, 
systems 
and 
services, 
including 
under 
long-term 
fixed-
price contracts 
The Group supplies products, systems and services that 
are particularly complex due to their advanced 
technological content, including under long-term 
contracts at a fixed all-inclusive price. Terms and 
conditions of contracts generally include challenging 
requirements and rigorous completion times, the failure 
to honour which may entail the payment of penalties, in 
addition to warranty liability and claims for damage that 
are not covered in full by insurance policies. 
Furthermore, an unforeseen rise in the costs incurred in 
the performance of a contract, which may also be the 
result of the occurrence of chance events, could lead to 
a lower profit. 
In this regard, attention must also be paid to the effects 
of market phases characterised by inflation, over-
demand, lack or discontinuity of supply of services and 
goods (including energy commodities) necessary for 
production and delivery to the customer, inflation 
phenomena, with consequent greater execution times 
and costs for the company. These dynamics, which may 
also be determined, accelerated or exacerbated by the 
deterioration of institutional and commercial relations 
between sovereign states or by the onset of war 
conflict, can also affect the competitiveness of the 
company's offer for the acquisition of additional long-
term contracts as well as of new customers. 
From the commercial offer phase and at regular 
intervals during the performance of the 
contract, Leonardo considers the projects’ main 
performance and financial parameters in order 
to assess its performance and manage risks 
throughout the entire life cycle through the 
detection, 
assessment, 
mitigation 
and 
monitoring of risks with the definition and 
management of appropriate contingencies, in 
order to protect the financial margins of the 
projects themselves. Risk management is 
supported by dedicated Risk Managers in 
project teams. The Group is committed to the 
continuous improvement of its industrial 
efficiency and its ability to meet customer 
specifications. 
With 
reference 
to 
energy 
commodities, the Group pursues, on an ongoing 
basis, a strategy aimed at optimising purchases 
and uses of resources. 
 
 
 
The 
risks 
of 
performance 
of 
contracts, 
associated with the 
liability 
to 
customers or third 
parties, also depend 
on the supply and 
sub-supply chain 
The Group purchases, in very substantial proportions 
with respect to its sales, industrial products and 
services, materials and components, equipment and 
subsystems; it may therefore incur liability to its 
customers for operational, legal or financial risks 
attributable to third parties, who operate as suppliers or 
sub-suppliers. The Group’s dependence on suppliers for 
certain business activities might give rise to difficulties 
in maintaining quality standards and meeting delivery 
times. 
The risk profile of suppliers, mainly small and medium 
enterprises, can deteriorate, also suddenly, during 
downturns in economy, in the presence of geopolitical 
tensions and conflicts and during periods of convulsive 
recovery, also due to subsequent offer shortages and 
discontinuity, bottlenecks and inflationary effects into 
the real economy, mainly on raw materials and energy 
commodities. 
Leonardo has been pursuing its policy of 
strengthening and improving the supply chain 
for some years, leveraging a transparent and 
sustainable partnership relationship with the 
excellences in its Supply Chain, to give rise to a 
more innovative, integrated and resilient 
industrial eco-system. In addition to the 
programmes already in place (LEAP, ELITE 
Leonardo Lounge), the Company has defined a 
set of principles and rules for the assessment of 
key suppliers, specifically oriented towards the 
development and growth of the Supply Chain 
with a view to long-term sustainability 
(Leonardo Assessment and Development for 
Sustainability).

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Main risks 
Actions 
 
 
 
The 
Group 
is 
required 
to 
fulfil 
direct or indirect 
offset obligations in 
certain countries 
In 
the 
Aerospace 
and 
Defence 
sector, 
some 
international institutional customers require the 
application of some types of industrial offset related to 
the award of contracts, sometimes with rigorous 
requirements, linked to the development policy of each 
country. 
Therefore, the Group may undertake offset obligations 
that require procurement or manufacturing support at 
local level, technology transfer and investments in 
industrial projects in the customer’s country. Failure to 
meet offset obligations may result in the application of 
penalties and, in certain cases, might prevent the Group 
from participating in contract award procedures in the 
countries concerned. 
The Group manages offset risks by means of 
appropriate analyses carried out from the 
offering phase within the project teams, which 
also appoint an Offset Manager for the d4ivision 
concerned. A due diligence is performed before 
dealing with a third party under an offset 
agreement, which is conducted according to the 
relevant international best practices.  
Leonardo has also set up a dedicated central 
organisational unit to guide and supervise offset 
activities. 
 
 
 
Chips, 
electronic 
components 
and 
critical 
raw 
materials available 
on the market 
The production of chips and electronic components – of 
great importance for industrial applications, especially 
for high-tech applications - is still polarised on a few 
countries, mostly outside the European Union. These 
goods continue to be characterised by long delivery 
times as a consequence, first, of the peaks in demand 
generated by the Covid-19 lockdowns and, then, of the 
convulsive and at times discontinuous post-pandemic 
recovery, then impacted by the outbreak of the Russian-
Ukrainian conflict. 
Critical raw materials, including rare earths, are a 
decisive enabler for both the initiatives underpinning 
the European Green Deal and the technologies of 
certain production sectors. Most of the critical raw 
materials relevant to the Aerospace and Defence sector 
are not directly available in Europe, but rather in other 
mainly non-NATO/EU countries. 
Availability and production of materials are sometimes 
concentrated in a single country, which may therefore 
be in a position to sway the balance between global 
supply and demand, with impacts on market prices 
and/or availability of goods, in particular in scenarios 
marked by critical geopolitical issues, the deterioration 
of institutional and commercial relations between 
sovereign states or the occurrence of war conflicts. 
Leonardo, in addition to monitoring the 
prospective requirements of its supplies, takes 
part in international working groups, such as 
those at European and NATO level, which 
reconcile 
the 
interests 
of 
both 
States 
(supporting the definition of recommendations 
for member States) and the companies and 
supply chains involved, in order to encourage 
the identification of common strategies for 
mitigating risks. Leonardo also engages in 
activities having the purpose of enhancing the 
efficiency of the use of resources (for example 
fostering circularity mechanisms) as soon as the 
product technological research and sustainable 
design phases start. 
 
 
 
A 
substantial 
amount 
of 
consolidated assets 
is attributable to 
intangible 
assets, 
goodwill 
in 
particular 
The recoverability of amounts recognised in intangible 
assets (including goodwill and development costs) is 
linked to the implementation of future plans and the 
business plans for the relevant products that, especially 
in case of long-term developments, may see the needs 
of customers and the competitive environment change, 
given the speed of technological innovation. 
The Group implements a policy of monitoring 
and 
limiting 
amounts 
capitalised 
under 
intangible assets, with specific regard to 
development costs, and carries out ongoing 
monitoring of performance under scheduled 
plans, taking any necessary corrective action in

Report on Operation at 31 December 2022 
98 
 
 
Main risks 
Actions 
the event of unfavourable trends. These 
updates are reflected in impairment tests. 
 
 
 
The Group’s debt 
could 
have 
an 
impact 
on 
its 
strategies  
The debt level, beside impacting the profitability as an 
effect of the related borrowing costs, could affect the 
Group’s strategy, limiting its operational flexibility. 
Monetary tightening by central banks could make new 
financing 
and 
current 
floating-rate 
debt 
more 
expensive. Potential future liquidity crises could also 
restrict the Group’s ability to repay its debts. 
In assuring a solid and balanced structure 
between sources of funds and investments, 
Leonardo pursues an ongoing strategy of 
limiting its debt by paying steady attention to 
cash generation, which is used, market 
conditions permitting, to partially reduce the 
existing debt. 
 
 
 
The Group’s credit 
rating is also linked 
to the opinions of 
the 
credit 
rating 
agencies 
All Group bond issues are given a medium-term financial 
credit rating by the international agencies. A possible 
downgrade in the Group’s credit rating, also as a 
consequence of the changed country of origin rating, 
could severely limit its access to funding sources, as well 
as increase its borrowing costs for existing and future 
loans, which would have a negative impact on the 
business prospects, performance and financial results. 
Prospectively, sustainability eligibility and performance 
will also become increasingly important in determining 
creditworthiness. 
The Group is actively engaged in reducing its 
debt as confirmed by the Industrial Plan. The 
Group’s financial policies and selection of 
investments and contracts involve being 
constantly alert to maintaining a balanced 
financial structure. 
 
 
 
The Group realises 
part of its revenues 
in currencies other 
than those in which 
costs are incurred, 
exposing it to the 
risk of exchange-
rate fluctuations. A 
part of consolidated 
assets 
is 
denominated in US 
dollars and pound 
sterling 
The Group reports a significant portion of revenues and 
costs in currencies other than euro (mainly in dollars 
and pounds). Accordingly, any negative changes in the 
reference exchange rate might have negative effects 
(transaction risk). 
Moreover, the Group has made significant investments 
in the United Kingdom, in Poland and in the United 
States of America: this might have a negative impact on 
the Group’s results of operations, financial position and 
cash flows due to the translation of the financial 
statements of foreign investees (translation risk). 
The Group continuously applies an organised 
systematic hedge policy to combat transaction 
risk for all contracts in its portfolio by using the 
financial instruments available on the market. 
Moreover, in intercompany financing activities 
denominated in currencies other than the euro 
individual positions are hedged at the central 
level. 
 
 
 
The 
Group 
is 
a 
sponsor of defined-
benefit 
pension 
plans in the UK and 
the US and of other 
minor 
plans 
in 
Europe 
Under the pension schemes reserved for employees 
who mainly operate in the United Kingdom and in the 
United States of America, the Group is required to 
ensure a specific future retirement benefit level for 
employees participating in the plan. In said countries 
the pension funds in which the Group participates invest 
resources in the plan assets (stocks, bonds, etc.) that 
might not be sufficient to cover the agreed-upon 
benefits, mainly with strong market fluctuations. If the 
value of plan assets is less than the agreed-upon benefit 
level, the Group duly recognises the amount of the 
deficit among liabilities, with consequent adverse 
The Group monitors pension funds’ investment 
plans and strategies on an ongoing basis and 
takes immediate deficit corrective action when 
necessary.

Report on Operation at 31 December 2022 
99 
 
 
Main risks 
Actions 
effects on its financial position, results of operations and 
cash flows.

Report on Operation at 31 December 2022 
100 
 
STAKEHOLDER ENGAGEMENT  
Continuous dialogue with companies, political and economic institutions, the scientific world, the younger 
generations, local communities and other relevant stakeholders is at the heart of Leonardo's approach, 
aimed at strengthening the ability to create shared value. In this manner, the Group nurtures stable and long-
lasting relationships over time, based on integrity, transparency and compliance with rules. In order to 
maintain effective dialogue with various stakeholders, starting with its employees, Leonardo regularly 
involves them through its organisational units and the most effective methods, in order to understand their 
interests and points of view. All opportunities for stakeholder engagement – from events for the financial 
community to trade association meetings, from collaborations within the scope of technology R&D 
programmes to support projects at local level and digital events and to materiality analysis – contribute to 
strengthening its bond with the industrial, economic and social context and to improving its business 
management practices as well as to increasing the Company’s knowledge level. 
In 2022 Leonardo strengthened its focus on sustainability issues by joining the Governing Council of the 
Global Compact Network Italia Foundation, becoming a member of associations such as Anima per Il Sociale, 
and increasing its involvement in new working groups on sustainability issues coordinated by associations 
such as the Aerospace, Security and Defence Industries Association of Europe (ASD), CSR Europe, and the 
European Roundtable of Industrialists (ERT). It also took part in major European and national coordination 
events on sustainability issues, such as the European Industry Days, the European SDG Summit, and the CSR 
and Social Innovation Show. 
 
 
 
 
LEONARDO ‘S PURPOSE 
Contribute to the world's progress and safety 
by delivering meaningful and innovative technological solutions.  
LEONARDO’S MISSION 
 
To be the international Aerospace, Defence and Security company that best enables 
its customers’ success, by thinking creatively and working with passion.

Report on Operation at 31 December 2022 
101 
 
 
Main dialogue activities with stakeholders 
  
  
Reputational risk analysis 
In 2022 the issues concerning Leonardo were dealt with in about 19,000 articles, both in general and 
specialist press (+12% compared to 2021), in 44 countries (4 more compared to 2021), thus further 
consolidating Leonardo's media coverage, which particularly increased in the 4 domestic markets (+46%) and 
in Canada (+33%), mainly due to the contract for CH-149 Cormorant helicopters.  
Sentiment analysis confirms the positive results of previous years both in Italy, where 95% of the coverage 
in Italy has a positive and neutral value, and abroad where the negative sentiment component has even been 
zeroed out39. Leonardo can therefore boast a further strengthened image as a technological and innovative 
player, with a sustainable organisation and with strong economic and financial indicators, among the leaders 
in the AD&S sector. In Italy, particular attention was paid to promoting skills, closeness to local communities, 
technological development and innovation and to the Space business segment. 
On the digital side, there was a substantial improvement in key performance indicators, with an increase in 
visits of 142% and page views of 166%, as well as an enhanced presence on its Twitter, LinkedIn and Instagram 
profiles, with a rise in: followers (over 1 million, +18.7% compared to 2021), impression (more than 23 
million) and engagement (over 1 million interactions, +8.2% compared to 2021) as a result of the process of 
restyling and implementation of Leonardo’s website ecosystem, which commenced in 2021. 
 
                                                           
39 In relative terms, services with neutral perception increased due to greater media interest in defence and security issues following the Russia-
Ukraine conflict. 
MEDIA
•
Communications through traditional and digital media.
•
Collaborations in events and publishing initiatives.
BUSINESS PARTNERS AND OTHER COMPANIES
•
Implementation of projects to improve efficiency of 
industrial practices.
•
Participation in national and international research 
projects and multi-sector working and consultation 
groups.
•
Launching of circularity and industrial symbiosis 
projects.
LOCAL COMMUNITIES
•
Support and organisation of local initiatives and 
digital events in support of communities and areas in 
which Leonardo operates.
•
Company sites and museums open to communities.
•
Promotion of employees’ volunteering initiatives.
TRADE UNIONS
•
Continuous dialogue with workers’ organisations.
•
Participation in and creation of observatories and 
committees on specific topics, including equal 
opportunities and diversity.
TRADE ASSOCIATIONS
•
Participation in round table meetings on 
technological, sustainability, social and 
environmental topics and governance/policy.
•
Sharing of best practices and case studies in events, 
workshops and publications.
GOVERNMENTS AND INSTITUTIONS
•
Dialogue with supranational, national and e regional 
institutions.
•
Organisation of round-table conferences with 
representatives from government, institutions and 
industry.
•
Participation in public-private working groups for the 
development of initiatives, plans and policies.
•
Supporting initiatives to strengthen security and foster 
ecological and digital transition (for example the National 
Recovery and Resilience Plan, NRRP, in Italy).
CUSTOMERS
•
User groups and ad-hoc conferences.  
•
Customer satisfaction surveys.
•
Exhibition and digital events.
FUTURE GENERATIONS
•
Initiatives to support schools and academies, to 
disseminate STEM disciplines, fostering related 
career paths and skills development.
•
Promoting diversity and inclusion as factors of 
competitiveness.
•
Dissemination of scientific citizenship - sharing 
knowledge, technological skills and innovation - for 
the benefit of communities and territories.
EMPLOYEES
•
Support, coaching and networking programmes.
•
Welfare and work-life balance support.
•
Offering cultural services and events for employees 
and families.
•
Annual performance appraisal.
•
Training/engagement activities for the dissemination
of knowledge on sustainability issues and the 
promotion of active behaviours
•
Periodical surveys on the corporate climate, mobility, 
smart working and sustainability topics. 
•
Surveys on women with STEM backgrounds in 
Leonardo.
SUPPLIERS
•
Promoting the sustainability of the supply chain 
through initiatives focused on digital transformation, 
cyber security and social and environmental 
responsibility.
•
Training on sustainability issues.
•
Assessment of ESG (Environmental, Social, 
Governance) performance.
•
Supplier Awards.
UNIVERSITIES AND RESEARCH CENTERS
•
Development of innovative and sustainable solutions 
through research projects and collaborations with the 
Divisions and the Leonardo Labs.
•
Collaboration in research and innovation to combat 
climate change, make efficient use of resources and 
promote circularity initiatives.
•
Orientation and scholarship initiatives to strengthen 
STEM skills, promoting dialogue between industry and 
university.
FINANCIAL COMMUNITY 
•
Events and conference calls for the presentation of 
interim results.
•
Regular communications with analysts and current 
and potential investors, on financial and ESG topics, 
also through events and roadshows.
•
Attendance at conferences.

Report on Operation at 31 December 2022 
102 
 
 
PEOPLE 
 
 
 
 
 
 
 
 
 
✓ INCLUSION AND EMPLOYMENT PROTECTION  
✓ WELFARE AND WELLBEING  
✓ PEOPLE AND SKILLS ENHANCEMENT 
✓ HEALTH AND SAFETY  
✓ RESPECT FOR HUMAN RIGHTS

Report on Operation at 31 December 2022 
103 
 
Leonardo wants to offer its people a dynamic and inclusive working environment in which they can express 
their potential in full, supporting their sense of belonging and the ability of each person to contribute 
proactively to the achievement of business results. The corporate culture is based on listening and 
engagement, on the enhancement and evolution of competencies existing within the Group, with a data-
driven, future oriented and sustainable growth oriented approach, fully respecting the distinctive 
characteristics of each resource and paying special attention to all dimensions of their well-being. 
Priority topics 
> 
Health and Safety promotion 
> 
People engagement, skills and talent management  
> 
Active support for skills development in STEM area 
> 
Diversity and inclusion 
> 
Business continuity 
> 
Digital transformation 
> 
 Responsible business conduct 
SDGs 
Objectives 
> 
Over 100 hours of training for each employee in 2018-2022 
> 
At least 40% of under 30 of total hires 
> 
At least 32% of women on total hires40  
> 
30% of women on total STEM recruitment 
> 
20% of women in management levels 
> 
20% of total employees 
> 
27% of women in succession plans 
Progress 
Target year 
2022 
 
2022 
 
2022 
 
2025 
 
2025 
 
2025 
 
2025 
 
2025 
 Objective achieved 
 On track 
Objective not achieved 
Impact indicators 
Over 9,200 
people hired under 30  
 
Over 4,900 women hired  
 
Over 4,300 training 
opportunities activated with 
the educational systems41 
Cumulative values 2018-2022 
For the third year in the Gender-Equality Index of Bloomberg 
Leonardo was included, for the third year running, in the Bloomberg Gender-Equality Index (GEI) 2023, which 
includes 484 companies worldwide, in 45 countries and in various business sectors. Leonardo is one of 20 
companies in the Industrials sector and the only company operating in the AD&S sector included in the index. 
GEI is a market cap-weighted index linked to the performance of listed companies committed to transparent 
gender reporting. The benchmark index measures commitment to gender equity through five specific 
metrics: female leadership and talent development, gender equity and equal pay, inclusive culture, anti-
sexual harassment policies and corporate brand recognition as a pro-women brand. Leonardo scored highest 
for transparency in disclosing required information and ranked above the industry and global averages for 
fairness and equal pay, policies against sexual harassment, and corporate recognition as a pro-women brand.  
                                                           
40 This objective is divided into two parts: there is a target to 2022 on hiring excluding blue-collar workers and one to 2025 on total hiring. 
41 Internships, apprenticeship programs, traineeships, school-to-work alternation.

Report on Operation at 31 December 2022 
104 
 
 
INCLUSION AND EMPLOYMENT PROTECTION 
Leonardo employs 51,392 people, 97% of whom are located in Italy, the United Kingdom, the United States 
and Poland. This human capital is mainly composed of staff with a STEM qualification, characterized by a 
generational diversity that fosters the exchange of experiences and skills. 
 
Employees worldwide 
Diversity is for Leonardo a distinctive factor of competitiveness, talent attraction, human capital 
enhancement and innovation, which is key to the Group’s sustainable growth. The context and working 
environment, which is more and more interconnected and collaborative, have in fact a strong influence on 
individual behaviour, generating trust and increasing the involvement of employees, with a direct impact on 
customers, profits and productivity. In order to support people in reaching their potential, Leonardo 
considers diversity and inclusion (D&I) as one of the priorities within the Company's change management 
processes, and a key lever to attract the right talent and build high-performing teams, and as a success factor 
for innovation. Leonardo has adopted a data-driven approach to reduce the risk of subjective assessments 
and unconscious biases. In particular, in line with the objectives strengthened on the matter of gender 
equality  and the actions envisaged in the Sustainability Plan, four main types of projects have been launched 
and are currently in progress, aimed at different targets and involving all levels of the organisation: 
> 
Mentorship and Coaching - programmes aimed at supporting women and their professional growth 
while strengthening leadership skills with a view to growth into more complex roles; 
> 
Inclusive Culture - training aimed at countering prejudice and cognitive distortions, in addition to a 
selection of courses offered to employees on the Coursera and Valore D platforms dedicated to 
gender inclusion (Unconscious bias);  
> 
Strong Leadership (Springboard) - international programme aimed at strengthening female 
leadership through listening, dialogue and discussion with certified trainers.  
Leonardo promotes the D&I culture, including through internal and external initiatives that take place during 
the year and new models of work organisation that promote work-life balance. 
 
Employees by professional category, gender and age group 
REST OF THE 
WORLD  
32,327 
63% 
7,540 
15% 
7,143 
14% 
2,578 
5% 
1,804 
3% 
% women 
% men 
< 30 years 
30 -50 years  
>50 years  
Total workforce  
19% 
81% 
11% 
53% 
36% 
Managers  
14% 
86% 
0% 
36% 
64% 
Middle managers  
19% 
81% 
1% 
43% 
56% 
White collars  
23% 
77% 
13% 
53% 
34% 
Blue collars  
9% 
91% 
13% 
57% 
30%

Report on Operation at 31 December 2022 
105 
 
Human capital evolution indicators 
 
+14%  
growth of workforce  
(+6,258 employees) 
 
Employees under 30  
from 8.2% to 11.2% 
of workforce  
(+2,072 employees under 30) 
 
Women managers 
from 15.1% to 18.7% 
of total managers and middle managers 
(+455 women managers employees) 
Performance 2018-2022, baseline 2017
 
Social shock absorbers - Despite gradual improvement during the 
year Leonardo made use of social shock absorbers in the 
Aerostructures division. The operation of plants working at lower 
production capacity was the subject of prior discussion with the 
workers' Trade Unions, which resulted in signing special union 
agreements, including, for example, the activation of an inter-
divisional Vacation and permits Solidarity Fund to support staff at 
the Grottaglie site, as well as new recourse to the New Skills Fund; 
the effects of both projects will be felt during 2023. 
Development plan – In the Electronics division, Leonardo has 
signed a union agreement on the five-year Development Plan, 
aimed at strategic repositioning in the sector: the Plan envisages 
the concentration of the division's activities in 18 technological 
hubs of excellence, developed on a "smart factory" model that will 
see the principles of Industry 4.0 and Digital Manufacturing 
applied on a large scale. The rationalisation of logistics will entail 
the gradual transfer of the personnel involved from the sites that 
are in the process of being shut down, on the basis of timelines 
and accompanying measures shared with the Trade Unions: 
moreover, this rationalisation will not only not generate staff 
reductions, but will be the enabling factor for a programme of 
about 500 new hires to be carried out over the five-year period. 
Smart working – Leonardo has signed a smart working agreement 
with the relevant Trade Unions whereby, drawing on the 
experience gained during the pandemic emergency, work 
commenced on the process of setting out a structural model for 
the application of this mode of work through a new experimental 
phase. 
Early retirement - Leonardo has signed, with the Trade Unions, 
an early retirement agreement under art. 4 of Law 92/2012 
(Fornero Act), which may involve a number of up to 400 Group 
employees who will meet, during the two-year period from 2023 
to 2024, the requirements for retirement in the maximum 
timeframe envisaged in the agreement. This agreement is also
an enabling condition for the simultaneous placement of 600 
new employees in the same period. 
Finally, Leonardo has also signed an agreement under art. 4 of 
the Fornero Act, involving managerial staff, with a maximum of 
45 exits that may occur in the two-year period from 2023 to 
2024. 
Upskilling of blue-collar workers – During 2022, the 
upskilling/reskilling plan concerning blue collar workers in the 
Aerostructures division was further developed, which involved 
130 
employees 
in 
training 
courses 
aimed 
at 
acquiring/strengthening skills in technologies relevant to the 
division's technological and digital transformation. 
Local schemes for mandatory placement - Since the beginning 
of the pandemic emergency, management measures have been 
put in place to protect employees who were most impacted by 
the reduction in workloads. In this regard, about 200 employees 
of the Aerostructures division, particularly from the Grottaglie 
site, were temporarily assigned to other divisions or to other 
sites/functions of the same division during 2022. 
 
In 2022 Leonardo involved its people in many moments of 
listening, to deepen their perception with respect to certain 
issues of interest to the company, engage them on the main 
challenges and increase their sense of belonging. The various 
surveys carried out during the year made it possible to gather 
useful information and feedback on existing processes and tools 
and proved a key lever for change and continuous optimisation 
while 
outlining 
people's 
expectations 
and 
areas 
for 
improvement for the company on which to base Leonardo's 
Innovation – A survey has been conducted with more than 4,000 
respondents, designed in collaboration with the University of 
Cassino and Southern Lazio, which has analysed Leonardo’s 
employee perception and attitudes on various issues linked to 
innovation management. 
Home-work mobility - Nearly 11,000 employees have participated 
in the survey to understand changes in home-work commuting 
Industrial relations and protection of the most affected businesses 
Listening to and involving employees

Report on Operation at 31 December 2022 
106 
 
growth strategy. The main surveys and projects implemented in 
2022 are described below.  
Anticorruption and Whistleblowing – A survey was conducted 
in early 2022 with nearly 4,000 respondents to analyse 
employees' level of knowledge of processes and tools to 
prevent, detect and counter corruption with a view to 
improving the quality of information and make the corporate 
system increasingly effective, shared and participatory. 
Diversity & Inclusion – More than 5,000 employees of Leonardo
have participated in a research project by Bocconi University of 
Milan, aimed at investigating the possible presence of gender 
bias, knowledge of awareness initiatives launched in the 
Diversity & Inclusion area, perception of Talent Retention 
policies, family support services and benefits offered by the 
company. 
habits and set out priority actions to be taken at company sites to 
provide alternatives to private car use42. 
Sustain-Able – It is a gamification platform that aims to involve the 
employees of Leonardo and to encourage the adoption of
sustainable behaviours through team challenges that are focused 
on raising awareness and strengthening a caring and proactive 
corporate community on these issues and in which around 3,000 
people participated during 2022, completing over 20,000 missions.
Robot in the Space – It is a two-month online robotics course 
targeted at children and grandchildren of employees aged 6-14, 
which is sponsored by Leonardo and organised by the Astronomia 
Culturale Medio Cielo Association. It has been an opportunity for 
the approximately 200 children and young people who took part to 
discover the fascination of technology and get closer to STEM 
disciplines. 
 
Leonardo directs D&I promotion initiatives by taking account of 
the geographical characteristics of the countries in which it 
operates. In 2020 the Joint Committee was set up in Italy, which 
is composed of company and union representatives, with the 
aim of analysing, promoting and sharing company initiatives and 
projects for equal opportunities and diversity, as was a cross-
functional working group for setting targets to 2030 and 
preparing an Action Plan for the promotion of gender equality. 
In the United Kingdom, the management committee is 
responsible for overseeing D&I strategy, and top management 
is involved on specific topics. In the United States, a Diversity 
Advisory Group (DAG) and a DAG Team promote D&I culture to 
support 
the 
company’s 
organisational 
climate, 
talent 
management, recruiting and engagement initiatives. 
Talent attraction and inclusive recruitment – In the United 
Kingdom, recruitment managers have been encouraged to 
complete training modules on inclusive recruitment in order to 
attain the goal of diversifying talent and increasing awareness 
of unconscious bias. In addition, Leonardo has continued to 
implement STEM Returners, which is the programme to attract 
people with STEM backgrounds who have exited the workforce 
for reasons related to personal or family life, placing a total of 
25 people. Leonardo also works with the Association For BME 
Engineers (AFBE) in order to attract talent from different ethnic 
backgrounds. In Italy too, as part of the most prestigious 
recruiting appointments, events and Career Days of the best 
Italian Universities, Leonardo has promoted a distinctive 
identity that is increasingly based on the values of D&I and 
promoted the inclusion of women in the company, particularly 
with specific technical and scientific skills. A project has also 
been implemented, which is dedicated to the family of Italian
recruiters, concerning a training programme on gender non-
discrimination and the use of inclusive language. In the United 
Springboard Programme – More than 140 women have been 
involved in the 6 editions of the international programme to 
strengthen female leadership and provide women with 
professional and personal support.  
Navigator – In the United Kingdom Leonardo has launched a 
development programme dedicated to the male population to 
explore topics such as masculinity stereotypes, mental health, well-
being and stress management. 
Network Group – Seven Employee networks have been established 
in the United Kingdom to raise awareness and promote D&I 
strategy and make Leonardo an inclusive working environment for 
all employees: Pride (LGBTQ+), to provide advice and promote 
awareness of LGBTQ issues in the workplace; Equalise to offer 
support to employees and increase awareness about gender 
equality; Carers to support employees with special care needs such 
as for elderly parents, partners or children; Enable focused on 
neurodiversity and disability; Ethnicity Inclusion, to support ethnic 
inclusion; Wellbeing, to promote the fundamentals of personal and 
organisational well-being, will also be introduced in 2022; Armed 
Forces, dedicated to employees who have relationships with 
members of the military. 
Inclusion 365 – It is a training programme that was launched in the 
United Kingdom in 2022, targeting business line leadership teams 
and dedicated mainly to D&I issues.  
Imposter Syndrome - Training has been delivered on Imposter 
Syndrome, which is associated with low levels of self-esteem and 
feelings of low personal worth and inadequacy, which has involved 
over 300 employees at cross-border level.  
Disability – Among the various planned activities are training 
courses delivered for recruiters and partnerships with third-party 
organisations that specialise in attracting and managing candidates 
                                                           
42 For more details, please see the chapter on Planet, paragraph on Decarbonisation Path. 
Diversity and Inclusion (D&I)

Report on Operation at 31 December 2022 
107 
 
States Leonardo carries out targeted activities for schools and 
universities with a high presence of African-American students 
(Historically Black Colleges & Universities - HBCUs).   
with disabilities and autism, as well as collaboration with third 
parties aimed at creating an appropriate working environment. 
Leonardo is also committed to removing architectural barriers by 
improving access to the sites in the United Kingdom. Thanks to its 
commitment, Leonardo UK was accredited in 2022 as a "Disability 
Confident level 2 employer," a recognition supported by the 
government as a result of its continued focus on employees with 
disabilities. 
 
 
Investors in People (IiP) at Gold 
Level, Investors in Young People 
(IiYP) and We Invest in WellBeing 
of IiP in the United Kingdom  
 
Military Friendly Employer 
and Best for Vets Award 
in the United States  
 
First place in the industry for 
"young professionals" and "recent 
graduates in STEM disciplines" 
targets in Universum's Most 
Attractive Employer index

Report on Operation at 31 December 2022 
108 
 
WELFARE AND WELL-BEING  
In order to seize the new opportunities offered by the "New Normal" plan and in line with the flexible work 
system, a comprehensive project was launched at Leonardo in 2022 to redesign people's work experience 
inside and outside the company, putting at the centre of that experience the idea of individual well-being, 
which then translates into organisational well-being. In the new hybrid work model, where the dichotomies 
between personal and professional, or home and work environments give way to a new integrated vision of 
employee experience, 5 dimensions of well-being have been identified: physical, emotional, financial, social, 
and that related to work-life integration. 
 
 
Leonardo allocates welfare schemes to all employees, necessary to build a system that protects and 
facilitates people's lives and the ecosystem around them while enhancing the vocations of the territories in 
which Leonardo operates, respecting the environment and appreciating, recognising and valuing the 
uniqueness of people. 
As part of work-life integration, Leonardo contributes to the enhancement of parenting by providing grants 
for day-care centres, scholarships and (in some local areas) summer camps for employees' children. In 
addition, Leonardo is committed to providing its employees with the opportunity to take short- or long-term 
leave from work for health reasons affecting the employees or their family members, childcare for both 
parents, and for reasons related to study and training. Leonardo also encourages forms of flexible work; in 
addition to the possibility of hybrid work, employees can access offices in a flexible time slot and make use 
of tools such as hourly compensation. Finally, Leonardo is sensitive to the needs of employees who need to 
switch from full-time to part-time forms of work. In the United Kingdom, Leonardo has changed, through the 
Custom Working project, the way work is done, empowering employees, along with their managers, team, 
and customers, to decide where and when they work. This flexibility allows the company to maintain a focus 
on customer needs while better balancing employees' work needs with personal and family commitments. 
Leave policies also allow employees to volunteer in addition to annual leave. 
For the physical wellness area, employees in Italy can access a dedicated service platform (Gympass) that 
allows them to combine physical and mental well-being through a holistic approach to personal well-being. 
Dedicated services include access to physical facilities/gyms, online master classes, apps, and nutrition and 
meditation activities. More than 3,000 employees have signed up for the platform and are taking advantage 
of Leonardo's well-being services.  
the 5
wellbeing
dimensions
1
2
3
4
5
work-life
integration
mental and physical
wellbeing
relational wellbeing
and sociality
life-work skills
development
protection and economic
wellbeing

Report on Operation at 31 December 2022 
109 
 
With regard to welfare related to sociality, recreational, leisure and cultural activities are offered to 
employees and their families at Leonardo's company recreational clubs. 
As part of the projects related to economic welfare, Leonardo has put in place the Flexible Benefits plan in 
Italy, which has involved about 30 thousand employees, supporting them with grants for the purchase of 
textbooks and passes for public services, as well as services for the full or partial reimbursement of various 
types of school, social welfare and transport expenses. 92% of the amount converted to Welfare was used 
by employees. In the United Kingdom, Leonardo employees are eligible for tax and insurance benefits if they 
purchase an electric car under the Go Green Car Scheme. Flexible benefits worth more than €mil. 12 million 
were provided in Italy and the United Kingdom in 2022.  
Leonardo has been recognised as a "Caring Company" for the measures it has put in place to support its 
people, bearing witness to its commitment to work-life balance and the enhancement of diversity and skills 
as a driver of innovation and growth.

Report on Operation at 31 December 2022 
110 
 
ENHANCEMENT OF PEOPLE AND SKILLS 
Leonardo's industrial strategy aims to attract and manage the job profiles and skills needed to meet the new 
challenges posed by the market, including the risk of their obsolescence.  
The company’s skill management and enhancement schemes support people throughout their career in the 
company, stimulating lifelong learning and activating upskilling and reskilling processes, also with a 
sustainable perspective. 
The use of innovative technology tools in the various areas of people management and development is a key 
factor for change and radical improvement in the Group's overall performance. In particular, the most recent 
initiatives for the development of new skills aim to align the competencies of our human resources with the 
needs of the future, design training programmes and reduce outsourcing and recourse to the market, 
leveraging a digital approach that combines data mining, artificial intelligence and Massive Open Online 
Courses (MOOC) training platforms. 
 
62% of employees hold a 
STEM qualification 
 
59% of new hires hold a 
STEM qualification 
 
About 1.1 million hours 
of training delivered 
 
966 training courses 
activated with the 
educational system43 
Data 2022 
Leonardo takes part in strategic initiatives focused on skill development at a European level too. Among these 
are the ASSETs + (Alliance for Strategic Skills addressing Emerging Technologies in Defence) project, which 
was launched in 2020 and involves about 30 European partners (industrial, academic, etc.); the project aims 
to create a system of observation and management of critical skills for Defence and a mechanism through 
which Universities can bridge the gap of misalignment on identified skills through new pedagogical 
approaches and training courses. 172 skills were identified and analysed in three domains (Artificial 
Intelligence, 
Cybersecurity, 
C4ISTAR 
- 
Command, 
Control, 
Communications, 
Computers, 
Information/Intelligence, Surveillance, Targeting Acquisition and Reconnaissance), classified into three 
categories: technical expertise; skills related to methodologies and procedures needed to develop certain 
Defence application areas; cross-sector skills, which are soft skills needed in all business sectors. 
Participation in the ASSETs+ project enables Leonardo to contribute actively to the European education 
system and to find funding lines to support business activities and in line with sustainable development goals. 
In particular, since April 2022 Leonardo has assumed, under the programme, a role of direct responsibility in 
carrying out any and all activities related to the certification of the project's content and outputs, as well as 
the role of coordinating the Industry and chairing the relevant Steering Committee. 
Leonardo has also adhered to the Pact For Skills, which is one of the 12 actions required to implement the 
Skills Agenda for Europe. The purpose of the programme is to mobilize stakeholders involved in the target 
sectors in order to create better upskilling and reskilling opportunities for students and workers in Europe, 
sharing specific commitments. This Pact will also help foster the transition to digital and automation, 
accelerate post-Covid recovery and increase the competitiveness in our continent. A working group 
dedicated to skills in the Aerospace and Defence Industries Association of Europe (ASD) sector has been 
formed to provide further support within the sector. 
Leonardo also participates in the Jobs, Skills & Impact Working Group of the European Round Table (ERT), 
which is mainly focused on reskilling and upskilling programmes, needed to address digital and green 
                                                           
43 Internships, apprenticeship programs, traineeships, school-to-work alternation.

Report on Operation at 31 December 2022 
111 
 
transitions that are underway44. As part of this programme, the R4E (Reskilling for Employment) project was 
launched in May 2021 to identify how best to address upskilling and reskilling needs in Europe. The 
programme has the ambitious goal of reskilling and providing jobs for more than 1 million people by 2025 
and more than 5 million people by 2030. Leonardo is the first Italian company to join the programme and has 
taken a key and coordinating role in the project, which aims to produce a positive impact on the country as 
a whole. 
 
Performance appraisal – In 2022, around 24,500 people were 
involved in the performance assessment, 22% of whom were 
women, with redemption of 98.16%. The first phase of the 
"Performance & Development Management for IPT" pilot project 
was also implemented with the assignment of IPT (Integrated 
Project Team) performance objectives to resources working in 
project teams.  
People analytics – Analysis and data mining tools have been 
adopted to identify and develop new skills, map the job profiles 
present in its organisation and monitor the evolution and trends 
of the market, as well as the activities of its main competitors. 
The fact of identifying in advance any emerging role or roles 
affected by significant changes does in fact allow the company to 
take actions for the recruitment of new profiles or training of 
resources in order to acquire or strengthen specific skills in a 
targeted manner, including with a view to up/reskilling and 
especially targeted at digital technology and STEM disciplines. On 
the basis of the analyses carried out, the use of the Coursera 
platform also makes it possible to select the best courses or the 
most suitable certifications. Specifically, in-depth analyses of 
seven strategically important technologies have been conducted 
through this rationale, defining assumptions for the development 
of the necessary roles and training required on impacted 
populations, supported by the Love for Learning project.  
Succession plans – About 1,300 people, up to the third 
organisational level, have been involved in the people review 
process between succession candidates and Future Leaders. 
These resources constitute Leonardo’s Leadership Pipeline, for 
which the Company aims to ensure, in an increasingly effective 
manner, full professional fulfilment in line with development 
expectations and skills they possess, enabling generational 
change and gender diversity. Women account for 24% of the total 
group (compared to 23% in 2021) and 30.5% of identified 
successors (compared to 29% in 2021). In accordance with the 
targets stated in the Integrated Budget, the % of women within 
the managerial class appears to be increasing. In the 2022 
appointment process, the percentage of women appointed was 
found to be increasing compared to 2021 (25% vs. 17%, 
respectively). 
Digitization of HR management processes - In October 2022, 
Leonardo launched a new platform - Workday - to digitally 
redesign, harmonise, and manage the main processes of its 
people's professional lives: from training to performance and 
competency appraisal, from personal and professional data 
Love for Learning – Leonardo is the only Italian company that has 
made the training offer of Coursera, the world's leading platform 
for MOOCs available to all of its employees around the world. 
Approximately 4,600 courses, which are produced by the best 
universities in the world, are accessible from home and office. 
Participants can earn certifications for the courses taken, thus 
improving their level of employability. The effectiveness of the 
programme is confirmed by the growing number of those 
enrolled, over 11,870, with 46,000 courses started and 246,500 
hours of training used with reference to Cloud Computing, Big 
Data, Machine learning, Artificial Intelligence and cyber-attacks 
issues. In order to make the training experience even more 
targeted, training courses were planned for professional roles in 
the engineering area, particularly exposed to the danger of 
professional obsolescence. 
UP– This is a high-level international managerial training course 
that has involved 90 new executives in three editions, with over 
4,500 hours of training, to support the exercise of leadership, 
promote team building, networking and customer experience, 
and the testing of innovative solutions. 
Behaviour simulator – Leonardo has implemented a Digital Role 
Play platform SKILLGYM for the development of soft skills. 
Through thematic learning "circuits," we train in a protected 
environment in managing critical conversations and reflecting on 
the effectiveness of one's own behaviours, through the use of 
technologies such as artificial intelligence, interactive videos and 
augmented reality. 
Internal mobility - 32% of positions filled with internal 
candidates, including through the use of job posting. 
Sustainability Training Courses – A first interactive multimedia 
course on sustainability issues was prepared and made available 
to employees during 2022. The course, which is structured into 
specific modules, provided the basics of sustainability, in addition 
to being designed to raise awareness of the actions the company 
is implementing and its role it plays in sustainable development. 
The course was completed by about 17,000 employees. 
Talent Attraction - In 2022, Leonardo launched several initiatives 
aimed at attracting top talent, orienting new generations toward 
the study of STEM disciplines, enhancing the technological 
excellence of its products and services, and raising awareness of 
the distinctive features of the company and the skills of its 
people. Among the main projects are those aimed at: supporting 
                                                           
44 For more details on Leonardo’s commitment to developing skills for the future, please also see the section on Education and scientific citizenship. 
Performance measurement 
Attraction, training and development

Report on Operation at 31 December 2022 
112 
 
management and administration to remuneration issues. In 
addition to enabling all employees to gain greater autonomy in 
handling their professional information, Workday empowers 
managers to lead their teams more effectively, partly due to the 
availability of reports and dashboards providing updated 
information on employees in real time, and to proactively support 
their paths to growth. As part of the evolution of the new 
platform, a new performance appraisal process tool is scheduled 
to be implemented in 2023, which, among others, will enable all 
employees to provide feedback on the performance of their 
colleagues. 
the recruitment of junior and technical professionals for the 
company; representing the Group's professionalism, excellences 
and local entities directly through the testimony of some 
employees in the role of "ambassadors"; enhancing multimedia 
communication and social channels; and encouraging the 
recruitment of women graduates in STEM disciplines and 
engineering graduates for the company through participation in 
the Career Days of some prestigious university hubs.

Report on Operation at 31 December 2022 
113 
 
Change management models in the business 
Leonardo Production System (LPS) 
It is the agile production system inspired by the World Class Manufacturing (WCM) method, by which Leonardo pursues 
the objective of optimising efficiency and productivity through an approach oriented to continuous improvement in the 
management of processes and programs, which is capable of ensuring more and more quality and safety. The 
programme is in its third year of implementation, in which it is strengthening its effectiveness, including through the 
growth of the skills of the people involved, who are stimulated to make the best use of their experience in order to 
adopt good practices that are already in place and, above all, to take improvement actions in the work areas, with 
reference to ten technical pillars. The driving force behind the programme is the continuous learning on the part of Pillar 
Leaders, aimed at strengthening the skills to be passed on to the various teams in the field, on the one hand, and, on 
the other, training courses dedicated to plant managers so that they can facilitate the adoption, through a system-wide 
knowledge of the WCM. In particular, Pillar Leaders focused on the people development Pillar have the key task of 
mapping the skills possessed by teams of engineers and operators and selecting those to be acquired or strengthened. 
In order to accelerate and support continuous improvement processes, the digital transformation (LPS Digital) plan was 
also strengthened in 2022 in order to support the 3 phases of application (Reactive, Preventive and Proactive). 
LPS is managed by a governance and control system based on standardised evaluation criteria for each technical pillar 
set out at an international level by WCM Association, which was joined by Leonardo in 2022, the first company in the 
A&D sector. Each facility operated under the LPS model is audited every six months by a team of WCM-certified 
company or third-party auditors. The main objective of the audits is to ensure that the application of the different pillars 
contributes to risk reduction (safety), process improvement (quality), energy efficiency and better plant management. 
From the launch of the program from the beginning of 2019, LPS involved 18 manufacturing plants in Italy and made it 
possible to reduce injuries in the areas of intervention by about 95%, as well as to increase productivity on average by 
about 30%, achieve "zero failure" condition on 7% of industrial plants and reduce the overall cost of "non-quality". 
Among the actions taken, LPS also made it possible to intervene on ergonomic improvements of the workstation, with 
benefits in terms of productivity, effectiveness, quality and well-being of operators.  
 
Over 5,000 people 
involved in 18 
manufacturing plants  
 
About 8,000 projects for 
continuous improvement 
(kaizen) 
 
-95% of injuries and +30% 
productivity in the model 
areas in which the LPS 
system was implemented 
 
First company of the A&D 
sector to become a 
member of the WCM 
Association  
Leonardo Project Management Model 
The Leonardo Project Management Model (LPMM) is the new company process that strengthens the 
efficiency and effectiveness of contract and project management for the development of new technology 
solutions, with the goal of improving project performance in terms of time schedule, costs, quality and 
customer satisfaction. 
The model sets out a common set of innovative tools and methodologies aimed at strengthening the role, 
decision-making autonomy and professional and managerial development of project managers and project 
team members by spreading the culture of team working, cross-divisional collaboration and knowledge 
sharing. 
The application of LPMM is overseen through the monitoring of Key Performance Indicators of process and 
project performance, which allows any possible action to be taken to support the proper implementation of 
processes and their continuous improvement. 
The ongoing implementation of Change Management initiatives from the issuance of the LPMM onwards has 
also enabled the establishment of the Leonardo Project Management Community, the widespread execution

Report on Operation at 31 December 2022 
114 
 
of the Leonardo Project Management Model, and the collection of functional feedback for continuous 
improvement from all the company stakeholders concerned. 
 
Over 2,000 people 
involved in Change 
Management projects 
 489 strong-matrix project 
teams (Integrated Project 
Team) formalised 
 
3 digitalisation projects of 
Project Management 
tools completed  
 
Future Factory  
Future Factory is a change programme that Leonardo is implementing in the United Kingdom to drive the 
evolution of the business towards state-of-the-art operating systems and ways of working, enabling people 
to contribute more effectively to the achievement of strategic objectives. The program is built around four 
main projects for gradual performance improvement (Integrated Planning, Digital engineering, Supply chain 
management and Digital factory), including through the use of immersive platforms of Virtual Reality (VR), 
Augmented Reality (AR) and Mixed Reality (MR).

Report on Operation at 31 December 2022 
115 
 
HEALTH AND SAFETY 
Among the objectives of Leonardo's Health, Safety and Environment Policy45 are those of ensuring safe 
working environments and operating conditions, preventing risks to the health and safety of its employees 
and of anyone who has access to the Group's sites, raising awareness and providing continuous training to 
personnel on health and safety issues, in compliance with the laws in force in the countries in which it 
operates, voluntary standards and stakeholder expectations, with a view to continuous improvement. 
Among the tools used to ensure compliance with adequate standards are health and safety audits, both 
internal and external, which are mainly aimed at maintaining Management System certifications, as well as 
at compliance, safety and hygiene audits.  
 
80% of employees  
work at sites with ISO 45001 certified 
Health and Safety Management 
System (56% in 2017) 
 
2.35 injuries  
per million of hours worked  
(-54% compared to 2017) 
 
1,726 audits 
conducted on health and 
safety, of which 1,589 internal 
and 137 external  
 
2022 confirmed the trend of improvement in the accident rate compared to the last three years and in 
particular a 19% reduction was recorded compared to 2021.  
                                                           
45 For more details on environmental safety, please also see the paragraph on Natural resources management in industrial processes. 
 
 
Occupational health and safety  
Supplementary Health Care - Health coverage schemes were put in 
place for employees and their entire households in Italy. In the 
United Kingdom insurance coverage is on a contributory and 
voluntary basis.  
Travel security - Leonardo considers as a priority the protection 
and safety of its workers who are called upon to perform their 
professional work abroad on posting, secondment or relocation.
Among the preventive measures put in place to ensure adequate 
information and preparation, Leonardo offers specific training 
courses to its employees in travel security, safety and health, in 
35%
19%
16%
10%
9%
4%4%
3%
Main causes for injuries in 2022
Injuries on site:
Caution/Attention
Tools/Equipment
Personal conditions
Attitude/Behavior
Procedures/Systems
Management of employees
Injuries occurred during business trip
while in means of transportation
Other
5.96
4.41
2.60
2.91
2.35
2018
2019
2020
2021
2022
Injury rate 2018-2022

Report on Operation at 31 December 2022 
116 
 
 
 
Employee assistance programmes – Leonardo, through a third-party 
provider, offers support to employees in need of legal and financial 
advice and counselling on domestic abuse and bereavement issues.  
Ergonomics – The Group has put in place measures to improve 
ergonomics in the workplace at 47 sites. 
addition to a dedicated, 24/7 health care service; an automated
system for providing employees with the Health and Safety 
information in the country of destination (Pre Travel Advisory); 
and an app available to travellers with geolocation features in 
case of emergency. Travel Security processes are ISO27001
certified.

Report on Operation at 31 December 2022 
117 
 
RESPECT FOR HUMAN RIGHTS  
Leonardo undertakes to carry out its activities in full respect of human rights, which are integrated into the 
Group’s Code of Ethics and Charter of Values, based on the principles of the United Nations’ Universal 
Declaration of Human Rights, the International Labour Organisation (ILO) Conventions, the OECD 
(Organization for Economic Co-operation and Development) guidelines, the Charter of Fundamental Rights 
of the European Union and additional relevant regulations.  
In the three areas of human rights that have been identified as relevant to the Group – people management, 
supplier relations and the sale and distribution of products -, Leonardo adopts appropriate processes to avoid 
any violation, promoting a culture of integrity inside and outside the Company and improving its business 
and trade compliance systems on an ongoing basis. These three areas, which are presented in the Group’s 
Policy on Human Rights, were identified by means of a specific analysis performed between 2017 and 2018 
based on the ISO 26000 guidelines: it identified the Group’s business areas that are potentially exposed to 
the risk of violations of human rights and the measures put in place to manage and mitigate risks. In order to 
identify and promptly manage potential risks and negative impacts on human rights, Leonardo has 
mechanisms in place for the management of reports, either signed or anonymous, and has set up a dedicated 
communication channel46.  
In order to strengthen the surveillance system, the Group promotes the protection of human rights along the 
value chain, supporting its dissemination among its stakeholders, including though the action under the 
Sustainability Plan and by participating in multilateral initiatives to create synergies between associations, 
businesses and institutions.  
> 
Prohibition on all discrimination 
against 
gender, 
race, 
skin 
colour, 
language, 
religion, 
political 
opinions, 
sexual 
orientation, nationality, social 
status or background, trade 
union membership, age or 
disability or any other type of 
discrimination or intolerance 
towards diversity. 
> 
Prohibition on all forms of 
exploitation of child, forced or 
illegal labour. 
> 
Guarantee for political and 
trade unions’ rights. 
> 
Protection of sensitive data of 
natural persons, whether they 
be employees, collaborators, 
visitors, customers or suppliers. 
> 
Protection of health and safety 
of workers, in compliance with 
applicable provisions and the 
highest standards in terms of 
safety and hygiene. 
Through the Supplier Code of Conduct, 
Leonardo requires to its suppliers: 
> 
Protection of the right to work 
and 
equal 
opportunities, 
promoting 
dignity, 
health, 
freedom, equality of workers, 
rejecting all the forms of 
discrimination, whether directly 
or indirectly, also with reference 
to political or trade union 
related aspects; 
> 
Non-involvement in any way 
whatsoever in forced labour, 
human beings trafficking, and 
exploitation of child labour and 
forced 
labour 
generally 
speaking; 
> 
Payment of the minimum wages 
and benefits legally mandated, 
as well as working conditions, 
working time and compensation 
fair and complying with the laws 
and the standards applicable in 
the 
countries 
where 
the 
supplier operates; 
> 
Development 
of 
technology 
solutions for the security and 
protection of citizens, national 
institutions, 
technological 
sovereignty, and the resilience 
of countries. 
> 
Non-involvement 
in 
the 
production, 
development, 
storage, trade and/or sale of 
non-conventional weapons (e.g. 
cluster bombs, mines, chemical 
weapons). 
> 
Non-involvement 
in 
nuclear 
weapons 
production 
or 
maintenance activities. 
> 
Application 
of 
the 
Trade 
Compliance Program to ensure 
full compliance of applicable 
laws 
and 
provisions 
of 
competent authorities for Trade
Compliance aspects, including 
obligations 
for 
embargoes, 
sanctions 
and 
other 
trade 
restrictions.  
                                                           
46 The Guidelines on the management of reports are available on the website. The dedicated channel is humanrights@leonardo.com. 
People management  
Supply chain  
Sale 
and 
distribution 
of 
products

Report on Operation at 31 December 2022 
118 
 
> 
Promotion of health and safety 
and of diversity culture and 
inclusion through constitution 
of Working groups formed by 
company and labour unions 
representatives. 
> 
Safety 
and 
protection 
of 
workers’ 
health 
in 
the 
workplace in compliance with 
current regulations regarding 
Health & Safety 47. 
Leonardo, 
moreover, 
carry 
out 
reputational checks of third parties with 
which intends to establish contractual 
relationships and envisages social clauses 
to protect workers in the case of contract 
handovers. 
> 
Due diligence processes for 
potential customers and end-
users, using screening activities 
to check whether they are on 
blacklists and other checks in 
case 
of 
transactions 
with 
Sensitive Countries. 
> 
Development of the Human 
Rights Impact Assessment tool 
which introduces specific red 
flags while carrying out business 
activities aimed at verifying 
compliance with internationally 
recognized human rights. 
 
99% of employees in OECD countries. 
72% of employees under collective 
agreements.  
32% of employees are members of trade 
unions. 
80% of employees operating in ISO 45001 
certified sites. 
96% of purchases from OECD countries. 
100% of suppliers accepts the Supplier 
Code of Conduct. 
95% of key suppliers state that they have 
no suppliers in countries considered at 
risk48. 
More than 6,400 evaluated on social and 
ethical-legal issues. 
397 transactions monitored in Sensitive 
Countries. 
 
The increasingly substantial investments by Leonardo in research and development of digital technologies, 
in particular on Artificial Intelligence (AI), and their application to its products and solutions, require a defined 
ethical and legal reference context and an analysis of potential economic and social risks and impacts. Aware 
of this new context, Leonardo is committed to aligning development and progress opportunities with ethical 
considerations. Among the activities conducted, the participation in the discussion for drafting the proposal 
                                                           
47 For more details, see Leonardo’s Supplier Code of Conduct. 
48 The data relates to the LEADS assessment conducted on 500 key suppliers. 
49 For more details, see the updated list of Sensitive Countries, publicly available on the Company’s website. 
Human Rights Impact Assessment 
In the application of the Group's Policy on respect for human rights and in line with the objectives of the Sustainability Plan, an 
analysis tool (Human Rights Risk Assessment - HRIA) has been adopted with the aim of setting out the main risk indices with 
reference to human rights and the potential impact of the activities carried out by the Company. In particular, this analysis is 
carried out "by Country" and "by transaction". 
Analysis “by Country” – While setting out five red flags, the analysis tool aims to identify Countries which, despite the absence of 
specific sanction programmes, have been reported by national and international bodies (e.g. UN and EU) due to violations of 
human rights, with particular reference to: serious acts of internal repression, violations of international humanitarian law; 
belonging to conflict zones in the trade of "3TG" minerals (so-called conflict minerals). On the basis of these assessments, the 
Countries to be included in the list of Sensitive Countries for reasons linked to the respect for human rights are identified, 
establishing the obligation to notify any transaction involving them, either directly or indirectly. 
Analysis “by transaction” – The risk analysis tool relating to transactions with Sensitive Countries has been completed with the 
addition of two drivers relating to the respect for human rights that are linked to the HRIA "by Country". 
Following the introduction of HIRA, the list of Sensitive Countries was also extended and, consequently, the supervision of the 
Group’s commercial transaction increased.49

Report on Operation at 31 December 2022 
119 
 
for a Regulation of the European Parliament and of the Council to establish harmonised rules on AI, which 
was presented by the European Commission in April 202150 and for the Italian National Regulation on AI. 
 
                                                           
50 Regulation of the European Parliament and of the Council laying down harmonised rules on artificial intelligence (Artificial Intelligence Act) and 
amending certain Legislative Acts of the Union (April 2021). 
Development and ethical use of Artificial Intelligence 
Leonardo complies with the 11 core principles set out by the UN in 2019 in relation to Autonomous Systems, with particular 
consideration to the use of Artificial Intelligence (AI) applied to Defence products and services. 
The Group's technology research work is in line with compliance requirements with respect to the seven core elements laid down
in the European AI regulation, in view of their application and the future need for European marking. These elements are: human 
action and surveillance, robustness and security, confidentiality and data governance, transparency, diversity, non-discrimination 
and equity, social and environmental well-being, and responsibility to be also understood as accountability. 
With regard to Autonomous Weapon Systems, Leonardo confirms: 
> 
its commitment to respecting the fundamental principles of the International Humanitarian Law (IHL), including: the 
distinction between civilians and combatants and limiting collateral damage, as far as possible; the principle of proportionality 
with regard to the need for defence and security; 
> 
adherence to the Human-On-The-Loop (HOTL) and Human-In-The-Loop (HITL) standards to ensure that the use of 
autonomous weapons in situations critical to the security of people is subject to human supervision and control.

Report on Operation at 31 December 2022 
120 
 
 
PLANET 
 
 
 
 
 
 
 
 
 
 
✓ DECARBONISATION PATH 
✓ CIRCULAR ECONOMY  
✓ NATURAL RESOURCES MANAGEMENT IN INDUSTRIAL PROCESSES

Report on Operation at 31 December 2022 
121 
 
To counter and mitigate the effects of human and industrial activities on the climate and the ecosystem, 
Leonardo has defined a sustainable business strategy based on responsible economic and social models and 
takes account of short-, medium- and long-term risks and opportunities.  
Leonardo is committed to reducing climate-altering emissions, mitigating climate change risks, and fostering 
the transition to a low-carbon economy, especially through research and implementation of innovative 
solutions, including with the involvement of the supplier ecosystem. At the same time, Leonardo has 
launched initiatives to reduce emissions from the energy consumption of its industrial processes, including 
the investment program for energy self-production from renewable sources (photovoltaics), the extension 
of LED lighting, the upgrading of buildings to increase their eco-efficiency, changes to the production process 
to replace SF6 greenhouse gases, as well as the LPS program that provides a management model for operation 
efficiency. Leonardo's decarbonization strategy got a major boost in 2022 with the decision to make a 
commitment on the Science Based Targets initiative. 
Priority topics  
> 
Environmental impact of the use of materials 
> 
Management of natural resources and conservation of ecosystems 
> 
Climate change, adaptation/mitigation 
> 
Development of earth observation technologies  
> 
R&D, innovation of advanced technologies  
> 
Digital transformation  
SDGs  
Objectives  
> 
Reduction in electricity consumption taken from external grid by 10%51 
> 
Reduction in Scope 1 + Scope 2 emissions (Market Based) by 50% 
> 
Reduction in water withdrawal by 25% 
> 
Reduction in the amount of waste produced by 1552 
Progress 
Target year 
2025 
 
2030 
 
2030 
 
2030 
On track 
 Objective updated 
Impact indicators  
About 160,000 tons of CO2e 
avoided thanks to the partial 
replacement of gas SF6 from 2020 
 
Over 220,000 tons of CO2e  
avoided through the use of virtual 
training systems from 2018 
 
Over 85,000 tons of waste  
recovered from 2018 
The new commitment to the Science Based Targets initiative 
In 2022 Leonardo presented its commitment to the Science Based Target initiative (SBTi). SBTi supports 
companies in their decarbonisation ambition by providing guidance, tools and criteria to set targets that are 
in line with the goal of limiting temperature increase to 1.5°C, as defined by the 2015 Paris Agreements. 
Setting targets according to the SBTi methodology will ensure that Leonardo bases its decarbonisation 
ambition on a scientific basis and expands its commitment to carbon footprint reduction to include indirect 
Scope 3 emissions. Leonardo formalised its commitment in November 2022, and the targets will be submitted 
for final validation to be achieved by 2024. 
 
                                                           
51 Calculated as a ratio to revenues. Baseline 2019 
52 Reduction in emissions, water withdrawals, and absolute amount of waste generated. Baseline year 2019.

Report on Operation at 31 December 2022 
122 
 
DECARBONISATION PATH 
Technological development and digitalisation are the main drivers for reducing emissions from operations 
and implementing new products and services, accelerating the transition to the decarbonisation of the 
supply chain. Added to these is Leonardo's commitment to engage its supply chain to combat climate change. 
As a large industrial and manufacturing player, Leonardo invests in a number of initiatives aimed at 
decarbonising and curbing the energy consumption of its operations (Scope 1 and 2 emissions). These 
include the energy self-production programme, which will enable the Group to reduce its energy dependence 
and avoid the emission of over 16,000 tons of CO2e by 2025, and the full potential LED lighting programme, 
which will save over 10,000 tons of CO2e annually by the same year53. With regard to the efficiency and 
digitisation of production processes, Leonardo aims to minimise its carbon footprint through various 
initiatives, including the replacement of SF6 gas, which avoided the emission of about 160,000 tons of CO2e 
in 2022 compared to 2020, and the development of innovative solutions. Thanks to the Digital Twin, for 
example, Leonardo is redesigning its processes and reviewing the design and production stages of products 
and services.  
At the same time, the commitment to promote emission reductions among its suppliers and the 
implementation of new products and services is enabling Leonardo to accelerate its decarbonisation journey 
along the entire supply chain, upstream and downstream of the value chain, respectively (Scope 3 
emissions). In this regard, Leonardo has commenced specific training, awareness and sustainability planning 
and reporting support activities for suppliers. On the other hand, important contributions are provided by 
research work performed within Leonardo Labs on Digital Twin, materials, logistics electrification, 
participation in European-level research programmes - such as Clean Aviation and SESAR 354, as well as 
advocacy activities and collaboration with suppliers, partners and institutions. Leonardo's approach is also in 
line with the goals of Destination 2050, the leading European-level industry initiative that designs the 
roadmap for zero-emission aviation by 2050, involving airlines, airports, and aerospace companies. 
Commitment to combating climate change is increasing in all countries on an ongoing basis; most notably in 
the United Kingdom, where Leonardo has made public a specific decarbonisation plan55. 
 
Major projects to reduce CO2 emissions in its operations (Scopes 1 and 2) 
                                                           
53 Compared to 2019. 
54 For more details on Leonardo Labs and European research programmes, please see the paragraph on Technological Innovation. 
55 Include the reference to the related paragraph/box. 
 
SF6 replacement – Leonardo is proceeding with the work to upgrade its manufacturing processes in order to 
significantly reduce the quantities used for the inert gas SF6 by replacing it with a gas with lower Global Warming 
Potential (GWP), according to the methods envisaged in the relevant project of the Sustainability Plan. The objective 
is, in fact, to replace SF6 gas (GWP: 24,300) with R134a (GWP: 1,530) as the inert gas used during the casting of 
magnesium alloys. In 2022, a direct emission reduction of about 160,000 tons of CO2e was achieved through the 
partial replacement of SF6 with R134a, compared with 2020. 
Energy self-production programme – Operations commenced on 3 pilot PV plants, for which the authorisation 
stages are underway. Furthermore, potential implementations are being analysed on 30 additional sites, with the 
aim of maximising electricity production from on-site plants, reducing dependence on fossil fuels and diversifying 
the risk associated with volatile energy markets. Compared with previous assessments, the estimate of self-
consumed energy at full capacity has consequently been increased, which may reach a value of more than 
50GWh/year by 2025, equivalent to about 16,000 tons of CO2e per year avoided. Ongoing analyses will confirm 
these values and the timing of construction of the plants, with the aim of giving maximum acceleration to the project. 
The systems hosted at Leonardo’s plants will be owned by a third-party partner who will make a portion of the

Report on Operation at 31 December 2022 
123 
 
 
 
 
energy produced available to the sites, thus helping to reduce the withdrawal of electricity from the external grid 
and associated costs. 
 
Full Potential lighting Programme – Work is continuing on the massive programme to replace lighting systems with 
LED technology, envisaged in the Sustainability Plan. In the period from 2021 to 2022, investments of about €mil. 
5.6 were completed, which will allow, when fully operational, to save about 8.2 GWh/year, equal to more than 2,500 
tons of CO2e avoided per year, which must be added to the 6,000 tons of CO2e avoided per year thanks to the first 
installations completed in the period from 2014 to 2020. Leonardo has also decided to give maximum acceleration 
to the programme, which envisages about €mil. 23 in additional investment and an estimated reduction in 
consumption of about 33GWh/year when fully operational, equivalent to about 10,000 tons of CO2e avoided per 
year. The Programme will also make it possible to improve working environments, with regard to all impacted areas: 
industrial, office and outdoor areas. 
 
Thermal Energy Consumption Efficiency - A new thermal plant is being designed at the Vergiate factory, regarding 
which the current steam generators will be replaced with more energy-efficient machines. The new plant will be 
able to reduce gas consumption by about 900,000 m3 per year, equal to about 1,800 tons of CO2e avoided, through 
an investment of more than €mil. 6. The project will be implemented in the period from 2023-25, according to the 
production needs of the  plant. 
 
Digital energy monitoring - The platform connects about 1,100 smart meters through which about 70% of the energy 
consumption is monitored at the Italian plants, enabling a structured and digitised management of energy 
consumption and facilitating the identification of new projects to improve consumption efficiency. The data 
collected by the platform in 2022 will also be used to prepare the 2023 energy diagnoses on Leonardo's main sites, 
in order to update the energy performance of the plants and take new actions on plant engineering efficiency 
improvement. 
 
Electric and hybrid cars - Leonardo's corporate fleet (long-term rental) in Italy consists of 43% hybrid/electric drive 
vehicles (+6 p.p. compared to 2021), with the goal of achieving 80% by 2023. Regarding the carpool, the current 
share of green vehicles is 55%. In support of this objective, additional charging stations will also be installed at all 
Leonardo sites, in addition to the 200 that are currently in use (including more than 130 in 2022). 
A pilot car sharing project has also been launched at some sites, using only electric or hybrid cars, with the aim of 
gradually extending it to the entire Group.

Report on Operation at 31 December 2022 
124 
 
Major projects to reduce CO2 emissions in the value chain (Scope 3) 
Reduction in emissions in the supply chain 
Decarbonisation is an industrial transformation that involves the entire supply chain of Leonardo. For this 
purpose, the company has prepared the Manifesto for Supply Chain Sustainability56, which focuses on 
industrial efficiency, action for Planet, green energy, and finally eco-design and circular economy. Leonardo 
has also recognised the issue of managerial culture and skills as key to accompanying suppliers on the path 
to decarbonisation. The Group has designed specific training, awareness and sustainability planning and 
reporting support programmes for suppliers, which are developed along three lines of action:  
• 
dedicated workshops, featuring experts and market industry leaders for green solutions;  
• 
managerial training programme for suppliers, delivered free of charge through the use of 
interprofessional funds and/or public funding;  
• 
video courses and toolkits to implement the development of a Sustainability Plan and preliminary 
non-financial reporting within the supply chain at the level of individual companies. 
 
Reduction in emissions through the development of products and services  
In developing products and solutions, Leonardo uses cutting-edge materials, processes and technologies that 
limit energy consumption and help reduce greenhouse gas emissions, thus contributing to combating climate 
change and reducing the use of hazardous substances. Leonardo produces in fact aircraft that consume less 
fossil fuels through the use of lighter materials and have lower energy requirements, virtual training systems 
that drastically reduce real flight hours and systems to optimise air, urban and maritime traffic, which make 
the aeronautics and transport sectors more environmentally sustainable. Leonardo also participates in 
research and development activities for advanced solutions with low environmental impact promoted by 
major national and European projects, benefiting from both risk sharing and reduced research costs and time 
to market, including Clean Aviation and Sesar 357.  
 
 
Major projects to reduce CO2 emissions in the aeronautics and helicopter business (Scope 3) 
                                                           
56 For more information on Leonardo’s commitment to its suppliers, please see the paragraph on “Supply chain value” in the chapter on Prosperity. 
57 For more information, please see the chapter on Prosperity, in the section on the European research programmes and the paragraphs on the 
Research, development and product engineering of sectors in the chapters on the Results and outlook by sector. 
 
 
Virtualisation – Embedded Training Systems allow online training with real and/or 
virtual actors in a tactical scenario shared between aircraft, ground simulators and 
monitoring and control stations, with real-time data exchange through data link 
(aircraft-to-ground) and communication networks (ground-to-ground). These 
technologies make it possible to significantly reduce the need for flights on real 
platforms, with consequent reduction in the use of fuels and production of climate 
altering emissions. The virtualisation of product testing (Certification-by-Simulation) 
will also drastically reduce the flight activities required to obtain certifications for 
platforms and/or their subsystems. The current real tests (on the ground or in flight) 
may in fact take place in digital form by using advanced simulation systems and accurate 
models. 
1/10 
CO2e emissions produced with 
one hour of simulator 
compared to one hour of real 
flight  
Electric or Hybrid Platforms - The development of electric or hybrid platforms will allow 
the reduction of CO2e emissions thanks to new propulsion systems that operate much 
more efficiently than current ones and without the use of fossil fuels.

Report on Operation at 31 December 2022 
125 
 
 
Leonardo's approach in the aeronautics sector supports the objectives of Destination205060, the major 
sustainability project in the aviation sector in Europe, which sets out a roadmap for net zero-emission air 
transport by 2050, acting on all flights relating to Europe, the United Kingdom and the European Free Trade 
Association, through the collaboration of airlines, airports, Aerospace companies and navigation service 
providers.  
Destination 2050 Objectives 
 
-37% of CO2 emissions, 
improving aviation 
technology  
 
 
-34% of CO2 emissions 
through the use of SAFs 
 
 
-8% of CO2 emissions 
implementing financial 
measures 
 
 
-6% of CO2 emissions, 
improving management of air 
traffic and of aircraft 
operations  
 
 
Other projects to reduce indirect CO2 emissions (Scope 3) 
                                                           
58 Leonardo helicopters that can operate with fuels having up to 50% of SAFs without operational limitations or performance degradation are the 
following: AW139, AW169, AW189, AW149, A109S, AW109SP, AW119MkII, A109A/AII, A109C, A109K2, A109E, A119. 
59 Depending on the mixture of SAFs used. More information can be found on the website. 
60 For more details, please see the website of Destination2050. 
 
Sustainable Aviation Fuel (SAF) – Environmentally sustainable fuel is one of the 
solutions to contribute to reducing aviation's carbon footprint at global level. At 
present, Leonardo has 12 helicopter models that can operate on fuels with up to 50% 
of SAF58. 
Up to -80% 
of CO2e emissions over the 
entire life cycle thanks to the 
use of SAF with respect to 
traditional fuels59 
 
Emission Trading Scheme - In Italy, 9 sites fall within the scope of the ETS (Emission 
Trading Scheme) regulations, compared to 12 sites in 2013, and must therefore offset 
their CO2e emissions by acquiring allowances partly free of charge, and partly for 
valuable consideration. 
No site of Leonardo falls within the scope of application of the Aviation ETS regulations.
 
 
Air traffic management – Air Traffic Management (ATM) systems help optimise traffic 
and reduce aircraft GHG emissions. Leonardo develops and produces ATM systems 
within the European SESAR (Single European Air Sky ATM Research) programme, based 
on paradigms of sustainability, digitisation and green transformation to create a single 
European air traffic control system, which at present is still fragmented. In this context, 
LEANS (Leonardo Evolution Air Navigation System) has been set up, which is aimed at
evolving the current Leonardo ATC (Air Traffic Control) system to adapt it to the needs 
of its customers, creating together a shared vision and a roadmap towards automation, 
digitisation, scalability, optimisation and green transformation (reducing for example 
gate-to-gate times and fuel consumption). 
About 150,000  
tons of CO2e avoided in 
one year with Leonardo’s 
Free Route ATM system in 
the sky in Italy  
 
Sustainable employee mobility – Home to work travel plans have been prepared for 40 company sites in Italy, 10 
of which on a voluntary basis. Over 29,000 staff members of Leonardo work at such sites, equal to about 93% of 
the Company's population in Italy. The Plans include more than 200 projects to be implemented, aimed at 
encouraging more sustainable home-to-work mobility. In 2022 Leonardo incurred expenses of about €mil. 2.5 for 
sustainable mobility projects in favour of its people, including, for example, maintaining the shuttle service at

Report on Operation at 31 December 2022 
126 
 
 
 
Leonardo's advocacy activities and collaborations on energy transition issues 
As regards the advocacy on issues relating to energy transition and environmental protection, Leonardo is a 
member of the International Aerospace and Environment Group (IAEG), an organisation including the 
industry's leading companies committed to advancing innovative environmental solutions and standards for 
aerospace. Among the topics dealt with are hazardous substance management, alternative technology 
development, and GHG emissions reporting and management. In order to provide further support, Leonardo 
is a member of the CSR (Corporate Social Responsibility) working group of the Aerospace and Defence 
Industries Association of Europe (ASD) and took part in 2022 in the launch of a new task force on Green 
Defense within the same association. Leonardo also participates in the Energy Transition and Climate Change 
group of the European Round Table (ERT), and in the related thematic task forces; in 2022, the Group also 
actively contributed to the Task Force on the Digitally Enabled Green Transition, which is mainly focused on 
the impact of new technologies to accelerate digital and green transition. Finally, Leonardo participates in 
the Confindustria Environment Technical Group and the Corporate Social Responsibility Group in Italy. 
                                                           
61 Baseline 2019. 
62 For more details, reference should be made to the Carbon Reduction Plan 2021 of Leonardo UK Ltd. 
numerous company sites, installing covered parking spaces for bicycles and kick scooters, and providing grants for 
the purchase of public transport season tickets. 
In addition, a survey of the entire Leonardo staff in Italy was conducted in 2022 to learn about home-to-work travel 
habits and propensity toward more sustainable forms of transport. More than 11,000 employees participated in 
the survey (35% response rate). The data collected shows that the average home-to-work commute of Leonardo 
people is 29 km each way, takes 36 minutes, and involves a monthly expense of € 140. 78% of respondents 
predominantly use a car. About 70% are very or fairly satisfied with their current commute mode, while about 30% 
are not satisfied at all. 
 
Logistics – Implementation of the Transportation Control Tower to make the Group's shipping management more 
efficient while reducing emissions under Scope 3, through consolidation of shipping and reduction of dedicated 
transport and, where possible, with a shift to more sustainable modes of transport (e.g., maritime). Under the 
current plan, CO2 emissions are expected to be reduced by 3% in 2023 and 7% in 202461. 
“Net zero” objective in the United Kingdom  
In the United Kingdom Leonardo has committed to achieving climate neutrality by 2030 for Scopes 1 and 2 emissions and across the 
value chain by 2050, with a target to reduce CO2 emissions by 40% (for Scopes 1 and 2) by 2025 (compared to 2018). In September 
2021, Leonardo published the Carbon Reduction Plan62, including information on Scopes 1 and 2 and five categories of Scope 3, which 
will be updated on an annual basis, and a description of the most significant measures that will be adopted to reduce the environmental 
impact of operations in the United Kingdom. These include: 
> 
Energy management standards – Implementing ISO 14064-1 certified management systems at all UK operations by the end 
of 2024 with the ambition to follow the PAS 2060 standard to demonstrate the credibility of the stated carbon neutrality 
target. 
> 
Self-produced energy – Making investments to achieve 25% of self-produced energy under power purchase agreements by 
2030. 
> 
Use of electric vehicles – Expanding charging stations, providing incentives for employees to transition to hybrid or electric 
vehicles, 100% of electric executive cars by 2030, and corporate electric fleet by 2025. 
> 
Investments in energy efficiency at sites – Implementing a system to monitor electricity and gas consumption at all sites, 
launching a Lighting-as-a-service (LaaS), significantly reducing fossil fuel consumption and promoting the use of low 
greenhouse gas emission refrigerants.  
> 
Water efficiency and reduced waste generation - Target of 5% waste reduction, recycling of at least 90% of non-hazardous 
waste by 2024, and 5% reduction in water consumption and discharge by 2024.

Report on Operation at 31 December 2022 
127 
 
Leonardo's contribution to climate change adaptation 
The demand for Earth observation and monitoring services to verify climate conditions, as well as solutions 
to deal with extreme events and emergency situations, is expected to increase in the near future. Among the 
innovative technological solutions that contribute to the progress and safety of the world, Leonardo also 
provides helicopters and aircraft configured for search and rescue and emergency medical missions (SAR - 
Search and Rescue - and EMS - Emergency Medical Services, respectively), satellite services for monitoring 
specific events such as floods, fires, tornadoes, and other solutions aimed at facilitating climate change 
adaptation. Furthermore, in order to provide maximum information support to decision-makers and 
operators, Leonardo's global monitoring technologies, intended as systems for monitoring and controlling 
the territory, integrate satellite information and associated Earth observation services with data from radar 
and sensor systems, secure communication systems, command and control operations rooms, helicopters, 
aircraft and remotely piloted drones.  
 
 
 
“Unmanned” solutions – Leonardo holds a stake in Skydweller 
Aero Inc. a start-up company dedicated to the development and 
implementation of solar-powered remotely piloted aircraft 
capable of carrying large payloads with unlimited in-flight 
persistence capability; in addition, Leonardo implements a 
business model known as "Drone as a Service, DaaS" through 
the cloud-based T-DROMES platform, which supports, in an 
integrated manner, the planning and management of 
environmental monitoring, firefighting, humanitarian and 
migration surveillance, emergency management and border 
control missions. 
Fixed-wing and rotary-wing platforms - Multi-mission and 
surveillance aircraft and helicopters designed for excellent 
performance under the most demanding operating conditions 
in natural disasters, fires and humanitarian relief (AW family 
and C-27J Firefighting). 
Geo-information services – Integrated solutions for data 
acquisition, 
analysis 
and 
reporting 
for 
environmental 
protection, rapid mapping in support of natural disaster 
management, maritime surveillance for crude oil spills, 
interferometric 
measurements 
for 
landslide 
and 
land 
PRISMA – It is the hyperspectral mission to monitor and map the 
Earth's surface for environmental risk management. Since the 
beginning of its operations in 2019, the hyperspectral payload, 
operating in more than 200 bands in the visible and shortwave 
infrared spectrum, is acquiring data over the entire world, revealing 
all its capabilities for monitoring the Earth's delicate ecosystem, in 
particular for monitoring water transparency, crop health, drought, 
risk of biodiversity loss, fire risk, air pollution, as well as natural 
disasters such as volcanic eruptions, landslides, floods.  
X-2030 - The platform is a "system of systems" with command and 
control, communication, cyber and intelligence capabilities for 
monitoring the territory able to process and exploit in real time 
huge amounts of data from heterogeneous sources. The X-2030 
platform, through command and control operations rooms, 
provides an integrated view of the operating context and is used, 
for example for monitoring environmental and anthropic events, 
risk prevention, as well as for city management and urban security 
purposes 
38%
28%
28%
6%
Leonardo's helicopters by mission type
Law enforcement
Emergency medical services (EMS)
Search and rescue (SAR)
Firefighting
1,218
helicopters
31%
56%
5%
3%
5%
Satellite services by event type
Floods
Wildfires
Storms
Earthquakes
Volcanic activities
61
emergency 
mapping
Other Leonardo solutions to support adaptation to climate change

Report on Operation at 31 December 2022 
128 
 
subsidence monitoring, thematic mapping for agriculture and 
forestry.

Report on Operation at 31 December 2022 
129 
 
CIRCULAR ECONOMY 
The transition to a circular economy model, enabled by technology and the adoption of conscious behaviour, forms an integral part of Leonardo's Sustainability 
Plan strategy and projects with a transformative approach across the entire value chain. Leonardo’s circular economy strategy is based on four main 
interconnected areas: optimising the use and choice of materials since the design stage (e.g. through eco-design), using digital platforms to dematerialise and 
virtualise activities and solutions offered to the customer, extending the useful life of products by optimising maintenance cycles, including through predictive 
models, and promoting the recycling and reuse of materials, with the objective of reducing waste produced by 15% by 2030. 
  
> 
Reducing materials through advanced design systems 
> 
Applying the Product Life Cycle Management ed Eco-design approach 
> 
Using innovative materials to reduce weight, consumption and impact 
> 
Studying new materials to promote reuse and limit disposal 
 
> 
Sale of helicopter’s flight hours instead of the product 
> 
Virtual product testing  
> 
Virtual training systems  
> 
Removal of paper in production processes 
> 
Optimising maintenance cycle  
> 
Implementing predictive maintenance of helicopters 
> 
Replacing only those components that reach end of life 
> 
Upgrading software to extend the life of hardware components  
> 
Buy-back of pre-owned helicopters 
> 
 
> 
Employing recyclable metallic materials  
> 
Regenerating used components  
> 
Recycling and reusing auxiliary materials, packaging, assembly platforms and 
metal equipment 
> 
Recycling of composite materials (such as carboresins) 
 
Main results 
• 
Aircraft structures capable of maintaining a service life level in excess of 20 operating years 63. 
• 
51% of waste generated recovered in 2022. 
• 
More than 220,000 tons of CO2 avoided through the use of virtual training systems in 2022 (about 48,000 training hours delivered in the year).  
• 
Divisional projects for paperless and digitized management of manufacturing/production document flow to reduce paper use by up to 90% on a single process basis. 
                                                           
63 Leonardo’s study presented to Cotec in November 2018: "The Circular Economy in the Aviation Sector, a document for the specific use of the Cotec”. 
Optimise 
Share and Dematerialise 
Extend Lifetime 
Recycle/Reuse

Report on Operation at 31 December 2022 
130 
 
 
Leonardo’s major circular economy project 
Digital twin and additive manufacturing – Primary enabler of 
Leonardo's transition to a circular model is digitisation. The use of 
the Digital Twin makes it possible to reduce the use of resources in 
prototyping, testing and training on developed products, and to 
rethink production cycles. Through additive manufacturing it is 
possible to reduce waste during production processes while the use 
of predictive maintenance makes it possible to extend product life. 
Composites Recycling - Building on its relationship with its supply 
chain and thanks to the contribution given by technological partners 
and international associations, Leonardo is developing a new 
process for recycling carbon resins, which are materials that are 
complex to recycle but widely used in aeronautics because of their 
unique mechanical strength characteristics. This is also the 
background to the New Materials and Circular Economy Accelerator 
- a think-tank created by Leonardo with CSR Europe and other 
leading international companies, associations and universities. This 
initiative has developed a new framework on the circularity of 
composite materials reflecting the collaborative approach 
underlying the circular economy model that Leonardo intends to 
implement. As part of the accelerator's activities, the study 
"Composite Materials: A Hidden Opportunity for the Circular 
Economy" has been developed, which identifies cross-sector 
challenges and opportunities for the implementation of circular 
economy models for composite materials and which was presented 
at the European SDG Summit. 
WEEE (Waste from Electrical and Electronic Equipment) - As part 
of IT Evolution consolidation, Leonardo has transitioned from 50 
data centres to two next-generation computing hubs, virtualising 
the services offered in the cloud and increasing computing power, 
reliability, and security, with energy savings of about 20% compared 
to the previous setup. Since 2019, Leonardo has been disposing of 
end-of-life electronic materials through qualified partners and 
implementing waste sorting and conditioning of materials (such as 
electronic components, plastics, metals, etc.) to produce secondary 
raw materials with efficiency greater than 85% by weight of waste. 
During 2022, more than 14.5 tons of WEEE material was sent for 
recycling, with a total of 24.5 tons since the project began. 
Plastics optimisation and reuse – In 2022 Leonardo completed a 
project to replace single-use plastic cups with reusable 
polycarbonate cups in company restaurants in order to reduce 
plastic waste at said premises. This change also involved the 
installation of running water dispensers and special cup washing 
machines. At the same time, about 80% of single-use plastic water 
bottles used in company restaurants were eliminated. Company 
efforts in this direction will continue in 2023 with the aim of further 
reducing the use of plastic bottles from Leonardo sites. In this 
project, 120 tons/year of plastics has been avoided as from  2022. 
Likewise, Leonardo has adopted policies to reduce the use of 
plastics in the production processes of the Aircraft Division. 
Specifically, waste production was reduced by 1.8 tons/year, of 
which 1 ton/year was plastics, in the JSF production process. 
Recyclable products and materials - As part of the activities in 
support of integration and test (RIG) of mission equipment of 
the NH90 helicopter carried out by the Electronics Division to 
the benefit of the Helicopters Division, end-of-life electronic 
materials made available by the Helicopters Division itself are 
used. Specifically, on the one hand, most of the avionics 
equipment and cable harnesses are 
recovered from 
decommissioned or discarded material, thus allowing new use 
of equipment that is no longer suitable for flight; on the other 
hand, PAC (Programmable Automation Controller) actuators are 
converted from avionics equipment to equipment useful for 
simulating the platform. Since the start of the project, 790 kg of 
electronic equipment has been recovered and reused 
(repurposed). 
Rationalisation of archives and digitisation of paper 
documents – In 2022 work also continued on the project, which 
had been started in 2021, aimed at reducing and centralising 
Leonardo's paper archives by transferring them to the central 
hub in Aprilia and cataloguing company documents on the 
Leonardo platform in order to consider a possible subsequent 
digitisation. Paper that is no longer of interest is sent for 
recovery. As a result of this operation, it will be possible to free 
about 4,000 square meters of areas at company sites, which 
may be allocated to uses with greater added value for the 
business, and, in addition, to send tons of waste paper for 
recovery. In 2022, about 30 tons of paper were sent for 
recovery. More than 3 million pages had been digitised at the 
end of 2022. The project will also continue in 2023 with the goal 
of freeing up additional areas within the plants. 
“Social" circularity - Leonardo is committed to the development 
of circular models through the recovery of surplus food from the 
main Italian factories in favour of non-profit organisations, for 
the benefit of the local areas concerned. To this end, Leonardo 
has activated the Responsible Canteens Programme since 2013, 
in partnership with the Banco Alimentare Onlus Foundation and 
canteen service providers, to recover surplus food. Since 2021, 
the Programme has been extended to all Italian company 
restaurants, thus strengthening the possibility of multiplying 
positive impacts on local areas. In 2022, more than 112,000 
portions of food were distributed for a total economic value of 
about € 215,000 (more than € 3 million since the start of the 
Programme). 
Research on Materials - Commitment to a circular model is 
linked to ongoing research and study of new materials to 
promote their reuse and limit their disposal. Leonardo, in 
collaboration with Solvay - a Belgian chemical company - has 
launched a Joint-Lab dedicated to the development of new 
composite materials and manufacturing processes, which are 
key to the future of the aerospace industry. Within this 
collaboration relationship, work is being developed to 
implement the circularity of aeronautics composite materials

Report on Operation at 31 December 2022 
131 
 
 
Among the projects developed within the Sustainability Plan, 
Leonardo has commenced work on a pilot project to increase the 
reuse of plastic packaging by introducing new package standards 
while also its involving suppliers. 
and to test engineered materials - thermoplastic matrix 
composites, which are easily recyclable and aim to improve 
product properties, extend their life cycle and increase the 
efficiency of the production line, reducing their environmental 
impacts.

Report on Operation at 31 December 2022 
132 
 
NATURAL RESOURCES MANAGEMENT IN INDUSTRIAL PROCESSES  
Among the principles behind the Group's environmental management model64 are the responsible and 
sustainable development of its activities, environmental management, the attention to the needs and 
expectations of its stakeholders, excellence in services and continuous improvement in its performance. In 
line with these principles, Leonardo is committed to the efficient use of energy and natural resources and a 
reduction in emissions and pollution, operating in compliance with applicable laws, voluntary standards and 
stakeholder expectations.  
Leonardo has extended the voluntary adoption of certified management systems and dedicates resources to 
training and raising awareness of people, in addition to engagement programmes and internal and external 
communication tools that promote behaviours based on sustainability among employees, partners and 
suppliers. Audit programmes, risk identification and management processes in the area of environment and 
any related improvement and mitigation plans make it possible to ensure a safe working environment, as 
well as check for regulatory compliance, maintain site management system certifications, certify emission 
allowances, and assess the correct application of monitoring, control and reporting tools to protect people, 
the environment and business continuity.  
As part of Leonardo's Sustainability Plan, energy and industrial efficiency improvement measures have been 
planned to reduce GHG emissions, studies and initiatives to reduce water withdrawals, waste production, 
the use of hazardous substances, and protect the soil and subsoil and biodiversity. Specifically, Leonardo is 
implementing a standardised management model through the LPS programme, already active at 18 company 
sites, which enables the efficiency and continuous improvement of operations, including with a view to 
reducing environmental impact, in terms of lower emissions, water and energy consumption and waste 
generation. 
Efficiency indicators65 
Intensity of water 
withdrawals  
-30% 
 
Intensity of energy 
consumption  
-24% 
 
Intensity of waste produced 
-26% 
 
                                                                              Performance 2018-2022, baseline 2017 
Environmental management 
75% of employees at 
sites with ISO 14001 
certified environmental 
management systems 
(66% in 2017) 
 
79% of electricity 
acquired from 
renewable sources 
 
1,459 environmental 
audits, of which 
1,366 conducted in-
house and 93 by 
third parties 
 
More than 225,000 
hours of training in 
environmental, health 
and safety (HSE) issues 
 
 
 
 
                                                           
64 The integrated Health, Safety and Environment (HSE) policy, procedures and operational instructions applied by the Group’s Divisions and 
Companies define Leonardo's model for identifying, assessing, managing and minimizing environmental risks. 
65 Indicators calculated as a ratio to revenues. Efficiency indicators are in line with sustainability objectives.

Report on Operation at 31 December 2022 
133 
 
    
 
     
 
Intensity of energy consumption on revenues: 0.37 (-7% 
compared to 2021 and -24% compared to 2017). 
Energy consumption: 5,435 TJ (-3% compared to 2021 and -5% 
compared to 2017), down compared to pre-pandemic levels, of 
which 33% from renewable sources, of which: 
> 
consumption of electricity acquired: 2,259 TJ, equal to 
627 GWh (-0.3% compared to 2021, -8% compared to 
2017), of which 79% from renewable sources; 
> 
natural gas consumption: 2,575 TJ, equal to 72.8 million 
m3 (-5% compared to 2021, -11% compared to 2017), 
mainly used for heating; 
> 
other sources (including self-generated electricity): 601 
TJ, -8% compared to 2021. 
        
 
 
        
 
 
Intensity of CO2e emissions Scope 1 and 2 (Location-Based) on 
revenues: 28.96 (-15% compared to 2021 and -37% compared to 
2017). 
CO2e emissions Scope 1 and 2 (Market-Based): 277,031 t (-14.8% 
compared to 2021, -15.1% compared to 2017), of which: 
> 
Scope 1 emissions: 213,107 t of CO2e (-19% compared to 
2021 and -17% compared to 2017), of which 38,443 t 
connected with the use of gas SF6 (-52% compared to 
2021); 
> 
Scope 2 market-based emissions: 63,924 t of CO2e (+3% 
compared to 2021, -8% compared to 2017). 
47%
42%
9%
2%
Energy consumption by source
Natural gas
Purchased
electricity
Other sources
Self-generated
electricity
21%
79%
Electricity consumption by source
Non-renewable sources
Renewable sources
0.45
0.42
0.41
0.40
0.37
2018
2019
2020
2021
2022
Intensity of energy consumption (MJ/€)
77%
23%
Scope 1 and 2 market based CO2e  
emissions
Scope 1
Scope 2
75%
14%
11%
Scope 1 and Scope 2 CO2e emissions by 
source
Energy consumption
SF6
Other
44.85
43.55
45.39
33.88
28.96
2018
2019
2020
2021
2022
Intensity ofCO2e Scope 1 e 2 emissions (LB, 
g/€)
Energy 
consumption 
5,435 TJ 
CO2e Scope 1 + 
2 emissions 
(MB) 
277,031 t

Report on Operation at 31 December 2022 
134 
 
 
 
    
 
 
Intensity of water withdrawals on revenues: 0.36 (-13% compared 
to 2021 and -30% compared to 2017). 
Water withdrawals: 5,329 megalitres (-10% compared to 2021, -
12% compared to 2017): 
> 
 The reduction in withdrawals is mainly due to leak repair 
work on distribution lines and the implementation of 
recovery and reuse systems; 
> 
Reused and recycled water is equal to 300 megalitres 
(about 6% of total water withdrawals); 
> 
Withdrawals from water stressed areas are equal to 556 
megalitres (-18% compared to 2021). 
             
 
 
       
Intensity of waste produced on revenues: 2.04 (-4% compared to 
2021, -26% compared to 2017). 
Waste produced: 30,001 t (in line with 2021, -8% compared to 
2017). 
> 
Non-hazardous waste: 68% of total. 
> 
Recovered and/or recycled waste: 51% of total (of which 
29% recovered and 22% recycled out of total waste). 
54%
40%
6%
Water withdrawals by source
Wells
Water supply systems
Rainwater
90%
10%
Water withdrawals by area
Water withdrawal from other areas
Water withdrawal from water-stressed areas
0.48
0.43
0.39
0.42
0.36
2018
2019
2020
2021
2022
Intensity of water withdrawals (L/€)
68%
32%
Waste produced
Non-hazardous waste
Hazardous waste
51%
49%
Waste by disposal method
Waste recovered
Waste disposed
2.77
2.79
2.57
2.11
2.04
2018
2019
2020
2021
2022
Intensity of waste produced (g/€)
Waste 
produced 
30,001 t 
Water 
withdrawals  
5,329 
megalitres

Report on Operation at 31 December 2022 
135 
 
                                                           
67 For the definition of protected areas or areas with high biodiversity, reference should be made to the main applicable standards including Rete 
Natura 2000, IBA (Important Bird Area); Law 394/1991; Ramsar Areas. 
Water management  
Water Project - The project envisages an analysis of the 
conditions of water networks, water treatment plants and 
factory water balance at most Italian sites in order to design a 
long-term programme of actions for improvement (both for 
systems and operations) to solve critical issues and implement 
innovative solutions, identified on the basis of inspections and 
in-depth analyses of documentation. In 2022 the project was 
completed for a total of 36 industrial sites with the preparation 
of an action plan for improvement. 
Water Risk Assessment project – In 2022 Leonardo applied a 
water risk analysis methodology at 24 production sites located 
in Italy, the United Kingdom and Poland, which involves the 
assessment of a set of standard risk factors, relating, for 
example, to the geographic location of the site under analysis, 
the characteristics of the operational/industrial processes, and 
the operational and organisational measures for the supervision 
and management of water resources. The response and 
monitoring strategy is determined on the basis of the 
assessment of these risk factors. A gradual extension of the 
analyses to additional sites is planned in 2023. 
Wastewater reduction project – In 2022, Leonardo upgraded 
wastewater treatment facilities at the sites in the aerostructures 
division, reducing liquid waste generation by 368 tons/year. 
Water recovery project - At the Grottaglie site, one of the 
Group's most water intensive plants, a project has been 
launched to maximise the recovery of rain and condensate 
water from Air Treatment Units (ATUs) through an accumulation 
basin. The water recovered through a reverse osmosis process 
will be used in cooling towers. As a whole, a reduction in water 
withdrawals by about 25% is expected at the Grottaglie site in 
2024 compared to 2019 values. 
Energy resilience  
Energy Infrastructure Programme - The Programme has been 
launched to increase the reliability of power supply at Leonardo 
sites, in support of their business continuity. The first projects have 
been completed at the Nola and La Spezia sites, which ensure new 
electric infrastructures. Furthermore, projects are in progress at 
other sites, which are aimed at improving the redundancy and 
power quality of power supply networks. 
Demand Response Programme – Leonardo has established a 
strategic partnership with Enel X in order to make energy use more 
efficient on a national scale. According to a demand-response 
approach, energy not absorbed by the production activities of 
Leonardo's plants will be fed into the national power grid on 
demand. The programme, promoted by the European Commission 
encourages the active participation of final consumers in the 
electricity system for the resolution of technical problems on the 
grid, even in support of the emergency affecting energy markets. 
Leonardo continues to make, through the Cameri site, 2 MWe of 
power available to the National Electric Grid. 
Soil and air protection  
Leonardo implements various activities to reduce pollutants 
emitted into the atmosphere through the application of new 
technologies and more efficient abatement systems. These 
include improving management systems, eliminating or 
reducing diffuse and/or fugitive pollution in the atmosphere, 
and eliminating emission sources. These activities contribute to 
avoiding or completely eliminating relative emissions, including 
NOx, SO2 and VOC emissions. Furthermore, Leonardo is 
committed to promoting initiatives aimed at controlling and 
reducing the use of hazardous substances. Leonardo’s sites 
where production processes are carried out, which involve the 
controlled use of hazardous substances operate in line with 
specific regulations to manage risks and any potential impact on 
Biodiversity protection  
part of responsible consumption of natural resources and 
environmental protection, Leonardo is committed to protecting 
biodiversity, putting in place the necessary measures to protect 
natural habitats and the variety of species present in the areas in 
which Leonardo operates and, in particular, in sites located within 
or near protected natural areas and with high biodiversity67 . In 
2022 these sites amounted to 38 (22 in Italy, 3 in the United 
Kingdom, 7 in the United States and 6 in the rest of the world). In 
addition, 36 sites owned in Italy are affected, within a radius of 2 
km, by additional landscape constraints, including archaeological 
ones (buffer strips, areas of public interest, etc.). The extent in 
hectares of sites located within 3 km of protected natural areas 
and/or areas of high biodiversity is 606 hectares, equal to about

Report on Operation at 31 December 2022 
136 
 
                                                           
66  Sites subject to Integrated Pollution Prevention & Control (IPPC) Directive: 12 sites, of which 9 Italian and 3 foreign; Sites subject to Major 
Accident Hazards (MAH) regulations: 4 sites, of which 3 Italian and 1 foreign; Sites subject to Single Environmental Authorisation (SEA): 34 Italian 
sites. Sites subject to other authorisations (discharge, emissions into the atmosphere): 22 sites, of which 13 Italian and 9 foreign. The same site may 
be subject to more than one classification and related applicable regulations. 
the environment 66. The management of contaminated sites and 
ongoing remediation procedures in the Group, 24 in 2022, is 
based on an approach of responsibility and sustainability to 
implement the best technical and operational solutions. 
50% of the surface area occupied by Leonardo Group sites. Among
the recovery/protection actions implemented by the sites were 
reforestation and the installation of an oil/water separator to avoid 
soil or water contamination. With a broader view, Leonardo acts by 
promoting 
the 
protection 
of 
biodiversity 
through 
its 
decarbonisation strategy and the reduction of environmental 
impacts (e.g., water consumption).

Report on Operation at 31 December 2022 
137 
 
 
PROSPERITY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
✓ TECHNOLOGICAL INNOVATION  
✓ LEONARDO FOR THE NATIONAL RECOVERY AND RESILIENCE PLAN (NRRP) 
✓ SUPPLY CHAIN VALUE 
✓ CUSTOMER INTIMACY, QUALITY AND SAFETY 
✓ VALUE FOR TERRITORIES AND COMMUNITIES

Report on Operation at 31 December 2022 
138 
 
Prosperity is the result of economic and social security that is achieved while respecting people's rights, 
collective needs and in harmony with the Planet's natural resources. Leonardo takes action on the entire 
value chain to contribute to long-term prosperity. Technological innovation, is among the key enablers to 
sustainable development. Digitisation, new Research infrastructure and Development and supercomputing 
contribute greatly to accelerating Leonardo's technological innovation process, supporting the achievement 
of the SDGs. The participation of the entire research ecosystem and partnerships with customers and 
suppliers are the foundation for solid economic growth. Investments in the territory and the promotion of 
scientific and technological culture, which is essential to face the challenges posed by contemporary society, 
generate a positive social and economic impact on communities and future generations. 
Priority topics 
> 
Citizens’ security 
> 
Solutions’ quality, safety and performance 
> 
R&D, innovation and advanced technologies 
> 
Sustainable supply chain 
> 
Customer intimacy 
> 
Digital transformation 
> 
Cyber security and data protection 
 
 
SDGs 
Objectives 
> 
Manage over 75% of the value ordered by Leonardo's divisions through digital 
collaboration platforms 68
 
> 
Implementation of supply chain development programs and medium-long term
partnerships, with a focus on SMEs, to improve business sustainability  
> 
Awareness/training on SDGs and reporting support tools to over 80% of key suppliers 
(over 500 suppliers) 
> 
100% of LEAP partners with defined targets and plans on green energy, CO2 emission
reduction, waste recycling, water consumption 
> 
Increase in computing power per capita by 40% 
> 
40% increase in storage capacity per capita69 
Progress  
Target year 
2022 
2023 
 
2023 
 
2023 
2025 
2025 
 Objective achieved 
 On track 
Impact indicators70 
126,000 employed and €bil. 
10.8 of added value generated 
in Italy 
 
2,0 billion euros spent for R&S 
and product engineering71 
 
Over 26,000 jobs supported in 
the supply chain in the United 
Kingdom 
 
davinci-1 – worldwide excellence  
davinci-1 is one of the most powerful supercomputers in the world, ranking 164th in the TOP500 list, 57th in the 
HPCG500 list and 7th among companies in the Aerospace and Defence sector72. With computing power of more than 5 
million billion floating-point operations per second, davinci-1 is a machine conceived to perform multiple tasks at the 
highest level, from the most demanding needs of complex numerical simulations, such as those used to design 
helicopters and aircraft, to the processing of data, up to the development of applications based on artificial intelligence 
and cloud computing for the most diverse environments and fields. 
                                                           
68 Includes recurring vendors. Leonardo DRS is not included in the perimeter. 
69 Increases in computing power and storage capacity calculated as the number of flops and bytes in relation to employees in Italy. Baseline 2020. 
70 Internal processing for calculation of data on jobs and direct, indirect and induced added value. 
71 R&D by sector: Helicopters €517m, €1,185m Defence and Security Electronics, Aircraft €255m, Aerostructures €34m. 
72 November 2022.

Report on Operation at 31 December 2022 
139 
 
TECHNOLOGICAL INNOVATION 
In order to achieve increasingly challenging objectives that allow continuous improvement of product 
competitiveness, in a perspective of long-term sustainable development, Leonardo has built an integrated 
innovation ecosystem to intercept nascent technological innovation oriented towards an efficient cross-
fertilisation between different business sectors. This ecosystem actively supports the two internal innovation 
engines: the engineering and R&D areas of the Group's Divisions and Companies and Leonardo Labs, which 
are the central laboratories set up in 2020 with the aim of anticipating technological innovation by integrating 
long-term technological research and supporting the Company in introducing emerging and sustainable 
technology into products and services. Leonardo’s innovation system is powered by key tools such as: open 
innovation, with its many channels of listening and discussion to capture new contaminations, contests on 
new and topical issues, networking with Universities and Research Centres, Innovation Communities, internal 
working groups established with the objective of accelerating innovation culture by sharing best practices 
and skills, and the Intellectual Property (IP) Office for the management and maintenance of the portfolio of 
patents and brands.  
 
Numbers of innovation 
 
 
 
 
 
Leonardo Labs 
Leonardo Labs are the technology incubators conceived to support the Group in long-term research and 
development of the most innovative technologies, especially in the digital field, and transversal 
competencies across the company's business areas. The laboratories are focused on 9 research areas: 
Artificial Intelligence (AI), Digital Twin and Advanced Simulation, Big Data, High Performance Computing 
(HPC) and Cloud, Quantum Technologies, Autonomous and Robotic Systems, Electrification, New Materials 
and Sustainability, a new area established in 2022. 
These facilities - some set up in collaboration with industrial partners and research centres that are world 
leaders in their respective fields of expertise - are built close to Leonardo's main industrial sites with the aim 
of also facilitating technology transfer and maximising the benefits to the relevant territories, strengthening 
collaboration with local institutions. The labs will thus be fertilizers for local areas while allowing Leonardo 
to centralise the development of frontier technologies. 
The Labs also make it possible to feed a continuous flow of talent and to ensure flexibility and renewal, both 
in terms of skills and professional competencies: Leonardo’s researchers coming from all over the world, who 
are part of the Labs network, in fact work together with experts and researchers within the Group divisions. 
                                                           
73 R&D by sector: Helicopters €mil. 540, Defense Electronics & Security €mil. 1,045, Aeronautics €mil. 214. 
74 The 2021 EU Industrial R&D Investment Scoreboard | IRI (europa.eu). 
3rd place in Italy and 
4th place among the 
European companies 
in the A&D sector for 
R&D investments73 
 
Collaborations with 
more than 90 
universities and 
research centres in 
Italy and in the 
world74 
 
12,200 people 
dedicated to R&D 
work 
 
6.2 petaflops 
of computing power  
27.1 petabytes  
of storage capacity 
11 laboratories in 6 Italian 
regions and 1 in the USA 
 
150 researchers and PhD 
students in the Labs 
research group 
 4 joint laboratories in 
collaboration with 
third-party entities  
 
69 terabytes of data that 
can be used in the data 
lake

Report on Operation at 31 December 2022 
140 
 
From June 2020 Leonardo has been selecting young researchers and PhD students through an international 
call for recruitment, and industrial PhD fellowships with 15 universities, funded by the Company, thus 
establishing a network of collaborating with universities to coordinate research and prepare new 
researchers. 
Leonardo Labs are based on an integrated innovation approach in which all technology research areas are 
interconnected and interact synergistically to address the multi-disciplinary nature typical of the Group's 
application areas. The davinci-1 is at the base of this model with its computing and storage capabilities that 
are exploited by AI, Big Data, HPC and Cloud technologies, used by all the research areas of the higher levels. 
The third tier consists of application technologies that are independent research areas and use all the 
underlying technology and infrastructure layers. For example, the AI, Big Data, HPC technology domains 
converge in the implementation of the Digital Twin platform. Finally, there is the sustainability research area 
cutting across the model, which will explore specific topics of interest to the Group and enhance sustainability 
elements in some of the core research activities that are already carried out. 
 
Technology research areas 
 
 
 
 
DAVINCI-1 
The davinci-1 supercomputer, one of the most powerful supercomputers in Aerospace, Defence and Security, is Leonardo’s answer to 
accelerate technological transformation towards industry digitisation. The architecture of the davinci-1 High Performance Computing 
(HPC) is an integrated supercomputing and cloud computing platform, which combines flexibility and computing power, thus allowing 
the training of algorithms (from deep learning to Artificial Intelligence), customisation by technology platform and the calculation of 
numerous interactions between the data that are generated (data analysis and big data). 
Progress 2022 - In 2022 the production model was strengthened and the on-boarding was implemented on the system of all Leonardo 
divisions with HPC computing and Big Data processing needs; resource usage monitoring was also implemented, which will allow us to 
plan utilization in a better manner. The company Cloud Computing service delivered by davinci-1 itself has been enhanced, on which 
the development of applications underlying several digital transformation projects of Leonardo divisions has begun. The set of services 
delivered is available to Leonardo Labs researchers and engineers and Leonardo researchers to leverage its computing power and 
storage space for research, numerical simulation, big data analytics and Artificial Intelligence activities. 
ARTIFICIAL INTELLIGENCE 
Artificial Intelligence (AI) is an essential technology in many domains and it is important to study it in order to seize new opportunities 
to be applied to Leonardo's products and services. This research area is dedicated to the study of new AI models and analysis techniques 
to monitor critical infrastructures, through the analysis of data derived from satellites and field sensors (audio, video, IoT), for security 
SUSTAINABILITY

Report on Operation at 31 December 2022 
141 
 
 
 
 
 
applications, using images, video streams, audio, and for command and control applications based on the integration of data from 
advanced sensors, decision support systems adaptable to various operational environments. A particular research focus is on techniques 
and methodologies to make networks and models certifiable and robust.  
Progress 2022 – In 2022, techniques were studied and developed for the continuous training of networks and models, a framework was 
finalised for the analysis of helicopter remote sensing hyper-spectral imagery, methods were studied for making models and networks 
verifiable, and specific prototypes of models and networks were developed for nowcasting systems, threat identification and analysis 
applications, information retrieval systems. 
BIG DATA 
Dealing with data to analyse them and extract real information is key to each business. The Bid Data research area works in synergy 
with the HPC/Cloud research area to study and investigate into new methods for information extraction and visualization. In particular, 
this research area is dedicated to designing and developing a prototype of a Leonardo framework for Big Data applications, which is 
capable of exploiting the computing power of the davinci-1 supercomputer, specialising it for different cases of use, such as, for example, 
the case of predictive maintenance applications such as logistics, after-sales, and complex systems. 
Progress 2022 – In 2022 innovative Big Data-based services were designed for the Divisions, innovative data management solutions 
were implemented and new computationally intensive data-driven models (digital transformation) were enabled. At the 
implementation level, data lake infrastructures for the Divisions were improved and upgraded to manage and analyse Leonardo's 
product data. The Helicopters Division already has digital services in its catalogue based on leveraging the data lake infrastructure built 
within davinci-1's cloud infrastructure. 
HPC 
Cloud 
This research area aims to support the Company in the process of innovation by directing it towards the adoption of cutting-edge digital 
technologies, which are capable of exploiting the power of High Performance Computing (HPC) and the Cloud. In particular, this research 
area is dedicated to: deploying and running third-party or proprietary applications used for the design of Leonardo products; optimising 
applications to maximise the exploitation of the HPC infrastructure, supporting code modernisation and porting of proprietary 
applications in a distributed environment, implementing a Cloud solution for the Company and its customers adopting IaaS, PaaS and 
SaaS (National Cloud, Military & Space Cloud) paradigms.  
Progress 2022 – In 2022 the hybrid Cloud and HPC environment was successfully tested and validated for collaborative digital design of 
future platforms, which involved several Italian companies. In addition, work continued on divisions’ porting of both codes and 
applications on HPC. 
Digital twin\Advanced Simulation 
Leonardo is studying how to realise a digital copy of a product, a system or an industrial process that models its behaviour, thus allowing 
an increase in safety, efficiency and sustainability (through a lower use of materials and energy), and a reduction in development costs. 
The digital twin therefore offers new opportunities in the AD&S sector and applications that benefit the company, in areas such as 
global monitoring, healthcare, smart cities, multimodal logistics.  
Progress 2022 – During the year, in particular, the second version of the digital twin framework was released with the new multi-physics 
and multi-scale simulation capabilities. With regard to the high-fidelity simulation stream, work proceeded with the instantiation of 
different cases of use for fixed-wing and rotary-wing platforms, as well as with the creation of synthetic databases in three different 
case histories. 
Materials 
Materials research area focuses on studying new materials and processes for applications on products, especially in the avionics field. 
In particular, this area is dedicated to possible graphene applications in the aerospace and defence fields (e.g., low radar observability, 
ballistic protection, thermal management), high-performance materials for special applications (including high temperature, high 
erosion), meta-materials and meta-surfaces used to engineer the electromagnetic response of the material itself.

Report on Operation at 31 December 2022 
142 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unmanned & Robotics 
The U&R research area studies autonomous systems based on intelligent and collaborative robots and advanced human-machine 
interaction technologies for specific missions, production tasks, operations in extreme environments, maintenance and in the future 
even in the space environment. Special attention is given to research into new solutions for navigation, mobility and locomotion, motion 
planning and interaction, manipulation control and AI solutions for robots.  
Progress 2022 - In 2022, UAV (Unmanned Aerial Vehicle) platforms were designed and developed for activities to test and demonstrate 
autonomous flight capabilities, advanced sensing techniques were developed for flying platforms in synthetic environments, a robotic 
arm sorting system was designed and installed and autonomous navigation methods were studied and developed for quadrupedal 
robots. 
Quantum Technologies 
The research area studies quantum technologies to apply them to different areas such as secure quantum communication, quantum 
sensing, inertial navigation sensors, and quantum computing with special focus on the study of algorithms, which by exploiting quantum 
computers are able to demonstrate real computational advantage.  
Progress 2022 - In 2022, work was completed on the experimental setups for the QKD (Quantum Key Distribution) infrastructure, the 
setup for the quantum random number generator, the phase-1 setup was installed for sensing applications and algorithms were studied 
and implemented to test QML (Quantum Machine Learning) techniques on quantum computers. Work also continued on the study and 
development of Quantum Safe. 
Optoelectronics 
The research area studies optoelectronics, with a focus on advanced electromechanical systems for optical applications, neuromorphic 
electro-optical vision, and meta-lenses for electro-optical systems.  
In order to complement the research activities already in place, the following research areas will be activated in 2023: Space Systems, 
which will focus on researching new technologies for next-generation products to follow the rapid growth in the space sector, helping 
to create an integrated approach to Space Systems; Cyber, which will study and develop advanced cybersecurity tools and systems that 
can apply artificial intelligence techniques to different cases of use of the cybersecurity domain. 
Electrification 
The electrification research area is focused on the study of new propulsion systems for the next-generation aircraft of the future. Study 
activities focus on electric power management (distribution, conditioning, control and storage) and electric machines. Technology 
modules are analysed in relation to energy storage (e.g., batteries, supercaps, fuel cells, H2, etc.), electrical distribution, power 
management control, propulsion architectures and "out of the box" aircraft configurations enabled by electrification itself. 
Progress 2022 - Several fixed-wing cargo aircraft configurations were studied and developed, which were based on different propulsion 
technologies (H2, Batteries, etc.). A digital model and configuration of a full electric tail rotor were also finalised. Studies and 
experiments continued on individual technology blocks such as H2 Storage, Fuel Cell, Thermal Management, and Power Management 
System.

Report on Operation at 31 December 2022 
143 
 
 
Leonardo Labs in detail 
Future 
Rotorcraft 
Technologies 
It develops technologies and solutions for next-generation rotary-wing platforms with the aim of improving 
safety and operational flexibility of aircraft and electrifying propulsion systems. Specifically, the Lab is 
developing advanced modelling solutions, solutions for the application of AI to flight control/management 
systems for the optimization of pilot-aircraft interaction and research on the electrification of propulsion 
systems for urban air mobility applications. As regards electrification, new hydrogen rotary-wing platform 
architectures, configuration analyses and technologies for platform hybridization, and direct hydrogen 
combustion system studies are being studied in the Lab. 
Future Aircraft 
Technologies 
It develops technologies and solutions for next-generation fixed-wing platforms as well as analyses new 
processes and methods to improve the production and monitoring of platforms throughout their life cycle and 
searches for new architectures and components to make hybrid or electric aircraft. For example, the electrified 
model of the ATR42 aircraft has been implemented. Furthermore, studies are carried out in the Lab on AI-based 
solutions for advanced pilot assistance in complex operational scenarios, with the presence of autonomous 
agents and mission management systems for manned and unmanned aircraft. A data lake has also been 
designed, developed and commissioned to hold fleet flight data and optimize services and maintenance. 
Materials 
Technologies 
The labs develop new materials, especially composites, and related production processes, with the aim of 
improving mechanical properties in aeronautical applications, extending life cycle and the possibility of reuse 
and reducing production costs. Specifically, research was carried out in 2022 on multifunctional materials and 
structures 
capable 
of 
combining 
mechanical 
features, 
system 
functionality 
and 
specific 
physical/chemical/mechanical properties. As far as recycling of materials is concerned, for example, waste has 
been analyzed in order to identify the most suitable recycling process in terms of energy cost and technological 
maturity. 
Space 
Technologies 
It develops advanced monitoring technologies capable of combining satellite data with other data, with the 
aim of building a global system for monitoring of land and environment, critical infrastructure, management of 
natural events, EMS operations, health emergencies, smart cities, border controls. Specifically, methods and 
algorithms will be developed for monitoring based on machine learning and deep learning. A research unit 
focuses on studying and implementing algorithms for multi-UAV (Unmanned Aerial Vehicle) mission planning 
in support of applications aimed at providing surveillance, remote sensing, and support services for post-event
response operations. 
Future Security 
& 
Safety 
Technologies 
It studies new AI-based techniques for analyzing, understanding, and classifying audio, image, and video 
content, to enable autonomous navigation, and to make neural networks more secure. These include 
techniques for detection, facial and action recognition, classification, re-identification, segmentation, 
enhancement, manipulation, and anomaly detection (e.g., in fights). The Lab also focuses on applying AI to 
improve cybersecurity, from early warning of cyber-attacks to detecting, monitoring and analyzing intrusions 
and vulnerabilities. 
Future 
Electronics 
& 
Sensing 
It develops technologies and solutions for command and control systems in order to transform current decision 
support systems into a truly cognitive process that leverages AI and state-of-the-art solutions. Research also 
covers the development of new technologies and algorithms for autonomous vehicles, the development of a 
big data framework for predictive maintenance of electronic systems and equipment, and the development of 
AI-based solutions to be installed on small drones or autonomous agents for supporting both civil and military 
operations. 
 
Sustainability 
At the end of 2022, the new research line related to Sustainability was launched, which will be added to those already in place by 
implementing new topics of specific interest to the Group as well as by enhancing sustainability issues in existing research areas.  
Specifically, the research area will focus on developing solutions to increase the environmental sustainability of the Company's 
products/services by incorporating sustainability issues in the development of new technologies and in Leonardo's products and 
services. The main research streams will be: decarbonisation of products and operations, life cycle analysis and circularity, reducing the 
environmental impact of industrial processes and digital technologies for sustainability.

Report on Operation at 31 December 2022 
144 
 
Leonardo also counts on 4 Joint Labs set up in collaboration with industrial partners and research centers, 
which are world leaders in their respective fields of expertise, with the aim of developing and improving 
Leonardo’s technology and product portfolio:  
> 
 the Joint Lab born from the collaboration between Leonardo and Solvay75 is located at Leonardo Lab 
in Grottaglie (Taranto) and is dedicated to the development of new materials for complex and large 
aerospace structures. The agreement is the starting point for further collaboration platforms in the 
short- to medium-term for the development of applications in various fields, including aerospace;  
> 
three Joint Labs between the Leonardo Labs in Genoa and IIT (Istituto Italiano di Tecnologia), which 
focus on research and development of new solutions in robotics for manufacturing and unstructured 
environments and supercomputing. The three labs are supported by Leonardo and IIT's 
supercomputers, Davinci-1 and Franklin, respectively. 
 
Intellectual property governance  
In 2022 centralized Governance policies were implemented for the Intellectual Property (IP) to promote the 
growth and sustainable management of IPRs portfolios, protection in the dissemination of technical and 
scientific information, support for the protection and industrial exploitation of results achieved in R&D work 
on the part of the researchers of Leonardo and of Leonardo Labs. Since the beginning of 2022, the new IPRMS 
system of integrated management of company IP assets has become operational for the entire Leonardo 
staff members with respect to the areas of patents, trademarks, publications, and enabling technologies, in 
addition to continuing to update and promote the proprietary (online) Patent Showcase76. The patent 
offering is also geared toward dual use in technologies in sectors surrounding Aerospace, Defence and 
Security, in support of the development of small- and medium-sized enterprises (SMEs) and start-ups of 
strategic interest. A Patent Showcase dedicated to Mechatronics is managed in collaboration with the 
technological hub of MESAP77. Several IP training activities were also started during the year, through 
webinars and in-person classes, with the aim of spreading company culture and strategy in the industrial use 
and management of Intellectual Property. 
 
    
 
 
 
  
 
 
 
 
 
 
                         
                                                           
75 For more details, please see the paragraph on Circular Economy in the chapter on Planet. 
76 For more details, please see Leonardo’s Technology Transfer portal. 
77 For more details, please see the MESAP website. 
14%
4%
7%
11%
12%
8%
19%
11%
14%
Patents by key technology
Aeronautical Manufacturing
Processes & Materials 
Automation
Comms/Cyber/HS
Defence Systems
Fixed Wing
Optronics
Rotary Wing
Others
Surveillance & Targeting
51%
3%
20%
23%
3%
Patent by sector
Electronics
Aerostructures
Helicopters
Aircrafts
Cyber Security

Report on Operation at 31 December 2022 
145 
 
 
Funding programs for research and innovation 
Leonardo participates in regional, national and supranational research and innovation funding projects and 
programmes, including major European programmes such as Horizon Europe, which is the successor of the 
Horizon 2020 programme, Digital Europe Programme, European Defence Fund, the National Technology 
Clusters, in particular with the chairmanship of the National Cluster for Aerospace Technology, the Regional 
Technology Hubs and the projects of the Ministry of Enterprises and Made in Italy such as the agreements 
for innovation and the Competence Centres. 
Within the Horizon Europe programme for funding of research and innovation, which supports the 
achievement of the United Nations Sustainable Development Goals, Leonardo is a partner in major projects 
spanning a number of fields such as: maritime surveillance, space technologies, the reduction of 
environmental impact to combat climate change, the protection of critical infrastructures and the territory, 
physical and logical security technology and systems, the technologies for a new generation of more efficient 
and environmentally friendly regional helicopters and aircraft, on-board electronics in all areas of maritime, 
land, avionics and space transport, air traffic management infrastructures, eco-design of electronic 
components and new environmentally sustainable materials. Moreover, in line with the goals of autonomy 
and technological sovereignty addressed by European policies such as EU CHIPS ACT and Digital Compass, 
Leonardo is a key player in projects focused on the study and design of future European technology CPUs and 
GPUs, mainly co-funded by the EUROHPC and Key Digital Technologies Joint Undertakings. In these projects 
Leonardo contributes to co-design work to ensure suitability in Aerospace, Security and Defence applications. 
In 2022, Leonardo was awarded European projects in the civil sector for a total funding of more than €mil. 
30, distributed according to the funding framework as shown in the chart below: 
 
 
 
 
 
 
 
 
With regard to the National Recovery and Resilience Plan, Leonardo has participated in several projects with 
the aim of maximising and enhancing collaboration and technology transfer from academia to industry, 
46%
2%
2%
10%
9%
31%
Financed projects framework
Clean Aviation JU
EUROHPC JU
Digital Europe Programme
Horizon Europe Collaborative
Research
KDT JU
SESAR JU

Report on Operation at 31 December 2022 
146 
 
leveraging not only the monetary investment but also the PhDs and research fellows who will be funded78. 
Leonardo is committed to developing skills, directing training activities in line with the needs of the Group's 
engineering and research facilities especially on the most innovative and disruptive technologies, and 
strengthening the relationship and collaboration with the supply chain and ecosystem (SMEs, start-ups, 
clusters, etc.). Specifically, among the initiatives in which it has participated, Leonardo is a founding partner 
of two of the five National Centres (Mobilità Sostenibile - MOIST - e HPC, Big Data and Quantum Computing), 
two innovation ecosystems (Rome Technopole79 and RAISE), and 5 extended innovation partnerships (Future 
Artificial Intelligence Research (FAIR), National Quantum Science and Technology Institute (NQSTI), Security 
and Rights in the Cyber Space (SERICS), 3A-ITALY) as well as participating in research activities planned for 
the RESTART partnership. 
Furthermore in 2022: 
> 
 The EPI-SGA2, TRISTAN (RISC-V) projects were launched and the ISOLDE project was awarded to 
support the research and design of the future family of European processors and chips. In these 
projects, Leonardo addresses the requirements in terms of power, processing capability and security 
to ensure their applicability up to the end-user and participates in designing green computing 
technology solutions.  
> 
 With regard to the circular economy and sustainability, Leonardo participates, within the EECONE 
project, in the design, implementation and testing of processes for the recovery of electronic circuits 
and components with twofold objectives: on the one hand to extend their useful life, reducing 
demand for and supply of raw materials and on the other hand to reuse them to make new electronic 
circuits that can be integrated into aeronautical structures and components made of carbon fiber. 
> 
 The EU-CIP project was launched for collaborative networks among key stakeholders in critical 
infrastructure sectors to ensure their greater resilience. 
> 
 With regard to quantum technologies, Leonardo is a partner in the MUQUABIS and CARIOQA-PMP 
projects, which aim respectively to study quantum imaging technologies and to develop the 
engineering model of a cold-atom interferometer for generating reference signals for next-
generation satellite atomic clocks. Leonardo is also one of the Italian leading players involved in the 
design and deployment of the first experimental QCI network infrastructure in Italy, through the 
QUID (Quantum Italian Deployment) project. 
> 
 Within the ELSA project, Leonardo positions itself among the European industries of excellence 
engaged in setting out new standards for Artificial Intelligence at the European level, specifically 
addressing the issues, security and automatic analysis of video, audio and textual data for verifying 
the authenticity of the data as effective tools to cope with counterfeiting. 
> 
Within projects funded by the EUROHPC JU with a focus on high-performance computing 
technologies, Leonardo is participating in the MAX and MultiXscale projects. 
> 
Within the Clean Aviation Program, Leonardo has been awarded 8 projects that aim to reduce the 
environmental impact of next-generation regional aircraft, including the HERA project in which it acts 
as coordinator. 
> 
 As part of the Digital Europe Program, DAMAS, whose activities will be started in 2023, it will play a 
primary role in the digital and green transformation of SMEs and PAs in the Aerospace and 
Automotive sectors, as the European Digital Innovation Hub, with Leonardo as the lead partner, 
together with other major national representatives. 
                                                           
78 For more details on Leonardo’s contribution to the NRRP, please see the paragraph on “Leonardo for the National Recovery and Resilience Plan 
(NRRP)”. 
79 With regard to the “Rome Technopole” Innovation Ecosystem, Leonardo participates in the Spoke 1 ‘Applied research, technology development 
and innovation’, with focus on radar technology, cryptography and quantum communications.

Report on Operation at 31 December 2022 
147 
 
> 
Leonardo is confirmed as one of the leading industrial players in the research and development of 
quantum technologies and suitable solutions for the quantum communication infrastructure that will 
cover the entire European Union within the scope of the Euro Quantum Communications 
Infrastructure (EURO QCI) project. 
 
 
 
Sustainable mobility in Horizon Europe - Leonardo is involved in 
Clean Aviation, the new institutional partnership, which, within 
the European framework program Horizon Europe for the period 
from 2021 to 2027, is focused on particularly disruptive 
technological objectives such as electric and hydrogen 
propulsion. Leonardo participates in the program with a 
particular focus on fixed-wing aircraft in the regional aircraft 
segment. Furthermore, in SESAR 3, Leonardo continues its work 
on the developments focused on digitization and modernization 
of the European ATM system. Both of them contribute to the 
containment of emissions and noise through specific flight 
procedures and paths. 
QUID (Quantum Italy Deployment) - The project, which is part 
of the European Quantum Initiative, has a twofold objective: on 
the one hand to initiate the nationwide deployment of 
experimental 
systems 
and 
networks 
where 
quantum 
communication technologies, and in particular quantum 
distribution of cryptographic keys, can be implemented and
tested, with a focus on integrating them with existing 
communications and on the other hand to employ these systems 
and networks to develop use cases to support National-level 
initiatives in support of the EURO Quantum Communication 
Initiative. 
Key Digital Technologies (KDT) The JU focused on the 
development of electronic components and systems, including 
big data, cloud, software and AI applications for embedded 
systems, Industry 4.0 and safety & security, started at the end of 
2021 and will last throughout the Horizon Europe framework. 
Leonardo is a founding member of INSIDE, one of the three 
associations that make up the JU.  Leonardo aspires to become 
a partner in the future European Chips Act. 
EECONE - European ECOsystem for GreeN Electronic - The 
project, which is co-funded by the KDT JU, is aimed at the eco-
design of electronic components for reuse and disposal. It aims 
to reduce the level of e-waste generated in Europe and to 
develop an integrated ecosystem aimed at decreasing from birth 
the environmental impact related to the disposal of electronic 
products and to develop new methodologies, processes and 
metrics for "green" electronics. Leonardo is involved in the 
development and testing of processes for the recovery of 
electronic circuits and components in order to extend their life 
cycle and reuse for the generation of new electronic circuits that 
ISOLDE – Customizable Instruction Sets and Open Leveraged 
Designs of Embedded Risc-V processors - The project, which is 
co-funded by the KDT JU, focuses on the design and testing of a 
new generation of open-source European processors based on 
the high-end RISC-V standard, which are functionally 
customizable. High-level expertise in High Performance 
Computing and Applied AI, together with the availability of the 
HPC Davinci-1 infrastructure and dedicated high-performance 
computing and edge structures, enable Leonardo to address 
HW, SW processor and operating system requirements, along 
with some optimizations for AI applications in the space, 
avionics, security and defence domains. 
European Digital Innovation Hub (EDIH) - I Digital Innovation 
Hubs, in synergy with national Competence Centers, aim to 
foster the adoption of well-established enabling digital 
technologies such as cloud technologies and applications of data 
analytics and AI, HPC and cybersecurity, by the industry and
organizations in the public sector in Europe. In 2020, the DAMAS 
hub led by Leonardo was designated by the Ministry for 
Economic Development (MISE) as a candidate to become one of 
the EDIHs in Italy. In February 2022, the project was submitted 
in the EDIH call for tender of the Digital Europe Programme. In 
June 2022, the European Commission awarded the "Seal of 
Excellence" to DAMAS, attesting to its high value and suggesting 
its support through National funding. In 2023, DAMAS will start 
its activities by joining the European and National network of 
Digital Innovation Hubs. 
MAX (MAterial science at eXascale Centre of Excellence) -
Exascale machines improve the accuracy of simulations and 
enable multiple interdependent calculations structured into 
sophisticated workflows. The project, which is co-funded by the 
EUROHPC JU, aims to develop applications and workflows for 
numerical simulation of the properties of advanced materials, 
such 
as 
semiconductors. 
Leonardo’s 
activities 
include 
contributing to the development of a Digital Twin of 
semiconductors used in Radar devices based on AlGaN 
composites.  
EURO CC Phase 2 (NCC) - National Competence Centres provide 
high-performance computing services to industry, academia, 
and public authorities and tailored/modular solutions for a wide 
variety of users, with the goal of facilitating and fostering the 
transition to wider HPC deployment in Europe. Leonardo 
European Research Programmes

Report on Operation at 31 December 2022 
148 
 
can be integrated into aeronautical structures and components 
made of carbon fiber.  
MultiXscale-CoE – The project promotes the transition to 
exascale capabilities by developing or augmenting parallel codes 
for multi-scale modelling to solve scientific, industrial or societal 
challenges. Leonardo is involved in the development of Lattice 
Boltzmann codes, for fluid-structure interaction, intended to be 
used for Leonardo Digital Twin aircraft and helicopters.  
contributes to the governance of the Italian Competence Centre, 
and to promote the adoption of HPC, Digital Twin, Big Data and 
AI technologies for the Italian industry system, with specific 
regard to SMEs and their supply chains, in order to encourage 
participation in funding and development opportunities 
promoted by EuroHPC JU. The project is a continuation, in phase 
2, of the EUROCC project funded under Horizon 2020. 
 
Research programs and funding for European Defense 
Within the European Defence Fund – EDF 2021, Leonardo was awarded 19 projects, with a success rate of 
90%, including one in a coordinating role on the Advanced Radar Technologies topic. For these projects, 
Leonardo will receive a total funded amount of approximately €mil. 70. Under the EDF 2022, Leonardo 
applied for 19 proposals in 2022, which are currently being evaluated. Leonardo's participation is addressed 
and coordinated with the Ministry of Defense. EDF is confirmed to be a strategic programme for Leonardo 
as it allows the development of technologies and prototypes that may reach a high level of technological 
maturity (Technology Readiness Level - TRL) in line with the Company’s technological plan.  
During 2022, work continued on the collaboration with the 5th Department of Segredifesa (Italian Defence 
Secretariat General) on technological innovation for Defence both at national (National Military Research 
Plan - NMRP), European (with the CapTech groups of the European Defence Agency - EDA) and NATO level. 
There are two Leonardo projects that were awarded in 2022 under the NMRP with focus on space cloud 
solutions and autonomous ground combat systems, while 4 additional projects are under evaluation.  
 
Open innovation & multi-contest  
Leonardo's approach to Open Innovation, in which interaction and collaboration become a driver to 
competitiveness, aims to respond to the next technological, environmental and social challenges and to 
identify new talents in the field of STEM, enhancing their know-how. In 2022 several projects were launched 
to collect and share contributions capable of projecting Leonardo towards long-term technological scenarios 
and trends, strengthening the network of collaborations with customers, universities, research centres, spin-
offs and start-ups. These include the review of existing and proven formats such as the Innovation Award, 
and direct collaboration with start-ups and spinoffs, the confirmation of new projects launched in 2021 such 
as the first in-house Solvers Wanted scouting platform of innovative technology solutions and the 
participation in the “Open Italy” programme for the launch of co-innovation projects with start-ups. In 
addition, Leonardo collaborates with third-party innovation ecosystems that carry out scouting and showcase 
operations for the most promising start-ups, including PoliHUB Observatories such as Start-up Intelligence 
and BDR-Borsa Della Ricerca, and participates in national and international third-party accelerators and 
incubators, including those promoted by CDP (Cassa Depositi e Prestiti) and ESA. Finally, the first in-house 
accelerator program of the Business Innovation Factory (BIF) was concluded. 
Network with universities and research centres 
Leonardo has carried out a mapping of more than 90 universities and research centres in Italy and worldwide, 
including through indicators from third-party sources80 to identify the entities with which to enter into 
                                                           
80 Among the third-party sources used: ranking of “Top 2% Scientists Worldwide” of Stanford University, other indicators such as H-index, the 
conditions of “ERC Grant Recipient” or of “IEEE Fellow”, the list of 180 excellence departments of ANVUR for departments.

Report on Operation at 31 December 2022 
149 
 
framework agreements and select partner universities with which to enter into direct collaboration 
agreements and to grant PhD scholarships for Leonardo Labs and Divisions.  In particular, in 2022 framework 
agreements were entered into or renewed with the Polytechnic Universities of Milan and Turin, the Rome La 
Sapienza University, the University of Genoa and the CINI, which will be added to the pre-existing framework 
agreements with Alma Mater Studiorum University of Bologna, CINECA and CNIT; other two agreements are 
being concluded with two major universities in Southern Italy. During 2022, Leonardo S.p.A. negotiated and 
concluded two major collaboration agreements: one with Imperial College London and one with Université 
du Québec en Outaouais (Canada), forming the basis for future high-level scientific and technological 
collaborations with qualified international partners (the universities and their innovation ecosystems).

Report on Operation at 31 December 2022 
150 
 
 
Leonardo’s open innovation model 
 
 
 
Field of Application
Innovators Target
EXTERNAL SCOUTING
ACCELERATORS
BUSINESS 
INNOVATION 
FACTORY
STARTUP EQUITY ENGAGEMENT
SOLVERS WANTED
INTERNAL 
CONTESTS
Business
Financial Return
Engineering / Operation /
Manufacturing
Low TRL Tech
Talent
Universities & Research Centers
Startup & SME
Contest, Challenges 
& Hackathons
Tech & Startup Scouting
Accelerators
M&A & Equity
Internal Resources
Contest and Hackaton  
Drone contest - This open innovation project, which was launched in 2019 in Italy, is aimed at fostering the development of artificial 
intelligence applied to the field of remotely piloted systems. Leonardo is coordinating the project, which involves a path to 
technological development and experimentation in phases with a total duration of three years to mature algorithms and solutions 
for cooperative autonomy of drones in any operational scenario. 2022 saw the completion of the last challenge of the three-year 
pathway, which involved six universities: Turin Polytechnic, Milan Polytechnic and the Universities Alma Mater Studiorum in 
Bologna, S. Anna in Pisa, Tor Vergata in Rome and Federico II in Naples.  
World T TeC – 2022 saw the completion of the third edition of Telespazio and Leonardo’s contest aimed at students, PhDs and 
researchers all over the world, on technological issues in space domains. As many as 20 proposals with 69 participants from 21 
universities in 12 countries. The project has been managed within EXPO 2020. The fourth edition of the contest was launched, 
which was mainly targeted at Universities and start-ups. 
Solvers Wanted - Through the new scouting platform, Leonardo offers challenges, technological contests and new ways of 
collaboration to the sector of start-ups, universities, spin-offs and research entities to find ideas and innovators, together with 
whom to face current and future challenges. Seven challenges were completed - 1 on Pilot performance Monitoring, 2 on quantum 
technologies, 2 on 5G, 1 on structural batteries and 1 on Brain Computer Interface – in the period from 2021 to 2022. In addition,

Report on Operation at 31 December 2022 
151 
 
 
 
 
a technology network for the future aircraft, F2Link-Future Flight Leonardo Innovation Network, has been established, involving 
more than 20 universities, startups, SMEs and large companies. 
Partnerships with CDP Venture Capital SGR and universities – In 2022 Leonardo confirmed membership as a partner in various 
programmes and projects: 
> 
RoboIT - This is the first National Hub for the Technology Transfer of Robotics in Italy, which has been established by CDP 
Venture Capital SGR in collaboration with the Italian Institute of Technology (IIT) of Genoa, and which also involves the 
University of Naples Federico II, University of Verona, Scuola Superiore Sant'Anna of Pisa. 
> 
CyberXcelerator – This is an acceleration programme in Cybersecurity and AI of the National Network of Accelerators 
CDP - National Innovation Fund - with the participation of the start-up Wise Guys, one of the leading B2B accelerators at 
global level, and which sees Italgas, NTT Data, University of Calabria as partners in addition to Leonardo. 
> 
Business Incubator Centre – Leonardo and Telespazio are partners of ESA BIC (European Space Agency Business 
Incubator Centre), the new center based in Turin to support new Italian start-ups in the aerospace sector. The 
Politecnico, Incubator I3P and Fondazione LINKS are responsible, on behalf of ESA, for the implementation and operation 
of the incubator. Other affiliated partners include the Piedmont Aerospace District, Thales Alenia Space Italy, Avio, and 
numerous innovative industrial companies. 
External Scouting  
Proof of Concept (PoC) in collaboration with start-ups – some examples: 
> 
Real-time information on the status of helipads and future vertiports in the context of Urban Air Mobility (UAM) - In 
collaboration with the start-up Oilchain, a solution is being tested to enable better management of low-altitude flight 
operations by integrating an innovative network of Ground Stations into its air traffic control systems. 
> 
Digital Health, with a pre-triage mechanism to facilitate diagnosis and monitoring of patients' health status, even 
remotely - In collaboration with the start-up Hero, an AI and Computer Vision solution has been developed to monitor 
patients' health and wellness status remotely by extracting specific health and wellness indicators of the persons 
concerned (e.g., temperature, saturation, pressure, emotional state). 
> 
Follow up on HPC efficiency improvement and green computing - In 2022, work continued, in collaboration with the 
start-up Modelway, to model davinci-1 power consumption as a function of computational load and increase efficiency, 
for example by putting little-used processors on standby or reducing cooling power during periods of low use. 
> 
Digital Twin to map the water resources of soils and reservoirs at its sites - In collaboration with the waterjade, 
combining the latest hydrogeological models with artificial intelligence, Leonardo has developed a digital twin that can 
classify water stress and predict the actions needed for risk mitigation. 
> 
An increasingly immersive flight simulator - The start-up Betadynamiq will enable Leonardo to have a wearable system, 
interfaced with the flight simulator, which can provide a number of benefits such as increased immersiveness thanks to 
haptic feedback at the pilot's wrist and decreased time spent searching for command thanks to the ability to command 
the simulator with voice. 
Accelerator 
Takeoff – This is an acceleration programme dedicated to start-ups that develop solutions and services in the aerospace and 
advanced hardware sectors, in which Leonardo is a corporate partner. The project aims to increase the competitiveness of the 
national aeronautics and aerospace system and will be another step in the growth of Leonardo's innovative capacity and propensity 
for innovation.

Report on Operation at 31 December 2022 
152 
 
 
Business Innovation Factory 
In 2022 Leonardo has equipped itself with its own Corporate Accelerator, named Business Innovation Factory, with which it has 
approached Open Innovation collaboration with the start-up Deep Tech in a more systematic way. The intent was to be able to 
scout for new products and technologies in Leonardo's areas of interest and to also accelerate new start-ups in the relevant 
industry in order to attract and generate value in Italy. The first call was launched on two technology themes of particular interest: 
Autonomous Systems and Servitization. 
The call received 172 applications of which 59% were from Italy, 24% from Europe and 17% from the rest of the world. 
Downstream, 10 start-ups were selected to run a 5-month acceleration programme with direct involvement of Leonardo staff who 
provided mentoring services to better follow the entities involved and make an effective cultural change across the organization. 
All 10 start-ups successfully completed the programme and on 2 of them Leonardo decided to make an additional equity 
investment. 
Company contests 
Innovation Award – The year saw the 16th edition, which involved the participation of more than 800 proposals and in which 
tangible innovation achievements in 2020-2021 were awarded in the following areas: Technology Results, Product Results, People, 
Promotion of Leonardo Culture and Values, Digitisation, and Sustainability. A new edition was launched in December 2022, which 
will include the new areas: Idea, Innovative Factory and Innovative-Supplier Collaboration. 
Technology Communities - Leonardo's Technology Communities, which are made up of teams of Leonardo employees and which 
are also open, where necessary, to the participation of third-party partners such as universities, research centres and companies, 
constitute the "collaboration framework" dedicated to issues linked to technological innovation and related processes and 
methodologies. Two technology communities, the "5G Community" and the "Graphene Community", are currently operational, 
which are committed to the development of technological skills, research on possible applications and use cases, including in 
collaboration with Leonardo Labs, and to the dissemination of the advances achieved through events, conferences and publication 
of studies. In 2022, the first Innovation Focal Point community was launched, which is an active network created for greater 
coordination of Open Innovation activities within the Divisions and the central Corporate unit. 
New Sustain-Able challenge on the entire Italian company staff - In collaboration with the start-up Up2you, a new challenge was 
proposed on the platform that engages the company staff on sustainability issues through gamification.

Report on Operation at 31 December 2022 
153 
 
LEONARDO FOR THE NATIONAL RECOVERY AND RESILIENCE PLAN (NRRP) 
Since the first official drafting of the Recovery and Resilience Plan, Leonardo's action has had as a 
fundamental catalyst the desire to confirm itself as Italy's partner in its digital, ecological and industrial 
transition process, in full accordance with its “Be Tomorrow - Leonardo 2030 Strategic Plan”. By leveraging 
its core assets and distinctive competencies as enabling factors, the Group has identified seven Clusters of 
interest in which it can act as a driver of development: Global Monitoring (road infrastructure, environment, 
etc.), Smart Cities, Healthcare, Digital PA, Space Logistics, Education and Research. 
 
NRRP – Leonardo ongoing projects 
 
Global Monitoring  
Projects to monitor and secure the country's critical infrastructures on an ongoing basis. Leonardo has structured
projects that focus on the areas of monitoring road infrastructure (roads, bridges, viaducts, tunnels) and environmental
monitoring. Leonardo also operates in this area through the "Mille Infrastrutture" business network, fostering the
involvement of technology hubs, research centres and universities, in addition to large-, medium- and small-sized
enterprises, aggregating a total of more than one hundred public and private players. In particular, Leonardo was
awarded the following major tenders from a positioning perspective: 
> 
ANAS (National Road Operator) tenders, covering respectively i) the BMS (Bridge Monitoring System) for the 
development of a platform for the management of bridge inspection work and ii) connectivity services for
data transmission from sites to central systems; 
> 
tender for the security assessment of the Ferrovie dello Stato Group's IT systems. 
Furthermore, Leonardo has entered into a Memorandum of Understanding with Unione Province Italiane (UPI) and 
Associazione Nazionale Comuni Italiani (ANCI) aimed at supporting Provincial and Municipal governments in 
understanding technologies applicable to the classification and risk management of works of art. 
 
Digital PA 
In agreement with TIM, CDP and Sogei, Leonardo is part of the National Strategic Hub (NSH) for the implementation of 
the National Cloud, which aims to ensure the sovereignty of the data and information of Italian Public Authorities and 
citizens while respecting privacy, security, compliance and efficiency. Leonardo will, together with the other partners, 
provide specific proprietary assets in addition to the strategic partnerships set out with the various Cloud Service 
Providers. 
Furthermore, Leonardo has gained, through the Consip SPC Lotto II agreement, a contract for the monitoring and
protection of the Sibari Archaeological Park. In such a model, site systems make information available to regional 
Private cloud 
/ Hybrid
Predictive 
Simulation 
Capacity
Cyber Security
Tools for 
Decision-making 
Support
High 
Performance 
Computing
Leonardo Assets & Competences – enabling factors
Artificial 
Intelligence 
Algorithms
Map to
Global Monitoring
Continuously monitor and 
secure the country’s critical 
infrastructure
Digital PA
Promote the provision of 
easily accessible, efficient 
and secure digital public 
services
Logistics
Contribute to a connected, 
automated and safe multimodal 
logistics for an effective handling 
of people, vehicles and goods
Health systems 
Contribute to the 
development of an efficient 
and interconnected health 
system
Space
Contribute to the growth of the 
Space Economy as a strategic 
activity for the country’s 
economic development
6/ 6 NRRP missions
All divisions/  
companies involved
Command & 
Control
Space 
Assets
Smart City
Increase safety and resilience 
of cities by promoting 
sustainable mobility and 
direct communication with 
citizens
Education & 
Research
Contribute to the 
development of a digitized, 
integrated and homogeneous 
education system throughout 
the country
In line with the UN 
Sustainable Development 
Goals

Report on Operation at 31 December 2022 
154 
 
situation rooms, which in turn can aggregate, enrich and provide that information to higher levels of the hierarchy (e.g.,
national monitoring sites). 
 
Education and Research 
In the area of Research and Innovation and in line with the provisions of the "Be Tomorrow – Leonardo 2030" Strategic
Plan, Leonardo participates, to a significant extent, in the NRRP's "Dalla Ricerca all’Impresa" mission, contributing and
co-funding research projects, including through Leonardo Labs. In particular, Leonardo is a founding member of the 
National Centre on Sustainable Mobility, the Supercomputing and Quantum Computing Centre and the Lazio Innovation
Ecosystem (Rome Tecnopolo) and is affiliated for research activities with 2 other innovation ecosystems, the National 
Agritech Centre (through Telespazio), 1 Innovation Infrastructure and 6 Extended Partnerships, collaborating with major
national universities and research centres in the areas of cybersecurity, quantum sciences, circular and sustainable 
economy, future communications and space. 
 
Space 
In the Space Economy area Leonardo follows some streams of the NRRP Mission 1 - Component 2 - Investment 4
chapter, including: Earth Observation (ESA tenders with respect to constellation, downstream and services), In-Orbit
Economy (Italian Space Agency tenders for allocation of funds for SST - Space & Surveillance Tracking - and IoS Systems)
and Space Factory ("Launchers" programme operated by ESA and led by Avio, for eco-friendly launchers). 
 
Health systems 
Leonardo is one of the successful bidders (holding a share based on ranking) of the three Consip Framework Agreements
on NRRP funds in the Digital Healthcare area: 1) Clinical-Assistance Information Systems; 2) Health Information Systems 
and Citizen Services; 3) Management Information Systems. The overall objective is to improve the efficiency of care
levels through the adoption of innovative and technologically advanced solutions and the enhancement of digital assets 
and support for the digital transformation process of public health facilities while adapting structures and organisational 
models to the best international security standards. 
 
Smart City 
Projects to increase the level of security and resilience of cities by fostering sustainable mobility and direct 
communication with citizens. Leonardo has developed projects relating to smart and sustainable mobility applied to
local public transport. The Group has competencies that are useful for enterprises and citizens who make use of the 
service, which contribute to a new concept of smart local mobility. Furthermore, Leonardo can contribute to creating,
through its subsidiary Industria Italiana Autobus, an electric bus production chain that is 100% Italian. 
 
Logistics 
Projects to contribute to the development of connected, automated, safe and sustainable multimodal logistics for 
efficient movement of people, vehicles and goods. 
 
 
 
 
 
Work progress at the National Strategic Hub (NSH) 
December saw the completion of the testing and checks for compliance involving the data center infrastructure, which will enable 
the Hub to start delivering services on national "private cloud" to Public Authorities. The following are the main milestones: 
> 
establishment of the company NSH (August); 
> 
stipulation of the Convention between NSH and Department (DTD) and start of work (August); 
> 
finalization of detailed design and set-up of dedicated NSH rooms within TIM's 4 data centers (November);

Report on Operation at 31 December 2022 
155 
 
 
 
> 
notification of the completion of infrastructure implementation (Dec. 1 - delivery of the physical infrastructure of the 4 
data centers totalling 800 sq. m. - equipped spaces, racks and the first servers installed); 
> 
completion of the infrastructure compliance audit by an independent third-party company that certified the achievement 
of the NRRP milestone of setting up the Hub infrastructure (December);  
> 
delivery of detailed documentation related to digital services and notification of readiness to start PA migration activities 
(December).

Report on Operation at 31 December 2022 
156 
 
SUPPLY CHAIN VALUE  
Leonardo’s supply chain is made up of 10,500 companies around the world, which contribute on a daily basis 
to the competitiveness of the business, ensuring compliance with quality and safety requirements in the 
supplies and actively collaborating in the management of contracts and open innovation processes. It is a 
supply chain that includes both international players in the sector of Aerospace, Defence and Security, which 
supply highly complex systems and subsystems integrated into Leonardo platforms and many small and 
medium-sized enterprises (SMEs), the technological specialisation of which contributes to the creation and 
success of our products. Leonardo's considerable industrial footprint in its domestic markets (Italy, the United 
Kingdom, the United States and Poland) has in fact enabled the development of local supply chains with a 
high intensity of knowledge and innovation, which are a key asset for the relevant local areas in terms of 
economic and employment impact and even more so for the quality of the skills developed and the 
technological content of the products and services we create. This is where most of the Group's purchases 
are concentrated and Leonardo acts as a driver to the growth of the chain, through the creation of 
partnerships and the implementation of development programmes. 
The supply chain in 2022 
 
 
 
€bil. 9.5  
of purchases of goods and 
services 
 
65% 
incidence of purchases on 
revenues  
 
82% 
of purchases related to domestic 
markets, with a supply chain of 
more 6,300 SMEs  
 
Local supply chains – Incidence of National SMEs in domestic countries81 
 
 
 
                                                           
81 Calculated as the number of SMEs out of total suppliers by country. 
 
86% 
70% 
61% 
82% 
58%
42%
Purchase by category
Goods
Services
49%
20%
12%
11%
8%
Purchase by country
Italy
United States
of America
United
Kingdom
Rest of Europe
Rest of the
world

Report on Operation at 31 December 2022 
157 
 
Supplier relations are managed by a professional family of over 1,700 Procurement & Supply Chain 
professionals worldwide committed to create a quality, innovative, integrated, resilient and sustainable 
supply chain. This objective relies on four key pillars within which projects, initiatives and concrete tools are 
developed to support our Group's growth, building a sustainable partnership with the excellences in the 
supply chain, while optimising costs and creating value, in compliance with Leonardo's security and 
compliance standards. 
 
4 Pillars of Leonardo’s procurement and supply chain strategy 
Sustainable growth  
 
Efficiency and value 
creation  
 
Delivery / Excellence 
of processes  
 
Security & Compliance  
 
Partnerships and supplier development programmes  
An essential prerequisite to achieve the growth envisaged in the Be Tomorrow – Leonardo 2030 Strategic 
Plan is the excellence of the supply chain, which must be able not only to ensure adequate operational 
performance, but also to be able to cope with the new complex challenges posed by the market, which 
require financial strength, expertise and rapid adaptation response. With this in mind, in 2018 Leonardo 
launched a programme for the development and growth of its suppliers - LEAP (Leonardo Empowering 
Advanced Partnership) with the aim of accelerating and supporting the growth of SMEs in the AD&S supply 
chain, making them more financially strong, able to invest and work on higher value-added projects and 
ready to compete on an international scale. LEAP has marked a paradigm shift in relations with suppliers, 
moving beyond a management model based merely on business relationships and cost reduction, with a view 
to establishing effective collaborative engagement, medium- to long-term partnerships, capable of fostering 
investment and accompanying the growth of the supply chain's excellences in terms of both service quality 
and size. In 2021, the programme incorporated innovation and sustainability objectives into the supply chain 
development plan, raising the supply chain's ambitions toward digital transformation, cyber security and 
green transition. 
An improvement plan has then been prepared for each supplier, which makes use of the development 
projects put in place by Leonardo, even in collaboration with third-party stakeholders, including: the 
managerial training and mentoring Elite-Leonardo Lounge programme for entrepreneurs, developed with 
the Italian Stock Exchange’s Elite scheme to improve managerial expertise and capabilities, strategic vision, 
internationalisation and sustainability of enterprises; the package of financial support tools for the supply 
chain, developed with the Group's main banking partners; technical/specialist and managerial training 
courses, provided free of charge to suppliers; assessments on digital maturity and cyber security to develop 
Industry 4.0 projects, carried out in partnership with the Confindustria DIH network; workshops on sharing 
the technology roadmap and the creation of an open innovation network to improve the ability to innovate; 
the provision of shared services delivered by Leonardo (such as regarding raw materials and transport) and 
a performance appraisal model.

Report on Operation at 31 December 2022 
158 
 
 
LEAP – Supply chain development projects  
 
 
 
 
 
 
In 2020, Leonardo introduced a supplier evaluation model named LEADS (Leonardo Assessment and 
Development for Sustainability) with the aim of better understanding the performance and potential of its 
key suppliers, with specific regard to sustainability and development issues and risks, by monitoring 3 axes: 
1) performance, from the perspective of quality, punctuality and costs, 2) technical and operational 
capabilities and asset availability, 3) sustainability, from the perspective of managerial and innovation 
capabilities, compliance with ESG principles and compliance and risk management practices. 
 
More than 150 suppliers 
involved in improvement 
and development 
projects in Italy and the 
United Kingdom, of 
which more than 130 
with LEAP 
 
ELITE-Leonardo Lounge 
67 key suppliers 
participating in the 2-
year programme, for a 
turnover of €bil. 1.3 and 
a total of 7,500 
employees 
 
LEADS 
800 Italian and foreign 
key suppliers involved in 
the new sustainability 
assessment 
 
More than 22,000 
training hours into 
managerial, technical 
and specialist skills 
delivered to suppliers 
 
With reference to the ESG Sustainability axis of the LEADS model, Leonardo evaluated, between 2021 and 
2022, more than 800 key suppliers82, including more than 600 in 2022, with 200 KPIs, identifying strengths 
and areas for improvement in the supply chain regarding issues such as innovation capacity, STEM and 
managerial skills, circularity, and reduction of environmental impacts. Based on the results of this process, 
Leonardo then prepared and promoted the "Manifesto for Supply Chain Sustainability," to support and 
accelerate the transformation of its supply chain. Among the 800 key suppliers analysed on the ESG 
                                                           
82 Covering over 32% of the value of orders placed with suppliers (64% compared to the Italian supply chain). 
MANAGERIAL TRAINING AND MENTORING FOR ENTREPRENEURS 
FACTORING AND FINANCIAL SUPPORT TO THE SUPPLY CHAIN
TECHNICAL/SPECIALIST TRAINING – LEONARDO TECH. TRAINING 
DIGITAL-CYBERSECURITY ASSESSMENT & DIGITAL ROADMAP 
DEVELOPMENT OF CAPACITY TO INNOVATE/OPEN INNOVATION
SHARED SERVICES PROVIDED BY LEONARDO (RAW MATERIALS, TRANSPORT, …)
360° ASSESSMENT AND CONTINUOUS IMPROVEMENT PLAN (LEADS)
With the Group’s main 
banking partners …
In partnership with Elite 
Borsa Italiana
With the use of 
Fondimpresafunds 
With support from 
Confindustria DIHs 
With innovation 
ecosystem, university and 
start-ups 
With third-party partners 
and Group companies
Innovation
Access to 
Funding
Capability
Building
With support from third 
parties / best practices

Report on Operation at 31 December 2022 
159 
 
Sustainability component, 54 were included in a continuous improvement plan, which also includes other 
two LEADS assessment axes (Operational Performance; Technical Skills and Industrial Capabilities) and whose 
progress is monitored by a multifunctional and multidivisional team on a quarterly basis.  
One year after the first measurement, the results of the second sustainability assessment showed significant 
improvements in all areas of analysis, with an increase in the level of maturity of the supply chain on ESG 
issues and a concurrent reduction in the reported risks while enhancing Leonardo's commitment to the LEAP 
development programme. In particular, there has been about a threefold increase since the first assessment 
in the number of suppliers that have been evaluated with a positive performance. 
 
LEADS – Main results of the survey on the supply chain’s sustainability 
 
 
 
Digital
74% of companies collaborate with 
Leonardo digitally, 38% use Supply 
On in Connect Mode
Open Innovation 
54% of companies 
collaborate with research 
entities for R&D
Simulation
59% of companies regularly 
use digital models for 
concept simulations
Strategy 4.0
69% of companies include the development of 
enabling technologies for Industry 4.0 in their 
strategic business
Digital 
Transformation
People & 
Planet
Turnover
60% of companies have 
annual staff turnover <5%
Skill mapping
62% of companies have 
an up-to-date skills 
mapping of their 
employees’ skills
STEM
40% of companies have more 
than half of their employees 
with a STEM high-school 
certification/ degree
Safety
70% of companies regularly 
perform safety audits and 
structured activities of accident 
prevention
Community
87% of companies systematically 
cooperate with schools and technical 
high-schools (ITS) to train young people 
or finance, at least occasionally, 
community projects
Business Ethics
80% of companies have 
adopted their own code 
of ethics
Planet
25% have already 
defined/planned measurable 
projects to reduce 
environmental impact
Financial health
63% of companies have seen their 
sales grow in the past 3 years. 74% 
expect further growth in the next 3 
years
Quality
97% of companies have at least a 
quality certification (AS/EN 9100, 
ISO9001), while 70% of them at 
least 2 certifications 
Risk Management 
78% of companies have structured 
risk management procedures
Innovation
70% companies have implemented  
structured technology innovation 
plans
Cross-
company 
Dimensions
Big Data
64% are implementing sensor systems for the 
collection and analysis of data from 
production.
Modern slavery
94% say they have no 
suppliers in countries 
considered at risk
Communications 
security
More than 97% of companies 
protect their communications at least 
with firewall systems  (>50% have 
also IDS and IPS)
Cyber 
Security
Process Digitalization
93% of companies that have a workshop use 
MES systems to monitor the progress of their 
production team. 
End-user terminal
92% of companies manage its users' digital 
identity and credentials for access to systems
Cyber Security 
organization
+80% of companies carry out training 
and awareness projects for their 
employees on Cyber Security, 78% also 
distinguishing roles and responsibilities
Circular Economy
50% of companies have 
planned projects inspired by 
the principles of the circular 
economy
Action for Planet
35% of companies publish 
or intend to publish a 
sustainability report in the 
next financial year 
NEW
NEW
NEW
NEW
NEW
NEW
Leonardo Sustainable Supply Chain Manifesto  
Based on the results of the first LEADS assessment on supplier sustainability, Leonardo has published the Sustainable Supply Chain 
Manifesto, which addresses three main themes, strongly in line with Italy's development guidelines: Digital Transformation, Cyber 
Security, People & Planet. These priorities, which are structured into 18 concrete projects, with progressive and measurable 
milestones, intend to support and accelerate the transformation of Leonardo’s supply chain that is largely made up of SMEs, helping 
supplier companies to direct their efforts and investments to compete in international markets. The Manifesto was presented 
during the digital event Leonardo for a Sustainable Supply Chain, an occasion on which the Company, with the participation of top 
management and leading market players, also illustrated the challenges and opportunities for the Italian AD&S supply chain and 
shared the expectations and development guidelines to support an increasingly competitive, integrated, innovative and sustainable 
business ecosystem.

Report on Operation at 31 December 2022 
160 
 
 
Leonardo Supplier Award – This was the second edition of
Leonardo Supplier Awards, which are conferred by Leonardo to 
recognise key suppliers who have distinguished themselves for 
their commitment to excellence, spirit of collaboration and results 
achieved. In particular, awards were conferred to 39 suppliers at
global level, 29 of which classified for Performance Excellence 
Awards (in recognition of punctuality, quality, spirit of 
collaboration and commitment to excellence), 5 for Sustainability 
Awards (in recognition of the results achieved and commitment to 
sustainable development among the 600 suppliers analysed with 
the LEADS-ESG programme in 2022) and 5 in the “Vision for 
Growth” category for sharing the vision, dynamism and 
effectiveness in achieving the goals of the LEAP programme.  
ELITE Leonardo Lounge – This is a two-year development 
programme targeted at entrepreneurs and top managers of 
supplier companies to accelerate their resilience and growth by 
facilitating access to capital, network and key skills. 67 key 
suppliers participated in the programme, coming from 13 Italian 
regions, with an aggregate turnover of €bil. 1.3 and a total of 7,500 
employees. 
LEAP Technical Training - 70 training courses were delivered to 
improve the technical and specialist skills of managers, white collar 
and blue-collar workers employed by the companies in the supply 
chain, in order to also respond to the demand for new skilled 
labour expected in the coming years. Leonardo has extended the 
training services provided by its subsidiary, Leonardo Technical 
Confindustria’s 
Digital 
Innovation 
Hub 
for 
digital 
transformation – Raising awareness of and training in 4.0 
technologies, assessment of the level of digital maturity and 
cyber security, development of a roadmap and support to the 
networking of suppliers in the Industry 4.0 ecosystem, from 
smart factories to Competence Centres. In June 2022 results 
were presented for the Leonardo Digital Supply Chain Project, 
which involved a total of 49 suppliers, for an aggregate 
turnover of €mil. 850 and a total of more than 4,800 
employees. 
Supply Chains for the 21st Century (SC21 Operational 
Excellence) – In the United Kingdom, Leonardo relies on 69 
suppliers, 17 of which are sponsored directly, involved in the 
industry program that aims to improve industry performance,
competitiveness and productivity by creating greater 
customer/supplier 
collaboration 
based 
on 
continuous 
improvement. 
Supplier Relationship Management (SRM) – The objective of 
the SRM project in the United Kingdom is to collaborate with 
18 key suppliers in indirect procurement, in a partnership and 
continuous improvement approach, on five key areas: 
resilience, cost efficiency and value generation, innovation, 
sustainability and methods of collaboration. Thematic 
workshops have been organised with the 18 partners on 
initiatives and opportunities for reducing CO2 and improving 
other sustainability indicators of Leonardo. Among the 
Supply chain training and growth programmes   
People & Planet
Social and environmental responsibility 
to reduce risks, mobilize resources and 
create value
Cyber Security
Ensure adequate security standards 
along the supply chain to spot the 
future requirements of the Defence 
programmes
Digital Transformation
Increase digital collaboration along the 
supply chain, leveraging on the new 
technologies in order to speed up the 
development of new products, improve 
the synchronisation of operations and 
the offer of services to customers
• Collaborative development using digital twin products
• Production and maintenance supported by advanced technological 
tools
• Collaboration on the AirSupplyplatform
• Quality management with new technologies for defect prevention, 
detection and analysis
• Logistics and Transportation – Smart inventory, tracking systems 
(RFID, blockchain)
• Big Data Analytics – Data generation and analysis to improve data-
driven processes, products and services
• Asset survey with automatic discovery tools
• User terminals with security guarantee
• Cyber security organisation and employee training 
• Policies and procedures for a digital business
• Communication protection - Firewall, Intrusion Prevention and 
Intrusion Detection System (IPS, IDS), robust VPN
• Cyber security rating with platforms which identify and analyse  
the external perimeter vulnerabilities
• Safety first – Health & Safety on the workplace through advanced 
management systems
• Responsible business and talent development, in line with 
Leonardo’s principles and rules and fostering gender equality and 
managerialization
• Industrial efficiency, also through lean transformation 
programmes
• Action for planet – Mobilize resources to measure and reduce 
GHG emissions, water consumption and waste production
• Green energy , aiming at 100% renewable energy of guaranteed 
origin
• Ecodesign and circular economy – Conceive new products with 
eco-friendly materials under a circular economy perspective

Report on Operation at 31 December 2022 
161 
 
Training, to include suppliers, delivering a training course in line 
with the LEADS assessment model and customised through the 
participation of Group managers. Among the courses offered there 
are: project management, design excellence, manufacturing 
excellence, competitiveness and cost reduction, process and 
product quality, industry 4.0 and cyber security, sustainability and 
ecological transition, data protection. The programme, which was 
launched in 2020 and is funded by Fondimpresa, involved 17 
additional suppliers in the second edition in 2022. More than 900 
employees from the companies involved have participated in the 
two editions for a total of more than 22,000 hours of training. 
Supplier 360 Capability Assessment – More than 70 key suppliers 
of the Electronics Division in the United Kingdom have been 
involved in the Leonardo programme for evaluation and 
development of technical capabilities and performance, involving 
27 SMEs and paying attention to ESG issues. 
achievements of 2022 were a redesign of the supply chain with 
a view to proximity and enhancement of local communities 
and the establishment of partnerships to reduce food waste. 
Leonardo for a sustainable supply chain – More than 500 
Italian SMEs have been selected by Leonardo to take part in a 
new training course using video sessions, created in 
collaboration with The European House – Ambrosetti and 
made available free of charge to suppliers through a specially 
developed e-learning platform. The project aims to support 
suppliers in preparing a sustainability plan and reporting 
progress through a dedicated toolkit. Of the 500 SMEs 
involved, about 300 have already completed the courses. 
 
Sustainable supply chain management 
Among key priorities for Leonardo is that of ensuring the sustainability of our supply chain, which represents 
a strong commitment to the Group's stakeholders. In recent years our focus on environmental, social and 
governance (ESG) issues has gradually increased in all phases of collaboration with suppliers: from the 
application to become a supplier, to the pre-qualification and qualification phases to enter the register, from 
selection criteria to the contractual Terms & Conditions, up to due diligence audits and development plans 
of suppliers. In the pre-qualification phase Leonardo verifies whether the economic, financial, ethical, legal, 
social and environmental requirements are met, while in the qualification phase it assesses the technical and 
operational capabilities of the supplies, as well as the minimum requirements requested by Leonardo on 
environmental management, protection of conditions and rights of employees, protection of health and 
safety, cyber security and intellectual property protection. According to the product sector, an additional 
verification on product qualification may be necessary to check compliance with the technical requirements 
of the component or part to be purchased. Furthermore, for some product areas, supplier selection takes 
account of the availability of specific additional ESG requirements, for example, the possession of ISO 14001, 
ISO 45001, quality and cyber security certifications.  
Maintenance of the requirements is monitored via periodic checks throughout the entire duration of 
contractual relationships, both through recurring audits (every two years for pre-qualification requirements 
and every three years for qualification requirements) and through periodical audit plans, with serious or 
repeated non-compliance with requirements resulting in temporary or definitive exclusion from the 
Register83.  
In the United Kingdom, Leonardo has been actively involved since 2015 in the JOSCAR (Joint Supply Chain 
Accreditation Register) industry project to qualify joint suppliers and help guide the future development of 
the Aerospace and Defence programme in the country. In 2022, the Group increased its participation in the 
program to over 700 suppliers involved. JOSCAR, in which 70% of the participants are SMEs, launched in 2022 
a portal dedicated to small and medium-sized enterprises in order to rationalise the number of 
communication channels used and provide a single point of access for both current Aerospace and Defence 
suppliers and new firms that intend to enter the market84. The initiative continues to evolve as more 
companies join the community of buyers and the evaluation criteria used are updated to reflect the latest 
                                                           
83For further details see the section Other indicators. 
84About 550 companies have already registered on the portal.

Report on Operation at 31 December 2022 
162 
 
industry developments in the field of ESG85. In 2022 too, Leonardo updated its supplier qualification approach 
in the United Kingdom, by promoting ESG criteria even for suppliers not participating in the JOSCAR 
programme.  
The Group has also launched specific projects that involve suppliers to integrate environmental factors into 
supply chain management and reduce its environmental impact, including working groups and workshops to 
promote decarbonisation and chemical and environmental compliance, research projects to create more 
efficient products and materials that reduce atmospheric and acoustic emissions, and exploit technologies 
such as additive manufacturing, as well as pilot projects to promote the reuse of packaging86. 
 
Main phases of supplier selection and management87  
 
 
 
Leonardo engages suppliers on key and operational issues relating to the supply chain, including 
obsolescence management, procurement of critical materials and the growing risk of cyber-attacks. An 
increasing number of selected suppliers share their risk registers with Leonardo, and the company, in turn, 
shares the results of risk analyses with them as part of related projects. 
 
 
 
                                                           
85Additional details available on the website of the initiative. 
86For further details on the fight against climate change and the circular economy model within Leonardo, reference is made to the section Planet.  
87 The figures refer to Leonardo SpA, Leonardo Global Solutions, Leonardo Logistics, Vitrociset. 
>6,000 
pre-qualifications of suppliers
>6,300 environmental, health and safety 
audits on service providers (indirect suppliers) 
conducted by Leonardo or third parties
>1,100 audits on direct suppliers
>3,400
qualifications completed
172
reputational due diligence
206 revoked pre-qualifications of suppliers 
in the renewal phase
11 black listed suppliers 
60
denied pre-qualifications of new suppliers
>4,200 performance improvement reviews 
on direct suppliers
2,071 
suppliers selected based on environmental 
criteria
Portal registration 
Code of 
Ethics
Anti-Corruption 
Code
Supplier Code of 
Conduct
Organisational, Management 
and Control Model
Qualification
Technical and 
professional 
requirements
Selection/Call 
for bids
Pre-qualification
Supply terms and 
conditions
Management 
and monitoring
Economic-
financial 
requirements
Pension and 
social security 
contributions
Non–inclusion in 
international black 
lists
Compliance with 
Trade Compliance 
requirements (**)
Health and safety 
certifications
(ISO 45001)
Environmental 
information (***) 
Compliance with conflict 
minerals regulation
Compliance with 
Modern Slavery 
regulations (*)
Quality 
certifications
Cyber security
Compliance with  
anti-money 
laundering 
regulations
No use of child, 
forced or illegal 
labour
No criminal 
sanctions
2022 KPIs
(*) Modern Slavery Act 2015 in the United Kingdom and Code Title 22, chapter 78 in the United States.
(***) Of which in possession of environmental authorisations and certified management systems; compliance with REACH, RoHS, CLP( Classification, Labelling and 
Packaging) and RAEE and waste regulations.
(**) Check carried out only for suppliers in at-risk countries
Compliance with 
anti-corruption 
regulations
Environmental 
responsibility
Check of specific 
tender requirements
Check of existence and 
maintenance of 
reputational requirements
>600 key suppliers assessed on sustainability 
with LEADS 
Monitoring activities 
(documents, inspections, 
on-site audits)
Improvement 
plans
Pre-qualification
revocation
Black list
Supplier Awards
Protection of 
intellectual property

Report on Operation at 31 December 2022 
163 
 
 
 
 
Crisis teams for Covid-19, raw materials and electronic 
components, Russia-Ukraine conflict - Leonardo has established a 
multi-divisional management team for structured coordination 
among procurement managers across various countries to manage 
communication, monitoring and action plan definition activities on 
global procurement issues. The team, which started its operations 
during the Covid-19 emergency in 2020, continued its work in 2021 
and 2022, with a focus on assessing and mitigating procurement 
issues concerning critical materials and microchips through ongoing 
monitoring of suppliers of greatest interest. 
Electronic component analysis – In the United States Leonardo DRS 
has created a tool to identify Circuit Card Assembly (CCA)-related 
risks and improve supplier performance. The tool allows in fact the 
analysis of more than 1,500 CCAs associated with about 40,000 
components, identifying risks of obsolescence, lead-time, price, or 
related supply shortages. It has also set up four Commodity teams 
to manage these risks in a coordinated manner during the 
pandemic. In particular, automated tools have been developed to 
improve CCA component obsolescence management and decision-
making processes, which are linked to internal and external sources, 
which reduce analysis time by more than 50%. In this manner, 
Leonardo DRS has identified opportunities to ensure product 
development 
and 
production 
despite 
procurement-related 
challenges.  
Security and resilience – Leonardo has strengthened security risk 
management in the supply chain by requiring security requirements 
from the qualification stage. For project supplies that must meet 
specific security requirements or key projects, it has outlined a 
homogeneous, cross-sector approach to identifying, assessing and 
managing security risks, monitoring identified risks and related 
treatment actions on an ongoing basis, and fostering better 
communication between divisions, as well as integration into the 
Company's risk management process. In the United Kingdom, 
Leonardo also participates in the cross-sector Supply Chain 
Resilience Working Group, launched by the UK Ministry of Defence 
in 2020 to better manage risks and strengthen supply chain 
resilience; while in the United States, to effectively respond to the 
US Department of Defense’s regulations, aimed at mitigating cyber 
security risks in the supply chain, Leonardo has organised several 
workshops for procurement and supply chain professional family to 
support large and small suppliers in  achieving or exceeding 
compliance with the new regulations. Regulatory compliance 
tracking systems have also been strengthened, making it easier to 
support the supplier and act to mitigate risks.  
Climate Change and Sustainability Working Group – Leonardo 
collaborates in the cross-sector working group formed by the UK 
Ministry of Defence in 2021 to align the priorities of its key suppliers 
REACH and chemical substances - Leonardo acts in 
compliance with the REACH regulation with the objective of 
reducing the use of hazardous substances from its processes 
and products by 15% by 2025 and 50% by 2032 compared to 
2022, considering the specific features of each business in 
which it operates. The reduction is calculated based on the 
indicator “kilograms of SVHC substances purchased (in Annex 
XIV of the Regulations as of 31/12/2022) per production 
hours. The Company has identified the hazardous substances 
used in industrial processes, started a rationalisation of the 
substances purchased, in compliance with the restrictions and 
exceptions provided for by the Regulation, and provided for 
mitigation plans for each division, as well as specific objectives 
for the reduction, and where technically possible, the 
elimination of hazardous substances from products, while 
also taking advantage of eco-design initiatives that make it 
possible to identify alternatives with lower impact right from 
the design phase. Leonardo collaborates with third-party 
business partners to identify, develop and test together 
alternative solutions, including within the framework of 
national and European research and funding programmes, 
and involves suppliers in the management of hazardous 
substances and compliance with REACH regulations through 
contractual clauses and training courses on the subject. 
Leonardo participates and leads the working group of the 
European Aerospace and Defence Association (ASD) on 
REACH and chemical substances, supporting the actions 
towards the European Commission and Parliament and the 
dialogue with the European Defence Agency (EDA). Among 
the projects carried out in this context are the definition of a 
guideline to simplify the approach for waste management in 
the sector (Waste Framework Directive); the Working Group 
set up within the Chemical Strategy for Sustainability REACH 
and Classification, Labelling and Packaging (CLP) to inform the 
European Union of the needs of the sector in view of the 
update of the REACH and CLP regulations; participation in the 
CEFIC (European Chemical Industry Council) round tables to 
follow initiatives related to product sustainability and safe and 
sustainable design. Leonardo also chairs AIAD's REACH 
Working Group to coordinate dialogue with the Italian 
Ministry of Defence and political counterparts and 
participates in the UK Ministry of Defence's Sustainable 
Procurement Working Group to share best practices in 
managing industry policies, including REACH regulations and 
GHG protocols. Leonardo also participates in the Aerospace 
and Defence Chromium ReAuthorisation Consortium (ADCR), 
contributing to specific reports, including a socio-economic 
analysis in which it involved over 70 key suppliers that could 
Involvement of suppliers

Report on Operation at 31 December 2022 
164 
 
in combating climate change. In this regard, the Working Group has 
jointly drafted a code of conduct (Code of Practice) to steer the 
sector toward greater openness and collaboration. 
be impacted by the replacement plans, in order to mitigate 
the risk of discontinuity in the business particularly linked to 
the replacement of some chromates with alternative 
solutions.

Report on Operation at 31 December 2022 
165 
 
CUSTOMER INTIMACY, QUALITY AND SAFETY 
Providing innovative technological solutions to contribute to the progress and safety of the world. From the 
design phase to the development of products, services and solutions and after-sales service, Leonardo 
searches and applies high levels of quality, safety and sustainability, in compliance with the standards and 
regulations of a highly regulated sector, in order to become a trusted partner for its customers. For Leonardo, 
customer centricity means in fact thinking every day about the positive impact of its business, responding to 
every possible operational need of its customers and striving to anticipate what could become their critical 
issues in the future. 
 
 
 
 
 
 
Defence/civil by sector 
 
 
Governmental/non-
governmental by sector  
 
 
 
 
 
 
 
Defence 
65% 
87% 
96%     
14% 
Governmental 
74% 
93% 
96% 
14% 
Civil 
35% 
13% 
4% 
86% 
Non-governmental 
26% 
7% 
4% 
86% 
 
 
 
14%
11%
27%
22%
26%
Revenues by geographic area
Italy
United Kingdom
United States
Rest of Europe
Rest of the world
28%
72%
Turnover by market
Customer Support,
Services & Training
(CSS&T)
Products
83%
17%
Defense / Civil turnover
Defense
Civil
88%
12%
Governmental / Non governmental 
turnover
Governmental
Non governmental

Report on Operation at 31 December 2022 
166 
 
Customer support and training  
Leonardo offers customized solutions and innovative, value-added after-sales support services: from the 
offer of integrated services to continuous hardware and software upgrade that ensures customers extended 
performance over time, as well as to training programmes, which are required to maintain direct contact 
with end users and nurture a strategic relationship in the long term. The development of the Customer 
Support, Services & Training business and the improvement in customer satisfaction are among the 
objectives of Leonardo's Strategic Plan, which are pursued through a transformation that involves 
technologies, the organisation, processes, procedures, compliance with standards and regulations, the way 
of doing business and, above all, people. This is a paradigm shift, from "product support" to "customer 
support", which leverages some key concepts for greater resilience: customer centricity, servitization, 
continuous improvement, development of hard and soft skills, data management and analysis, through the 
application of smart technology and increasingly digitised processes and products. The organic management 
of customer satisfaction and customer support management tools ensures a high level of information 
integrity and full transparency in customer communication, while improving the Customer Experience and 
facilitating the digitalization of services with a view to sustainable innovation. 
Training, which is a strategic area for Leonardo in line with the ever-increasing and more advanced market 
demands, is based on advanced technologies for the virtual reproduction of systems and their operational 
use. In addition to raising the level of skills transferred and scenarios on which to train, the use of flight 
simulators allows cuts on real flight hours, with a positive impact on costs and environmental and noise 
pollution. Virtual and augmented reality technologies, together with artificial intelligence, are also used for 
maintenance and predictive maintenance, thus helping to prevent and identify failures and inefficiencies and 
reduce the environmental impact of logistics management, enabling remote operations and thereby 
reducing physical travel to support operations. 
In collaboration with the Italian Air Force, Leonardo has set up an advanced flight training centre 
(International Flight Training School - IFTS) at international level in the training of military pilots, as from the 
advanced phase of training (Phase IV), intended for next-generation aircraft. Currently the IFTS is operational 
at the 61st Wing in Galatina (Puglia) with the M-346 Integrated Training System. Work is now in the process 
of being completed on moving the IFTS to Decimomannu base in Sardinia, the location selected for NATO 
Flight Training Europe (NFTE) fighter pilot training as from 2023. The use of the M-346, which is now the most 
advanced training aircraft available on the market, and the related Ground Based Training System (GBTS), a 
state-of-the-art system that incorporates flight and mission simulation, has already allowed and will still allow 
a significant and gradual reduction in actual flight hours, which are generally performed on fighter aircraft, 
much more costly in terms of fuel consumption, and consequently lower emissions and costs. 
In compliance with the EMAR regulations, maintenance staff were trained for the IFTS programme in order 
to obtain the MAML (Military Aircraft Maintenance License) required to operate on military platforms. 
In addition, Leonardo's Academy in the United States has been operational since 2021 for ground, flight and 
virtual environment training of pilots and maintainers for AW109, AW119, AW139, AW169 helicopters and 
the AW609 tiltrotor. Digital courses, flight activities, simulator and mission execution training are available 
to meet any operational needs of Leonardo customers and operators.

Report on Operation at 31 December 2022 
167 
 
About 48,000 training 
hours delivered through 
flight simulators  
 
Over 13,000 pilots and 
operators of helicopters 
and aircraft trained  
 
First place among 
helicopter companies in 
ProPilot's ranking for 
quality of after-sales 
support, for the fourth year 
running  
 
First place in Product 
Support Survey of AIN 
(Aviation International News) 
ranking in 2022 too  
Data 2022 
 
Customer Satisfaction – With the use of the Net Promoter System (NPS) methodology during 2022, more than 270 customers have 
been involved from the civil, military and government markets in more than 70 countries all over the world in measuring Customer 
Satisfaction. The objectives have been achieved to obtain a deeper and more complete knowledge of the perception of Leonardo on 
the part of its customers and take corrective measures that are implemented, with a view to continuous service improvement for the 
customer. There was an increase in the number of replies received and in the number of countries and programmes mapped through 
Customer Satisfaction campaigns compared to the previous 12 months. 
Customer Service Digitisation projects in support of the Company and its Customers - Leonardo has launched new Customer 
Relationship Management and e-commerce platforms that enable customer management with the best digital tools, offering a single 
point of access (Leonardo Customer Portal) for all after-sales services to customers in the civil and military sectors, including training 
activities. This is a single architecture that adapts to the peculiar features of different businesses and that allows customer intimacy 
to be improved. At central level, Leonardo coordinates the projects undertaken for the digital transformation of the Customer service 
support and delivery model from a data-driven perspective, with the aim of ensuring maximum cross-domain business, best customer 
experience and identification of advanced value-added services for the customer. 
DEServE - Digital Ecosystem for Service Excellence 
In continuation of its transformation and continuous improvement activities with Customers, Leonardo has launched the DEServE 
project for the evolution, standardisation and digitisation of contracting processes and contracts, with Smart Legal Contract for 
ongoing contracts, starting with the Services business and with automatic scalability to the rest of the company's business. The project 
aims to create value through the improvement of business relationships with Customers in terms of efficiency, transparency, 
collaboration and with full exploitation of real-time data throughout the contract lifecycle (modelling template, negotiation, execution 
& reporting), benefiting different decision-making levels, both operational and strategic. In 2022 DEServE was awarded Innovation 
and Excellence Award EMEA by World Commerce & Contracting, a global community for promoting standards and continuous 
improvement in commercial and contracting areas.  
Innovation with the Italian Air Force - The Public-Private Partnership through which the Italian Air Force and Leonardo, together with 
Enel X and EnershareHub, are working in eco-sustainable technological innovation at the Pisa military airport, hosting the 46th Air 
Brigade, is now operational. 
 
Social value and industrial collaboration programmes 
Leonardo is committed to generating positive impacts for the communities that host its sites and production 
facilities. For this reason, sustainability topics are integrated into initiatives, projects and working methods. 
Specific metrics are used to assess the effectiveness of these actions and quantify the impact produced on 
local communities. Moreover, this approach becomes also relevant in relations with those governments that, 
on the occasion of public tenders, exploit their spending power by providing incentives to companies to 
produce measurable social benefits in favour of communities, redesigning the relationship between public 
and private entities. 
Customer intimacy

Report on Operation at 31 December 2022 
168 
 
 
Furthermore, Leonardo collaborates with its international customers to generate economic and industrial 
benefits, both in the civil and Defence sectors, under industrial offset agreements. In 2022, Leonardo had 69 
indirect offset contracts in place around the world88.  
 
Indirect offset projects by type 
 
 
 
Quality and safety 
Company engineering and manufacturing processes are based on recognised procedures and standards, 
providing training and information to people on an ongoing basis, and the integration of risk management 
and product life cycle management methodologies, with the aim of ensuring maximum safety of products 
and services and making deliveries to customers within the expected timeline and without defects, using 
materials and resources in the most efficient way. Leonardo adopts quality management standards and 
systems ISO9001, AS/EN9100 and AS/EN9110, as well as NATO AQAP 2110/2210, to ensure the quality of 
design, manufacture, maintenance, testing and delivery of products to the customer, periodically verified by 
third-party certifying bodies. The products made internally and those commissioned to third-party suppliers, 
selected and qualified according to the standards adopted, are subject to internal audits and a final 
verification of conformity by the company's Quality function, in compliance with contract requirements 
and/or other Safety regulations. For the type of products and services produced, Leonardo is also subject to 
audits on the part of the competent Authorities in the field of Safety and, if applicable, airworthiness. Each 
Division or specific program within the Group is also supported by Safety-oriented R&D work, is provided 
                                                           
88 For more details, please see the section on Responsible business conduct and document on offset management on Leonardo website. 
16%
53%
9%
16%
6%
Production/Manu
facturing
Products and
services
Maintenance,
Repair &
Overhaul (MRO)
Others
Transfer of
technologies
The Social Value Model in the United Kingdom  
Leonardo has the objective of maximising the social value it produces, as evidenced by its commitment to supporting its people, 
community, and economy. In the United Kingdom, the UK government has structured social value into 5 areas: equal opportunities, 
reducing economic inequality, combating climate change, post-pandemic recovery, and well-being. During the selection process 
for awarding new contracts, the UK government gives a weight of at least 10% to the social value produced by individual 
companies. 
In the United Kingdom, Leonardo contributes about GBP1.9 billion to the country's economy, employing more than 8,000 highly-
skilled people and supporting more than 26,000 jobs. Leonardo also works with more than 2,100 local companies in the United 
Kingdom, two-thirds of which are SMEs.

Report on Operation at 31 December 2022 
169 
 
with a Safety governance system at the central Division level and Safety System Management constituents 
at the local function level, control and risk assessment procedures and manuals, recall systems and 
procedures of products not complying with safety requirements, customer alert, product tracking and crisis 
management, as well as continuous improvement plans.  
Compliance with high quality standards is also required from suppliers, to guarantee materials and goods 
without any defect in design, manufacturing and installation, and verified during the qualification phase. 
86% of employees operate 
at sites certified according to 
the ISO9001 quality standard  
 
97% of key suppliers with 
quality certification of 
processes89 
 
 
Furthermore, Leonardo plays an active role in the evolution of sector standards and regulations through its 
participation in the main international organisations, including IAQG (International Aerospace Quality 
Group), EAQG (European Aerospace Quality Group), RMS (Regional Management Structure) and contributes 
to designing the EPAS (European Plan for Aviation Safety implemented by the European aviation authority 
with all Member States). Since 2018, it has guided the OPC Operations Council, formerly IAQG’s Strategy 
Working Group, which defines quality standards and the related certification scheme format, measuring 
effectiveness and developing the global database of best practices. In Italy, as a member of AIAD, Leonardo 
sits on the Quality Committee, which pays particular attention to supporting SMEs with regard to mandatory 
regulations and customer-specific quality and safety requirements. 
In addition, Leonardo actively participates in activities within the ASD Service Commission for the definition 
of the new S-Series standards for data management of the entire product lifecycle in the field of Integrated 
Product Support, an effective management of Technical Publications, materials and spare parts, the 
definition of Integrated Life-Cycle Analysis, the management of Predictive Maintenance, Training and In-
Service Feedback. Compliance with the S-Series suite and mandatory regulations is for Leonardo an essential 
element, as well as a mandatory requirement for participating in multinational cooperation programmes. 
 
 
 
                                                           
89 The analysis involved 600 key suppliers in 2022. 
Process quality  
QA Matrix - Quality management has been standardised across all Divisions through QA Matrix, a tool that allows the collection of 
all "non-quality" events, the assessment of "root causes" and the prioritisation of the best solutions, achieving a significant 
improvement in the quality management of processes and products. In 2022, the matrix was implemented at 14 sites, and identified 
defects were prioritised based on related impact so that improvement projects could be designed on the most significant defects. 
Nearly 50% of the defects on which improvement projects were started have been resolved.

Report on Operation at 31 December 2022 
170 
 
VALUE FOR TERRITORIES AND COMMUNITIES 
Leonardo contributes to the spread of a culture based on respect for the environment and the social and 
economic development of the communities in which the Group operates. Incentivising environmentally 
sustainable behaviour, spreading scientific culture and technological expertise, fostering inclusiveness and 
combating social inequality: these are all examples of actions that Leonardo takes to promote growth in local 
areas. In fact, the Group carries out numerous activities to involve and raise the awareness of local 
communities in the territories that host the Group's production sites, in the belief that the efforts put forth 
to protect natural resources and respect the environment, as well as the people who are part of it, can 
generate value for everyone. By collaborating with entities, associations and foundations, non-profit 
organisations and other partners, Leonardo strengthens its corporate citizenship especially in the areas 
where it operates.  
Leonardo's commitment is also expressed through the Group's Foundations and the voluntary support of 
employees and former employees, who thus contribute to activities targeted at the achievement of SDGs. 
> 
Leonardo Civiltà delle Macchine Foundation is committed to promoting human rights in the digital 
society, combining scientific knowledge and research with culture and the arts, and fostering a 
constructive debate on the impacts of digital transformation. It promotes STEM and ICT competencies 
and digital education and supports economic growth and innovation by stimulating public debate on the 
sustainable development of the territories and the prospects for industrial development of the country. 
It supports research in the field of ethics and law of artificial intelligence through partnerships with 
institutions and universities.  
> 
Ansaldo-Leonardo Group Foundation has been working for over 20 years in the recovery, protection, 
preservation and enhancement of the historical-cultural heritage consisting of its archival, photographic 
and film collections - over 100 collections, either its own or entrusted by third parties -, which preserve 
the memories in the entrepreneurial, industrial, technological and communication areas, in particular of 
those companies that have operated in the Ligurian region. 
> 
Med-Or Foundation, founded in 2021, aims to promote cultural, research and scientific training 
activities, to strengthen ties, exchanges and international relations between Italy and the countries of 
the enlarged Mediterranean area. It is an innovative, global and collaborative entity that aims to combine 
skills and capabilities of industry with the academic world for the development of geo-economic and 
socio-cultural partnership with countries in the Enlarged Mediterranean, Sub-Saharan Africa, the Middle 
East and the Far East with the aim of laying the foundation for sustainable and integrated development.

Report on Operation at 31 December 2022 
171 
 
Social commitment 
Leonardo has invested an amount of about €mil. 3 in sponsorship and investment programmes in the 
community. In line with the operational guidelines applied in the planning of corporate sponsorships and in 
accordance with the selection processes required by company rules, the choice of activities to be pursued 
has favoured wide-ranging projects that would allow the creation of partnerships and collaborations. Project 
efforts were focused on research and innovation issues, support for cultural and institutional institutions, 
and social/solidarity initiatives with a strong impact on local communities.  
 
 
                
 
 
                                                           
90 For further details, reference is made to the paragraph on Circular Economy in the section Planet. 
5%
70%
25%
Scope of the initiatives
Image and Customer 
Intimacy
Promotion of Leonardo's 
Capabilities and Networking
Promotion of Scientific 
Culture and support to Local 
Communities
81%
19%
Type of contribution
Sponsorships
Investments in the community
62%
3%
20%
15%
Geographical breakdown
Italy
United Kingdom
United States
Rest of the world
Social commitment and support to territories and culture promotion 
Avanchair – Collaboration work with Avanchair Startup, which has created an innovative electric wheelchair. Thanks to technological 
support from Leonardo, the prototype was equipped with a new stabilisation system and a footrest to enhance mobility, facilitate 
movement, and ensure greater autonomy for its users. This project is a clear example of how technology transfer between different 
sectors can improve people's lives and reduce inequalities. 
Arbolia – Since 2022, collaboration relationships have been established with Arbolia, an Italian benefit company, at the initiative of 
Snam S.p.A. and Fondazione CDP, which promotes and implements afforestation at various sites to combat global and local warming 
and improve air quality. At the beginning of December 2022, a pilot project was started at the Foggia site to afforest 1,650 plants. This 
project will allow, over the 20-year life of the afforestation installation, the absorption of more than 360 tons of CO2 and the release 
of more than 260 tons of oxygen and a reduction of PM10 emissions of 16.6 tons. 
WEEE in prison - The recycling project includes a goal of training and social re-education of inmates in Bollate Prison - Milan. The 
recycling system, located inside the prison, has been built and operates thanks to the collaboration of institutional and private 
players90. 
Telethon Foundation –In line with Leonardo's commitment to social welfare and the promotion of scientific citizenship, work 
continued, for the second year running, on the funding of a scholarship to a young researcher in the framework of the International 
Doctorate Programme in Molecular Medicine at the San Raffaele University of Milan. The study aims at developing advanced therapies 
for rare genetic diseases. 
Support to war veterans in the United States – More than 90% of Leonardo DRS’ investments for communities support solidarity 
programmes reserved for war veterans and their families, as well as disabled athletes such as Armed Services YMCA, Fisher House and 
Army Ten Miler. It is in fact recognised as "national guard" with the highest honours for the support given. 
Volunteer bulletin board - Leonardo supports, with its own in-house platform, employees' offers and requests to volunteer in favour 
of non-profit and community organisations. The section on "volunteer stories" is connected to the platform, which collects and 
recounts employees' experiences related to the theme of helping. Through these two tools it has been possible to promote initiatives, 
such as Plastic Free's in support of the environment at the group level.

Report on Operation at 31 December 2022 
172 
 
 
 
 
                                                           
91 For further details, reference is made to the paragraph on Circular Economy in the section Planet. 
Plastic Free – It is the most important volunteer association in Italy, created with the aim of informing and raising awareness of as 
many people as possible about the dangers of plastic pollution. During the year Leonardo sponsored 3 collections (Castel Fusano, 
Pomigliano, and Nerviano), which, involving employees from various sites, allowed the collection of over 2 tons of waste. 
Responsible Canteens Programme – This programme, in partnership with Fondazione Banco Alimentare Onlus and canteen service 
providers, has been designed for the recovery of surplus food from the canteens of the main Italian factories in favour of non-profit 
organisations91.  
Leonardo Corporate Heritage – The company museums that are part of Leonardo’s Museum System in Italy are the Agusta Museum, 
with attached Villa in Cascina Costa di Samarate (VA),  the Breda Meccanica Bresciana Museum, the Officine Galileo Museum in Campi 
Bisenzio (FI), the Radar Museum in Bacoli (NA), the headquarters of the Associazione della Melara in La Spezia, where the OTO-Melara 
historical archive is located, the Aeronautical Industry Museum in Turin and the Fucino Space Center Museum of Telespazio. In 2022 
the Corporate Heritage programmes involved almost 4,000 visitors, accompanied by the company’s Seniors (over 200 active in the 
Museums and Archives) and volunteers.  
I mille del ponte – The Ansaldo Foundation has financed and collaborated in the organisation of the theatrical show "I mille del ponte" 
(The thousand of the bridge), with free admission, to pay homage to the male and female workers who worked for the demolition and 
reconstruction of the bridge over the river Polcevera.

Report on Operation at 31 December 2022 
173 
 
Scientific citizenship, training, diversity and inclusion  
The promotion of scientific citizenship – i.e., sharing scientific knowledge, technological expertise, and 
innovation with the communities concerned - and a commitment to an inclusive scientific culture form an 
integral part of Leonardo's strategy to strengthen the innovation chain.  
The Company aims both to foster employee upskilling and reskilling programmes and to support the 
dissemination of scientific culture externally. Leonardo aims to be a point of reference for scientific culture 
in the countries in which it operates, from projects to enhance STEM disciplines and access to the professions 
of the future to relations with the educational system - in all cycles of compulsory schooling, with training 
activities for teachers and special attention to the involvement of girls and young women - and strategic 
partnerships with universities, research centres and institutions.  
At Leonardo promotion of diversity is also seen as a distinctive factor in competitiveness, talent attraction 
and enhancement of human capital. This approach translates into listening, mentorship and coaching 
initiatives, gender bias training course and development programmes to disseminate inclusive leadership 
models. This commitment is recognised internationally with inclusion in the Bloomberg Gender-Equality 
Index (GEI) for the third year running. 
Leonardo's STEM ambassadors, present in the various geographical areas, encourage young people to 
undertake STEM studies, spreading passion for science and technology through workshops and lessons. In 
Italy, through their collaboration with Technical High Schools (Istituti Tecnici Superiori), Leonardo 
ambassadors dialogue with students not only to disseminate scientific knowledge but also to stimulate their 
curiosity and bring them closer to technical professions, enhancing the industrial vocation of local areas. 
Within the scope of the School-Business System project (promoted by the ELIS consortium), Leonardo has 
also made available to students of 1st and 2nd degree secondary schools the testimonials of 25 Role Model 
female employees with STEM backgrounds, who delivered 21 hours of training to orient students towards 
their future aspirations, through inspirational talks. In this context, there is also the Young Women 
Empowerment Program - YEP, dedicated to female students in Southern Italy and promoted by the Ortygia 
Business School Foundation, which aims to promote training based on the skills of the future and a culture 
of gender equality to counteract stereotypes and inequalities in the education and professional fields. The 
focus on female STEM subjects in the United Kingdom, with career fairs, summer schools and dedicated 
competitions, has also seen an increase in the presence of girls in recruitment for internship, apprenticeship 
and industrial placement roles, with a share of almost 20%. Almost 20,000 spontaneous applications were 
received through the Group's website application system. 
Digital High School - The new "digital high school" was born at the 
Matteucci Institute in Rome in September 2022. The project, 
STEM Lab – It is the project for the diffusion of scientific citizenship 
for the purpose of supporting teachers of 2nd-degree and 
                                                           
92The figure includes activities promoted by Leonardo, Leonardo CdM Foundation and Ansaldo Foundation. 
Over 400,000 people 
reached with scientific and 
digital citizenship 
programmes92 
 
More than  
11,000 male and female 
students visited 
Leonardo’s virtual stands 
and interacted with 
company representatives 
during the Career Days  
 
Over 1,000 schools, more 
than 1,300 teachers and 
50,000 students involved 
in the STEMLab project  
 
More than  
4,600 hours of teaching 
by Leonardo employees in 
7 Italian Technical High 
Schools (ITS)  
Science popularisation, training support, and digitisation

Report on Operation at 31 December 2022 
174 
 
which is the result of a proposal by the Leonardo Civiltà delle 
Macchine Foundation, was implemented in synergy with 
Leonardo, the Ministry of Education and the Matteucci Institute 
in Rome. The goal is to develop digital and technical skills, 
integrated and harmonised by humanistic knowledge, which are 
fundamental to ensuring a sustainable future. Thirty students will 
form the first class of this five-year course of study, which includes 
a course in Artificial Intelligence developed by Leonardo experts 
who will also serve as tutors in the planning phase and company 
internships planned for the final year of the course. 
Med-Or Foundation Scholarships – During 2022, the foundation 
funded a total of 325 scholarships for students in the areas 
concerned, including: 18 for bachelor's degree programmes, 22 
for specialist courses, 2 for doctorates, 3 for master's degrees, 100 
for primary and secondary school, 180 for Italian language 
courses.  
Preservation of cultural and artistic heritage – In 2022 the Med-
Or Foundation funded several projects to safeguard cultural and 
artistic 
heritage, 
including 
Horn 
Heritage 
Foundation 
(Somaliland), Association Internationale des Études Byzantines & 
Italian Association of Byzantine Studies, and MAECI - Directorate 
General for the Promotion of the Country System. 
Digital Transition Laboratory - In collaboration with Bocconi, 
Trento and Florence Universities and the Privacy Guarantor, the 
CdM Foundation Laboratory is a space for study on the themes of 
Artificial Intelligence and digitisation on the national, European 
and global scene, through position papers, research and 
conferences.  
Progetto Paese – This project consists of a cycle of meetings 
organised by the Leonardo-CdM Foundation to put the expertise 
of the major Italian state-owned companies at the service of the 
country and contribute to forming a new ruling class. The training 
courses involved Officers of the Carabinieri Corps, Finance Police 
School and Police High School. 
Space – The Leonardo Foundation, in collaboration with the 
Ministry for Education, University and Research, the Accademia
dei Lincei and the National Institute of Astrophysics, promoted 
knowledge of Space as a new economic and social scientific 
frontier through training courses aimed at students. 62 schools 
were involved in online mode, 3 schools through in-presence 
mode for a total of 2,800 students and teachers for each lesson. 
17th edition of the Festival of Sciences - For the fifth year 
Leonardo was educational partner of the Festival with an 
installation on "Explorers of the Future" dedicated to Leonardo 
Labs, in which young research fellows and doctoral students made 
themselves available to junior and senior high school students to 
explain how the results of scientific research bring benefits to 
everyone's daily lives.  
Science Festival - Leonardo, as historical partner of the event, 
sponsored the 20th edition of the Genoa Science Festival which 
was attended by 30 thousand students from 14 regions in Italy 
secondary schools in Italy, in raising awareness among girls and 
boys of the importance and key role of STEM education. STEMLab 
offers teachers free video lessons in the form of webinars, with 
teaching guides and workshop sheets to explore with students 
subjects and technologies connected with innovation, including 
content that is developed directly by Leonardo experts. Contests 
such as the STEM Olympiad were also organised and multimedia 
Apps made available. 
Topics included Artificial Intelligence, Big Data, Additive 
Manufacturing/3D Printing, Drones, Electrification, and Airports. 
By the end of December 2022, a year and a half after its launch, 
more than 1,300 teachers were enrolled and more than 1,000 
schools and more than 50,000 students were involved.  
ITS Academy - At the end of 2022, an agreement was formalised 
between the Leonardo Foundation, the Emilia-Romagna, Liguria, 
Puglia and Umbria Regional Governments, the Ministry for Digital 
Transformation (MITD), the Cyber Security Agency, Confindustria 
INDIRE, the National ITS Association and the Minister of Education 
through which a national ecosystem of digital skills was 
established, with the aim of creating ITS Academy curricular 
training programmes aimed at training various profiles.  
Treccani Scuola - The CdM Foundation has extended its 
collaboration with Treccani into 2022. The CdM Foundation's 
contribution consists of online lessons and multimedia educational 
content intended for the Treccani Scuola platform, with the aim of 
making Leonardo's advanced technological knowledge and skills 
available to the Italian school system. 
Become a Digital Citizen - Born from the agreement between 
Leonardo, Leonardo Foundation-CdM and the General Command 
of the Carabinieri Corps, the project aims to reduce the digital 
divide in Italy, encouraging access to new technologies by the 
older social groups. With 33 offices in small and medium-sized 
municipalities made available by the Carabinieri, 102 citizens 
participated in the third edition of the project. The project adheres 
to the Digital Republic Manifesto, an initiative promoted by the 
Ministry for Technological Innovation and Digital Transition, and 
participates in the activities of the National Coalition for Digital 
Skills, composed of public and private entities that support 
inclusion and education in new technologies. 
Precision Agriculture 4.0 - The 1st National Conference on 
Precision Agriculture, sponsored by the Leonardo Civiltà delle 
Macchine Foundation, the Polytechnic University of Bari and 
University of Bari Aldo Moro, was held at the Polytechnic 
University of Bari in June 2022 in order to present and deepen the 
innovative technologies of Precision Agriculture and the enabling 
technologies of the Impresa 4.0 programme for competitive and 
sustainable production. As part of that conference, the Manifesto 
for Food Safety was developed, which was then presented at "The 
3rd World Conference revitalization of Mediterranean Diet," held 
in Bari, Italy, from 28 to 30 September 2022. 
Girls@Polimi - In 2022, Leonardo actively participated in the 
Girls@polimi project, providing 4 scholarships for female high

Report on Operation at 31 December 2022 
175 
 
and 220 thousand total attendance. Leonardo welcomed high 
school students from the Ligurian territory to its Cyber & Security 
Academy, where future cyber security professionals are trained. 
Hackher - Leonardo supported the third edition of "Hackher," a 
multidisciplinary project, which is also sponsored by the European 
Parliament, with the aim of bringing girls closer to the STEM world 
and promoting gender equality in Information Technology. The 
event is part of Leonardo's commitment to female inclusion and 
empowerment in the promotion of scientific citizenship and STEM 
disciplines. 
Young Cyber Security Academy - Leonardo is a partner of the 
Academy established in 2022 with the aim of bringing the topic of 
cyber security to schools to train aware web users, raise 
awareness of the dangers of the web (cyberbullying, stalking, 
identity theft, revenge porn, etc.) by involving students between 
11 and 19 years old and teachers in a digital education 
programme. 
school seniors interested in enrolling in courses in Aerospace, 
Automation, Electrical, Electronic, Computer, Mechanical, and 
Industrial Production Engineering at the Polytechnic University of 
Milan for the 2022-2023 academic year. It is a project through 
which the company has once again placed itself at the forefront of 
supporting the orientation of new generations, and particularly 
women, toward the study of STEM disciplines. 
 
Finally, in November 2022, major European space players, including Leonardo and Telespazio, under the 
auspices of ESA, signed the Statement for a Responsible Space Sector, which reaffirms their commitment to 
contribute to the long-term sustainability of space projects and encourage responsible management of all 
activities in the sector, from both a social and environmental perspective. The main objective of the 
Statement is to provide a basis for the sustainable development of the space sector and to increase the 
contribution of space activities for the benefit of society.

Report on Operation at 31 December 2022 
176 
 
CORRELATION TABLE – NON-FINANCIAL STATEMENT 
Leonardo’s 2022 Consolidated Non-financial Statement (NFS) is included in the Report on Operations of the 
2022 Integrated Annual Report and is prepared in accordance with Legislative Decree 254/2016, which 
implements the European Directive 2014/95. The topics required by Legislative Decree 254/2016 are dealt 
with in the document, consistently with their materiality with respect to the characteristics of the Group, 
giving evidence of the activities, performance, results and impacts. 
Furthermore, the NFS is prepared in accordance with the GRI Standards 2021 and provides other indicators, 
in addition to the information prepared in accordance to the GRI Standards to comply with Articles 3 and 4 
of Legislative Decree 254/2016, that allow the measurement of the Group's performance in relation to 
material topics (in this regard, reference should be made to the sections on “ESG performance indicators", 
"SASB content index" and "Other indicators"). A correlation table is reported below, which sets out, for each 
scope prescribed by Legislative Decree 254/2016, the material topics for Leonardo and the references to the 
GRI Standards. 
 
Correlation table with Legislative Decree 254/2016 
Topics 
of 
D.lgs. 
254/2016 
Scope 
Reference 
GRI Standards 
disclosures 
Document 
Chapter 
Paragraph 
 
Reporting standards 
and materiality 
analysis 
Environment, 
Social, 
Personnel, 
Human 
rights, 
Corruption 
RO 
Strategy and outlook 
Materiality 
analysis 
2-2, 2-3, 2-4, 2-5, 3-1, 3-
2 
Governance 
Stakeholder 
engagement 
Annex to the operations 
report - Methodology 
note of 
the NFS 
Methodology 
note of 
the NFS 
Business  
model for the 
management and 
organisation of 
company activities 
Environment, 
Social, 
Personnel, 
Human 
rights, 
Corruption 
RO 
Group profile 
 
Note 1 
2-1, 2-6, 2-9, 2-10, 2-11, 
2-12, 2-13, 2-14, 2-15, 2-
16, 2-17, 2-18, 2-19, 2-
20, 2-22, 2-23, 2-24, 2-
29 
Governance 
Note 1 
CGR 
 
Organisational 
Model as per 
Legislative Decree 
231/2001 
Note 1 
Additional corporate 
governance 
practices 
Note 1 
Company  
policies, including 
due diligence 
procedures, 
outcomes and 
related key  
non-financial  
performance  
indicators  
Environment 
RO 
Strategy and outlook 
Sustainability 
Plan 
302-1,3, 303-1,2,3, 304-
1, 305-1,2,3,4,5,7, 306-
1,2,3, 308-1, 3-3 (for 
material topics, see the 
following table) 
Group’s results and 
financial position 
ESG 
performance 
indicators 
Planet 
Note 1 
Prosperity 
Supply chain 
value 
Social 
RO 
Strategy and outlook 
Sustainability 
Plan 
2-21, 2-25, 2-26, 2-27, 2-
28, 204-1, 207-1-2-3-4, 
416-1, 201-1, 3-3 (for 
material topics, see the 
following table) 
Prosperity 
Note 1 
Personnel 
RO 
Strategy and outlook 
Sustainability 
Plan 
2-7, 2-8, 201-3, 401-3, 
402,1, 405-1, 405-2,

Report on Operation at 31 December 2022 
177 
 
Legend 
 
Note 1: Whole chapter included in the NFS  
RO = Report on Operations 
 
CGR = Corporate Governance Report 2023 (fiscal year 2022) 
 
 
 
Group’s results and 
financial position 
ESG 
performance 
indicators 
403-1-2-3-4-5-6-7-9, 
401-1, 404-1, 404-2, 3-3 
(for material topics, see 
the following table) 
People 
Note 1 
Human rights 
RO 
Strategy and outlook 
Sustainability 
Plan 
2-30, 407-1, 414-1, 418-
1, 3-3 (for material 
topics, see the following 
table) 
People 
Respect for 
human rights 
Code of Ethics 
 
 
Corruption 
RO 
Strategy and outlook 
Sustainability 
Plan 
205-2, 205-3, 206-1, 
415-1, 3-3 (for material 
topics, see the following 
table) 
Governance 
Responsible 
business 
conduct 
CGR 
Additional corporate 
governance 
practices 
Note 1 
Anti-Corruption 
Code 
 
 
Main risks, 
generated or 
undergone, 
including their 
management, 
related to the 
abovementioned 
matters 
Environment, 
Social, 
Personnel, 
Human 
rights, 
Corruption 
RO 
Governance 
Risk 
management 
 
RO 
Profile 
Trend and 
vision to 2030 
Diversity in  
management  
and supervisory  
bodies 
 
RO 
Governance 
Corporate 
governance 
2-7, 2-8, 405-1 
People 
Enhancement 
of people and 
skills 
CGR 
Diversity criteria and 
policies 
Note 1

Report on Operation at 31 December 2022 
178 
 
Correlation table between material topics, Legislative Decree 254/2016 and GRI indicators  
Scope under Legislative Decree 254/2016 
Material topic 
Reference to GRI topics 
Environment 
Climate change, adaptation and mitigation 
GRI 302, GRI 305 
Sustainable supply chain 
GRI 308 
Natural resources management and conservation of 
ecosystems  
GRI 303, GRI 304, GRI 305 
Development of Earth observation technologies  
Non GRI topic 
Environmental impact of the use of materials 
GRI 301, GRI 306 
Citizen security  
Non GRI topic 
Social 
Solutions’ quality, security and performance 
GRI 416 
R&D, innovation and advanced technology 
GRI 201, GRI 203 
Cyber security and data protection  
GRI 418 
Sustainable supply chain 
GRI 204, GRI 407, GRI 414 
Citizens’ security 
Non GRI topic 
Customer intimacy  
GRI 416 
Digital transformation 
Non GRI topic 
Business continuity 
Non GRI topic 
Personnel 
Working conditions, health and safety 
GRI 403 
Diversity and inclusion 
GRI 201, GRI 401, GRI 402, 
GRI 405 
Skill management and talent attraction 
GRI 401, GRI 404 
Active support in developing skills in the STEM area 
GRI 404 
Human rights 
Diversity and inclusion  
GRI 405 
Sustainable supply chain 
GRI 204, GRI 308, GRI 407, 
GRI 414 
Corruption 
Sound Corporate Governance 
GRI 207, GRI 405 
Responsible and ethical business conduct 
GRI 205, GRI 206, GRI 415 
Diversity in management and supervisory 
bodies 
Sound Corporate Governance 
GRI 405

Report on Operation at 31 December 2022 
179 
 
 
INDEPENDENT AUDITORS' REPORTS ON THE NON-FINANCIAL STATEMENT AND ON THE 
SELECTION OF INDICATORS AT 31 DECEMBER 2022

Leonardo S.p.A. 
 
Independent auditor’s report on the consolidated disclosure 
of non-financial information in accordance with article 3, 
par. 10, of Legislative Decree December 30, 2016, n. 254 
and with article 5 of Consob Regulation adopted with 
Resolution n. 20267 of January 18, 2018  
 
Independent auditor’s report on a selection of indicators 
presented in the consolidated disclosure of non-financial 
information

EY S.p.A. 
Via Lombardia, 31 
00187 Roma 
Tel: +39 06 324751 
Fax: +39 06 324755504 
ey.com 
 
 
EY S.p.A. 
Sede Legale: Via Meravigli, 12 – 20123 Milano  
Sede Secondaria: Via Lombardia, 31 – 00187 Roma 
Capitale Sociale Euro 2.525.000,00 i.v. 
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi 
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 
Iscritta all’Albo Speciale delle società di revisione 
Consob al progressivo n. 2 delibera n.10831 del 16/7/1997 
 
A member firm of Ernst & Young Global Limited 
 
 
Independent auditor’s report on the consolidated disclosure of non-
financial information in accordance with article 3, par. 10, of Legislative 
Decree December 30, 2016, 254 and with article 5 of Consob 
Regulation adopted with Resolution n. 20267 of January 18, 2018 
 
(Translation from the original Italian text) 
 
To the Board of Directors of 
Leonardo S.p.A. 
 
We have been appointed to perform a limited assurance engagement pursuant to article 3, par. 10, of 
Legislative Decree December 30, 2016, n. 254 (hereinafter "Decree") and article 5 of Consob 
Regulation adopted with Resolution n. 20267 of January 18, 2018, on the consolidated disclosure of 
non-financial information of Leonardo S.p.A. and its subsidiaries (hereinafter "Group" or “Leonardo 
Group”) for the year ended December 31, 2022 in accordance with article 4 of the Decree, presented 
in the specific section of the Director’s Report of the Group’s consolidated financial statements and 
approved by the Board of Directors on March 9, 2023 (hereinafter "DNF"). 
 
Our limited assurance engagement does not cover the information included in the paragraph 
‘’Information on EU Taxonomy for sustainable activities’’ of the DNF, that are required by article 8 of 
the European Regulation 2020/852. 
 
Responsibilities of Directors and Board of Statutory Auditors for the DNF 
The Directors are responsible for the preparation of the DNF in accordance with the requirements of 
articles 3 and 4 of the Decree and the “Global Reporting Initiative Sustainability Reporting Standards” 
defined by GRI – Global Reporting Initiative (hereinafter “GRI Standards”), identified by them as a 
reporting standard. 
 
The Directors are also responsible, within the terms provided by law, for that part of internal control 
that they consider necessary in order to allow the preparation of the DNF that is free from material 
misstatements caused by fraud or not intentional behaviors or events. 
 
The Directors are also responsible for identifying the contents of the DNF within the matters 
mentioned in article 3, par. 1, of the Decree, considering the business and the characteristics of the 
Group and to the extent deemed necessary to ensure the understanding of the Group’s business, its 
performance, its results and its impact. 
 
The Directors are also responsible for defining the Group's management and organization business 
model, as well as with reference to the matters identified and reported in the DNF, for the policies 
applied by the Group and for identifying and managing the risks generated or incurred by the Group. 
 
The Board of Statutory Auditors is responsible, within the terms provided by the law, for overseeing 
the compliance with the requirements of the Decree.

2 
 
 
Auditor’s independence and quality control 
We are independent in accordance with the ethics and independence principles of the International 
Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA 
Code) issued by the International Ethics Standards Board for Accountants, based on fundamental 
principles of integrity, objectivity, professional competence and diligence, confidentiality and 
professional behavior. Our audit firm applies the International Standard on Quality Control 1 (ISQC 
Italia 1) and, as a result, maintains a quality control system that includes documented policies and 
procedures regarding compliance with ethical requirements, professional standards and applicable 
laws and regulations. 
 
Auditor’s responsibility 
It is our responsibility to express, on the basis of the procedures performed, a conclusion about the 
compliance of the DNF with the requirements of the Decree and of the GRI Standards. Our work has 
been performed in accordance with the principle of "International Standard on Assurance 
Engagements ISAE 3000 (Revised) - Assurance Engagements Other than Audits or Reviews of 
Historical Financial Information" (hereinafter "ISAE 3000 Revised"), issued by the International 
Auditing and Assurance Standards Board (IAASB) for limited assurance engagements. This principle 
requires the planning and execution of work in order to obtain a limited assurance that the DNF is free 
from material misstatements. Therefore, the extent of work performed in our limited assurance 
engagement was lower than that required for a full examination according to the ISAE 3000 Revised 
("reasonable assurance engagement") and, hence, it does not provide assurance that we have become 
aware of all significant matters and events that would be identified during a reasonable assurance 
engagement. 
 
The procedures performed on the DNF were based on our professional judgment and included 
inquiries, primarily with company’s personnel responsible for the preparation of the information 
included in the DNF, documents analysis, recalculations and other procedures aimed to obtain 
evidences considered appropriate. 
 
In particular, we have performed the following procedures: 
1. 
analysis of the relevant matters in relation to the activities and characteristics of the Group 
reported in the DNF, in order to assess the reasonableness of the selection process applied in 
accordance with the provisions of article 3 of the Decree and considering the reporting standard 
applied; 
2. 
analysis and evaluation of the criteria for identifying the consolidation area, in order to evaluate 
its compliance with the provisions of the Decree; 
3. 
comparison of the economic and financial data and information included in the DNF with those 
included in the Leonardo Group consolidated financial statements; 
4. 
understanding of the following aspects: 
o 
Group's management and organization business model, with reference to the management 
of the matters indicated in the article 3 of the Decree; 
o 
policies adopted by the Group related to the matters indicated in the article 3 of the Decree, 
results achieved and related key performance indicators; 
o 
main risks generated or suffered related to the matters indicated in the article 3 of the 
Decree. 
With regard to these aspects, we obtained the documentation supporting the information 
contained in the DNF and performed the procedures described in item 5. a) below.

3 
5. 
understanding of the processes that lead to the generation, detection and management of 
significant 
qualitative 
and 
quantitative 
information 
included 
in 
the 
DNF. 
In particular, we have conducted interviews and discussions with the management of Leonardo 
S.p.A. and with the personnel of Leonardo UK Ltd, Leonardo US Holding LLC, and Wytwornia 
Sprzetu Komunikacyjnego “PZL-Swidnik” Spolka Akcyjna and we have performed limited 
documentary evidence procedures, in order to collect information about the processes and 
procedures that support the collection, aggregation, processing and transmission of non-
financial data and information to the management responsible for the preparation of the DNF. 
Furthermore, for significant information, considering the Group activities and characteristics: 
- 
at group level 
a) 
with reference to the qualitative information included in the DNF, and in particular 
to the business model, policies implemented and main risks, we carried out inquiries 
and acquired supporting documentation to verify its consistency with the available 
evidences; 
b) 
with reference to quantitative information, we have performed both analytical 
procedures and limited assurance procedures to ascertain on a sample basis the 
correct aggregation of data. 
 
- 
for Leonardo S.p.A. (Cascina Costa site – Helicopters division), Leonardo UK Ltd 
(Edinburgh site – Electronics division - and Yeovil site - Helicopters division), Leonardo US 
Holding LLC (West Plains site – DRS), and Wytwornia Sprzetu Komunikacyjnego “PZL-
Swidnik” Spolka Akcyjna (Świdnik site – Helicopters division) that we have selected based 
on their activities, relevance to the consolidated performance indicators and location, we 
have carried out site visits and remote interviews during which we have had discussions 
with management and have obtained evidence about the appropriate application of the 
procedures and the calculation methods used to determine the indicators. 
 
Conclusion 
Based on the procedures performed, nothing has come to our attention that causes us to believe that 
the DNF of the Leonardo Group for the year ended on December 31, 2022 has not been prepared, in 
all material aspects, in accordance with the requirements of articles 3 and 4 of the Decree and the GRI 
Standards. 
 
Our conclusion on the DNF of the Leonardo Group do not refer to the information included in the 
paragraph ‘’Information on EU Taxonomy for sustainable activities’’ of the DNF itself, that are required 
by article 8 of the European Regulation 2020/852. 
 
Other aspects 
The DNF for the year ended on December 31, 2020, whose data are presented for comparative 
purpose, has been subjected to limited assurance procedures by another auditor, who expressed 
unqualified conclusion on March 11, 2021.   
 
Rome, March 16, 2023 
 
EY S.p.A. 
Signed by: Riccardo Rossi, Auditor 
 
This report has been translated into the English language solely for the convenience of international 
readers.

EY S.p.A. 
Via Lombardia, 31 
00187 Roma 
 
Tel: +39 06 324751 
Fax: +39 06 324755504 
ey.com 
 
 
EY S.p.A. 
Sede Legale: Via Meravigli, 12 – 20123 Milano  
Sede Secondaria: Via Lombardia, 31 – 00187 Roma 
Capitale Sociale Euro 2.525.000,00 i.v. 
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi 
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 
Iscritta all’Albo Speciale delle società di revisione 
Consob al progressivo n. 2 delibera n.10831 del 16/7/1997 
 
A member firm of Ernst & Young Global Limited 
 
Independent auditor’s report on a selection of indicators presented in 
the consolidated disclosure of non-financial information  
(Translation from the original Italian text) 
 
 
To the Board of Directors of 
Leonardo S.p.A. 
 
We have been appointed to perform a reasonable assurance engagement on a selection of indicators 
(hereinafter "Selection of Indicators") for the year ended December 31, 2022, presented in the 
consolidated disclosure of non-financial information of Leonardo S.p.A. and its subsidiaries 
(hereinafter "Group" or “Leonardo Group”) for the year ended December 31, 2022 (hereinafter 
‘’DNF’’), identified in the paragraph "Methodological Note of the NFS" of the DNF itself and reported in 
section “Auditor’s responsibility" of this report. 
 
 
Responsibilities of Directors for the Selection of Indicators 
The Directors are responsible for the preparation of the Selection of Indicators in accordance with the 
“Global Reporting Initiative Sustainability Reporting Standards” defined by GRI – Global Reporting 
Initiative (hereinafter “GRI Standards”), as reported in the paragraph "Methodological Note of the 
NFS" of the DNF. 
 
The Directors are also responsible for that part of internal control that they consider necessary in 
order to allow the preparation of the Selection of Indicators that are free from material misstatements 
caused by fraud or not intentional behaviors or events. 
 
Auditor’s independence and quality control 
We are independent in accordance with the ethics and independence principles of the International 
Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA 
Code) issued by the International Ethics Standards Board for Accountants, based on fundamental 
principles of integrity, objectivity, professional competence and diligence, confidentiality and 
professional behavior.  
Our audit firm applies the International Standard on Quality Control 1 (ISQC Italia 1) and, as a result, 
maintains a quality control system that includes documented policies and procedures regarding 
compliance with ethical requirements, professional standards and applicable laws and regulations. 
 
Auditor’s responsibility 
It is our responsibility to express, on the basis of the procedures performed, an opinion about the 
compliance of the Selection of Indicators with the requirements of the GRI Standards. Our work has 
been performed in accordance with the criteria of the principle "International Standard on Assurance 
Engagements ISAE 3000 (Revised) - Assurance Engagements Other than Audits or Reviews of 
Historical Financial Information" (hereinafter "ISAE 3000 Revised"), issued by the International 
Auditing and Assurance Standards Board (IAASB) for reasonable assurance engagements. This 
principle requires the planning and execution of work in order to obtain a reasonable assurance that 
the Selection of Indicators are free from material misstatements.

2 
 
As part of our engagement, we have carried out procedures aimed at obtaining evidence on the data 
and information included in the Selection of Indicators. The procedures defined are based on the 
auditor’s professional judgment, including the assessment of the risks of material misstatement, 
whether due to fraud or error. In performing these risk assessment procedures, the auditor considers 
the internal control related to the Selection of Indicators in order to design assurance procedures that 
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 
effectiveness of the Group’s internal control.  
 
In particular, we have performed the following procedures: 
• 
conducted interviews with relevant personnel to understand the business and reporting 
processes, including sustainability objectives, principles and management aspects related to 
the Selection of Indicators; 
• 
conducted interviews with key personnel to understand the sustainability reporting system 
during the reporting period, including the process for collecting, collating and reporting the 
Selection of Indicators; 
• 
checked that the calculation criteria have been correctly applied in accordance with the 
methodologies outlined by the GRI Standards; 
• 
undertook analytical review procedures to support the reasonableness of the data; 
• 
identified and testing assumptions supporting calculations; 
• 
tested, on a sample basis, underlying source information to check the accuracy of the data; 
• 
inspected relevant documentation of the systems and processes for compiling, analyzing, and 
aggregating data in the reporting period and testing such documentation on a sample basis; 
• 
performing site visits to visually inspect operations and perform inquiries and inspect 
documents on a sample basis. 
 
Below is reported the Selection of Indicators on which a reasonable assurance engagement has been 
performed: 
• GRI 302-1: Energy consumption within the organization; 
• GRI 302-3: Energy intensity – (measured on consolidated revenues); 
• GRI 303-3: Water withdrawal; 
• GRI 305-1: Direct (Scope 1) GHG emissions; 
• GRI 305-2: Energy indirect (Scope 2) GHG emissions; 
• GRI 305-4: GHG emissions intensity – (measured on consolidated revenues); 
• GRI 306-3: Waste generated; 
• GRI 401-1: New employee hires and employee turnover (including hires of women with STEM 
degree); 
• GRI 403-9: Work-related injuries; 
• GRI 404-1: Average hours of training per year per employee; 
• GRI 405-1: Diversity of governance bodies and employees. 
 
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our 
opinion. 
 
Opinion 
In our opinion the Selection of Indicators for the year ended December 31, 2022, presented in the 
DNF of the Group, identified in the paragraph "Methodological Note of the NFS" of the DNF itself and 
reported in section “Auditor’s responsibility" of this report have been prepared, in all material aspects, 
in accordance with the GRI Standards.  
 
Rome, March 16, 2023 
 
EY S.p.A. 
Signed by: Riccardo Rossi, Auditor 
 
This report has been translated into the English language solely for the convenience of international 
readers.

Report on Operation at 31 December 2022 
180 
 
PART 3 – OTHER INFORMATION OF THE REPORT ON OPERATIONS

Report on Operation at 31 December 2022 
181 
 
PERFORMANCE OF THE PARENT COMPANY 
The KPIs for the period and the main changes that characterised the Parent Company’s performance 
compared to 2021 are reported below. 
2021 
2022 
% Change 
New orders 
9,206 
9,060
(1.6%) 
Order backlog 
26,480 
25,866
(2.3%) 
Revenues 
9,332 
9,556
2.4% 
EBITDA 
823 
968
17.6% 
EBITA 
437 
525
20.1% 
EBITA Restated (*) 
388 
525
35.3% 
ROS 
4.7% 
5.5% 
0.8 p.p. 
ROS Restated (*) 
4.2% 
5.5% 
1.3 p.p. 
EBIT 
306 
354
15.7% 
EBIT Margin 
3.3% 
3.7% 
0.4 p.p. 
Net result before extraordinary transactions 
177 
1,701
861.0% 
Net result 
177 
1,701
861.0% 
Net Debt 
4,237 
4,442
4.8% 
FOCF 
104 
484
365.4% 
ROI 
4.4% 
4.7% 
0.3 p.p. 
Workforce 
29,739 
30,457
2.4% 
  
 
(*) EBITA and ROS have been restated to include charges related to the COVID emergency, which until the 2021 financial statements were excluded 
from these indicators as they were classified as 'non-recurring charges'(€mil. 49 in 2021). 
 
For the definition of indices, reference should be made to the paragraph “Non-GAAP” alternative performance indicators”. 
 
The performance of Leonardo S.p.a.’s key indicators in 2022 confirmed the forecasts of a recovery in growth 
reported in the financial statements as at 31 December 2021, showing an improvement in the Company's 
industrial performance in 2022 despite significant inflationary phenomena and trends in energy and raw 
material costs. 
The volume of new orders stood at excellent levels, with Revenues rising in all the main Business areas, with 
the exception of the civil aviation component. 
In particular: 
• 
The volume of new orders, equal to €mil. 9,060, despite the slight decrease of 1.6 % compared to 
2021, confirms the good competitive positioning of the Company's products and solutions; 
• 
revenues of €mil. 9,556 showed, compared to 2021 (€mil. 9,332), an increase of 2.4%, mainly thanks 
to the performance of the Helicopters segment; 
• 
EBITA, equal to €mil. 525, showed an increase of €mil. 88 (20.1%) compared to the comparison 
period. Operating profitability stood at 5.5% and showed a percentage increase of 0.8% compared 
to 2021; 
• 
EBIT, equal to €mil. 354, showed, compared to 2021, an increase of €mil. 48, benefitting from 
improved EBITA and being affected by restructuring charges higher than in 2021, including estimated 
charges in connection with signing the agreement for early retirement for the workforce in the 
Corporate and Staff functions on a National basis. The 2021 figure, on the other hand, mainly 
included the effect of agreements for early retirement on a voluntary basis for the workforce in the 
Aerostructures Division; 
• 
the net result, amounting to €mil. 1,701 (€mil. 177 at 31 December 2021) benefitted from improved 
EBIT, in particular for the write-back of the investment in the US subsidiary Leonardo US Holding 
stated among financial income following the transaction to restructure the Leonardo Group's

Report on Operation at 31 December 2022 
182 
 
investments in the United States through subsidiary Leonardo US Holding LLC, the project of which 
is described in detail in Note 5 to the separate financial statements.  
Reclassified income statement 
Note 
2021 
2022 
 
Change 
 
% Change 
(€ millions) 
 
 
Revenues 
9,332 
9,556
224
2.4% 
Purchase and personnel expenses 
(*) 
(8,409) 
(8,505)
 
Other net operating income(expenses) 
(**) 
(100) 
(83)
 
Amortisation, depreciation and write-offs 
(***) 
(386) 
(443)
 
EBITA 
437 
525
88
20.1% 
ROS 
4.7% 
5.5%
0.8 p.p.
 
Non-recurring income/(expenses) 
(49) 
(61)
 
Restructuring costs 
 
(80) 
(108)
 
Amortisation of intangible assets acquired as part of 
business combinations 
 
(2) 
(2)
 
EBIT 
306 
354
48
15.7% 
EBIT Margin 
3.3% 
3.7%
0.4 p.p.
 
Net financial income (expense) 
(****) 
(93) 
1,416
 
Income taxes 
 
(36) 
(69)
 
Net result 
177 
1,701
1,524
861.0% 
 
Notes to the reconciliation between the reclassified income statement and the statutory income statement: 
(*)         Includes “Purchases and Personnel expense” (excluding restructuring costs and non-recurring costs) and “Accruals (reversals) for onerous contracts 
(losses at completion)”; 
(**)   Includes the net amount of “Other operating income” and “Other operating expenses” (excluding restructuring costs, non-recurring income/(expense) 
and accruals (reversals) for onerous contracts (losses at completion); 
(***)   Includes “Amortisation, depreciation and impairment losses and value adjustments to financial assets”, excluding the amortisation charge referable 
to intangible assets acquired as part of business combinations, goodwill impairment and write-downs regarded as “Non-recurring costs”; 
(****) Includes “Financial income”, “Financial expense” (net of the gains and losses relating to extraordinary transactions). 
 
 
Financial performance 
FOCF equal to €mil. 484 showed a significant improvement compared to 2021 (€mil. 380), confirming the 
positive trend recorded throughout 2022. 
Reclassified cash flow statement 
(€ millions) 
Note 
2021 
2022 
 
Change 
 
% Change 
Cash flows generated/(used) from operating activities 
(*) 
408 
821
 
Dividends received 
 
63 
131
 
Cash flows from ordinary investing activities 
(**) 
(367) 
(468)
 
Free Operating Cash Flow (FOCF) 
 
104 
484
380  
365.4%
 
 
 
Strategic transactions 
(***) 
(3) 
(616)
 
Change in other investing activities 
(****) 
(326) 
141
 
Net change in loans and borrowings 
 
431 
(766)
 
Dividends paid 
 
- 
(79)
 
Net increase (decrease) in cash and cash equivalents 
 
206 
(836)
 
 
 
 
Cash and cash equivalents at 1 January 
 
1,663 
1,875
 
Exchange rate differences and other changes 
 
6 
1
 
Cash and cash equivalents at 31 December 
 
1,875 
1,040
 
  
Notes on the reconciliation between the reclassified cash flow and the statutory cash flow: 
(*)             Includes “Cash flows generated from (used in) operating activities”, excluding debt payments pursuant to Law 808/1985; 
(**)         Includes “Cash flows generated from (used in) investing activities”, including debt payments under Law 808/1985 and net of dividends 
collected ;  
(***)        Includes “Other investing or divestment activities” classified as “Strategic transactions”;

Report on Operation at 31 December 2022 
183 
 
(****)     Includes “Other investing or divestment activities”, excluding dividends collected. 
 
 
 
Reclassified statement of financial position 
(€ millions) 
Note 
31 December 2021 
 
31 December 2022 
 
 
 
 
Non-current assets 
 
12,967  
15,342
Non-current liabilities 
 
(1,657)  
(1,745)
Capital assets 
(*) 
11,310  
13,597
 
 
Inventories 
(**) 
68  
(421)
Trade receivables 
 
2,985  
3,140
Trade payables 
 
(2,742)  
(2,475)
Working capital 
 
311  
244
Provisions for short-term risks and charges 
 
(850)  
(786)
Other net current assets (liabilities) 
(***) 
(735)  
(954)
Net working capital 
 
(1,274)  
(1,496)
 
 
Net invested capital 
 
10,036  
12,101
 
 
Equity 
 
6,036  
7,659
 
 
Net Debt 
 
4,237  
4,442
 
 
Net (assets)/liabilities held for sale 
(****) 
(237)  
-
 
Notes to the reconciliation between the reclassified and the statutory statements of financial position: 
(*)           Includes all non-current assets and all non-current liabilities, excluding “Non-current loans and borrowings” and the main non-current 
financial receivables. 
(**)         Includes “Inventories”, “Contract Assets” and “Contract Liabilities”. 
(***)      Includes “Income tax receivables” and “Other current assets” (excluding “Hedging derivatives in respect of debt items”), net of “Income tax 
payables” and “Other current liabilities” (excluding “Hedging derivatives in respect of debt items”). 
(****)   Includes the net amount of “Non-current assets held for sale” and “Liabilities associated with assets held for sale”.

Report on Operation at 31 December 2022 
184 
 
The Company's net debt as of 31 December 2022, which, we recall, was affected by the acquisition of the 
25.1% stake in the German company Hensoldt AG (€mil.616), stood at €mil. 4,442  increasing by 4.84 % 
(€mil.4,237 as at 31 December 2021) and breaks down as follows: 
 
(€ millions) 
31 December 2021 of which current 
31 December 2022 of which current 
 
 
 
 
Bonds 
2,208 
619
1,628 
36 
Bank debt 
1,648 
49
1,103 
22 
Cash and cash equivalents 
(1,875) 
(1,875)
(1,040) 
(1,040) 
Net bank debt and bonds 
1,981 
1,691 
 
 
 
 
Current loans and receivables from related parties 
(63) 
(63)
(277) 
(277) 
Other current loans and receivables 
(14) 
(14)
(49) 
(49) 
Current loans and receivables and securities 
(77) 
(326) 
 
 
 
 
Forex derivatives covering debt items 
(8) 
19 
 
Non current financial receivables from Group's  
consolidated entities 
(430) 
(75) 
 
Related-parties loans and borrowings 
2,148 
1,994
2,387 
2,230 
Lease liabilities from related parties 
437 
119
580 
107 
Lease liabilities 
100 
25
81 
19 
Other financial debts 
86 
29
85 
26 
Net Debt 
4,237 
4,442 
 
  
The reconciliation with the net financial position required by CONSOB Communication no DEM/6064293 of 28 July 2006, updated by the provisions of 
ESMA Guideline 32-382-1138 of 4 March 2021 as implemented by CONSOB warning notice no. 5/21 of 29 April 2021, is provided in Note 21. 
 
Net debt increased by €mil. 205 despite the significant improvement in bank debt, mainly due to a decrease 
in financial receivables from related parties with the simultaneous increase in borrowings (see Note 34). 
As detailed in Note 5 to the separate financial statements, to which reference should be made, “Bonds” 
showed a reduction as a result of the repayment of the bonded loan amounting to €mil. 556, which reached 
its natural expiry in January 2022. “Bank debt” equal to €mil. 1,103 decreased, compared to 2021, by €mil. 
545 and included the early repayment of the Term Loan of €mil. 500 signed in 2018 and maturing in 2023; 
vice versa, cash and cash equivalents decreased by €mil. 835 compared to 2021.  
As at 31 December 2022 Leonardo S.p.A. had cash resources available for a total of about €mil. 4,210 (entirely 
unused at 31 December 2022) to meet the financing needs of the Group’s recurring operations, broken down 
as follows: 
• 
an ESG-linked Revolving Credit Facility totalling €mil. 2,400, divided into two tranches; 
• 
additional unconfirmed short-term lines of credit of about €mil. 810; 
• 
a Framework Programme for the issuance of Multi-Currency Commercial Papers on the European 
market, for a maximum amount of €bil. 1. 
Furthermore, Leonardo has unconfirmed lines of credit for guarantees for a total €mil. 9,678, €mil. 2,513 of 
which was available at 31 December 2022. 
 
Below are reported the statements of reconciliation between the line items of the reclassified statements 
with the statutory financial statements for financial year 2022 of Leonardo Spa.

Report on Operation at 31 December 2022 
185 
 
(€ millions) 
Scheme 
 
PPA 
amortization 
Restructuration and 
non recurring costs 
Onereous 
contracts (losses 
at completion) 
 Reclassified 
scheme 
Revenues 
9,556
 
 
 
9,556 
Purchase and personnel expenses 
(8,674)
 
 
110
59
 
(8,505) 
Other net operating income/(expenses) 
(25)
 
 
1
(59)
 
(83) 
Amortisation, depreciation and write-offs 
(503)
 
2 
58
 
(443) 
EBITA 
 
 
 
525 
Non-recurring income/(charges) 
 
 
(61)
 
(61) 
Restructuring costs 
 
 
(108)
 
(108) 
Amortisation of intangible assets acquired 
as part of business combinations 
 
(2) 
 
(2) 
EBIT 
 
 
 
354 
Net financial income (expense) 
1,416
 
 
 
1,416 
Income taxes 
(69)
 
 
 
(69) 
Net result 
1,701
 
 
 
1,701 
    
(€ millions) 
Scheme 
Financial 
receivables and 
cash 
Financial payables 
Hedging 
derivatives on 
debt items 
Reclassified 
scheme 
 
 
 
 
 
 
Non-current assets 
15,417
(75) 
15,342
Non-current liabilities 
(5,170)
 
3,425
(1,745)
Capital assets 
 
13,597
Current assets 
11,339
(1,366) 
19
9,992
Current liabilities 
(13,927)
 
2,439
(11,488)
Net working capital 
 
(1,496)
 
 
Total equity 
7,659
 
7,659
 
 
Net Debt 
(1,441) 
5,864
19
4,442

Report on Operation at 31 December 2022 
186 
 
(€ millions) 
Scheme 
Dividends 
received 
Cash out from Law no. 
808/85 payables 
Strategic 
investments 
Reclassified 
scheme 
 
 
 
 
Cash flows generated/(used) from 
operating activities 
821
 
821 
Dividends received 
131 
131 
Investments in property, plant and 
equipment and intangible assets 
471
 
 
Sales of property, plant and equipment 
and intangible assets 
(3)
 
 
Cash flows from ordinary investing 
activities 
(468)
 
(468) 
Free Operating Cash Flow (FOCF) 
 
484 
Strategic transactions 
 
(616)
(616) 
Other investing activities 
(344)
(131) 
616
141 
Cash flows generated (used) from 
investing activities 
(812)
 
 
Bond buy repayments 
(556)
 
 
Net change in other loans and borrowings 
(210)
 
 
Net change in loans and borrowings 
(766)
 
(766) 
Dividends paid 
(79)
 
(79) 
Cash flows generated (used) from 
financing activities 
(836)
 
(836) 
 
 
Net increase (decrease) in cash and cash 
equivalents 
(836)
 
(836) 
Exchange rate differences and other 
changes 
1
 
1 
Cash and cash equivalents at 1 January 
1,875
 
1,875 
Cash and cash equivalents at 31 
December 
1,040
 
1,040 
  
 
THE PARENT COMPANY’S OFFICES 
The Parent Company’s offices are: 
• 
Registered Office: Rome, Piazza Monte Grappa, 4 
• 
Secondary office: Genoa, Corso Perrone, 118

Report on Operation at 31 December 2022 
187 
 
RECONCILIATION OF NET PROFIT AND SHAREHOLDERS' EQUITY OF THE GROUP PARENT 
WITH THE CONSOLIDATED FIGURES AT 31 DECEMBER 2022 
 
2022 
(€ millions) 
Equity 
of which: Net profit 
(loss) for the year 
Group Parent equity and net profit (loss) 
7,659 
1,701 
 
 
Excess of shareholders’ equities in the annual financial statements compared with the 
carrying amounts of the equity investments in consolidated companies 
(3,995) 
1,840 
 
 
Consolidation adjustments for: 
 
 
- difference between purchase price and corresponding book equity 
3,630 
- 
- elimination of intercompany profits 
68 
(1,954) 
- dividends from consolidated companies 
- 
(660) 
- Translation differences 
(179) 
- 
 
 
Group equity and net profit (loss) 
7,183 
927 
 
 
Non-controlling interests 
516 
5 
 
 
Total consolidated equity and net profit (loss) 
7,699 
932

Report on Operation at 31 December 2022 
188 
 
PROPOSAL TO THE SHAREHOLDERS' MEETING 
Dear Shareholders, 
 
The 2022 financial statements, which we submit for your approval, close with a net profit of 
€1,700,507,630.03 . In light of the foregoing, we submit the following proposed resolution for your approval: 
 
“The Ordinary Shareholders’ Meeting of LEONARDO - Società per azioni: 
− considering the Report of the Board of Directors; 
− considering the Report of the Board of Statutory Auditors; 
− having examined the financial statements at 31 December 2022; 
− having acknowledged the report of EY S.p.A. 
 
resolves 
 
− to approve the Directors’ Report on operations and the financial statements at 31 December 2022; 
− to approve the proposal posed by the Board of Directors of allocating the profit of 
€1,700,507,630.03  for the 2022 financial year as follows: 
− as to €85,025,381.50, equal to 5% of the profit, to legal reserve; 
− as to €0.14, on account of dividend, by paying it, including any withholding prescribed by law, as from 
24 May 2023, with "detachment date" of coupon no. 13 falling on 22 May 2023 and "record date" 
(i.e. date on which the dividend is payable, pursuant to Art.83-terdecies of Legislative Decree no. 58 
of 24 February 1998 and Art. 2.6.6, paragraph 2, of the Regulations for the Markets organised and 
managed by Borsa Italiana S.p.A.) falling on 23 May 2023; the above provisions refer to each ordinary 
share that will be outstanding at the detachment date of the coupon, excluding treasury shares in 
portfolio at that date, without prejudice to the regime of those that will be actually awarded, under 
the current incentive plans, during the current financial year. 
− with regard to the remaining amount, to retained earnings.” 
 
 
For the Board of Directors 
The Chairman

Consolidated Financial Statements at 31 December 2022 
 
189 
 
CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2022

Consolidated Financial Statements at 31 December 2022 
 
190 
 
CONSOLIDATED ACCOUNTING STATEMENTS  
Consolidated separate income statements 
 
(€ millions) 
Note 
2021 
of which 
with 
related 
parties 
 
2022 
of which 
with 
related 
parties 
 
 
 
Revenues 
27 
14,135
1,818  
14,713
2,187 
Other operating income 
28 
573
5  
775
4 
Purchase and personnel expenses 
29 
(12,770)
(1,134)  
(13,154)
(1,478) 
Amortisation, depreciation and financial assets value adjustments 
30 
(525)
 
(627)
 
Other operating expenses 
28 
(626)
-  
(878)
- 
Income before tax and financial expenses 
 
787
 
829
 
 
 
 
Financial income 
31 
137
1  
392
1 
Financial expenses 
31 
(309)
(4)  
(380)
(9) 
Share of profits/(losses) of equity-accounted investees 
12 
138
 
142
 
Operating profit (loss) before income taxes and discontinued operations 
 
753
 
983
 
 
 
 
Income taxes 
32 
(166)
 
(51)
 
Profit (loss) from discontinued operations 
33 
-
 
-
 
Net profit/(loss) for the period attributable to: 
 
587
 
932
 
- owners of the parent 
 
586
 
927
 
- non-controlling interests 
 
1
 
5
 
 
 
 
Earnings/(losses) per share 
34 
1.019
 
1.611
 
- basic and diluted from continuing operations 
 
1.019
 
1.611
 
- basic and diluted from discontinued operations 
n.a
 
n.a

Consolidated Financial Statements at 31 December 2022 
 
191 
 
Consolidated statement of comprehensive income 
 
(€ millions) 
Note 
2021 
 
2022 
 
 
 
 
 
Profit (loss) for the period 
 
587  
932 
 
 
 
Other comprehensive income (expenses): 
 
 
 
Comprehensive income/expense which will not be subsequently reclassified 
within the profit (loss) for the period: 
 
 
 
- Measurement of defined-benefit plans: 
20 
305  
(324) 
- revaluation 
 
293
 
(304)
 
- exchange rate gains (losses) 
 
12
 
(20)
 
 
 
 
- Tax effect 
20 
(91)  
88 
 
214  
(236) 
Comprehensive income/expense which will or might be subsequently 
reclassified within the profit (loss) for the period: 
 
 
 
- Changes in cash flow hedges: 
20 
(61)  
(24) 
- change generated in the period 
 
(90)
 
(44)
 
- transferred to the profit (loss) for the period 
 
28
 
20
 
- exchange rate gains (losses) 
 
1
 
 
 
 
 
- Translation differences 
20 
327  
12 
- change generated in the period 
 
327
 
12
 
- transferred to the profit (loss) for the period 
 
-
 
-
 
 
 
 
- Tax effect and other movements 
20 
14  
6 
 
280  
(6) 
 
 
 
Current portion of “Other comprehensive income (expenses)”, equity-
accounted investees 
 
73  
130 
 
 
 
Total other comprehensive income (expense), net of tax: 
 
567  
(112) 
 
 
 
Total comprehensive income (expense), attributable to: 
 
1,154  
820 
-   Owners of the parent 
 
1,153  
815 
-   Non-controlling interests 
 
1  
5 
 
 
 
Total comprehensive income (expense), attributable to Owners of the 
parent 
 
1,153  
815 
- from continuing operations 
 
1,153  
815 
- from discontinued operations 
 
-  
-

Consolidated Financial Statements at 31 December 2022 
 
192 
 
Consolidated statement of financial position 
 
(€ millions) 
Note 
31 December 
2021 
of which 
with 
related 
parties 
 
31 December 
2022 
of which 
with 
related 
parties 
 
 
 
 
Intangible assets 
9 
7,079 
7,410 
 
Property, plant and equipment 
10 
2,122 
2,368 
 
Investment property 
 
46 
49 
 
Right of use 
11 
530 
536 
 
Investments accounted for under equity method 
12 
1,319 
2,099 
 
Receivables 
13 
619 
13
276 
13 
Deferred tax assets 
32 
1,035 
1,133 
 
Other non-current assets 
13 
60 
-
72 
- 
Non-current assets 
 
12,810 
13,943 
 
 
 
 
 
Inventories 
15 
5,486 
5,338 
 
Contract assets 
16 
3,748 
3,652 
 
Trade receivables 
17 
3,203 
640
3,338 
720 
Income tax receivables 
 
86 
60 
 
Loans and receivables 
17 
61 
45
105 
56 
Other assets 
18 
489 
6
598 
3 
Cash and cash equivalents 
19 
2,479 
1,511 
 
Current assets 
 
15,552 
14,602 
 
 
 
 
 
Non-current assets held for sale 
33 
17 
37 
 
 
 
 
 
Total assets 
 
28,379 
28,582 
 
 
 
 
 
Share capital 
20 
2,499 
2,499 
 
Other reserves 
3,929 
4,684 
 
Equity attributable to the owners of the parent 
 
6,428 
7,183 
 
Equity attributable to non-controlling interests 
 
27 
516 
 
Total equity 
 
6,455 
7,699 
 
 
 
 
 
Borrowings (non-current) 
21 
4,112 
126
3,531 
120 
Employee benefits 
23 
362 
315 
 
Provisions for risks and charges 
22 
583 
752 
 
Deferred tax liabilities 
32 
340 
246 
 
Other non-current liabilities 
24 
931 
-
861 
- 
Non-current liabilities 
 
6,328 
5,705 
 
 
 
 
 
Contract liabilities 
16 
7,942 
8,015 
 
Trade payables 
25 
3,372 
347
3,054 
317 
Borrowings (current) 
21 
1,558 
760
1,082 
866 
Income tax payables 
 
44 
127 
 
Provisions for short-term risks and charges 
22 
1,111 
1,078 
 
Other current liabilities 
24 
1,569 
12
1,810 
47 
Current liabilities 
 
15,596 
15,166 
 
 
 
 
 
Liabilities associated with assets held for sale 
33 
- 
12 
 
 
 
 
 
Total liabilities 
 
21,924 
20,883 
 
Total liabilities and equity 
 
28,379 
28,582

Consolidated Financial Statements at 31 December 2022 
 
193 
 
Consolidated statement of cash flows 
 
(€ millions) 
Note 
2021 
of which 
with 
related 
parties 
2022 
of which 
with 
related 
parties 
 
Gross cash flows from operating activities 
35 
1,623
1,883
Change in trade receivables/payables, contract assets/liabilities 
and inventories 
35 
(643)
1
(239)
(89)
Change in other operating assets and liabilities and provisions for 
risks and charges 
35 
(2)
78
(265)
46
Interest paid 
 
(183)
(3)
(169)
(8)
Income taxes received/(paid) 
 
(53)
-
(58)
-
Cash flows generated (used) from operating activities 
 
742
1,152
 
Investments in property, plant and equipment and intangible 
assets 
 
(615)
(762)
Sales of property, plant and equipment and intangible assets 
 
19
16
Other investing activities 
 
55
-
(45)
-
Cash flows generated (used) from investing activities 
 
(541)
(791)
 
BEI Loan and term loan subscription 
 
800
-
BEI Loan and Term Loan repayment 
 
-
(547)
Bond redemption 
 
(739)
(841)
Net change in other borrowings 
 
(31)
73
66
84
Dividends paid 
 
-
(80)
Cash flows generated (used) from financing activities 
 
30
(1,402)
 
Net increase (decrease) in cash and cash equivalents 
 
231
(1,041)
Exchange rate differences and other changes 
 
35
73
Cash and cash equivalents at 1 January 
 
2,213
2,479
 
Cash and cash equivalents at 31 December 
 
2,479
1,511

Consolidated Financial Statements at 31 December 2022 
 
194 
 
Consolidated statement of changes in equity 
 
(€mil.) 
Share 
capital 
Retained 
earnings 
Cash flow 
hedge 
reserve 
Revaluation 
reserve of 
defined-benefit 
plans 
Translatio
n reserve 
Equity 
attributable 
to owners of 
the parent 
Non-
controlli
ng 
interests 
Total 
equity 
 
1 January 2021 
2,498
3,574
5 
(212)
(598)
5,267
11
5,278
 
Profit (loss) for the period 
-
586
- 
586
1
587
Other comprehensive income 
(expenses) 
-
18
(58) 
267
340
567
-
567
Total comprehensive income 
(expenses) 
-
604
(58) 
267
340
1,153
1
1,154
 
Dividends resolved 
-
 
-
-
-
Repurchase of treasury shares less 
shares sold 
1
 
1
1
Total transactions with owners of the 
parent, recognised directly in equity 
1
-
- 
-
-
1
-
1
 
Other changes 
-
7
 
7
15
22
 
31 December 2021 
2,499
4,185
(53) 
55
(258)
6,428
27
6,455
 
 
1 January 2022 
2,499
4,185
(53) 
55
(258)
6,428
27
6,455
 
Profit (loss) for the period 
-
927
- 
927
5
932
Other comprehensive income 
(expenses) 
-
(13)
(22) 
(93)
16
(112)
-
(112)
Total comprehensive income 
(expenses) 
-
914
(22) 
(93)
16
815
5
820
 
Dividends resolved 
(79)
 
(79)
(1)
(80)
Repurchase of treasury shares less 
shares sold 
 
-
-
Total transactions with owners of the 
parent, recognised directly in equity 
-
(79)
- 
-
-
(79)
(1)
(80)
 
Changes in ownership interests in 
subsidiaries that do not result in a 
loss of control 
(68)
 
13
67
12
475
487
Other changes 
23
1 
(13)
(4)
7
10
17
 
31 December 2022 
2,499
4,975
(74) 
(38)
(179)
7,183
516
7,699

Consolidated Financial Statements at 31 December 2022 
 
195 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2022 
 
1. 
GENERAL INFORMATION 
Leonardo S.p.A. (hereinafter also “the Company”) is a company limited by shares based in Rome (Italy), at 
Piazza Monte Grappa 4, and is listed on the Italian Stock Exchange (FTSE MIB). 
The Leonardo Group (hereinafter also “the Group”) is a major Italian high technology organization operating 
in the Helicopters, Defence Electronics and Security, Aircraft, Aerostructures and Space sectors. 
2. 
FORM, CONTENT AND APPLICABLE ACCOUNTING STANDARDS 
In application of EU Regulation 1606/2002 of 19 July 2002 and of Legislative Decree 38 of 28 February 2005, 
the consolidated financial statements of the Leonardo Group were prepared in accordance with the 
international accounting standards (IFRS) endorsed by the European Commission, supplemented by the 
relevant interpretations (Standing Interpretations Committee - SIC and International Financial Reporting 
Interpretations Committee - IFRIC) issued by the International Accounting Standard Board (IASB) and in force 
at the year-end. 
The general principle used in preparing these consolidated financial statements is the historical cost method, 
except for those items that, in accordance with IFRS, are obligatory recognised at fair value, as indicated in 
the valuation criteria of each item. 
The consolidated financial statements are composed of the consolidated separate income statement, the 
consolidated statement of comprehensive income, the consolidated statement of financial position, the 
consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes 
to the financial statements.  
Among the options permitted by IAS 1, the Group has chosen to present its balance sheet by separating 
current and non-current items and its income statement by the nature of its costs. Instead, the statement of 
cash flows was prepared using the indirect method.  
The International Financial Reporting Standards (IFRS) used for preparing these consolidated financial 
statements are the same that were used in the preparation of the consolidated financial statements at 31 
December 2021 except for what indicated below (Note 5).  
All figures are shown in millions of euros unless otherwise indicated. 
Preparation of the consolidated financial statements under the going-concern assumption required 
management to make certain evaluations and estimates. The main areas affected by estimates or 
assumptions of particular importance or that have significant effects on the balances shown are described in 
Note 4. 
The consolidated financial statements at 31 December 2022 of the Leonardo Group were approved by the 
Board of Directors on 9 March 2023 that authorised their distribution. Publication is scheduled for the same 
day. 
The consolidated financial statements are subject to a statutory audit by EY SpA.

Consolidated Financial Statements at 31 December 2022 
 
196 
 
3. 
ACCOUNTING POLICIES 
3.1 Standards and scope of consolidation 
The consolidated financial statements include the statements at 31 December 2022 of companies 
consolidated on a line-by-line basis, which have been prepared in accordance with the IFRSs as applied within 
the Leonardo Group. The consolidated entities and the respective shares held either directly or indirectly by 
the Group are reported in the attachment “Scope of consolidation”.  
Subsidiaries  
The entities over which Leonardo exercises a controlling power, either by directly or indirectly holding a 
majority of shares with voting rights or by exercising the right to earn the variable profits deriving from its 
relations with those same entities, impacting on such profits and exercising its power on the company, also 
regardless of the nature of the shareholding, have been consolidated on a line-by-line basis. With regard to 
the activities of the Group in the USA, it is noted that some of them are subject to specific governance rules 
(such as the Special Security Agreement and the Proxy Agreement), which were agreed with the Defense 
Counterintelligence and Security Agency (“DCSA”) of the US Department of Defense (in charge of the 
protection of information related to the national security or, however, subject to special confidentiality 
restrictions). In particular, the Leonardo DRS group is managed through a Proxy Agreement, which provides 
for the appointment by Leonardo US Holding (the parent company of Leonardo DRS) – after consultation 
with Leonardo S.p.A. - of the US Proxy Holders subject to the approval of the DCSA. These Proxy Holders (with 
US nationality and residence, security clearance and independent with respect to Leonardo DRS and the 
Leonardo Group), besides acting as the directors of the company, together with Non-Proxy Holders directors 
(including the CEO) appointed by them according to the designation by Leonardo US Holding, are also entitled 
to vote on behalf of the latter, in the context of a trust relationship on whose basis their activity must protect, 
on one hand, the legitimate interest of the shareholders, and, on the other hand, the need for national 
security in the United States. The Proxy Holders are always in a number greater than the Non-proxy Holders 
and cannot be discharged by the shareholder, except in case of fraud or gross negligence or, subject to the 
approval of the DCSA, if their conduct infringes the principle of preservation of Leonardo DRS assets and the 
legitimate interests of the shareholders. Moreover, the Proxy Holders are committed to implementing 
specific governance procedures in order (i) to guarantee shareholders their rights and an adequate flow of 
information, above all with regard to the results of operations and financial data, with the consent of the 
DCSA and in compliance with the restrictions under the Proxy Agreement in relation to “classified” 
information, as well as (ii) to protect the management against any possible influence exercised by the foreign 
partner as to “sensitive” information. On the contrary, the decisions on M&A transactions and the transfer 
of intellectual property rights, as well as extraordinary debt assumption and intercompany business 
reorganisations are the direct competence of the shareholder.  
Not consolidated on a line-by-line basis are those entities which, because of the dynamics of their operations 
(e.g. consortia without shares and controlling interests in equity consortia which, by charging costs to their 
members, do not have their own financial results and the financial statements of which do not, net of 
intercompany assets and liabilities, have material balances) or their current status (e.g. companies that are 
no longer operational, have no assets or personnel, or for which the liquidation process appears to be 
essentially concluded), would be immaterial to the Group’s situation in both quantitative and qualitative 
terms.  
All controlled entities are consolidated at the date on which control was acquired by the Group. The entities 
are removed from the consolidated financial statements at the date on which the Group loses control.

Consolidated Financial Statements at 31 December 2022 
 
197 
 
Business combinations are recognised using the purchase method where the purchase cost is equal to the 
fair value, at the date of the purchase of assets acquired, of liabilities incurred or assumed, as well as the 
capital instruments, if any, issued by the purchaser. The cost of the transaction is allocated recognising assets, 
liabilities and the identifiable contingent liabilities of the acquired company, at their related fair value at the 
purchase date. Any positive difference between the cost of the transaction and the fair value at the date of 
the purchase of the assets and liabilities is allocated to goodwill. In the event the process of allocating the 
purchase price should result in a negative difference, this difference is recorded in the income statement. 
Any capital gains or negative differences arising from business combinations between entities under common 
control ("transactions under common control") are not recognised through P&L but directly in equity in the 
separate financial statements. 
Additional charges related to the acquisition are recognised in the income statement at the date when 
services are rendered. 
In the case of purchase of controlling stakes other than 100% stakes, goodwill is recognised only to the extent 
of the portion attributable to the Group Parent. The value of the non-controlling interests is determined in 
proportion to the non-controlling equity investments in the identifiable net assets of the acquired company. 
In case the business combination is carried out through more than one phase, at the moment of the taking 
over the equity investments previously held are re-measured at their fair value and the difference (positive 
or negative), if any, is recognised in the income statement. 
In the case of purchase of non-controlling stakes, after control is obtained, the positive difference between 
the acquisition cost and the book value of the non-controlling stakes acquired is recorded as a reduction of 
the net equity of the Group Parent. In the event of disposal of stakes while control is retained, the difference 
between the cashed consideration and the book value of the stakes sold is recorded directly as an increase 
of the net equity, without recording in the income statement. 
Amounts resulting from transactions with consolidated entities have been eliminated, particularly where 
related to receivables and payables outstanding at the end of the period, as well as interest and other income 
and expenses recorded on the income statements of these enterprises. Also eliminated are the net profits or 
losses posted between the consolidated entities along with their related tax adjustments. 
Jointly controlled entities and other equity investments 
Joint Arrangements, based on which joint control over an arrangement is assigned to two or more parties, 
are classified as either a Joint Operation (JO) or a Joint Venture (JV), on the basis of an analysis of the 
underlying contractual rights and obligations. In particular, a Joint Venture is a joint arrangement whereby 
the parties, whilst holding control over the main strategic and financial decisions through voting mechanisms 
requiring the unanimous consent on such decisions, do not hold legally significant rights to the individual 
assets and liabilities of the JV. In this case joint control regards the net assets of the joint ventures. This form 
of control is reflected in the financial statements using the equity method, as described below. A Joint 
Operation is a joint arrangement whereby the parties have rights to the assets, and obligations for the 
liabilities. In this case, individual assets and liabilities and the related costs and revenues are recognised in 
the financial statements of the party to the arrangement on the basis of the rights and obligations to each 
asset and liability, regardless of the interest held. After initial recognition, the assets, liabilities and related 
costs are valued in accordance with the reference accounting standards applied to each type of asset/liability. 
The Group’s joint arrangements are all classified as joint ventures. 
Entities over which significant influence is exercised, which generally corresponds to a holding of between 
20% (10% if listed) and 50% (equity investments in associates), and Joint Ventures (as qualified above) are

Consolidated Financial Statements at 31 December 2022 
 
198 
 
accounted for using the equity method. When the equity method is applied, the value of the investment is 
in line with shareholders’ equity adjusted, when necessary, to reflect the application of IFRSs, and includes 
the recognition of goodwill (net of impairments) calculated at the time of purchase, and to account for the 
adjustments required by the standards governing the preparation of consolidated financial statements. Gains 
and losses realized among consolidated entities valued at equity and other Group entities consolidated on a 
line-by-line basis, are eliminated. In the event the Group has evidence of an impairment loss of the 
investment, in excess of the amount accounted for under the equity method, the Group will proceed with 
calculating the impairment to be recorded in the income statement which is determined as the difference 
between the recoverable amount and the carrying amount of the investment.  
Any value losses in excess of book value are recorded in the provision for risks on equity investments, to the 
extent that there are legal or implicit obligations to cover such losses, which are in any case within the limits 
of the book equity. 
The fair value of equity investments, in the event this method applies, is calculated based on the bid price of 
the last trading day of the month for which the IFRS report was prepared or based on financial valuation 
techniques for not listed instruments. 
Investments available for sale, like those acquired with the sole purpose of being disposed within the 
subsequent twelve months, are classified separately within “Assets held for sale” applying the recognition 
criteria described in Note 3.23. 
3.2 Segment information 
In accordance with the compliance model followed, management has adopted operating segments that 
corresponds to the business sectors in which the Group operates: (Helicopters, Defence Electronics and 
Security, Aircraft, Aerostructures, Space and Other Activities). It should be noted that, until the 2021 financial 
statements, the Aircraft and Aerostructures segments were aggregated into the single Aeronautics segment, 
which was subsequently spun off to provide a more closely consistent representation of the underlying 
company strategies and business trends. 
3.3 Currency translation 
Identification of the functional currency 
The balances of the financial statements of each Group entity are presented in the currency of the primary 
economy in which each enterprise operates (the functional currency). The consolidated financial statements 
for the Leonardo Group have been prepared in euros, as this is the functional currency of the Group Parent. 
Translation of transactions denominated in a foreign currency 
Items expressed in a currency other than the functional currency, whether monetary (cash and cash 
equivalents, receivables or payables due in pre-set or measurable amounts, etc.) or non-monetary (advances 
to suppliers of goods and services, goodwill, intangible assets, etc.), are initially recognised at the exchange 
rate prevailing at the date on which the transaction takes place. Subsequently, the monetary items are 
translated into the functional currency based on the exchange rate at the reporting date, and any differences 
resulting from this conversion are recognised in the income statement. Non-monetary items continue to be 
carried at the exchange rate on the date of the transaction.

Consolidated Financial Statements at 31 December 2022 
 
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Translation of financial statements expressed in a currency other than the functional currency 
The rules for translating financial statements expressed in a foreign currency into the functional currency 
(except where the currency is that of a hyper-inflationary economy) are as follows: 
• 
the assets and liabilities presented are translated at the end-of-period exchange rate; 
• 
costs and revenues, charges and income presented are translated at the average exchange rate for 
the period in question, or at the exchange rate on the date of the transaction in the event this is significantly 
different from the average rate; 
• 
the “translation reserve” includes both the exchange rate differences generated by the translation 
of balances at a rate different from that at the close of the period and those that are generated by the 
translation of opening equity balances at a rate different from that at the close of the period. The translation 
reserve is reversed to the income statement upon the full or partial disposal of the equity investment that 
results in loss of control. 
Goodwill and adjustments deriving from the fair value measurement of assets and liabilities related to the 
acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the 
end-of-period exchange rate. 
With reference to data comparability, the current year has been marked by the following changes in the euro 
against the main currencies of interest for the Group: 
31 December 2021 
31 December 2022 
% Change 
average 
final 
average 
final 
average 
final 
U.S.A. Dollar 
1.1827 
1.1326 
1.0530 
1.0666 
(11.0%) 
(5.8%) 
Pound Sterling 
0.8596 
0.8403 
0.8528 
0.8869 
(0.8%) 
5.6% 
 
3.4 Intangible assets 
Intangible assets are non-monetary items without physical form, but which can be clearly identified and 
generate future economic benefits for the company. They are carried at purchase and/or production cost, 
including directly related expenses allocated to them when preparing the asset for operations and net of 
accumulated amortisation (with the exception of intangibles with an indefinite useful life) and any 
impairments of value. Amortisation begins when the asset is available for use and is recognised systematically 
over its remaining useful life. In the period in which the intangible asset is recognised for the first time, the 
amortisation rate applied takes into account the period of actual use of the asset. 
Development costs and non-recurring costs are recognised in the item. For further details reference is made 
to Notes 4.1 and 4.2.  
Industrial patent and intellectual property rights 
Patents and intellectual property rights are carried at acquisition cost net of amortisation and accumulated 
impairment losses. Amortisation begins in the period in which the rights acquired are available for use and is 
calculated based on the shorter of the period of expected use and that of ownership of the rights. The useful 
life changes according to the business of the company and its range is between 3 and 15 years. 
Concessions, licences and trademarks 
This category includes: concessions, i.e. government measures that grant private parties the right to exclusive 
use of public assets or to manage public services under regulated conditions; licences that grant the right to 
use patents or other intangible assets for a determinate or determinable period of time; trademarks that

Consolidated Financial Statements at 31 December 2022 
 
200 
 
establish the origin of the products of a given company; and licences for the know-how or software owned 
by others. The costs, including the direct and indirect costs incurred to obtain such rights, can be capitalized 
after receiving title to the rights themselves and are amortised systematically over the shorter of the period 
of expected use and that of ownership of the rights. The useful life changes according to the business of the 
company and its range is between 3 and 15 years. 
Intangible assets acquired as a result of business combinations 
The intangible assets acquired as a result of business combinations essentially refer to the order backlog and 
commercial positioning, customer portfolio and software/know-how; they are valued during the purchase 
price allocation. The assets’ useful life changes according to the business of the acquired company and ranges 
as follows: 
 
 
Years 
Customer backlog e commercial positioning  
7-15 
Backlog 
10-15 
Software/know how  
3 
 
Goodwill 
Goodwill recognised as an intangible asset is associated with business combinations and represents the 
difference between the cost incurred to acquire a company or division and the sum of the fair values assigned 
at the purchase date, to the individual assets and liabilities of the given company or division. As it does not 
have a definite useful life, goodwill is not systematically amortised but is subject to impairment tests 
conducted at least once a year, according to a specific procedure approved each year by the Board of 
Directors, unless market and operational factors identified by the Group indicate that an impairment test is 
also necessary in the preparation of interim financial statements. In conducting an impairment test, goodwill 
acquired in a business combination is allocated to the individual Cash Generating Unit (CGU) or to groups of 
CGUs that are expected to benefit from the synergies of the combination, in line with the minimum level at 
which such goodwill is monitored within the Group. Goodwill related to unconsolidated associates, joint 
ventures or subsidiaries is included in the value of investments. 
3.5 Property, plant and equipment 
Property, plant and equipment is measured at purchase or production cost net of accumulated depreciation 
and any impairment losses. The cost includes all direct costs incurred to prepare the assets for use, as well 
as any charges for dismantlement and disposal that will be incurred to return the site to its original condition.  
Charges incurred for routine and/or cyclical maintenance and repairs are expensed in full in the period in 
which they are incurred. Costs related to the expansion, modernisation or improvement of owned or leased 
structural assets are only capitalized to the extent that such costs meet the requirements for being classified 
separately as an asset or part of an asset. Any public grants related to property, plant and equipment are 
recognised as a direct deduction from the asset to which they refer. 
The value of an asset is adjusted by systematic depreciation calculated based on the residual useful life of 
the asset itself. In the period in which the asset is recognised for the first time, the depreciation rate applied 
takes into account the date in which the asset is ready for use. The estimated useful lives adopted by the 
Group for the various asset classes are as follows:

Consolidated Financial Statements at 31 December 2022 
 
201 
 
 
Years 
Land 
Indefinite useful life 
Buildings 
20-33 
Plant and machinery 
5-10 
Equipment 
3-5 
Other assets 
5-8 
 
The estimated useful life and the residual value are revised at least annually. 
Depreciation ends when the asset is sold or reclassified as asset held for sale. 
In the event the asset to be depreciated is composed of significant distinct elements with useful lives that 
are different from those of the other constituent parts, each individual part that makes up the asset is 
depreciated separately, in application of the component approach to depreciation.  
This item also includes equipment intended for specific programmes (tooling), although it is depreciated, as 
with other non-recurring costs (Note 4.2), on the basis of units manufactured in relation to those expected 
to be produced. 
The gains and losses from the sale of assets or groups of assets are calculated by comparing the sales price 
with the related net book value. 
3.6 Investment properties 
Properties held to earn rentals or for capital appreciation are carried under “Investment properties”; they 
are valued at purchase or construction cost plus any related charges, net accumulated depreciation and 
impairment, if any. 
3.7 Impairment of intangible assets and property, plant and equipment 
Assets with indefinite useful lives are not depreciated or amortised but are rather subject to impairment tests 
at least once a year to ascertain the recoverability of their book value. The test is carried out at each interim 
reporting date as well, when there are internal and/or external indicators that an asset may be impaired. 
For assets that are depreciated or amortised, an assessment is made to determine whether there is any 
internal or external indication of a loss in value. If so, the recoverable value of the asset is estimated, with 
any excess being recognised in the income statement.  
The recoverable value of an asset is the higher of its fair value less costs to sell and its value in use calculated 
on the basis of a model of discounted cash flows. The discount rate encompasses the risks peculiar to the 
asset which have not been considered in the expected cash flows.  
Assets which do not generate independent cash flows are tested as Cash Generating Units. 
If the reasons for such write-downs should cease to obtain, the asset’s book value is restored within the limits 
of the book value that would have resulted if no loss was recognised due to previous years’ loss of value. The 
write-back is also taken to the income statement. Under no circumstances, however, is the value of goodwill 
that has been written down restored to its previous level. 
3.8 Inventories 
Inventories are recorded at the lower of cost, calculated with reference to the weighted average cost, and 
net realisable value. They do not include financial costs and overheads. The net realisable value is the sales 
price in the course of normal operations net of estimated costs to finish the goods and those needed to make

Consolidated Financial Statements at 31 December 2022 
 
202 
 
the sale. Inventories include, within “Point in time contract assets”, the production progress related to 
contracts which do not meet the requirements for revenue recognition over time.  
3.9 Revenues and contract assets/liabilities with customers 
Revenue from contracts with customers is recognised when the performance obligations are satisfied 
through the transfer of control over the good or service to the customer which may occur either over time 
or at a point in time.  
Contracts that meet the requirements for the recognition of revenue over time are classified under “contract 
assets” or under “contract liabilities” based on the relationship between the Group’s performance and the 
customer’s payment. In particular: 
• 
“net contract assets” represent the entity’s right to consideration in exchange for goods and services 
that the entity has transferred to a customer; 
• 
“(net) contract liabilities” represent the Group’s obligation to transfer goods or services to the 
customer for which the entity has received consideration (or for which the amount is due) from the customer. 
If a contract provides for more than one performance obligation, representing a contract promise to transfer 
a specific good or service to the customer (or a series of specific goods or services that are substantially the 
same and are transferred according to the same methods), the classification under assets or liabilities is 
carried out on an overall basis and not by each single performance obligation. 
Contract assets and liabilities with customers in which the transfer of control over the goods or services to 
customers occurs over time are recognised using the percentage-of-completion measuring method, 
according to which costs, revenues and margins are recognised based on the progress of production. The 
state of completion is determined on the basis of the ratio between costs incurred at the measurement date 
and the total expected costs for the programme or based on the production units delivered. 
Vice versa, if the requirements for the recognition of contracts over time are not met, revenue is recognised 
at a point in time; in such cases, the production progress related to contracts with customers is recognised 
under contract assets at a point in time within “inventories”. Such case is mostly related to certain sales in 
the helicopter sector where the transfer of control over certain types of goods coincides with the moment of 
actual delivery of the same. 
Contract assets (recognised under a special item or within inventories) are stated net of any provisions for 
write-down. 
The assumptions upon which the estimates are made are periodically updated. Any impact on profit or loss 
is recognised in the period in which the updates are made. If a contract is an “onerous” contract, the methods 
for recognition are reported in note 4.4. 
Contracts with payments in a currency other than the euro, the functional currency of the Group, are 
measured by converting the portion of payments due, calculated using the percentage-of-completion 
method, at the exchange rate prevailing at the close of the period in question. However, the Group’s policy 
for exchange-rate risk calls for all contracts in which cash inflows and outflows are significantly exposed to 
exchange rate fluctuations to be hedged specifically. In such cases, the recognition methods described in 
Note 4.3 below are applied. 
3.10  Financial assets  
The Group classifies its financial assets into the following categories:

Consolidated Financial Statements at 31 December 2022 
 
203 
 
• 
amortised cost; 
• 
financial assets at fair value through profit or loss; 
• 
financial assets at fair value through other comprehensive income. 
The Group determines such classification based on the business model used in the management of financial 
assets and the contractual cash flow characteristics of the financial asset.  
Financial assets are initially measured at fair value plus or minus, in the case of a financial asset or a financial 
liability not at fair value through profit or loss, transaction costs that are directly attributable to the 
acquisition or issue of the financial asset. Trade receivables are initially measured at their transaction price, 
since this is representative of the fair value. 
At initial recognition financial assets are classified in one of the categories listed above and can be 
subsequently reclassified in other categories, only when the Group changes its own business model for their 
management. 
The Group recognises as value adjustment the expected losses related to financial assets measured at 
amortised cost, to contract assets and to debt instruments measured at fair value through other 
comprehensive income. Expected losses are calculated over the credit lifetime.  
The classification of assets as current or non-current reflects management expectations regarding their 
trading.  
Financial assets at amortised cost 
Such category includes financial assets held to collect contractual cash flows (Held to Collect), which are 
solely payments of principal and interest, calculated on the principal amount outstanding. All receivables are 
included in this category. 
Such assets are measured at amortised cost, in compliance with the effective interest method, decreased by 
impairment losses. Interest income, exchange profits or losses and impairment losses are recognised in profit 
(loss) for the year as well as profits or loss from derecognition.   
Financial assets at fair value through other comprehensive income 
Such category includes financial assets that are possibly held by the Group with the twofold objective of 
collecting contractual cash flows on one hand, which are solely payments of principal and interest calculated 
on the total of the principal amount outstanding and selling them on the other (Held to Collect and Sell).  
Financial assets at fair value through profit or loss 
This category includes financial assets that are not classified as measured at amortised cost or at fair value 
through other comprehensive income. Such category includes all derivatives (Note 3.11) and financial assets 
held for trading. 
The fair value of financial assets held for trading is calculated by drawing from the market prices at the annual 
(or interim) reporting date o through financial techniques and models. 
3.11 Derivatives 
Derivatives are still stated at fair value through profit or loss unless they are deemed effective hedge for 
specific risk in respect of underlying assets, liabilities or commitments undertaken by the Group.

Consolidated Financial Statements at 31 December 2022 
 
204 
 
In particular, the Group uses derivatives as part of its hedging strategies to offset the risk of changes in the 
fair value of financial assets or liabilities on its balance sheet or the risk associated with contractual 
commitments (fair-value hedges) and the risk of changes in expected cash flows in contractually defined or 
highly probable operations (cash-flow hedges). For details regarding the methodology for recognising hedges 
of the exchange rate risk on long-term contracts, see Note 4.3. 
The effectiveness of hedges is documented and assessed both at the start of the operation and periodically 
thereafter (at least every time an annual or interim report is published) and measured by comparing changes 
in the fair value of the hedging instrument against changes in the hedged item (“dollar offset ratio”). For 
more complex instruments, the measurement involves statistical analysis based on the variation of the risk. 
Fair value hedge 
Changes in the fair value of derivatives that have been designated and qualify as fair-value hedges are 
recognised in profit or loss, in the same manner as the treatment of changes in the fair value of the hedged 
assets or liabilities covered with the hedge. 
Cash flow hedge 
Changes in the fair value of derivatives that have been designated and qualify as cash-flow hedges are 
recognised – with reference to the “effective” component of the hedge only – in the statement of 
comprehensive income through a specific equity reserve (“Cash-flow hedge reserve”), which is subsequently 
recognised in the income statement when the underlying transaction affects profit or loss. If the occurrence 
of the underlying operation ceases to be highly probable, the relevant portion of the cash-flow hedge reserve 
is immediately recognised in the income statement. If the derivative is sold, expires or ceases to function as 
an effective hedge against the risk for which it was originated, the relevant portion of the “cash-flow hedge 
reserve” is kept recognised until the underlying contract shows its effect. The recognition of the cash-flow 
hedge is discontinued prospectively.  
The cash flow hedge reserve also includes the recognition of fair value changes in the forward component of 
forward contracts, taken to the separate income statement at the time when the underlying affects profit or 
loss. 
Determining fair value 
The fair value of instruments quoted on public markets is determined with reference to the bid price for the 
instrument in question at the reference date. The fair value of unquoted instruments is determined with 
financial valuation techniques. Specifically, the fair value of interest-rate swaps is measured by discounting 
the expected cash flows, while the fair value of foreign exchange forwards is determined on the basis of the 
market exchange rate at the reference date and the expected rate differentials among the currencies 
involved. 
Financial assets and liabilities valued at fair value are classified in the three hierarchical levels described 
below, on the basis of the materiality of inputs used in the fair value measurement. In particular: 
• 
Level 1: financial assets and liabilities whose fair value is determined on the basis of the unadjusted 
quoted prices in an active market for identical assets and liabilities that Leonardo can access at the 
measurement date; 
• 
Level 2: financial assets and liabilities whose fair value is determined on the basis of inputs other than 
the quoted prices as in Level 1, that are directly or indirectly observable;

Consolidated Financial Statements at 31 December 2022 
 
205 
 
• 
Level 3: financial assets and liabilities whose fair value is determined on the basis of unobservable 
inputs. 
3.12 Cash and cash equivalents 
The item includes cash, deposits with banks or other institutions providing current account services, post 
office accounts and other cash equivalents, as well as investments maturing in less than three months from 
the date of acquisition. Cash and cash equivalents are recognised at their fair value, which normally coincides 
with their nominal value. 
3.13 Equity 
Share capital  
Share capital consists of the capital subscribed and paid up by the Group Parent. Costs directly associated 
with the issue of shares are recognised as a decrease in share capital when they are directly attributable to 
capital operations, net of the deferred tax effect. 
Treasury shares 
Treasury shares are recognised as a decrease in Group shareholders’ equity. Gains or losses realised in the 
acquisition, sale, issue or cancellation of treasury shares are recognised directly in shareholders’ equity. 
3.14 Financial liabilities 
Financial liabilities are initially recognised at fair value and subsequently classified as “measured at amortised 
cost” or at “fair value through profit or loss”. Financial liabilities are classified at fair value through profit or 
loss when these are held for trading, represent a derivative or are so designated at the time of initial 
recognition. Other financial liabilities are measured at amortised cost, using the effective interest method. 
All payables are included in this category. 
Financial liabilities are classified as current liabilities unless the Group has the contractual right to settle its 
debts at least 12 months after the date of the annual or interim financial statements. 
3.15 Taxation  
The Group’s tax burden is made up of current and deferred taxes. If these taxes are related to income and 
expense recognised in equity in the statement of comprehensive income, a balancing entry is recorded under 
the same item. 
Current taxes are calculated in accordance with the existing fiscal legislation applicable to those countries in 
which the Group operates and in force at the balance-sheet date. Any risks connected with a different 
interpretation of the positive and negative components of income, together with ongoing disputes with the 
tax authorities are regularly assessed, in order to adjust the provisions made. 
Deferred tax assets and liabilities are calculated based on temporary differences arising between the carrying 
amounts of assets and liabilities and their value for tax purposes, as well as on fiscal losses. Deferred tax 
assets and liabilities are calculated by applying the tax rate that is expected to be in force at the time the 
temporary differences will be reversed. The estimation is made based on tax laws in effect or substantially in 
effect at the reporting date. Deferred tax assets, including those deriving from tax losses, are recognised to 
the extent that, based on the company plans approved by the directors, it is probable the company will post 
future taxable income in respect of which such assets can be utilised.

Consolidated Financial Statements at 31 December 2022 
 
206 
 
If there are uncertain tax treatments, the Group determines whether they are likely to be accepted by the 
tax authorities. If acceptance is considered probable, the tax values must take account of the uncertain tax 
treatment, while, if acceptance is considered unlikely, the Group calculates the effect of this uncertainty 
using the most probable amount or expected value method. 
3.16 Employee benefit obligations 
Post-employment benefit plans 
Group companies use several types of pension and supplementary benefit plans, which can be classified as 
follows: 
• 
Defined-contribution plans in which the company pays fixed amounts to a distinct entity (e.g., a fund) 
but has no legal or constructive obligation to make further payments if the fund does not have sufficient 
assets to pay the benefits accrued by employees during their period of employment with the company. The 
company recognises the contributions to the plan only when employees rendered their services to the 
company specifically in exchange for these contributions; 
• 
Defined-benefit plans in which the company undertakes to provide agreed benefits for current and 
former employees and incur the actuarial and investment risks associated with the plan. The cost of the plan 
is therefore not determined by the amount of the contributions payable in the financial period but, rather, is 
redetermined with reference to demographic and statistical assumptions and wage trends. The methodology 
used is the projected unit credit method. Accordingly, the Group recognises a liability for the same amount 
arising from the actuarial estimation, and recognises actuarial gains and losses immediately and in full in the 
period in which they occur in the statement of comprehensive income through a special equity reserve (in 
the “Remeasurement reserve”). To determine the amount to be entered in the balance sheet, the fair value 
of the plan assets is deducted from the current value of the obligation for the defined-benefit plans. This fair 
value is calculated using the interest rate adopted for discounting back the obligation. 
Other long-term benefits and post-employment benefits 
Group companies grant employees with other benefits (such as seniority bonuses after a given period of 
service with the company) that, in some cases, continue to be provided after retirement (for example, 
medical care). These receive the same accounting treatment as defined-benefit plans, using the projected 
unit credit method. However, for “Other long-term benefits” net actuarial gains and losses are both 
recognised to profit or loss immediately and in full as they occur. 
Benefits payable for the termination of employment and incentive plans 
Termination benefits are recognised as liabilities and expenses when the enterprise is demonstrably 
committed to terminating the employment of an employee or group of employees before the normal 
retirement date or to providing termination benefits as a result of an offer made in order to encourage 
voluntary redundancy. The benefits payable to employees for the termination of employment do not bring 
any future economic benefit to the enterprise and are therefore recognised immediately as expenses. 
Equity compensation benefits  
In case the Group uses stock-option and stock-grant plans to compensate the senior management, the 
theoretical benefit attributable to the recipients is charged to the income statement in the financial periods 
for which the plan is operative with a contra-item in an equity reserve. The benefit is quantified by measuring 
at the assignment date the fair value of the assigned instrument, using financial valuation techniques that

Consolidated Financial Statements at 31 December 2022 
 
207 
 
take account of market conditions and, at the date of each annual report, an updated estimate of the number 
of instruments expected to be distributed. Vice versa, the fair value initially calculated is not updated in the 
subsequent recognitions. 
3.17 Provisions for risks and charges 
Provisions for risks and charges are recognised when, at the reporting date, the entity has a present 
obligation (legal or constructive) to other parties as a result of a past event, and it is probable that, in order 
to settle the obligation, whose amount can be reliably estimated, an outflow of resources will be required. 
The amount reflects the best current estimate of the cost of fulfilling the obligation. The interest rate used 
to determine the present value of the liability reflects current market rates and includes the additional effects 
relating to the specific risk associated with each liability. Changes in the estimates are recognised in the 
income statement of the year in which the change occurs. With regard to some disputes, the information 
required by IAS 37 “Provisions, contingent liabilities and contingent assets” is not reported, in order to not 
jeopardize the Group position in the context of such disputes or negotiations. 
Risks for which the emergence of a liability is merely a possibility are reported in the section in the notes on 
commitments and risks and no provision is recognised. 
The item includes provisions for onerous contracts. For further details reference is made to Note 4.4. 
3.18 Leasing 
Group entities as lessees 
The Group recognises the right-of-use assets and the lease liability for a lease agreement or an agreement 
that contains a lease component.  
Right-of-use assets are valued at cost, net of accumulated amortisation and impairment losses (if any) (Note 
3.7), as adjusted by any re-measurement of lease liabilities. The cost includes the value of lease liabilities, 
any initial direct costs sustained and the lease payments made on the commencement date or before the 
inception of the same agreement, net of incentives received (if any). Right-of-use assets are amortised on a 
straight-line basis from the commencement date to until the end of the lease term. If the agreement transfers 
the ownership of the underlying asset, the Group will amortise the right-of-use assets until the end of the 
useful life of the underlying asset at the end of the lease term. 
Lease liabilities are measured at the present value of the lease payments due and not yet paid as at the 
commencement date of the agreement. The due payments include fixed payments, net of any lease 
incentives to be received, variable payments (linked to an index or an interest rate) and the amounts the 
Group expects to pay as security on the remaining value. Lease payments also include any possible exercise 
price of a purchase option that is reasonably certain to be exercised by the Group and the payment of 
penalties that the latter believes it shall incur for any possible early termination of the agreement. The Group 
restates the lease liabilities in the event of subsequent amendments being made to the agreement. 
In calculating the present value of due payments the Group uses the incremental borrowing rate prevailing 
at the commencement date of the agreement when the implicit interest rate cannot be determined easily. 
Group entities as lessors in a finance lease 
At the date on which a lease is first recognised, the value of the leased asset is eliminated from the balance 
sheet and a receivable equal to the net investment in the lease is recognised. The net investment is the sum 
of the minimum payments plus the residual unguaranteed value discounted at the interest rate implicit in

Consolidated Financial Statements at 31 December 2022 
 
208 
 
the lease contract. Subsequently, financial income is recognised in the income statement for the duration of 
the contract in an amount providing a constant periodic rate of return on the lessor’s net investment. 
The unsecured residual value is reviewed periodically for possible impairment. 
Group entities as lessors in an operating lease 
Receipts in respect of contracts qualifying as operating leases are recognised in the income statement over 
the duration of the contract on a straight-line basis. 
3.19 Government grants 
Once formal authorisation for their assignment has been issued, grants are recognised on an accruals basis 
in direct correlation with the costs incurred. Specifically, set-up grants are taken to the income statement in 
direct relation to the depreciation of the relevant goods or projects, and in the balance sheet, grants are 
recognised as a reduction of the capitalised assets, for the amount not yet recognised to profit or loss. For 
the analysis of the aspects related to grants under Law 808/1985, reference should be made to Note 4.2. 
3.20 Costs 
Costs are recorded in compliance with the accrual principle. 
3.21 Financial income and expenses 
Interest is recognised on an accruals basis using the effective interest-rate method, i.e. the interest rate that 
results in the financial equivalence of all inflows and outflows (including any premiums, discounts, 
commissions, etc.) that make up a given operation. 
Financial expenses attributable to the acquisition, construction or production of certain assets taking a 
substantial period of time to get ready for their intended use or sale (qualifying assets) are capitalised 
together with the related asset. 
3.22 Dividends 
Dividends are recognised in the income statement as soon as the right to receive payment arises, which is 
normally when the shareholders’ meeting approves the distribution of dividends. 
Dividends distributed to Leonardo shareholders are reported as a change in the shareholders’ equity and are 
recognised as liabilities for the period in which their distribution is approved by the Shareholders’ Meeting.  
3.23 Discontinued operations and non-current assets held for sale  
Non-current assets (or disposal groups) whose carrying amount will be recovered principally through a sale 
transaction rather than through continuing use, are classified as held for sale and presented separately in the 
statement of financial position. For this to be the case, the asset (or disposal group) must be available for 
immediate sale in its present condition subject only to terms that are usual and customary for sales of such 
assets (or disposal groups) and its sale must be highly probable within one year. If these conditions are met 
after the year-end, the non-current asset (or disposal group) is not classified as held for sale. However, if 
these conditions are met after the year-end but before the financial statements are approved for publication, 
appropriate information is provided in the explanatory notes thereto.

Consolidated Financial Statements at 31 December 2022 
 
209 
 
Non-current assets (or disposal groups) classified as held for sale are measured at the lower of carrying 
amount and fair value less costs to sell; the corresponding values of the prior year balance sheet are not 
reclassified. 
A discontinued operation is a component of an entity that either has been disposed of, or is classified as held 
for sale, and:  
• 
represents a separate major line of business or geographical area of operations;  
• 
is part of a single coordinated plan to dispose of a separate major line of business or geographical 
area of operations; or  
• 
is a subsidiary acquired exclusively with a view to resale. 
The results of discontinued operations – whether they have been disposed of or classified as held for sale or 
under disposal – are presented separately in the income statement, less tax effects. The corresponding values 
of the prior year, if any, are reclassified and shown separately in the income statement, for comparative 
purposes, net of tax effect. 
3.24 New IFRS and IFRIC interpretations 
It should be noted that, as from 1 January 2022, certain amendments became applicable to IAS 16 Property, 
Plant and Equipment, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, IFRS 9 Financial 
Instruments and IFRS 3 Business Combinations.  
Some considerations concerned the provisions brought in by the Amendments to IAS 37, which require an 
analysis of the cost of fulfilling “onerous contract” and not just the incremental costs incurred to fulfil them. 
These amendments did not result in any impact on the Group’s consolidated financial statements.  
At the reporting date, the European Commission had endorsed certain standards and interpretations that 
were not yet compulsory, which will be adopted by the Group in the following financial periods, if applicable. 
We expect no significant effects on the Group’s financial statements deriving from those amendments to 
standards and interpretations. 
There are a number of standards or amendments to existing principles issued by the IASB or new decisions 
of the International Financial Reporting Interpretations Committee (IFRIC) for which the revision and 
approval project is still under way.  
4. 
SIGNIFICANT ISSUES AND CRITICAL ESTIMATES BY MANGEMENT 
The preparation of the Group's financial statements requires directors to make discretionary assessments, 
estimates and assumptions that affect revenues, costs, assets and liabilities, and the disclosure of contingent 
liabilities. Uncertainty about these assumptions and estimates could lead to outcomes that will require 
significant adjustments in the future. The aspects that required greater subjectivity by the directors in making 
the estimates are described below. 
4.1 Research and development costs 
This account includes costs related to the application of the results of research or other knowledge in a plan 
or a project for the production of materials, devices, systems or services that are new or significantly 
advanced (including higher set-up costs incurred compared to the costs of the asset once fully operating), 
prior to the start of commercial production or use, for which the generation of future economic benefits can 
be demonstrated. These costs are amortised according to the units-of-production method, over the period

Consolidated Financial Statements at 31 December 2022 
 
210 
 
in which the future earnings are expected to be realised for the project itself. The useful life changes 
according to the business of the company and it exceeds 5 years on average. If such costs fall within the scope 
of costs defined by Group standards as “non-recurring costs”, they are recognised in a specific item under 
intangible assets (Note 4.2).  
The initial recognition and subsequent assessment of their recoverability require complex estimates by 
management which estimates are influenced by a number of factors, such as the timeline of the product 
business plans, the company’s ability to anticipate the commercial success of the new technologies and 
technological obsolescence.  
Research costs, on the other hand, are expensed in the period in which they are incurred. 
4.2 Non-recurring costs 
“Non-recurring costs” under intangible assets are the costs incurred in designing, prototyping, starting-up 
and upgrading to the technical and functional specifications of clearly identified potential clients – including 
higher set-up costs compared to costs for the asset once fully operating –, if they are financed, in particular 
under Law 808/1985 governing State aids to support the competitiveness of entities operating in the 
Aeronautics and Defence segments. These costs are shown excluding the benefits collected or to be collected 
under Law 808/1985 for programmes qualified as functional to national security and similar. The aid under 
Law 808/1985 is deducted from capitalised costs, and the royalties to be given to the grantor are recognised 
as the requirements are met (sale of products embedding the technology for which the Law permits aids). 
For the programmes other than national security programmes and programmes treated as such, the funds 
received are recognised as “Other liabilities”, making a distinction between the current portion and the non-
current portion, based on the date of repayment. In both cases, non-recurring costs are carried among 
intangible assets and are amortised within job orders on the units-of-production method.  
The main capitalised costs are tested for impairment at least once a year until development is complete; 
after that, as soon as contract prospects change, when expected orders are no longer made or delayed. The 
impairment test is conducted on assumed sales plans. 
The initial recognition and subsequent assessment of the recoverability of these costs require estimates, 
which are by their own nature complex and marked by a high level of uncertainty as they are influenced by 
a number of factors, such as the time-line of the product business plans, which in some cases is particularly 
long, and the company’s ability to anticipate the commercial success of the new technologies. These 
estimates therefore imply significant assessments by management which take into account the reasonable 
certainty that funds are received and the effects of time value in the case of deferment over more than one 
year of the granting of funds.  
In the case of programmes that benefit from the provisions of Law 808/1985 and that are classified as 
functional to national security, the portion of non-recurring costs capitalised, pending the fulfilment of the 
legal requirements for the recognition of the amount receivable from the Ministry, is shown separately under 
“other non-current assets”. The related amount is calculated based on an estimate made by management 
that reflects the reasonable certainty that funds are received and the effects of time value in the case of 
deferment over more than one year of the granting of funds. 
4.3 Hedging long-term contracts against foreign exchange risk 
In order to hedge exposure to changes in flows of receipts and payments associated with long-term 
construction contracts denominated in currencies other than the functional currency, the Group enters into 
specific hedges for the expected individual cash flows in respect of the contracts. The hedges are entered

Consolidated Financial Statements at 31 December 2022 
 
211 
 
into at the moment the commercial contracts are finalised, except where the award of the contracts is felt 
to be highly likely as a result of existing framework contracts. Exchange-rate risk is normally hedged with 
plain vanilla instruments (forward contracts): in some cases, however, in order to protect the Group against 
any possible persistent adverse trend in some currencies, the Group might enter into more highly structured 
operations that, while substantively hedging the positions, do not qualify for hedge accounting under IFRS 9. 
In these cases, as in all cases where hedges prove to be ineffective, changes in the fair value of such 
instruments are taken immediately to the income statement as financial items. The effects of this recognition 
policy are reported in Note 31. Hedges in the former case are reported as cash-flow hedges. 
4.4 Estimate of revenues and final costs of long- term contracts 
The Group operates in sectors and with contractual arrangements that are especially complex. They are 
recognised on a percentage-of-completion basis in case the requirements for the revenue recognition over 
time are met. Margins recognised in the income statement are a function of both the state of progress on 
performance obligations included in the contracts and the margins that are expected to be recognised for 
the completed contract. 
Any requests for additional considerations arising from contractual changes, including those arising from 
higher costs incurred for reasons attributable to the customer, shall be incorporated in the total amount of 
the considerations, if it is highly probable that this will be recognised by the customer, up to the expected 
value of such recognised amount. 
Estimating the expected overall costs of contracts in progress is marked by a high degree of uncertainty as 
they can be influenced by a number of factors such as the engineering complexity of the products, the ability 
to precisely fulfil specific technical requests made by customers and to meet the manufacturing timeframe 
provided for in the contract. Failure to comply with such contractual terms and conditions may imply 
penalties and extra-costs of a remarkable amount to be considered in estimating total costs. In order to 
enhance support for management’s estimates, the Group has adopted contract management and risk 
analysis tools designed to identify, monitor and quantify the risks associated with such contracts. The 
amounts posted in the financial statements represent management’s best estimate at the reporting date 
supported by said tools. 
In case the reassessment of the economic plans (whole life estimates) during the progress of a contract 
highlights the presence of elements that make them onerous, the amount of costs considered necessary to 
fulfil the obligations that is higher than the economic benefits arising from the contract is recognised in full 
in the financial period in which it becomes reasonably foreseeable and allocated to a “provision for onerous 
contracts” under provisions for current risks and charges. The reversal of such accruals is recognised as 
absorption under “Other operating income”.  
4.5 Liabilities from defined-benefit pension plans 
The Group is sponsor to two UK defined-benefit pension plans and to various US and other minor European 
plans. It has the obligation to ensure a given level of benefits to the plan participants and carries the risk that 
the plan assets are not adequate to cover the benefits promised. In case these plans are in a deficit position, 
the trustee responsible for the management requests the Group to fund the plan. 
The deficit resulting from the most updated actuarial valuations made by independent experts is recognised 
as a liability: these valuations stem from actuarial, demographic, statistical and financial assumptions that 
can vary over time.

Consolidated Financial Statements at 31 December 2022 
 
212 
 
4.6 Impairment of assets 
Group assets are tested for impairment at least annually if their lives are indefinite, or more often if there 
are indications of impairment. Similarly, impairment tests are conducted on all the assets with definite useful 
life showing signs of impairment, even if the amortisation already commenced. 
The recoverable amount is generally based on the value in use calculated according to the Discounted Cash-
Flow method, which is characterized by a high level of complexity and the use of estimates, which are by 
their nature uncertain and subjective in relation with the expected cash flows and the financial parameters 
used to determine the discount rate. 
For these valuations, the Group uses the estimated cash flows based on the plans that have been approved 
by corporate bodies and financial parameters that are in line with those resulting from the current 
performance of reference markets. The relevant plans take into account all business assessments of risks 
related also to technological innovations, emerging global scenarios, customer needs and expected 
regulatory requirements. 
The business plans used in order to assess the recoverability of capitalized assets are prepared by also 
considering additional investments related to the search for innovative solutions in sustainable business, 
reduction in emissions and decarbonization. Likewise, any prospective aspects and impacts related to climate 
change are already considered. Leonardo's plan on these issues is explained in more detail in the "Planet" 
section of the Report on Operations, to which reference should be made. 
Details about the methods for the calculation of the impairment tests are reported in Note 9. 
4.7 Disputes 
The Group’s operations regard sectors and markets where many disputes, both as petitioner and plaintiff, 
are settled only after a considerable period of time, especially in cases where the customer is a government 
entity. In case management deems it probable that following the litigation an outflow of resources, whose 
amount can be reliably estimated, will be required, this amount that has been discounted in order to consider 
the timeline for the disbursement, is included in the risk provision. The estimate for the developments of 
these disputes is particularly complex and requires significant estimates by the management. Disputes where 
a liability is deemed possible but not probable are shown in the relevant informative section on commitments 
and risks; against such disputes no allocation is made.  
5. 
EFFECTS OF CHANGES IN ACCOUNTING POLICIES ADOPTED 
There were no significant changes in the Group's application of accounting standards during the period.  
 
6. 
SIGNIFICANT NON-RECURRING EVENTS OR TRANSACTIONS 
In February 2022 Russia launched an offensive - which is still ongoing - against Ukraine, generating profound 
changes in the global geopolitical and economic scene. The process of integration and implementation of a 
European Defence and Security and, at the same time, the increase in Defence spending of EU and 
neighbouring countries have accelerated demand for security, with consequent opportunities for companies 
operating in the sector. On the other hand, relations with Russia are significantly affected by the increasing 
number of sanctions imposed by the European Union, as well as by other countries and other International 
Bodies, on logistics and economy. Leonardo has a not particularly significant exposure to these two countries

Consolidated Financial Statements at 31 December 2022 
 
213 
 
and is continuing to monitor the situation to promptly identify the consequences on its present and 
prospective position. In view of the continuation of this scenario, which does not suggest a resolution in the 
short term, Leonardo has written down its net exposure to the two countries involved (mainly referable to 
Russia), for a total amount of €mil. 41, including tax effects. 
The pandemic from Covid-19 already generated a significant reduction in production and price increases for 
some raw materials in the late 2020s due to prolonged lockdowns. In addition, the high recovery in demand 
for electronic components from other industries has further reduced their availability for the Aerospace and 
Defence industries, which are a niche market. The aforementioned advent of the Russia-Ukraine conflict has 
then engendered a sudden surge in energy costs resulting in inflation peaks not seen in decades. 
With regard to the issue of availability of raw materials and rising prices, the Group implements procurement 
strategies that have mitigated the impacts. Specifically, the available inventory and long-term contracts 
already in place with suppliers have enabled the Group to feed production lines although there has been 
production slippage that has mainly impacted the Electronics businesses in all geographical areas in which it 
operates. It is believed that the actions promptly taken since the beginning of the pandemic, such as 
increasing long-term contracts with suppliers and increasing stockpiling, can contain the effects of the 
shortage of raw materials for which we are in any case witnessing a stabilisation of supply times.  
On the other hand, as far as inflationary pressure is concerned, 2022 has begun to show the first significant 
signs of various kind of costs on the increase of prices. The labour costs recorded a significant increase in 
foreign countries (United Kingdom, United States and Poland) since the respective employment contracts 
were renegotiated by taking account of growth in inflation. In Italy, the increase was instead contained thanks 
to the current contract that postpones by one year the application of the variable factor linked to inflation 
(HICP). With regard to energy costs, the Group was not affected by the surge in prices thanks to the 
purchasing policy anticipated in previous years for both Gas and Electricity. Finally, even for the purchase of 
goods and services for production, the Group was able to contain the consequences of inflation in 2022 
thanks to the existing inventory, the contracts signed and the specific actions it had taken. The price increases 
recorded are limited to some specific components in the electronics sector. 
With regard to 2023, on the other hand, price increases are expected on all cost variables with gradual 
stabilisation as early as from 2024 as forecast by leading institutes and economists. 
In order to cope with these expected inflationary pressures, the Group has long launched specific mitigation 
actions in order to ensure adequate profitability of the business. The actions essentially concern the 
adjustment to selling prices, the extension of the use of special 'indexation' clauses in new contracts, careful 
monitoring of energy price trends with an increase in own production and reduced consumption, and the 
review of contracts and the supplier base. The above-mentioned variables, excluding the mitigation actions 
put in place, have been included in the latest updates to the product business plans and in the Company's 
revised economic and financial plans. 
In June 2022 the governmental Norwegian Defence Materiel Agency (NDMA) formalised a request for 
termination by default under the contract - regulated by Norwegian law - for the supply of fourteen NH90 
helicopters, which had been entered into in 2001 with NH Industries (NHI), a French company controlled by 
Leonardo, Airbus Helicopters and Fokker Aerostructure, due to alleged delays and non-compliant products. 
The contract has been subject to extensions and amendments over the years and was expected to be 
completed by the end of 2023. NDMA's request is to return the 13 helicopters that it has already received 
and accepted and ask for reimbursement of the sums it has disbursed, including interest. NHI considers this 
request for termination by default to be legally unfounded and reasonably disputable in the appropriate 
venue due to a lack of factual and legal basis and misinterpretation of the contract and Norwegian law, as 
well as due to a breach of confidentiality obligations. By giving effect to the above request for termination

Consolidated Financial Statements at 31 December 2022 
 
214 
 
between September and December 2022 NDMA enforced the remaining bank guarantees issued by Leonardo 
on behalf of NHI for a total amount of €mil. 69.7 (including interest of €mil. 19.3). It should be noted that 
Leonardo’s share of enforcement is proportional to the stake it holds in the project - approximately 41% - 
and, therefore, equal to €mil. 28.7 (including interest of €mil. 8). The actions put in place in order to reach a 
settlement of the matter are still ongoing. 
 
With regard to the most significant industrial transactions that were completed during the reporting period, 
3 January 2022 saw the completion of the acquisition of a 25.1% stake in Hensoldt AG, a company that is the 
leading German player in the field of sensors for defence and security applications, with an ever-expanding 
portfolio in sensor, data management and robotics, at a price of €mil. 606 (excluding transaction costs). The 
effects of this transaction are more fully explained in Note 12 "Equity investments and share of profits (losses) 
of equity-accounted investees". In July and August 2022, Leonardo DRS finalized the sales of the Global 
Enterprise Solutions (GES) business to SES S.A. - for an amount equal to 450 million dollars (before tax) - and 
of the JV Advanced Acoustic Concepts (AAC) to TDSI, a subsidiary of Thales. 
Finally, on 29 November 2022, Leonardo completed the merger between its U.S. subsidiary Leonardo DRS, 
Inc. and the Israeli company RADA Electronic Industries Ltd. listed on NASDAQ and the Tel Aviv Stock 
Exchange. Through this transaction, RADA lost its status as a listed company and became a wholly-owned 
subsidiary of DRS, which in turn was listed on the stock exchange under the symbol "DRS" as from the opening 
of trading on NASDAQ on 29 November 2022 and on TASE on 30 November 2022. This transaction can be 
described as a business combination, for more details of which please refer to Note 14 of "Business 
Combinations." 
During 2022, work also commenced on the process of concentrating the assets held by Leonardo in the U.S. 
into a single legal entity. The project, which will be completed during 2023, provides for Leonardo US Holding 
to control two companies – Leonardo DRS and Leonardo US Corporation -, which will directly or indirectly 
hold all the U.S. companies, except for Leonardo US Electronics that, for the time being, will remain directly 
invested in by Leonardo UK. In this context, the following transactions will be completed during 2022: 
• Leonardo US Corporation was established; 
− Leonardo S.p.A. sold 50% of its stake in Leonardo US Holding to Leonardo International; 
• Leonardo US Holding contributed its stake in Leonardo US Aircraft to Leonardo US Corporation; 
− Leonardo S.p.A. contributed to Leonardo US Holding its stake in AgustaWestland Philadelphia 
Corporation, which was subsequently transferred from Leonardo US Holding to Leonardo US Corporation. 
 
These transactions had no effect on the Leonardo Group’s consolidated financial statements.  
Finally, it should be noted that in December 2022 – in implementing a protocol of intent signed with the 
national trade unions on early retirements under Article 4 of Law 92/2012 (Fornero Act) - an agreement was 
executed, which involved up to a maximum of no. 400 employees in the Corporate and Staff functions of 
Leonardo S.p.A., Leonardo Global Solutions and Leonardo Logistics for whom the requirements will be met 
for retirement by 30 November 2028, with exits planned in the two-year period from 2023 to 2024, together 
with the definition of the terms and conditions for joining the scheme. A similar agreement was signed with 
the union representatives of the executive staff, up to a maximum of 45 managers. In February 2023, the 
collection of expressions of interest was completed. By the end of April 2023, the Italian Social Security 
Institute [INPS] will verify whether requirements are met for the staff members who expressed their interest 
to benefit from early retirement benefits. The charges resulting from this manoeuvre have been preliminarily 
estimated at €mil. 100.

Consolidated Financial Statements at 31 December 2022 
 
215 
 
With regard to the comparative period, taking account of the effects of the pandemic on the civil sector and 
considering the changed prospects for the commercial aviation market, Leonardo had embarked on the 
actions aimed at mitigating the impact on the industrial performance of the Aerostructures Division. In this 
context, on 21 July 2021 trade union agreements were signed to make the instruments identified for the 
early retirement of employees operational for a number of up to a maximum of 500 employees who would 
meet the criteria for early retirement in the three-year period from 2021 to 2023. 
Finally, in November 2021 the Indian Ministry had lifted the ban on the Leonardo Group entering the Indian 
market, which is why it had been no longer considered convenient or consistent to bring an action against 
the Indian Government which would, however, have taken a very long time and had uncertain chances of 
success. 
7. 
SIGNIFICANT POST BALANCE SHEET EVENTS 
No significant events occurred after the end of the year. 
8. 
SEGMENT INFORMATION 
The Divisions and companies through which the Group operates are aggregated, for the purposes of internal 
and external reporting, into the five business sectors of reference: Helicopters, Defence Electronics and 
Security, Aircraft, Aerostructures and Space. The segment of Other activities includes the Corporate and 
remaining activities. It should be noted that, until the 2021 financial statements, the Aircraft and 
Aerostructures segments were aggregated into the single Aeronautics segment, which was subsequently 
spun off to provide a more closely consistent representation of the underlying company strategies and 
business trends. The 2021 figures have been restated accordingly in the comparative disclosures.  
The Group assesses the performance of its operating segments and the allocation of its financial resources 
on the basis of revenue and EBITA (please also see the paragraph on “NON-GAAP Performance Indicators” 
included in the Report on Operations). For the purpose of a correct interpretation of the information 
provided we note that the results of the strategic Joint Ventures and associates have been included within 
the EBITA of the sectors to which these JVs belong; conversely, these sectors do not reflect the relevant share 
of revenue.

Consolidated Financial Statements at 31 December 2022 
 
216 
 
The results for the operating sectors at 31 December 2022, as compared to 2021, are as follows: 
31 December 2021 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Space 
Other 
Activities Eliminations 
Total 
Revenues 
4,157
6,944
3,268 
442
-
377
(1,053) 
14,135 
Inter-segment revenues (*) 
(8)
(636)
(22) 
(70)
-
(317)
1,053 
- 
Third party revenues 
4,149
6,308
3,246 
372
-
60
- 
14,135 
EBITA 
406
703
410 
(203)
62
(255)
- 
1,123 
Investments (***) 
234
261
38 
48
-
95
- 
676 
Non-current assets (**) 
3,694
3,740
641 
283
-
889
- 
9,247 
 
 
 
31 December 2022 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Space 
Other 
Activities Eliminations 
Total 
Revenues 
4,547
7,212
3,085 
475
-
579
(1,185) 
14,713 
Inter-segment revenues (*) 
(14)
(681)
(29) 
(68)
-
(393)
1,185 
- 
Third party revenues 
4,533
6,531
3,056 
407
-
186
- 
14,713 
EBITA 
415
805
415 
(183)
31
(265)
- 
1,218 
Investments (***) 
253
280
97 
50
-
121
- 
801 
Non-current assets (**) 
3,832
4,092
699 
284
-
920
- 
9,827 
 
(*) Inter-segment revenue includes revenue among Group consolidated undertakings belonging to various business sectors. 
(**)The portion of non-current assets relates to intangible assets and property, plant and equipment as well as to investment property. 
(***)Investments relate to intangible assets and property, plant and equipment as well as to investment property (net of grants ascertained on these 
items).

Consolidated Financial Statements at 31 December 2022 
 
217 
 
The reconciliation of EBITA, EBIT and earnings before income taxes and financial expense for the periods 
concerned is shown below: 
2021 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Space 
Other 
Activities 
Total 
EBITA 
406
703
410
(203) 
62
(255)
1,123
Amortisation of intangible 
assets acquired as part of 
business combinations 
(5)
(17)
-
- 
-
-
(22)
Restructuring costs 
-
(16)
-
(57) 
-
(16)
(89)
Non-recurring 
income/expense 
(49)
(23)
(7)
(19) 
-
(3)
(101)
EBIT 
352
647
403
(279) 
62
(274)
911
Equity-accounted strategic 
investments 
-
(86)
24
- 
(62)
-
(124)
Income before tax and 
financial expenses 
352
561
427
(279) 
-
(274)
787
 
2022 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Space 
Other 
Activities 
Total 
EBITA 
415
805
415
(183) 
31
(265)
1,218
Amortisation of intangible 
assets acquired as part of 
business combinations 
(5)
(19)
-
- 
-
-
(24)
Restructuring costs 
(8)
(46)
(6)
(2) 
-
(57)
(119)
Non-recurring 
income/expense 
(28)
(64)
(2)
(1) 
-
(19)
(114)
EBIT 
374
676
407
(186) 
31
(341)
961
Equity-accounted strategic 
investments 
-
(107)
6
- 
(31)
-
(132)
Income before tax and 
financial expenses 
374
569
413
(186) 
-
(341)
829

Consolidated Financial Statements at 31 December 2022 
 
218 
 
Below is the breakdown of revenue by geographical area (based on the customer’s home country) and 
relevant sector: 
31 December 2021 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Other 
Activities Eliminations 
Total 
Italy 
824
1,734
252
76 
372
(858)
2,400
United Kingdom 
511
1,008
-
- 
-
(194)
1,325
Rest of Europe 
1,172
989
797
100 
4
(2)
3,060
United states of America 
335
2,653
396
210 
1
(6)
3,589
Rest of the world 
1,315
560
1,823
56 
-
7
3,761
Revenues 
4,157
6,944
3,268
442 
377
(1,053)
14,135
Inter-segment revenues (*) 
(8)
(636)
(22)
(70) 
(317)
1,053
-
Third party revenues 
4,149
6,308
3,246
372 
60
-
14,135
 
 
 
 
 
 
31 December 2022 
Helicopters 
Defence 
Electronics & 
Security 
Aircrafts 
Aerostructures 
Other 
Activities Eliminations 
Total 
Italy 
707
1,567
338
71 
417
(1,039)
2,061
United Kingdom 
518
1,237
-
3 
51
(130)
1,679
Rest of Europe 
1,012
1,073
856
129 
110
(4)
3,176
United states of America 
396
2,740
615
209 
1
(9)
3,952
Rest of the world 
1,914
595
1,276
63 
-
(3)
3,845
Revenues 
4,547
7,212
3,085
475 
579
(1,185)
14,713
Inter-segment revenues (*) 
(14)
(681)
(29)
(68) 
(393)
1,185
-
Third party revenues 
4,533
6,531
3,056
407 
186
-
14,713
 
(*) Inter-segment revenue includes revenue among Group consolidated undertakings belonging to various business sectors. 
 
Below is the breakdown of fixed assets (intangible assets, property, plant and equipment and investment 
property) according to the geographical area in which the Group companies are based: 
31 December 2021 
31 December 2022 
Italy 
5,066
5,337
United Kingdom 
1,789
1,672
Rest of Europe 
467
556
United states of America 
1,906
2,253
Rest of the world 
19
9
9,247
9,827

Consolidated Financial Statements at 31 December 2022 
 
219 
 
9. 
INTANGIBLE ASSETS 
Goodwill 
Development 
costs 
Non-
recurring 
costs 
Concessions, 
licences and 
trademarks 
Acquired 
through 
business 
combinations 
Other 
intangible 
assets 
Total 
1 January 2021 
 
 
Cost 
6,085
1,556
2,355 
650
1,275
518
12,439 
Depreciation 
-
(707)
(479) 
(439)
(1,009)
(372)
(3,006) 
Impairment losses 
(2,457)
(136)
(166) 
-
-
(27)
(2,786) 
Carrying amount 
3,628
713
1,710 
211
266
119
6,647 
 
 
Investments (net of grants) 
-
160
118 
13
-
63
354 
Sales 
-
(2)
- 
-
-
(1)
(3) 
Amortisation 
-
(33)
(45) 
(19)
(22)
(31)
(150) 
Impairment losses 
-
(11)
(30) 
-
-
1
(40) 
Increase for business 
combinations 
13
-
- 
-
-
5
18 
Other changes 
195
22
7 
23
16
(10)
253 
31 December 2021 
3,836
849
1,760 
228
260
146
7,079 
broken down as follows: 
 
 
Cost 
6,478
1,742
2,481 
687
1,363
583
13,334 
Depreciation 
-
(749)
(524) 
(459)
(1,103)
(411)
(3,246) 
Impairment losses 
(2,642)
(144)
(197) 
-
-
(26)
(3,009) 
Carrying amount 
3,836
849
1,760 
228
260
146
7,079 
 
 
Investments (net of grants) 
-
133
98 
10
-
72
313 
Sales 
-
(1)
- 
-
-
-
(1) 
Amortisation 
-
(39)
(64) 
(23)
(24)
(37)
(187) 
Impairment losses 
-
(1)
(21) 
-
-
(1)
(23) 
Increase for business 
combinations 
269
-
- 
-
124
-
393 
Scope deconsolidation 
variance 
(201)
-
- 
-
-
-
(201) 
Other changes 
21
2
1 
28
(5)
(10)
37 
31 December 2022 
3,925
943
1,774 
243
355
170
7,410 
broken down as follows: 
 
 
Cost 
6,742
1,862
2,580 
709
1,524
628
14,045 
Depreciation 
-
(784)
(588) 
(466)
(1,169)
(432)
(3,439) 
Impairment losses 
(2,817)
(135)
(218) 
-
-
(26)
(3,196) 
Carrying amount 
3,925
943
1,774 
243
355
170
7,410 
 
 
31 December 2021 
 
 
Gross value 
4,794 
 
Grants 
3,034 
 
 
 
31 December 2022 
 
 
Gross value 
4,814 
 
Grants 
3,040 
 
 
The investments for the period are stated net of related grants. Commitments were in place for the purchase 
of intangible assets for €mil. 19 at 31 December 2022 (€mil. 33 at 31 December 2021). The impairment of 
non-recurring costs mainly refers to write-downs linked to programmes in the Aircraft sector.

Consolidated Financial Statements at 31 December 2022 
 
220 
 
As set out in Note 4.1 of the consolidated financial statements, to which reference is made, development 
costs and non-recurring charges are tested for impairment, if the conditions obtain, using the discounted 
cash flow method. The cash flows used are those under the product business plan, as discounted on the basis 
of a weighted-average cost of capital (WACC) basis calculated using the Capital Asset Pricing Model method. 
Goodwill 
Goodwill is allocated to the Cash Generating Units (CGUs) or to groups of CGUs concerned, which are 
determined on the basis of the Group’s organisational, management and control structure, which coincides, 
as is known, with the Group’s five business segments. Compared to 31 December 2021, the CGUs on which 
the goodwill is allocated have been affected by the spin-off of the Aeronautics segment into the Aircraft and 
Aerostructures segments, which was carried out to provide a more closely consistent representation of the 
underlying company strategies and business trends. Goodwill previously allocated to Aeronautics has been 
allocated in full to the Aircraft Cash Generating Unit on the basis of the relative fair value. 
Below is the breakdown of goodwill by CGU at 31 December 2022 and 2021: 
31 December 2021 
31 December 2022 
Helicopters 
1,266
1,241 
Defence Electronics & Security 
2,510
2,626 
DRS 
1,490
1,647
 
Leonardo Divisions 
1,020
979
 
Aircrafts 
60
60 
3,836
3,927 
 
The net increase compared to 31 December 2021 was mainly due to the transactions carried out by subsidiary 
Leonardo DRS and the foreign currency translation differences on goodwill denominated in USD and GBP. 
With regard to Leonardo DRS, the merger of RADA – for more details reference should be made to Note 14 
on “business combinations” – resulted in the recognition of goodwill preliminarily set at USDmil. 283 (€mil. 
269); on the other hand, a portion of the goodwill previously allocated to the CGU, determined by using the 
relative fair value method and amounting to USDmil. 211 (€mil. 201), was attributed to the GES business, 
which was disposed of during 2022. With regard to translation differences, the negative effect of GBP-
denominated assets was more than offset by the positive effect achieved on USD-denominated assets. 
Goodwill is subject to impairment testing to determine any loss in value. This is done by individual CGU by 
comparing the carrying amount with the greater of the value in use of the CGU and amount recoverable by 
sale (fair value). The Group has established an operational hierarchy between calculating the fair value net 
of transaction costs and value in use, where the value in use is estimated first, and then only after, if it is 
lower than the carrying value, is the fair value net of transaction costs determined. In particular, the value in 
use is measured by the unlevered discounting of the cash flows resulting from the Group’s five-year business 
plans prepared by the management of the CGUs and incorporated into the plan approved by Leonardo’s 
Board of Directors, projected beyond the explicit time horizon covered by the plan according to the 
perpetuity growth method (terminal value), using growth rates (“g-rate”) no greater than those forecast for 
the markets in which the given CGU operates. The cash flows used were those provided for in the plans 
adjusted to exclude the effects of future business restructurings, if any, not yet approved, or future 
investments for improving future performance. Specifically, these cash flows are those generated before 
financial expense and taxes – determined on a notional basis, and include investments in capital assets and 
monetary changes in working capital, while excluding cash flows from financial management, extraordinary 
events or the payment of dividends. The underlying macro-economic assumptions were made on the basis 
of external information sources, where available, while the profitability and growth estimates used in the

Consolidated Financial Statements at 31 December 2022 
 
221 
 
plans were calculated by management based on past experience and future developments in the Group’s 
markets. 
These cash flows are discounted on a weighted-average cost of capital (WACC) basis calculated using the 
Capital Asset Pricing Model method. The following factors were taken into account in calculating WACCs, 
which were also determined by using the data referable to the main competitors operating in each sector: 
• 
the risk-free rate was determined using the 10- and 20-year gross yield of government bonds of the 
geographic market of the CGU;  
• 
the market premium, determined using computations of external providers; 
• 
the sector beta; 
• 
the cost of debt; 
• 
the debt/equity ratio. 
 
The growth rates used to project the CGU’s cash flows beyond the explicit term of the plan were estimated 
by making reference to the growth assumptions of the individual sectors in which said CGUs operate. These 
assumptions are based on the internal processing of external sources, making reference to a period of time 
that is usually ten years. The g-rates used for the purposes of the impairment test were equal to 2%, 
consistently with the actions taken in previous financial years, even in the presence of higher expected 
growth rates in some sectors.  
The mostly important assumptions for the purposes of estimating the cash flows used in determining the 
value in use are: 
• 
WACC;  
• 
g-rate; 
• 
ROS; 
• 
the trend in Defence budgets. 
In estimating these assumptions, the management made reference, in the case of external variables, to 
internal information processed on the basis of external surveys, as well as on its knowledge of the markets 
and of the specific contractual situations. 
The following WACCs and (nominal) growth rates were used at 31 December 2022 and 2021: 
 
31 December 2021 
31 December 2022 
Wacc 
g-rate 
Wacc 
g-rate 
Helicopters 
7.0% 
2.0% 
8.6% 
2.0% 
Defence Electronics & Security 
 
 
 
 
DRS 
7.5% 
2.0% 
9.0% 
2.0% 
Leonardo Divisions 
6.1% 
2.0% 
7.5% 
2.0% 
Aircrafts 
6.7% 
2.0% 
8.1% 
2.0% 
 
Testing revealed no signs of impairment but showed, on the contrary, significant positive margins 
(headroom). The results of the tests were subjected to sensitivity analysis, taking as reference those 
assumptions for which it is reasonable to believe that their change could significantly modify the results of 
the test. In this regard, it should be noted that in all sectors the large positive margins recorded are such that

Consolidated Financial Statements at 31 December 2022 
 
222 
 
they cannot be significantly modified by changes in the assumptions described; however, for information 
purposes the results for all CGUs are reported below. The table below shows for the 2022 and 2021 financial 
years the positive margin relating to the base scenario, compared with the results of the following sensitivity 
analyses: (i) increase in interest rates used to discount cash flows on all CGUs by 50 basis points, the other 
conditions remaining equal; (ii) reduction in the growth rate in the calculation of terminal value by 50 basis 
points, the other conditions remaining equal; (iii) reduction in operating profitability applied to terminal value 
by half a point, the other conditions remaining equal. 
 
31 December 2021 
Margin (base case) 
 
Margin post sensitivity 
 
Wacc 
g-rate 
ROS TV 
Helicopters 
1,652 
 
1,128 
1,213 
1,429 
Defence Electronics & Security 
 
 
 
 
 
DRS (USD millions) 
2,938 
 
2,499 
2,588 
2,700 
Leonardo Divisions 
11,950 
 
10,289 
10,528 
11,517 
Aircrafts 
7,667 
 
7,030 
7,129 
7,423 
 
31 December 2022 
Margin (base case) 
 
Margin post sensitivity 
 
Wacc 
g-rate 
ROS TV 
Helicopters 
910 
 
556 
630 
724 
Defence Electronics & Security 
 
 
 
 
 
DRS (USD millions) 
2,129 
 
1,800 
1,891 
1,998 
Leonardo Divisions 
8,623 
 
7,625 
7,812 
8,332 
Aircrafts 
5,774 
 
5,433 
5,499 
5,631 
 
 
Development costs and non-recurring charges 
Investments in “Development costs” refer to the Defence Electronics and Security and Helicopters sectors 
(€mil. 49 and €mil. 84, respectively). The increase in “Non-recurring charges” mainly refers to the Helicopters 
sector for €mil. 78 and the Defence Electronics and Security sector for €mil. 22. Total investments were 
affected by the grants received during the year, recognised as a decrease in the related item. As regards 
programmes that benefit from the provisions of Law 808/85 and that are classified as functional to national 
security, the portion of capitalised non-recurring costs, pending the fulfilment of the legal requirements for 
the classification under receivables, is separately disclosed under other non-current assets (Note 13). 
Receivables for grants assessed by the grantor in relation to capitalised costs (shown here net of the related 
grants) are illustrated in Note 28. 
Impairment for the year mainly related to impairment losses on Aircraft programmes. Impairment tests of 
non-recurring costs and development costs are performed on the most significant programmes in terms of 
capitalisation or risk or when impairment indicators emerge. They are carried out – if conditions obtain- using 
the discounted cash flow method. The cash flows used are those of the product business plans, discounted 
on the basis of a WACC rate determined by applying the Capital Asset Pricing Model. As noted in the section 
on accounting policies, product business plans include any investments related to climate change issues. 
Total research and development costs, comprising also “Development costs” and “Non-recurring charges” 
just mentioned, are equal to €mil. 2,003. 
Other items of intangible assets 
“Concessions, licences and trademarks” includes in particular the value of licenses acquired in previous years 
in the Helicopters segment. With regard to the full acquisition of the AW609 programme, this value also

Consolidated Financial Statements at 31 December 2022 
 
223 
 
comprises the estimated variable fees due to Bell Helicopter on the basis of the commercial performance of 
the programme (Note 24).  
Intangible assets acquired in the course of business combinations mainly increased as a result of the RADA 
transaction. For further details reference is made to Note 14 on “business combinations”, partially offset by 
the amortisation for the period. Below is a breakdown of these assets: 
 
31 December 2021 
31 December 2022 
 
 
Know-how 
80
155 
Trademarks 
42
41 
Backlog and commercial positioning 
138
159 
260
355 
 
The item “Other intangible assets” mainly includes software, intangible assets under development and 
advances. 
 
10. 
PROPERTY, PLANT AND EQUIPMENT 
Land and 
buildings 
Plant and 
machinery 
Equipment 
Other tangible 
assets 
Total 
1 January 2021 
 
 
Cost 
1,585
1,673 
2,330
1,609
7,197 
Amortisation, depreciation and write-
offs 
(744)
(1,314) 
(2,043)
(1,081)
(5,182) 
Carrying amount 
841
359 
287
528
2,015 
 
 
Investments 
3
21 
41
257
322 
Sales 
-
(1) 
-
(3)
(4) 
Depreciation 
(46)
(75) 
(65)
(61)
(247) 
Increase for business combinations 
1
1 
-
-
2 
Other changes 
56
70 
47
(139)
34 
31 December 2021 
855
375 
310
582
2,122 
broken down as follows: 
 
 
Cost 
1,647
1,762 
2,450
1,716
7,575 
Amortisation, depreciation and write-
offs 
(792)
(1,387) 
(2,140)
(1,134)
(5,453) 
Carrying amount 
855
375 
310
582
2,122 
 
 
Investments 
8
38 
53
388
487 
Sales 
(1)
(2) 
-
(5)
(8) 
Depreciation 
(44)
(78) 
(81)
(65)
(268) 
Impairment losses 
-
- 
(1)
-
(1) 
Increase for business combinations 
4
20 
-
2
26 
Other changes 
40
27 
94
(151)
10 
31 December 2022 
862
380 
375
751
2,368 
broken down as follows: 
 
 
Cost 
1,689
1,775 
2,539
1,879
7,882 
Amortisation, depreciation and write-
offs 
(827)
(1,395) 
(2,164)
(1,128)
(5,514) 
Carrying amount 
862
380 
375
751
2,368

Consolidated Financial Statements at 31 December 2022 
 
224 
 
The 2022 investments were related to the sectors of Defence Electronics and Security for €mil. 185, Aircraft 
for €mil. 96, Aerostructures for €mil. 49, Helicopters for €mil. 71 and Other Activities for €mil. 86.  
“Other tangible assets” also include the value of tangible assets under construction (€mil. 391 at 31 
December 2022 and €mil. 250 at 31 December 2021). 
Purchase commitments of property, plant and equipment were recorded in the amount of €mil. 206 at 31 
December 2022 (€mil. 173 at 31 December 2021).  
The future receipts attributable to operating leases were equal to €mil. 9 (€mil. 11 at 31 December 2021), of 
which €mil. 1 beyond 5 years. 
11. 
RIGHT OF USE 
Rights of use of land 
and buildings 
Rights of use of 
plant and machinery 
Rights of use of 
other tangible 
assets 
Total 
1 January 2021 
 
 
Cost 
601 
11
66
678 
Amortisation, depreciation and write-offs 
(113) 
(4)
(34)
(151) 
Carrying amount 
488 
7
32
527 
 
 
New Contract submission 
38 
4
21
63 
Closing and contract modifications 
(4) 
-
4
- 
Depreciation 
(67) 
(2)
(19)
(88) 
Other changes 
28 
1
(1)
28 
31 December 2021 
483 
10
37
530 
broken down as follows: 
 
 
Cost 
666 
17
86
769 
Amortisation, depreciation and write-offs 
(183) 
(7)
(49)
(239) 
Carrying amount 
483 
10
37
530 
 
 
New Contract submission 
65 
10
5
80 
Closing and contract modifications 
(8) 
-
1
(7) 
Depreciation 
(69) 
(4)
(19)
(92) 
Increase for business combinations 
12 
-
-
12 
Other changes 
10 
1
2
13 
31 December 2022 
493 
17
26
536 
broken down as follows: 
 
 
Cost 
728 
28
84
840 
Amortisation, depreciation and write-offs 
(235) 
(11)
(58)
(304) 
Carrying amount 
493 
17
26
536 
 
During 2022 this item showed an increase due to the signature of new contracts, net of amortisation 
allowances. 
The leases with a term of less than 12 months and those concerning assets of modest value were recognised 
among “costs for purchases” (Note 29). 
At 31 December 2022 there were lease commitments amounting to €mil. 104  (€mil. 109 in 2021), mainly 
related  to the new site of Leonardo UK and €mil. 3 on short-term leases (€mil. 4 in 2021).

Consolidated Financial Statements at 31 December 2022 
 
225 
 
12. 
EQUITY INVESTMENTS AND SHARE OF PROFITS (LOSSES) OF EQUITY-ACCOUNTED 
INVESTEES 
 
2021 
2022 
Equity 
investments 
Risk provisions 
Total 
Equity 
investments 
Risk provisions 
Total 
Strategical investments 
1,050
1,050 
1,843
1,843 
 
 
Joint venture not 
individually material: 
85
(8)
77 
59
(5)
54 
- Rotorsim Srl 
39
39 
37
37 
- Advanced Acoustic 
Concepts LLC 
24
24 
- 
- Closed Joint Stock 
Company Helivert 
(8)
(8) 
(5)
(5) 
- Orizzonte - Sistemi 
navali 
17
17 
17
17 
- Other minor 
5
-
5 
5
-
5 
 
 
Associates not 
individually material 
184
-
184 
197
(7)
190 
1,319
(8)
1,311 
2,099
(12)
2,087 
 
The Leonardo Group operates in certain sectors also through entities jointly controlled with third parties and 
valued under the equity method, since they qualify as joint ventures.  
Below are reported the joint ventures considered material in terms of volumes and from a strategic viewpoint 
for the Group: 
Company name 
 
Nature of the relations 
 
Main operating 
location 
 
Registered office 
 
Ownership 
% 
Telespazio Group 
JV con Thales, among the main global providers of 
satellite services 
Rome, Italy 
Rome, Italy 
67% 
Thales Alenia 
Space Group 
JV with Thales, among the main European leaders in 
the satellite systems and at the forefront of orbit 
infrastructures 
Toulouse, France 
Cannes, France 
33% 
GIE ATR 
JV with Airbus Group, among the global leaders in 
regional turboprop aircraft with a capacity of 
between 50 and 70 seats 
Toulouse, France 
Toulouse, France 
50% 
MBDA Group 
JV with Airbus Group and BAE Systems (through the 
parent AMSH BV), among the world leaders in 
missiles and missile systems 
Paris, France 
Paris, France 
25% 
 
In particular, as regards the companies falling under the so-called Space Alliance - Thales Alenia Space and 
Telespazio – the Company carried out an in-depth analysis of the existing arrangements, in order to verify 
whether situations of control (with reference to Telespazio) or of significant influence (with reference to 
Thales Alenia Space) existed, concluding that both entities should be considered by Leonardo as Joint 
Ventures. Specifically, the Space Alliance univocally regulates the governance of both companies, making 
reference to shareholders’ agreements prepared alike. With particular reference to Telespazio, in which the 
Group holds more than 50% of the stakes, the analyses performed led to deem that the company’s 
governance is such that Telespazio can be regarded as a jointly controlled entity by virtue of the composition 
rules for the decision-making bodies - these rules being such that cannot be defined as merely “protective”,

Consolidated Financial Statements at 31 December 2022 
 
226 
 
as referred to in IFRS10 – and due to the expected unanimous consent of the shareholders on particularly 
significant matters for the company’s management. Moreover, the substantive analysis, carried out taking 
into account the peculiarity of the businesses, highlighted that the methods to resolve deadlocks (i.e. when 
a stalemate in the decision-making process occurs and the shareholders have no possibility to jointly decide 
on matters about which they are required to make decisions through the unanimous consent mechanism) 
do not allow the majority venturer to impose its will. This is because, in case no decision can be reached, 
despite the complex escalation mechanism under the shareholders’ agreements, the minority venturer has 
the right to dissolve the Joint Venture, recovering the assets originally assigned, through a call option or, 
solely if this option is not exercisable, to leave the Joint Venture through a put option. Finally, in the event of 
a decision-making deadlock, the joint venture might be eventually wound up or the minority venturer might 
sell its interest: in both of these cases, the venturers might be required to share or transfer part of the assets 
– with particular reference to technological expertise or know-how – originally assigned. 
On the contrary, the analysis performed by the other venturer led to different conclusions with reference to 
Thales Alenia Space, which is fully consolidated by Thales in spite of the previously described governance 
structure. The application of such different conclusions on Leonardo, with the full consolidation of Telespazio, 
would have changed the Group’s main indicators as follows: 
 
2021 
 
2022 
Revenues 
+595 
 
640 
EBITA 
+33 
 
+31 
EBIT 
+32 
 
+28 
Net Result (minorities) 
+14 
 
+15 
FOCF 
+47 
 
+70 
Group Net Debt 
-4 
 
-17 
 
With reference to associates, in 2022 the Leonardo Group completed the acquisition of 25.1% of HENSOLDT 
AG ("Hensoldt"), a leading German company in the field of sensors for applications in defence and security, 
listed on the Frankfurt stock exchange. The total amount paid by Leonardo was equal to €mil. 618 (inclusive 
of transaction costs) and entailed the recognition of implicit goodwill of about €mil. 365 stated in the value 
of the equity investment, in addition to intangible assets relating to the valuation of the Customer 
relationship and of the Backlog, equal to about €mil. 126 and €mil. 25, respectively. 
 
Below is some relevant information concerning the company: 
 
Company name 
Nature of the relations 
Main operating 
location 
Registered 
office 
Ownership % 
Hensoldt Group 
Associated company 
Taufkirchen, 
Germania 
Taufkirchen, 
Germania 
25.1% 
 
Given the present shareholder and governance composition, Hensoldt enters the Leonardo Group's scope of 
consolidation as an associated company and is measured under equity method. The value of the investment, 
which for the purposes of Leonardo is comparable to that of the investment in the "Strategic Joint Ventures" 
from both a strategic and economic standpoint, led to its classification as "material." Accordingly, the 
company's economic and financial data are reported below, in the same way as any other strategic Joint 
Venture, in accordance with the provisions of IFRS12:

Consolidated Financial Statements at 31 December 2022 
 
227 
 
31 December 2021 
Telespazio (JV) 
Thales 
Alenia 
Space (JV) 
MBDA 
(through 
AMSH BV) 
(JV) 
GIE ATR 
(JV) 
Hensoldt 
Total 
 
 
Non-current assets 
363 
1,949
2,732
265 
Current assets 
400 
2,027
7,849
749 
- of which cash and cash equivalent 
19 
11
163
8 
Non-current liabilities 
79 
280
680
279 
- of which non-current financial liabilities 
27 
-
6
161 
Current liabilities 
363 
1,851
8,842
613 
- of which current financial liabilities 
18 
453
21
99 
NCI net equity (100%) 
17 
-
1
- 
Group net equity (100%) 
304 
1,845
1,058
122 
 
 
Revenues (100%) 
605 
2,155
4,234
703 
Amortisation, depreciation and impairment losses 
(100%) 
21 
66
165
25 
Financial income (expenses) (100%) 
2 
(6)
(5)
2 
Income taxes (100%) 
(20) 
14
(112)
- 
 
 
Profit (loss) from continuing operations (100%) 
37 
112
344
(48) 
Profit (loss) from discontinued operations, net of taxes 
(100%) 
- 
-
-
- 
Other comprehensive income (expenses) (100%) 
1 
49
248
(19) 
Total comprehensive income (expenses) (100%) 
38 
161
592
(67) 
-
 
 
% Groups' interest in equity at 1 January 
184 
555
152
16 
907
% Groups' interest in profit (loss) from continuing 
operations 
25 
37
86
(24) 
-
124
% Groups' interest in profit (loss) from discontinued 
operations, net of taxes 
- 
-
-
- 
-
-
% Groups' interest in other comprehensive income 
(expenses) 
1 
16
62
(10) 
-
69
% Groups' interest in total comprehensive income 
(expenses) 
26 
53
148
(34) 
-
193
Dividends received 
(21) 
(33)
 
(54)
Subscriptions and capital increases (decrease) 
15 
76 
91
Exchange differences and other movements 
1 
(2)
3 
2
 
 
% Groups' interest in equity at 31 December 
205 
608
265
61 
-
1,139
Consolidation adjustments 
1 
(207)
117
 
(89)
Equity investments at 31 December 
206 
401
382
61 
-
1,050
 
 
% Groups' interest in profit (loss) 
25 
37
86
(24) 
-
124
Consolidation adjustments 
- 
-
- 
-
-
Share of profits (losses) of equity-accounted 
investees 
25 
37
86
(24) 
-
124

Consolidated Financial Statements at 31 December 2022 
 
228 
 
31 December 2022 
Telespazio (JV) 
Thales 
Alenia 
Space (JV) 
MBDA 
(throught 
AMSH BV) 
(JV) 
GIE ATR 
(JV) 
Hensoldt 
Total 
 
 
Non-current assets 
358 
1,958
2,748
239 
1,335
Current assets 
420 
1,881
8,160
860 
1,644
- of which cash and cash equivalent 
14 
14
136
4 
460
Non-current liabilities 
70 
228
40
186 
1,160
- of which non-current financial liabilities 
23 
-
11
74 
621
Current liabilities 
373 
1,858
9,338
712 
1,203
- of which current financial liabilities 
14 
294
22
115 
16
NCI net equity (100%) 
18 
-
(1)
- 
13
Group net equity (100%) 
317 
1,753
1,531
201 
603
 
 
Revenues (100%) 
650 
2,175
4,210
821 
1,707
Amortisation, depreciation and impairment losses 
(100%) 
26 
59
194
42 
103
Financial income (expenses) (100%) 
3 
(21)
14
4 
(39)
Income taxes (100%) 
(16) 
(19)
(123)
(2) 
(49)
 
 
Profit (loss) from continuing operations (100%) 
42 
11
386
(11) 
78
Profit (loss) from discontinued operations, net of taxes 
(100%) 
- 
-
-
- 
-
Other comprehensive income (expenses) (100%) 
3 
(22)
334
7 
147
Total comprehensive income (expenses) (100%) 
45 
(11)
720
(4) 
225
 
 
% Groups' interest in equity at 1 January 
205 
608
265
61 
-
1,139
% Groups' interest in profit (loss) from continuing 
operations 
28 
4
97
(6) 
20
143
% Groups' interest in profit (loss) from discontinued 
operations, net of taxes 
- 
-
-
- 
-
-
% Groups' interest in other comprehensive income 
(expenses) 
2 
(7)
84
4 
37
120
% Groups' interest in total comprehensive income 
(expenses) 
30 
(3)
181
(2) 
57
263
Dividends received 
(21) 
(27)
(62)
 
(7)
(117)
Subscriptions and capital increases (decrease) 
 
38 
38
Acquisitions 
 
 
100
100
Exchange differences and other movements 
(1) 
3 
2
4
 
 
% Groups' interest in equity at 31 December 
213 
578
384
100 
152
1,427
Consolidation adjustments 
1 
(209)
116
 
508
416
Equity investments at 31 December 
214 
369
500
100 
660
1,843
 
 
% Groups' interest in profit (loss) 
28 
4
97
(6) 
20
143
Consolidation adjustments 
- 
(1)
-
- 
(10)
(11)
Share of profits (losses) of equity-accounted 
investees 
28 
3
97
(6) 
10
132
 
The recoverability of the carrying amount of investments is verified, when conditions obtain, also through 
impairment tests. 
With regard to Hensoldt AG, listed on the Frankfurt Stock Exchange, below is reported a comparison of the 
value of the equity investment and the average market price in December:

Consolidated Financial Statements at 31 December 2022 
 
229 
 
Listed entity 
N° shared owned 
Stock Exchange 
Equity Investment 
€mil. 
€ per unit 
Total €mil. 
Hensoldt AG 
26,355,000 
21.8 
575.8 
660 
 
Below is provided a summary of the aggregate economic and financial data of other associates which are not 
individually material for the Group. 
31 December 2021 
31 December 2022 
Other JV not 
individually 
material 
Associates not 
individually 
material 
Other JV not 
individually 
material 
Associates not 
individually 
material 
% Groups' interest in equity at 1 January 
78 
173
85 
184 
% Groups' interest in profit (loss) from continuing 
operations 
2 
11
2 
20 
% Groups' interest in other comprehensive income 
(expenses) 
3 
1
4 
5 
% Groups' interest in total comprehensive income 
(expenses) 
5 
12
6 
25 
Dividends received 
 
(8)
(8) 
(8) 
Subscriptions and capital increases (decrease) 
 
6
 
3 
Acquisitions 
 
4
 
 
Disposals 
 
(24) 
 
Exchange differences and other movements 
2 
(3)
 
(7) 
 
 
 
% Groups' interest in equity at 31 December 
85 
184
59 
197 
Consolidation adjustments 
- 
-
- 
- 
Equity investments at 31 December 
85 
184
59 
197 
 
 
 
% Groups' interest in profit (loss) 
2 
11
2 
20 
Consolidation adjustments 
 
 
 
Share of profits (losses) of equity-accounted 
investees 
2 
11
2 
20 
 
 
 
Share of profits (losses) of equity-accounted 
investees (risk provisions) 
1 
1 
(13) 
 
 
13. 
RECEIVABLES AND OTHER NON-CURRENT ASSETS 
31 December 2021 
31 December 2022 
Financing to third parties 
1
- 
Deferred grants under Law no. 808/85 
10
6 
Defined benefit plan assets, net (Note 23) 
585
215 
Related party receivables (Note 36) 
13
13 
Other non-current receivables 
10
42 
Non-current receivables 
619
276 
 
Prepayments - non-current portion 
19
20 
Equity investments at cost 
26
23 
Non-recurring costs pending under Law no. 808/1985 
15
29 
Non-current assets 
60
72

Consolidated Financial Statements at 31 December 2022 
 
230 
 
The net decrease in non-current assets is attributable to the actuarial valuation of net assets related to 
defined benefit plans, for which details reference should be made to Note 23 on “Employee benefit 
obligations”. 
 
14. 
BUSINESS COMBINATIONS  
On 29 November 2022 Leonardo disclosed the completion of the merger between the U.S. subsidiary 
Leonardo DRS, Inc. (“Leonardo DRS”) and the Israeli company RADA Electronic Industries Ltd. (“RADA”), listed 
on the NASDAQ and Tel Aviv Stock Exchange (“TASE”), with a market capitalisation that fluctuated between 
USDmil. 500 and USDmil. 600 during the year.  
RADA is active in the business of tactical radars for short-range and low-cost defence, particularly suitable 
for ground-based Short Range Air Defense and Counter-UAV applications. RADA’s products constitute a 
strategic expansion of DRS and the Leonardo Group’s portfolio by complementing the offering of sensors on 
board land vehicles and have different functional and configuration features from the radars that are 
currently in the portfolio of the Electronics division of Leonardo and of Hensoldt, thus making them 
complementary in an integrated offering perspective. This transaction also enables Leonardo to establish an 
actual footprint in Israel, in line with its goal of international growth.  
The consideration associated with the transaction, against which a 19.1% stake in Leonardo DRS was assigned 
to RADA shareholders, was determined to be USDmil. 513 (€mil. 481 at 31 December 2022), generating 
goodwill preliminarily determined to be USDmil. 283 (€mil. 269). Following the transaction, Leonardo 
continues to retain the 80.9% stake in Leonardo DRS, through the U.S. subsidiary Leonardo US Holding, whose 
shares have been listed under the symbol “DRS” on NASDAQ since the opening of trading on 29 November 
2022 and the Tel Aviv Stock Exchange (TASE) since the opening of trading on 30 November 2022. 
The Purchase Price Allocation process on the acquired values has not yet been concluded while the 
preliminary findings are given below: 
($mil.) 
Book values 
ADJ Fair value 
Fair value 
Intangible assets acquired through business combinations 
-
131
131 
Other non-current assets 
47
(5)
42 
 
Other assets 
90
1
91 
Cash and cash equivalents 
19
-
19 
 
Assets acquired 
156
127
283 
 
Non-current liabilities 
(14)
(13)
(27) 
Current liabilities 
(25)
(1)
(26) 
 
Liabilities acquired 
(39)
(14)
(53) 
 
 
Net assets acquired, excluding goodwill 
230 
 
 
Total consideration 
513 
 
 
Goodwill 
283 
    
With regard to the previous financial year:

Consolidated Financial Statements at 31 December 2022 
 
231 
 
• 
on 23 July 2021, the Leonardo Group acquired, through Leonardo DRS, Ascendant Engineering 
Solutions (AES). The outlay for the acquisition amounted to USDmil. 14, net of cash acquired, and the 
transaction generated goodwill of USDmil. 11.4; 
• 
the Group completed the acquisition of a quota of about 78% of Dispositivi Protezione Individuale 
S.r.l., through its subsidiary Larimart, a company 60 % owned by the Group, and the acquisition of 
about 70% of the quota capital of Alea S.r.l.. The acquisition of Dispositivi Protezione Individuale S.r.l. 
entailed a total outlay for Larimart of about €mil. 6 and generated goodwill for the Group of 
approximately €mil. 1. The acquisition of Alea S.r.l. entailed a total outlay of about €mil. 4. The values 
involved in the acquisition are not significant for the Group and did not generate any goodwill arising 
from the acquisition. 
 
15. 
INVENTORIES 
31 December 2021 
31 December 2022 
Raw materials, supplies and consumables 
2,238
2,314 
Work in progress and semi-finished goods 
1,494
1,601 
Assets deriving from point in time contracts 
267
336 
Advances to suppliers 
1,487
1,087 
5,486
5,338 
 
Inventories are shown net of impairment charges of €mil. 757 (€mil. 817 at 31 December 2021). 
Point-in-time contract assets includes the production progress recognised on contracts that do not meet the 
requirements for the recognition of revenues on an over-time basis. 
 
16. 
CONTRACT ASSETS AND LIABILITIES 
31 December 2021 
31 December 2022 
Contract assets (gross) 
7,125
7,346 
Contract liabilities 
(3,377)
(3,694) 
Contract assets (net) 
3,748
3,652 
 
Contract liabilities (gross) 
7,942
8,119 
Contract assets 
-
(104) 
Contract liabilities (net) 
7,942
8,015 
 
Contract assets include the net value of the work executed for amounts exceeding the advances received 
from customers. Similarly, contract liabilities include the opposite case. 
This setoff was made limited to contract assets and liabilities and not also to assets arising from at point in 
time contracts classified in inventories. If the progress payments and advances from customers have not 
been collected at the reporting date, the corresponding amount is recognised as a receivable from 
customers.

Consolidated Financial Statements at 31 December 2022 
 
232 
 
The net balance of contract assets is broken down as follows: 
31 December 2021 
 
31 December 2022 
Cost incurred and margins recognised 
7,125
7,450 
Advances received 
(11,319)
(11,813) 
Net value 
(4,194)
(4,363) 
 
17. 
TRADE AND FINANCIAL RECEIVABLES 
31 December 2021 
 
31 December 2022 
Trade 
Financial 
 
Trade 
Financial 
Receivables 
3,127 
39
3,205 
82 
Cumulative impairments 
(564) 
(23)
(587) 
(33) 
Related party current receivables (Note 36) 
640 
45
720 
56 
3,203 
61
3,338 
105 
 
The ageing of receivables together with an analysis of how the Group manages credit risk is reported under 
Note 37. 
18. 
OTHER CURRENT ASSETS 
 
 
31 December 2021 
31 December 2022 
Derivatives 
108
224 
Prepaid expenses - current portion 
104
110 
Receivables for grants 
57
59 
Receivables from employees and social security 
49
35 
Indirect tax receivables 
40
64 
Deferred receivables under Law no. 808/85 
4
2 
Other related party receivables (Note 36) 
6
3 
Other assets 
121
101 
489
598 
 
The fair value performance of portfolio derivatives is broken down below: 
Fair value at 
31 December 2021 
31 December 2022 
Assets 
Liabilities 
Net 
Assets 
Liabilities 
Net 
Interest rate swaps 
 
 
Trading 
-
(1)
(1) 
-
(1)
(1) 
Fair value hedge 
-
-
- 
-
-
- 
Cash flow hedge 
-
(13)
(13) 
30
-
30 
 
 
Currency 
forward/swap/option 
 
 
Trading 
-
-
- 
-
-
- 
Fair value hedge 
10
(2)
8 
1
(20)
(19) 
Cash flow hedge 
98
(145)
(47) 
193
(275)
(82) 
 
19. 
CASH AND CASH EQUIVALENTS 
The change in the year is shown in the statement of cash flows. Cash and cash equivalents at 31 December 
2022 included €mil. 5 of term deposits (€mil. 2 at 31 December 2021).

Consolidated Financial Statements at 31 December 2022 
 
233 
 
20. 
EQUITY 
Share Capital 
Number of 
ordinary shares  
Par value 
 
Treasury 
shares 
 
Costs incurred 
(net of tax 
effect) 
 
Total 
Outstanding shares 
578,150,395
2,544 
-
(19)
2,525 
Treasury shares 
(2,843,120)
- 
(26)
-
(26) 
31 December 2021 
575,307,275
2,544 
(26)
(19)
2,499 
 
 
Repurchase of treasury shares less shares sold 
-
- 
-
-
- 
31 December 2022 
575,307,275
2,544 
(26)
(19)
2,499 
 
 
broken down as follows: 
 
 
Outstanding shares 
578,150,395
2,544 
-
(19)
2,525 
Treasury shares 
(2,843,120)
- 
(26)
-
(26) 
 
The share capital, fully subscribed and paid-up, is divided into 578,150,395 ordinary shares with a par value 
of € 4.40 each, including 2,843,120 treasury shares. 
At 31 December 2022 the Ministry of Economy and Finance owned around 30.204% of the share capital.  
The statement of changes in other reserves and equity attributable to non-controlling interests is presented 
in the accounting statements section. 
Cash-flow hedge reserve 
This reserve includes changes in fair value of derivatives used by the Group to hedge its exposure to currency 
net of the effect of deferred taxes until the moment in which the “underlying position” is recognised in the 
income statement. When this condition is met, the reserve is recognised in the income statement to offset 
the economic effects of the hedged transaction. In accordance with the provisions of IFRS 9 governing hedge 
accounting, the reserve also includes the fair value change in the forward component of forward contracts 
(premium points), taken to the income statement when the hedged item affects profit or loss.  
Translation reserve 
The reserve relating to consolidated companies showed the following changes: 
2021 
2022 
US dollar 
176
150 
Pound sterling 
156
(141) 
Other currencies 
(5)
3 
327
12 
 
Overall, the reserve is negative for €mil. 179, mainly for the translation differences on the components 
denominated in Pound sterling.

Consolidated Financial Statements at 31 December 2022 
 
234 
 
Gain and loss items recognised in equity and related tax effect 
 
Group - consolidated entities 
Group - equity accounted investments 
Amount 
before taxes  Tax effect  Net amount 
(*) 
 
Amount 
before taxes  Tax effect  Net amount 
2021 
 
 
Revaluation of defined-benefit plans 
305
(91) 
214
64
(11)
53 
Changes in cash-flow hedges 
(61)
14 
(47)
(12)
1
(11) 
Foreign currency translation difference 
327
- 
327
13
-
13 
Fair value to OCI 
-
- 
-
18
-
18 
Total 
571
(77) 
494
83
(10)
73 
 
 
 
2022 
 
 
Revaluation of defined-benefit plans 
(324)
87 
(237)
183
(39)
144 
Changes in cash-flow hedges 
(24)
7 
(17)
(7)
2
(5) 
Foreign currency translation difference 
12
- 
12
4
-
4 
Fair value to OCI 
-
- 
-
(13)
-
(13) 
Total 
(336)
94 
(242)
167
(37)
130 
 
(*) The net value includes the Group's share of the components that may not be reclassified to profit (loss) for the period, amounting to -€mil. 236 at 
31 December 2022 (€mil. 214 in 2021), and the components that may be reclassified to profit (loss) for the period, amounting to -€mil. 6 at 31 
December 2022 (€mil. 280 in 2021). 
 
There are no tax effects on the gain and loss items recognised in equity of Non-controlling interests. 
21. 
BORROWINGS 
31 December 2021 
31 December 2022 
 
Non-current 
Current 
Total 
 
Non-current 
Current 
Total 
Bonds 
1,855
626
2,481 
1,592
36
1,628 
borrowings 
1,599
49
1,648 
1,279
71
1,350 
Lease liabilities 
460
78
538 
472
74
546 
Related party lease 
liabilities 
26
4
30 
20
4
24 
Other related party 
borrowings (Note 36) 
100
756
856 
100
862
962 
Other borrowings 
72
45
117 
68
35
103 
4,112
1,558
5,670 
3,531
1,082
4,613 
 
Changes in loans and borrowings are as follows: 
1 January 2021 New borrowings Repayments/Pay
ment of coupons 
Other net 
increase 
(decrease) 
Exchange 
differences 
31 December 
2021 
Bonds 
3,220
-
(858) 
98
21
2,481
borrowings 
896
801
(49) 
-
-
1,648
Lease liabilities 
525
63
(77) 
(1)
28
538
Related party lease 
liabilities 
30
-
(3) 
1
2
30
Other related party 
borrowings 
881
-
(24) 
(1)
-
856
Other borrowings 
152
10
(47) 
-
2
117
5,704
874
(1,058) 
97
53
5,670

Consolidated Financial Statements at 31 December 2022 
 
235 
 
1 January 2022 New borrowings Repayments/Pay
ment of coupons 
Other net 
increase 
(decrease) 
Exchange 
differences 
31 December 
2022 
Bonds 
2,481
-
(942) 
68
21
1,628
borrowings 
1,648
203
(498) 
-
(3)
1,350
Lease liabilities 
538
80
(89) 
7
10
546
Related party lease 
liabilities 
30
-
(4) 
-
(2)
24
Other related party 
borrowings 
856
-
- 
106
-
962
Other borrowings 
117
9
(19) 
(5)
1
103
5,670
292
(1,552) 
176
27
4,613
 
Net changes for current liabilities. The items also include changes resulting from the application of the effective interest-rate method, 
which may not correspond with actual cash movements. 
The decrease in bonds compared to 31 December 2021 is attributable to:  
• 
the repayment of the remaining nominal amount of €mil. 556 of the bond issued by Leonardo S.p.a. 
(original nominal amount of €mil. 600), which reached its natural expiry in January 2022; 
• 
the full early repayment by subsidiary Leonardo US Holding, LLC of its bonds due 2039 and 2040, for 
a remaining total nominal value of USDmil. 305. 
The Group’s issues are governed by rules with standard legal clauses for these types of corporate transactions 
on institutional markets that do not require any undertaking with regard to compliance with specific financial 
parameters (financial covenants) but they do require negative pledge and cross-default clauses. Based on 
negative pledge clauses, Group issuers, Leonardo and their “Material Subsidiaries” (companies in which 
Leonardo owns more than 50% of the share capital and the gross revenues and total assets of which 
represent at least 10% of consolidated gross revenues and total assets) are expressly prohibited from 
pledging collateral security or other obligations to secure their debt in the form of bonds or listed financial 
instruments or financial instruments that qualify for listing, unless these guarantees are extended to all 
bondholders. Exceptions to this prohibition are securitisation and, as from July 2006, the establishment of 
assets for the use indicated in Article 2447-bis et seq. of the Italian Civil Code. On the contrary, the cross-
default clauses give the bondholders the right to request early redemption of the bonds in their possession 
in the event of default by the Group issuers and/or Leonardo and/or any “Material Subsidiary” that results 
in a failure to make payment beyond pre-set limits.  
The decrease in bank payables takes account of the early repayment, in December 2022, involving the €mil. 
500 Term Loan raised in 2018 and with natural expiry in November 2023, partially offset by the use of the 
Term Loans raised by subsidiary Leonardo DRS. 
It should be noted that financial covenants are included in the Revolving Credit Facility of €mil. 2,400 and in 
the Term Loan ESG-linked of €mil. 600, which require Leonardo to comply with two Financial ratios (the ratio 
of Group net debt - excluding payables to the joint ventures MBDA and Thales Alenia Space and lease 
liabilities /EBITDA, including amortisation of the right of use assets, must be no higher than 3.75 and the ratio 
of EBITDA, including amortisation of the right of use assets / Net interest must be no lower than 3.25), tested 
annually based on annual consolidated data. These covenants are included in the loan agreement with CDP, 
as well as in all EIB loans in place (they had been used for a total amount of €mil. 500 at 31 December 2022). 
In relation to this Annual Financial Report, there was full compliance with the covenants (the two ratios were 
1.0 and 16.1, respectively). 
In line with the US standard practices, financial covenants are also provided for in the bank loans granted in 
favour of Leonardo DRS. These financial ratios (Net debt / adjusted EBITA not more than 3.75 and adjusted

Consolidated Financial Statements at 31 December 2022 
 
236 
 
EBITA /Net interest not less than 3.0, to be determined on the basis of the data inferable from the US GAAP 
financial statements of the LDO DRS Group) are also met in relation to this Annual Financial. 
Below is the reconciliation of the changes in loans and borrowings with the cash flows from financing 
activities: 
 
2021 
2022 
 
Balance at 1 January 
5,704
5,670 
 
Changes included in cash flows from financing activities of the statement: 
(129)
(1,131) 
- Repayments of bonds 
(739)
(841) 
- BEI Loan and term loan subscription 
800
- 
- BEI Loan and Term Loan repayment 
-
(547) 
- Net change in other borrowings 
(190)
257 
 
Non-monetary changes: 
95
74 
- Non monetary items of lease liabilities 
63
80 
- Exchange rate effect 
53
27 
- Accrued interest 
(21)
(33) 
 
Balance at 31 December 
5,670
4,613 
 
Bonds 
The decrease in the period was due to the repayment in January 2022 of the remaining nominal amount of 
€mil. 556 of the bond issued by Leonardo S.p.a. in 2009, which had reached its natural expiry, and to the full 
early repayment by subsidiary Leonardo US Holding, LLC of its bonds. 
Below is the detail of the bonds at 31 December 2022: 
 
Issuer 
Year of issue 
Maturity 
Currency 
Outstanding nominal 
amount (mil.) 
Annual 
coupon 
Type of offer 
LDO (*) 
2005 
2025 
€ 
500 
4.875% 
European institutional 
LDO (*) 
2017 
2024 
€ 
600 
1.500% 
European institutional 
LDO (*) 
2020 
2026 
€ 
500 
2.375% 
European institutional 
 
(*) Bonds listed on the Luxembourg Stock Exchange and issued under the EMTN programme of up to €bil. 4. The transaction was authorized 
pursuant to Article 129 of Legislative Decree No. 385/93. 
 
Movements in bonds are as follows:

Consolidated Financial Statements at 31 December 2022 
 
237 
 
1 January 
2021 
Interest 
Repayments
/Repurchase
s 
Payments of 
coupons 
Effect of 
exchange 
rate 
31 December 
2021 
Fair value 
€mil. 500 LDO 2025 * 
517
25
(24) 
518
563 
€mil. 600 LDO 2022 * 
582
30
(29) 
583
559 
USDmil. 300 LH 2039 * 
101
8
(8) 
9
110
144 
USDmil. 500 LH 2040 * 
151
10
(10) 
12
163
188 
600 €mil. LDO 2024* 
601
10
(9) 
602
611 
€mil. 950 LDO 2021 * 
770
2
(739)
(33) 
-
 
€mil. 500 LDO 2026 * 
498
13
(6) 
505
520 
3,220
98
(739)
(119) 
21
2,481
2,585 
 
1 January 
2022 
Interest 
Repayments
/Repurchase
s 
Payments of 
coupons 
Effect of 
exchange 
rate 
31 December 
2022 
Fair value 
€mil. 500 LDO 2025 * 
518
24
(24) 
518
509 
€mil. 600 LDO 2022 * 
583
2
(556)
(29) 
-
 
USDmil. 300 LH 2039 * 
110
8
(115)
(12) 
9
-
 
USDmil. 500 LH 2040 * 
163
10
(170)
(15) 
12
-
 
600 €mil. LDO 2024* 
602
10
(9) 
603
586 
€mil. 500 LDO 2026 * 
505
14
(12) 
507
475 
2,481
68
(841)
(101) 
21
1,628
1,570 
(*) Maturity date of bond. 
 
The fair value of the bonds was determined on the basis of the quoted prices of the existing issues (Level 1 
of the fair value hierarchy). 
The Group’s financial liabilities are subject to the following exposures to interest-rate risk: 
Bonds 
borrowings Lease liabilities Related party 
lease liabilities 
Other related 
party 
borrowings 
(Note 36) 
Other 
borrowings 
Total 
31 December 2021 Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed 
Within 1 year 
- 
626
22
27
- 
78
- 
4
756 
-
22
23
800
758 
2 to 5 years 
- 1,589
631
38
- 
336
- 
18
- 
-
63
-
694
1,981 
Beyond 5 years 
- 
266
768
162
- 
124
- 
8
100 
-
9
-
877
560 
Total 
- 2,481
1,421
227
- 
538
- 
30
856 
-
94
23
2,371
3,299 
 
Bonds 
borrowings Lease liabilities Related party 
lease liabilities 
Other related 
party 
borrowings 
(Note 36) 
Other 
borrowings 
Total 
31 December 2022 Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed Floating Fixed 
Within 1 year 
- 
36
50
21
1 
73
- 
4
841 
21
35
-
927
155 
2 to 5 years 
- 1,592
800
210
4 
346
- 
18
100 
-
58
-
962
2,166 
Beyond 5 years 
- 
-
269
-
8 
114
- 
2
- 
-
10
-
287
116 
Total 
- 1,628
1,119
231
13 
533
- 
24
941 
21
103
-
2,176
2,437 
 
Below is the financial information prepared in accordance with the “Indebtedness statement” scheme 
required under CONSOB communication DEM/6064293 of 28 July 2006 and updated in accordance with the 
ESMA guidelines 32-382-1138 of 4 March 2021 as implemented in the CONSOB warning notice no. 5/21 of 
29 April 2021. The scheme is provided below:

Consolidated Financial Statements at 31 December 2022 
 
238 
 
31 December 2021 
 
31 December 2022 
A - Cash 
(2,479)
(1,511) 
C - Other current financial assets 
(61)
(105) 
D - Liquidity 
(2,540)
(1,616) 
 
E - Current financial debt (*) 
932
1,046 
F - Current portion of non-current financial debt 
626
36 
 
G - Current financial debt 
1,558
1,082 
 
H - Net current financial debt (funds) 
(982)
(534) 
 
I - Non-current financial debt (*) 
4,112
3,531 
J - Debt instruments (**) 
(8)
19 
K- Trade payables and other non-current debt 
165
170 
L - Non-current financial debt 
4,269
3,720 
 
M - Total financial debt 
3,287
3,186 
 
(*) 
Includes payables for leases of €mil. 570, of which €mil. 78 current (€mil. 568 as at 31 December 2021, of which €mil. 82 current)  
(**) 
Includes the fair value of hedging derivatives in respect of debt items 
 
Based on current interpretations, the item “Trade payables and other non-current payables“ of the abovesaid 
scheme includes the value of payables for grants received from MED for the development of programmes 
not related to national security eligible for benefits under Law 808/1985, even though such value is not, by 
its very nature, a financial caption. The reconciliation between Net Financial Debt and Group Net Debt, used 
as KPI, is as follows: 
Note 
31 December 2021 
 
31 December 2022 
Net financial debt com. CONSOB n. DEM/6064293/ESMA 
 
3,287
3,186
Payables to MED (Law no. 808/85) 
24 
(165)
(170)
Group net debt (KPI) 
3,122
3,016

Consolidated Financial Statements at 31 December 2022 
 
239 
 
22. 
PROVISIONS FOR RISKS AND CHARGES AND CONTINGENT LIABILITIES 
Guarantees 
given 
Restructuring 
Tax 
Product 
guarantees 
Onerous 
contracts 
(losses at 
completion) 
Other 
provisions 
Total 
1 January 2021 
 
 
Current 
35
63
77 
136
456
551
1,318 
Non-current 
10
34
17 
88
-
435
584 
45
97
94 
224
456
986
1,902 
 
 
Allocations 
-
71
3 
87
103
166
430 
Uses 
-
(45)
- 
(19)
(31)
(94)
(189) 
Reversals 
-
-
(16) 
(54)
(156)
(127)
(353) 
Other changes 
(14)
(2)
(3) 
27
26
(130)
(96) 
31 December 2021 
31
121
78 
265
398
801
1,694 
 
 
Broken down as follows: 
 
 
Current 
21
56
62 
168
398
406
1,111 
Non-current 
10
65
16 
97
-
395
583 
31
121
78 
265
398
801
1,694 
 
 
Allocations 
2
104
13 
98
167
342
726 
Uses 
(1)
(36)
- 
(20)
(55)
(25)
(137) 
Reversals 
-
-
(20) 
(65)
(184)
(191)
(460) 
Other changes 
-
(6)
(4) 
1
74
(58)
7 
31 December 2022 
32
183
67 
279
400
869
1,830 
 
 
Broken down as follows: 
 
 
Current 
22
51
61 
188
400
356
1,078 
Non-current 
10
132
6 
91
-
513
752 
32
183
67 
279
400
869
1,830 
 
“Other provisions for risks and charges” mainly include provisions related to offset obligations and critical 
issues on contracts. 
With regard to risks, below is a summary of the criminal proceedings that are currently underway against a 
number of subsidiary companies or Leonardo itself, as well as certain former directors and executives, 
concerning acts committed during the performance of their duties at subsidiary companies or at Leonardo 
itself, with specific reference to the events that occurred in 2022 and in early 2023: 
• 
On 22 May 2019 the Supreme Court rejected the appeals submitted against the judgment whereby on 
8 January 2018 the Milan Court of Appeal had acquitted the former Chairman and Chief Executive 
Officer of Leonardo and the former Chief Executive Officer of AgustaWestland S.p.A. of the charges for 
the crimes under Articles 110, 112, paragraph 1, 318, 321 and 322-bis, paragraph 2(2) of the Italian 
Criminal Code and Article 2 of Legislative Decree 74/2000,  within the proceedings brought in relation 
to the supply of twelve AW 101 VIP/VVIP helicopters to the Indian Government.  
In respect of these companies, it is recalled that on 25 July 2014, pursuant to Article 58 of Legislative 
Decree 231/2001, the Public Prosecutor dismissed the proceedings against Leonardo, holding 
groundless, following the conclusion of investigations, the Company’s involvement from both a factual 
and legal point of view. The Prosecutor also acknowledged that since 2003 the Company has adopted, 
actually implemented and regularly updated an Organisational, Management and Control Model that 
is conceptually suitable to prevent offences like the one in question and is also focused on compliance 
processes as to guarantee adequate standards of fairness and ethical conduct. In addition, on 28

Consolidated Financial Statements at 31 December 2022 
 
240 
 
August 2014 the Judge for Preliminary Investigations (GIP, Giudice delle Indagini Preliminari) of the 
Court of Busto Arsizio – in granting the motions put forth by the companies – imposed administrative 
penalties pursuant to Article 63 of Legislative Decree 231/2001 and Article 444 and ff. of the Italian 
Code of Criminal Procedure, amounting to €80,000 for AgustaWestland S.p.A. and €300,000 for 
AgustaWestland Ltd, and ordered the confiscation of the equivalent of €mil. 7.5. In this regard, on 20 
April 2021 the Court of Appeal of Brescia, following the requests by AgustaWestland SpA and 
AgustaWestland Ltd for the review of the abovementioned rulings, revoked the rulings challenged and 
acquitted the abovesaid companies. Since times for a possible appeal to the Supreme Court expired, 
the ruling became definitive. 
As regards the investigations started by the Indian Judicial Authority (CBI) in February 2013 for the 
same facts referred to above, on 2 February 2018 a notice was served on AgustaWestland International 
Ltd., whereby the latter was invited to appear at the hearing to be held on 30 May 2018 before the 
Rouse Avenue Court in New Delhi within the criminal proceedings brought therein against the 
aforesaid company and other entities and persons, including Leonardo Spa.  
On 13 April 2018 the Milan Public Prosecutor’s Office served the abovementioned notice of invitation 
to appear at the hearing on 30 May 2018 on Leonardo Spa. The Company submitted an application 
for enforcement review before the Judge for Preliminary Investigations (GIP) of the Court of Milan, 
which was rejected on 22 May 2018, as well as an appeal before the Lazio Regional Administrative 
Court. The Company also took the same legal actions with respect to the service of the notice of 
invitation to appear in court at the hearing on 10 September 2018. By a judgment dated 3 July 2019, 
the Lazio Regional Administrative Court rejected the appeals submitted by Leonardo S.p.A.; the 
Company then filed an appeal against the abovementioned measures. By a judgment dated 7 May 
2020 the Council of State granted the appeals submitted by Leonardo.  
Leonardo S.p.A. has brought the same lawsuits before the administrative Court and before the Judge 
for Preliminary Investigations of the Court of Milan, including with reference to the services of notice 
of invitation to appear at the hearings set on 18 September 2019 and 18 December 2019. The Lazio 
Regional Administrative Court, by judgment dated 24 September 2021, rejected the appeals 
submitted by Leonardo. The Company filed an appeal with the Council of State, which,  by judgment 
handed down at a plenary meeting on 6 December 2022,  granted the appeal filed by Leonardo, 
annulling the orders issued by the Ministry of Justice. 
With regard to objecting to the execution of a judicial measure, the Judge of Preliminary 
Investigations of the Court of Milan granted the claims submitted by Leonardo by an order filed on 
22 March 2022 while revoking the decrees whereby the notifications had been ordered by the Milan 
Public Prosecutor's Office. 
On the contrary AgustaWestland International Ltd appeared at the hearings set within the 
proceedings brought by the Central Bureau of Investigation and the proceedings are continuing 
before the Rouse Avenue Court of New Delhi. 
On 28 August 2019 the Public Prosecutor’s Office of Milan served on Leonardo S.p.A. a notice of 
invitation to appear at the hearing of 18 September 2019 within further proceedings brought by the 
Indian Judicial Authority (Directorate of Enforcement) in relation to the supply of 12 AW 101 VIP/VVIP 
helicopters to the Indian Government. The Company submitted an application for enforcement 
review before the Judge for Preliminary Investigations of the Court of Milan, as well as an appeal 
with the Lazio Regional Administrative Court, even in relation to this notice. The Lazio Regional 
Administrative Court, by the same judgment of 24 September 2021, rejected the appeal submitted 
by Leonardo which filed an appeal with the Council of State. The latter granted the appeal submitted 
by Leonardo by a judgment handed down at a Plenary Meeting on 6 December 2022. With regard to

Consolidated Financial Statements at 31 December 2022 
 
241 
 
objecting to the execution of a judicial measure, the Judge of Preliminary Investigations of the Court 
of Milan revoked, in the same order of 22 March 2022, the decree whereby the notification had been 
ordered by the Milan Public Prosecutor's Office.  
Finally, it should be noted that on 11 February 2020 a notice was served on AgustaWestland 
International Ltd whereby it was invited to appear in court within the proceedings brought by the 
Indian Judicial Authority (Directorate of Enforcement). The proceedings initiated by the Indian 
Authorities (CBI and Directorate of Enforcement) are currently pending in the preliminary stage 
before the Rouse Avenue Court, New Delhi; 
• 
as to the criminal proceedings before the Court of Naples against some suppliers and subcontractors 
of the then Selex SeMa (now Selex ES S.p.A. in liquidation) concerning the SISTRI system and within 
which the company had entered appearance in civil action, the Court declared that the offence had 
become statute barred due to the expiry of the limitation period, following the hearing held on 22 
March 2022; 
− by appeal to the Supreme Court served on 12 January 2022, the attorney general challenged the 
judgment whereby on 19 January 2021 the Court of Appeals of Milan rejected the appeals submitted 
against the judgment whereby on 15 June 2017 the Court of Milan acquitted certain directors of the 
then-Breda Termomeccanica S.p.A., subsequently Ansaldo S.p.A., who served during the period from 
1973 to 1985, charged with having committed the crimes under Article 589, paragraphs 1, 2 and 3, 
Article 40, paragraph 2, Article 41, paragraph 1 of the Italian Criminal Code, Article 2087 of the Italian 
Civil Code and Article 590, paragraphs 1, 2, 3, 4 and 5, of the Italian Criminal Code, for violation of 
the rules governing the prevention of occupational diseases.  Leonardo had entered appearance in 
the civil action within the abovementioned proceedings. On 8 November 2022 the Supreme Court 
declared that the appeal was inadmissible; 
• 
with regard to the criminal proceedings pending before the Court of Vercelli against three former 
employees of AgustaWestland S.p.A. (who are currently working for Leonardo – Helicopters Division) 
and an employee of AgustaWestland Philadelphia Corporation for the crime referred to in Article 449 
of the Italian Criminal Code in relation to Articles 428 and 589 of the Italian Criminal Code, relating 
to the accident that occurred in Santhià on 30 October 2015, the Court acquitted the defendants by 
judgment published on 14 February 2023, because the fact does not exist, setting a time limit of 90 
days for the filing of the grounds for the decision. 
Based upon the information gathered and the results of the analysis carried out so far, the Directors of 
Leonardo did not allocate any specific provisions in relation to these cases. Any negative developments - 
which cannot be foreseen, nor determined to date - arising from any internal investigations or judicial 
investigations being conducted, will be subject to consistent assessment for the purposes of provisions (if 
any. 
* * * * * * * * 
With regard to the provisions for civil, tax and administrative disputes, it is underlined that the Leonardo 
Group companies’ operations regard industries and markets where many disputes, both as petitioner and 
plaintiff, are settled only after a considerable period of time, especially in cases where the customer is a 
government entity. Pursuant to the IFRSs, provisions have only been set aside for risks that are deemed 
probable and for which the amount can be determined. No specific provisions have been set aside for certain 
disputes in which the Group is defendant as these disputes are reasonably expected to be settled, based on 
current knowledge, satisfactorily and without significantly impacting the Group. Of particular note are the 
following disputes: 
• 
the proceedings brought by Firema under extraordinary management before the Court of Naples 
against the directors and statutory and independent auditors of Firema Trasporti (R.G. 32257/13) in

Consolidated Financial Statements at 31 December 2022 
 
242 
 
order to have them declared responsible for the financial collapse caused to the company, within 
which Leonardo and AnsaldoBreda have been summoned as parties concerned by the former 
directors Giorgio and Gianfranco Fiore.  
As to the action brought by GMR against Leonardo and AnsaldoBreda due to abuse of economic 
dependence before the Court of Naples (General Register 16312/15), at the hearing held on 1 
October 2020 the President of the Division first pointed out some issues connecting the two 
proceedings and then referred the present case before the judge of the proceedings under General 
Register 32257/13 in order for the proceedings to be possibly joined.  
In both proceedings Leonardo and AnsaldoBreda appeared before the court requesting that, on the 
merits, the claims submitted against them be dismissed as clearly groundless as of fact and as of 
right. 
At the hearing held on 4 October 2022 the Court: (i) with regard to proceedings under General 
Register no. 32257/13, took note of the death of Mr Gianfranco Fiore and declared the 
discontinuance of the trial; (ii) with regard to proceedings under General Register no. 16312/15, 
merely adjourned the case to the hearing on 8 November 2022, which was then postponed several 
times until 23 May 2023, for re-joining with the first proceedings, which had been resumed in the 
meantime; 
• 
the proceedings brought by Mr Pio Deiana (to have a deed of settlement entered into with former 
Ansaldo Industria declared null and void) before the Rome Court of Appeal, which had been 
discontinued following the latter's death and then resumed by his sister. During the course of the 
proceedings, the existence of another heir of the deceased person was noted; accordingly, at the last 
hearing on 26 October 2022, the Court declared the latter's non-appearance and set a hearing for 
the specification of conclusions on 18 December 2024; 
− within the case involved in the action brought before the Court of Rome by Selex SeMa (now Selex 
Es S.p.A. in liquidation) against the Ministry of the Environment (now the Ministry for Ecological 
Transition, MITE) in relation to the Sistri contract, on 21 October 2022 an agreement was signed, by 
which MITE settled paid the amount that was still owed as a variable fee following the conviction 
referred to in the Court of Rome’s judgment dated 20 January 2022 (not appealed against), and Selex 
Es conversely waived the payment of default interest. 
* * * * * * * * 
Moreover, given their complexity, their cutting-edge technological content and the nature of the customers, 
the Group’s long-term contracts are sometimes affected by disputes with customers in relation to the 
compliance of works with customer specifications and product performances. The Group adjusts the 
estimated contract costs for foreseeable issues, also taking into account the possible developments in the 
relevant disputes. With regard to contracts in progress affected by uncertainties and issues under discussion 
with customers, there are: 
• 
by a request for arbitration filed on 25 October 2019, Leonardo S.p.a. and PSC S.p.A. (collectively 
referred to as “LP” unincorporated joint venture,) initiated arbitration proceedings against Galfar 
Misnad Engineering & Contracting W.L.L., Salini-Impregilo S.p.A. (now Webuild) and Cimolai S.p.A. 
(collectively referred to “GSIC” unincorporated joint venture) to seek an order imposing them to pay, 
among others, the fees that were still unpaid and any additional costs relating to the subcontract 
that had been entered into between the parties on 22 September 2016, whereby GSIC appointed LP 
to provide supplies and carry out certain manufacturing operations. These electrical, mechanical and 
plumbing plant engineering works are included in the general contract, awarded to GSIC, for the 
design and construction of the Al Bayt Stadium in Al Khor City (Qatar). The regular progress of the 
subcontracted works was strongly affected by a number of delays not attributable to LP, as well as

Consolidated Financial Statements at 31 December 2022 
 
243 
 
by numerous additions and variations to the works that had been initially agreed and the 
shortcomings of the technical documentation prepared by GSIC. On the other hand, the latter 
submitted allegations to the contrary, while also charging LP with having caused damage to its 
organisation. 
In this context, on a preliminary basis LP asked the court to order GSIC to pay the remaining 
instalments of the fees initially envisaged in the subcontract, as well as any and all additional costs 
incurred for a total of about QAR mil. 1,500 (about €mil. 386 at 31 December 2022). On the other 
hand, GSIC contested any charges and asked the court, on a counterclaim basis, to order LP to 
compensate for any damage the latter had allegedly caused, for a total of QAR mil. 721 (about €mil. 
186 at 31 December 2022). 
From a procedural point of view, the phase for the exhibition of documents between the parties was 
completed in December 2021 following an initial exchange of briefs and statements (including the 
Memorial of claim submitted by LP in November 2020 and the subsequent Memorial of defence and 
counterclaim submitted by GSIC in July 2021. In addition to the hearing held in Doha from 4 to 15 
July 2022, the Arbitral Tribunal revised the trial schedule, expecting to issue the final award by July 
2023. 
 
23. 
EMPLOYEE BENEFIT OBLIGATIONS 
The classification of employee benefit obligations is affected by the net balance, per each plan, of the plan 
assets and liabilities. The Group recognised on its balance sheet the liabilities (net of related plan assets) as 
well as the assets (net of related liabilities), depending on whether the plans are in a deficit or surplus 
position. 
Net assets under defined-benefit plans are classified among other non-current assets (Note 13) and other 
long-term benefits are classified under other non-current liabilities (Note 24). Below is a breakdown of the 
net liabilities and assets: 
31 December 2021 
31 December 2022 
 
Liabilities 
Assets 
Net 
Liabilities 
Assets 
Net 
Severance pay provision 
256
-
256 
219
-
219 
Defined-benefit plans 
73
585
(512) 
56
215
(159) 
Defined 
contribution 
plans 
33
-
33 
40
-
40 
362
585
(223) 
315
215
100 
 
The surplus for defined-benefit retirement plans is broken down below: 
31 December 2021 
31 December 2022 
GBP area 
(582)
(213) 
Euro area 
6
5 
USD area 
52
41 
Other 
12
8 
(512)
(159) 
 
The change in defined-benefit plans was mainly due to the plans applicable in the United Kingdom. In 
particular, the increase in the discount rate reduced liabilities and returns on plan assets were significantly 
lower than expected.  
Below is a breakdown of defined-benefit plans and statistical information regarding the excess 
(deficit/surplus) of the plans:

Consolidated Financial Statements at 31 December 2022 
 
244 
 
31 December 2021 
31 December 2022 
Present value of obligations 
(3,489)
(2,121) 
Fair value of plan assets 
4,001
2,280 
Plan deficit 
512
159 
of which, related to: 
 
- net liabilities 
(73)
(56) 
- net assets 
585
215 
 
Changes in the defined-benefit plans are shown below: 
31 December 2021 
Present value of 
obligations 
Fair value of plan 
assets 
Net liability (asset) 
defined benefit 
plans 
Opening balance 
3,368
3,560
(192) 
Costs of benefits paid 
72
(4)
76 
Net interest expenses 
52
53
(1) 
Remeasurement 
(124)
178
(302) 
Actuarial losses (gains) through equity - demographic assumption 
19
19 
Actuarial losses (gains) through equity - financial assumptions 
(98)
(98) 
Actuarial losses (gains) through equity resulting from adjustments based 
on  the experience 
(45)
(45) 
Expected return on plan assets (no interest) 
178
(178) 
Curtailments 
- 
Contributions paid 
59
(59) 
Contributions from other plan participants 
11
11
- 
Exchange rate differences 
233
254
(21) 
Benefits paid 
(110)
(110)
- 
Other changes 
(13)
(13) 
Closing balance 
3,489
4,001
(512) 
of which, related to: 
 
- net liabilities 
252
179
73 
- net assets 
3,237
3,822
(585) 
 
31 December 2022 
Present value of 
obligations 
Fair value of plan 
assets 
Net liability (asset) 
defined benefit 
plans 
Opening balance 
3,489
4,001
(512) 
Costs of benefits paid 
69
(5)
74 
Net interest expenses 
68
75
(7) 
Remeasurement 
(1,307)
(1,623)
316 
Actuarial losses (gains) through equity - demographic assumption 
(3)
(3) 
Actuarial losses (gains) through equity - financial assumptions 
(1,394)
(1,394) 
Actuarial losses (gains) through equity resulting from adjustments based 
on  the experience 
90
90 
Expected return on plan assets (no interest) 
(1,623)
1,623 
Contributions paid 
50
(50) 
Contributions from other plan participants 
11
11
- 
Exchange rate differences 
(110)
(130)
20 
Benefits paid 
(99)
(99)
- 
Closing balance 
2,121
2,280
(159) 
of which, related to: 
 
- net liabilities 
205
149
56 
- net assets 
1,916
2,131
(215) 
 
Changes in severance pay are shown below:

Consolidated Financial Statements at 31 December 2022 
 
245 
 
31 December 2021 
31 December 2022 
Opening balance 
265
256 
Costs of benefits paid 
1
2 
Net interest expenses 
1
2 
Remeasurement 
9
(12) 
Actuarial losses (gains) through equity - demographic assumption 
 
Actuarial losses (gains) through equity - financial assumptions 
5
(28) 
Actuarial losses (gains) through equity resulting from adjustments based on  the 
experience 
4
16 
Increase for business combinations 
(1)
 
Benefits paid 
(21)
(29) 
Other changes 
2
 
Closing balance 
256
219 
 
The amount recognised in profit or loss on defined-benefit plans (including the severance pay provision) was 
calculated as follows: 
2021 
2022 
Current service costs 
78
77 
Past service costs 
(1)
(1) 
Costs booked as “personnel expenses ” 
77
76 
 
Net interest expenses 
-
(5) 
Costs booked as “financial expenses ” 
-
(5) 
 
77
71 
 
The main actuarial assumptions used in the valuation of defined-benefit plans and of the portion of severance 
pay provision that has maintained the nature of defined-benefit plan are as follows: 
Severance pay provision 
Defined-benefit plans 
 
31 December 
2021 
31 December 
2022 
31 December 
2021 
31 December 
2022 
Discount rate (annual) 
0.7% 
3.7% 
1.95% - 2.91% 
4.75% - 5.06% 
Rate of salary increase 
n.a. 
n.a. 
3.20% - 3.80% 
3.20% - 3.65% 
Inflation rate 
1.4% 
2.2% 
2.80% - 2.95% 
2.95% 
 
The discount rate utilised to discount the defined benefits plans is determined with reference to expected 
returns of the AA-rated bonds. 
The sensitivity analysis for each significant actuarial assumption, which shows the effects on bonds in 
absolute value, is as follows: 
Severance pay provision 
Defined-benefit plans 
31 December 2021 
31 December 2022 
31 December 2021 
31 December 2022 
 
-0.25% 
+0.25% 
-0.25% 
+0.25% 
-0.25% 
+0.25% 
-0.25% 
+0.25% 
Discount rate (annual) 
3 
(3) 
3 
(3) 
175 
(163) 
84 
(81) 
Inflation rate 
(2) 
2 
(2) 
2 
(110) 
115 
(52) 
52 
 
The average duration of the severance pay is about 5 years while that of the other defined-benefit plans is 
17 years. 
The estimate of the contributions to be paid in 2023 related to defined-benefit plans is about €mil. 52.

Consolidated Financial Statements at 31 December 2022 
 
246 
 
As regards the strategies of correlation of assets and liabilities in defined-benefit plans, there is the 
prevalence of investing in diversified assets in order to limit the negative impact, if any, on the total return 
on the plan assets. Assets of defined-benefit plans include: 
 
31 December 2021 
31 December 2022 
Cash and cash equivalents 
84
113 
Shares and investment funds 
994
347 
Debt instrument 
2,478
1,683 
Real properties 
14
11 
Derivatives 
142
(62) 
Other 
289
188 
4,001
2,280 
 
The item “other” included €mil. 111 (€mil. 166 in 2021) of assets held by insurance companies. 
24. 
OTHER CURRENT AND NON-CURRENT LIABILITIES 
31 December 2021 
31 December 2022 
Non-current 
Current 
Non-current 
Current 
Employee obligations (*) 
62
468
53
477 
Deferred income 
80
134
79
184 
Amounts due to social security institutions 
-
218
-
224 
Payables to MED (Law no. 808/85) 
165
-
170
- 
Payables to MED for royalties (Law no. 
808/85) 
220
16
185
45 
Indirect tax liabilities 
-
106
-
124 
Derivatives 
-
161
-
296 
Other liabilities 
404
454
374
413 
Other payables to related parties (Note 
36) 
-
12
-
47 
931
1,569
861
1,810 
(*) Non-current item includes other employee benefits related to seniority bonuses. 
 
The payables to the Ministry for Economic Development (MED) under Law 808/1985 relate to monopoly 
costs accrued on national security and similar projects, as well as payables for grants received from MED for 
the development of programmes not related to national security and similar projects eligible for benefits 
under Law 808/1985.  
“Other liabilities” include, in particular, the non-current payable due to Bell Helicopter amounting to €mil. 
268 (€mil. 252 at 31 December 2021), deriving from the acquisition of 100% of the AW609 programme. This 
amount also includes the reasonably estimated potential consideration due to Bell Helicopter based on the 
commercial performance of the programme. 
 
25. 
TRADE PAYABLES 
31 December 2021 
31 December 2022 
Suppliers 
3,025
2,737 
Trade payables to related parties (Note 36) 
347
317 
3,372
3,054

Consolidated Financial Statements at 31 December 2022 
 
247 
 
26. 
GUARANTEES 
The Group has existing guarantee for €mil. 13,615 (€mil. 13,466 at 31 December 2021). The item mainly 
includes guarantees given to third parties, banks and insurance companies as well as commitments in favor 
of lenders, tax authorities and customers. 
27. 
REVENUES 
2021 
2022 
Revenues from contract with customers 
12,115
12,158 
Change in contract assets 
202
368 
Revenues from related parties (Note 36) 
1,818
2,187 
14,135
14,713 
 
The breakdown by geographical area and business sector is reported in Note 8. The breakdown of revenue 
by timing is reported below: 
2021 
2022 
Revenues at point in time 
2,433
2,342 
Revenues over time 
11,702
12,371 
14,135
14,713 
 
28. 
OTHER OPERATING INCOME (EXPENSES) 
2021 
2022 
Income 
Expenses 
Net 
Income 
Expenses 
Net 
Grants for research and development costs (*) 
30 
- 
30
28
-
28 
Other operating grants 
38 
- 
38
34
-
34 
Reversals (accruals) to provisions for risks 
332 
(350) 
(18)
432
(604)
(172) 
Exchange rate difference on operating items 
138 
(150) 
(12)
185
(179)
6 
Indirect taxes 
- 
(36) 
(36)
-
(38)
(38) 
Other operating income (expenses) 
30 
(90) 
(60)
92
(57)
35 
Other operating income (expenses) from/to related 
parties (Note 36) 
5 
- 
5
4
-
4 
573 
(626) 
(53)
775
(878)
(103) 
  
(*) To which must be added “Non-current and deferred receivables for measures pending under Law 808/1985” (Note 13 and Note 18) equal to 
€mil. 5 (€mil. 50 at 31 December 2021, including current and non-current portions) and assessments for “Non-recurring costs for measures pending 
under Law 808/1985” (Note 13) equal to €mil. 15 (not reported at 31 December 2021).

Consolidated Financial Statements at 31 December 2022 
 
248 
 
29. 
PURCHASES AND PERSONNEL EXPENSES 
2021 
2022 
Purchase of materials from third parties 
4,286
4,544 
Change in inventories of raw materials 
78
(48) 
Costs for purchases from related parties (Note 36) 
812
1,057 
Purchases 
5,176
5,553 
 
Services rendered by third parties 
3,624
3,434 
Costs of leases of low value and short term 
62
67 
Royalties 
23
25 
Services rendered by related parties (Note 36) 
322
421 
Services 
4,031
3,947 
 
Wages and salaries 
2,838
3,043 
Social security contributions 
553
584 
Costs related to defined-contribution plans 
135
151 
Costs related to severance pay provision and other defined-benefit plans (Note 
23) 
77
76 
Employee disputes 
-
(5) 
Restructuring costs - net 
88
118 
Other personnel expenses 
148
149 
Personnel expenses 
3,839
4,116 
 
Change in finished goods, work in progress and semi-finished products 
81
(164) 
 
Internal work capitalised 
(357)
(298) 
 
Total purchases and personnel expenses 
12,770
13,154 
 
Net restructuring costs for the year include the estimated charges arising from the early retirement measures 
under Article 4 of Law 92/2012, preliminarily quantified at €mil. 100, signed in December 2022 with the 
national trade unions and involving up to a maximum of no. 400 employees in the Corporate and Staff 
functions of Leonardo S.p.a., Leonardo Global Solutions and Leonardo Logistics and up to a maximum of no. 
45 executives. The data for the comparative period had been impacted by the measures put in place for the 
early retirement of the Aerostructures Division workforce. 
The exact and average workforce at period-end showed, compared to 2021, an increase distributed among 
all the sectors: Helicopters (by no. 310 units and no. 103 units, respectively), Defense and Security Electronics 
(by no. 427 units and no. 223 units respectively, impacted by the changes in the scope of consolidation due 
to the Rada transaction and the sales of the GES business), Aircraft (by no. 148 units and no. 228 units, 
respectively) and Other Leonardo (by no. 429 units and no. 238 units, respectively); partially offset by exits 
in the Aerostructures sector relating to the early retirement scheme put in place in 2021 (by no. 335 units 
and no. 262 units, respectively). 
Below is the breakdown of workforce by category:

Consolidated Financial Statements at 31 December 2022 
 
249 
 
 
Average Workforce 
Total Workforce 
 
31 December 2021 31 December 2022 
Change 
31 December 2021 31 December 2022 
Change 
Senior managers 
(*) 
1,216
1,218
2 
 
1,219
1,274
55 
Middle managers 
6,103
6,216
113 
 
6,243
6,512
269 
Clerical 
employees 
28,649
29,294
645 
 
29,413
30,302
889 
Manual labourers 
(**) 
13,647
13,417
(230) 
 
13,538
13,304
(234) 
 
49,615
50,145
530 
 
50,413
51,392
979 
 
(*)   Includes pilots 
(**) Includes senior manual labours 
 
 
30. 
AMORTISATION, DEPRECIATION AND FINANCIAL ASSETS VALUE ADJUSTMENTS 
 
2021 
2022 
Amortisation of intangible assets 
 
150
 
187 
Development costs 
33 
39 
 
Non-recurring income 
45 
64 
 
Acquired through business combinations 
22 
24 
 
Concessions, licences and trademarks 
19 
23 
 
Other intangible assets 
31 
37 
 
Depreciation of property, plant and equipment and 
investment properties 
 
247
272 
Depreciation of rights of use 
 
88
92 
Impairment of other assets 
 
42
20 
financial assets value adjustments 
 
(2)
56 
 
525
627 
 
The increase in value adjustments to financial assets mainly related to the write-down of the exposure to the 
countries involved in the conflict between Russia and Ukraine, equal to about €mil. 36, as well as to the 
measurements made by the Group on a periodical basis in order to assess the recoverability of these assets, 
in accordance with the provisions governing impairment under IFRS 9. 
31. 
FINANCIAL INCOME AND EXPENSES 
Below is a breakdown of financial income and expense:

Consolidated Financial Statements at 31 December 2022 
 
250 
 
2021 
 
2022 
Income 
Expenses 
Net 
 
Income 
Expenses 
Net 
Interest 
1 
(118) 
(117) 
5
(96)
(91)
Interest on lease liabilities 
- 
(19) 
(19) 
-
(20)
(20)
Premiums received (paid) on IRS 
- 
(4) 
(4) 
-
(4)
(4)
Commissions  on borrowings 
- 
(17) 
(17) 
-
(9)
(9)
Other commissions 
- 
(2) 
(2) 
-
(2)
(2)
Fair value gains (losses) through profit or loss 
21 
(27) 
(6) 
26
(7)
19
Premiums received (paid) on forwards 
38 
(34) 
4 
36
(58)
(22)
Exchange rate differences 
54 
(49) 
5 
47
(48)
(1)
Interest cost on defined-benefit plans (Note 23) 
- 
- 
- 
-
5
5
Financial income (expenses) - related parties (Note 
36) 
1 
(4) 
(3) 
1
(9)
(8)
Other financial income and expenses 
22 
(35) 
(13) 
277
(132)
145
137 
(309) 
(172) 
392
(380)
12
 
The trend in financial income and expenses was heavily affected by the capital gains posted on the above-
mentioned sales of the GES business and of the AAC investment on the part of subsidiary Leonardo DRS, net 
of charges associated with the make-whole transaction on the remaining bond issues. 
More specifically: 
• 
net interest benefits from the repayment of the bond issue, which took place in January 2022. The 
item includes €mil. 68 (€mil. 98 in 2021) related to interest on bonds; 
− the expenses arising from the application of fair value break down as follows: 
2021 
 
2022 
Income 
Expenses 
Net 
 
Income 
Expenses 
Net 
Exchange rate swap 
-
- 
- 
1
-
1 
Interest rate swaps 
1
- 
1 
-
-
- 
Ineffective portion of hedging swap 
20
(27) 
(7) 
25
(7)
18 
21
(27) 
(6) 
26
(7)
19 
 
• 
other net financial expenses include the capital gains posted on the sales of Leonardo DRS’s GES 
business and ACC investment (€mil. 235), partially offset by the charges associated with the buy-back 
transaction with make-whole on the remaining USD-denominated bond issues illustrated in 
“Financial transactions” (€mil. 70). 
32. 
INCOME TAXES 
Income taxes can be broken down as follows: 
2021 
2022 
IRES (corporate income tax) 
12
(18) 
IRAP (reg. tax on production) 
(15)
(34) 
Other income taxes (foreign) 
(90)
(117) 
Tax related to previous periods 
5
14 
Provisions for tax disputes 
13
7 
Deferred tax - net 
(91)
97 
(166)
(51) 
 
The table below shows the analysis of the tax rate compared to the rate of 24%:

Consolidated Financial Statements at 31 December 2022 
 
251 
 
2021 
2022 
Profit (loss) before income taxes 
753
983 
Theoretical tax rate (Ires) % 
24%
24% 
Theoretical taxes 
(181)
(236) 
Changes increasing (decreasing): 
 
effect of companies valued at equity 
40
38 
IRAP effect of Italian companies 
(24)
(20) 
taxation effect of foreign companies 
13
76 
effect of use/accrual of tax losses 
-
86 
foreign tax effect of Italian companies 
(5)
(5) 
effect of taxation of intra-group dividends 
(1)
(3) 
other movements 
(8)
13 
Total changes increasing (decreasing) 
15
185 
Effective taxes 
(166)
(51) 
 
Deferred taxes and related receivables and payables at 31 December 2022 were the result of the following 
temporary differences. In this regard, we point out that part of the deferred tax assets relates to tax losses 
valued on the basis of the taxable income envisaged in the companies’ plans, in particular an amount of €mil. 
60 is related to the tax consolidation mechanism (about €mil. 367 of unrecognised losses). 
2021 
2022 
Deferred tax assets on tax losses 
(28)
(6) 
Property, plant and equipment and intangible assets 
40
(10) 
Financial assets and liabilities 
-
1 
Severance and retirement benefits 
5
4 
Provision for risks and impairment 
(56)
55 
Effect of change in tax rate 
(8)
(1) 
Other 
(44)
54 
Deferred taxes recognised through profit or loss 
(91)
97 
 
 
31 December 2021 
31 December 2022 
Balance sheet 
 
Balance sheet 
Assets 
Liabilities 
Net 
 
Assets 
Liabilities 
Net 
Deferred tax assets on tax losses 
143
- 
143
 
141
-
141
Property, plant and equipment and intangible 
assets 
78
117 
(39)
 
79
129
(50)
Severance and retirement benefits 
14
28 
(14)
 
17
27
(10)
Financial assets and liabilities 
2
- 
2
 
3
-
3
Provision for risks and impairment 
568
- 
568
 
623
-
623
Other 
180
60 
120
 
212
40
172
Offsetting 
(2)
(2) 
-
 
(14)
(14)
-
Deferred taxes recognised through balance 
sheet 
983
203 
780
 
1,061
182
879
 
 
Cash-flow hedge derivatives 
20
6 
14
 
39
19
20
On actuarial gains and losses 
32
131 
(99)
 
33
45
(12)
Deferred taxes recognised through equity 
52
137 
(85)
 
72
64
8
1,035
340 
695
 
1,133
246
887
 
33. 
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS 
Assets and liabilities classified as held for sale are mainly represented by the ATM business unit of Selex ES 
Inc, for which the completion of the sale is expected for the first half year of 2023. Assets also include the

Consolidated Financial Statements at 31 December 2022 
 
252 
 
fixed assets owned by Leonardo Global Solutions held for disposal (€mil. 1 at 31 December 2022 and €mil. 
17 at 31 December 2021). 
Below is the breakdown of reclassified assets and liabilities: 
31 December 2021 
31 December 2022 
 
 
Non-current assets 
17
16 
Current assets 
-
21 
Assets held for sale 
17
37 
 
Non-current liabilities 
-
4 
Current liabilities 
-
8 
Liabilities associated with assets held for sale 
-
12 
 
There was no impact on the income statement deriving from discontinued operations during 2022 and 2021. 
34. 
EARNING PER SHARE 
Earnings (Losses) per share (hereinafter “earnings per share” or “EPS”) are calculated as follows: 
• 
for basic EPS, by dividing net profit attributable to holders of ordinary shares by the average number 
of ordinary shares for the period less treasury shares; 
− for diluted EPS, by dividing net profit by the average number of ordinary shares and the average 
number of ordinary shares potentially deriving from the exercise of all the option rights for stock-
option plans less treasury shares.  
  
 
2021 
2022 
Average shares outstanding during the reporting period (in thousands) 
575,229 
575,307 
Earnings for the period (excluding non-controlling interests) (€ millions) 
586 
927 
Earnings from continuing operations (excluding non-controlling interests) (€ millions) 
586 
927 
Earnings from discontinued operations (excluding non-controlling interests) (€ millions) 
- 
- 
 
 
Basic and Diluted EPS (€) 
1.019 
1.611 
Basic and Diluted EPS from continuing operations (€) 
1.019 
1.611 
Basic and Diluted EPS from discontinued operations (€) 
n.a 
n.a 
 
Basic EPS, as that relating to the comparative period, was equal to diluted earnings per share, since there are 
no dilutive elements.

Consolidated Financial Statements at 31 December 2022 
 
253 
 
35. 
CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES 
2021 
2022 
Net result 
587
932 
Amortisation, depreciation and financial assets value adjustments 
525
627 
Share of profits/(losses) of equity-accounted investees 
(138)
(142) 
Income taxes 
166
51 
Cost of Severance pay provision and other defined-benefit plans 
77
76 
Net financial expenses /(income) 
172
(12) 
Net allocations to the provisions for risks and inventory write-downs 
169
350 
Profit from Discontinued Operations 
-
- 
Other non-monetary items 
65
1 
1,623
1,883 
 
Costs for severance pay provision and other defined-benefit plans include the portion of costs relating to 
defined-benefit pension plans that is recognised as a personnel expense (the portion of costs relating to 
interest is carried among net financial expense).  
The changes in working capital, net of the effects of the acquisition and sale of consolidated companies and 
foreign currency translation differences, are as follows: 
2021 
2022 
Inventories 
488
207 
Contract assets and liabilities 
(506)
144 
Trade receivables and payables 
(625)
(590) 
(643)
(239) 
 
The changes in other operating assets and liabilities, net of the effects of the acquisition and sale of 
consolidated companies and foreign currency translation differences, are as follows: 
2021 
2022 
Payment of pension plans 
(80)
(79) 
Changes in provisions for risks and other operating items 
78
(186) 
(2)
(265) 
 
Changes in other investing or disinvesting activities include dividends received and the effects of acquisitions 
and sales of equity investments and are broken down as follows: 
2021 
 
2022 
Strategic transactions 
(19)
(172) 
Dividends received 
63
133 
Change of other investing or disinvesting  activities 
11
(6) 
55
(45) 
 
The net outlay of €mil. 172 of transactions on equity investments that for their nature or significance qualify 
as “strategic investments” relate for €mil. 616 to the acquisition of Hensoldt, partially offset for €mil. 444 
from the sale of GES and AAC. 
36. 
RELATED PARTY TRANSACTIONS 
Related party transactions are carried out at arm’s length, as is settlement of the interest-bearing receivables 
and payables when not governed by specific contractual conditions. The relevant financial statements 
amounts are shown below. The statement of cash flows presents the impact of related party transactions on 
cash flows.

Consolidated Financial Statements at 31 December 2022 
 
254 
 
RECEIVABLES at 31 
December 2021 
Non-current 
loans and 
receivables 
Other non-
current 
receivables 
Current loans 
and receivables 
Trade 
receivables 
Other current 
receivables 
Total 
 
Associates 
 
NH Industries SAS 
 
192
192
Eurofighter Jagdflugzeug 
GmbH 
 
119
119
AgustaWestland Aviation 
Services LLC 
 
17
17
Advanced Air Traffic 
Systems SDH BHD 
 
12
12
Iveco - Oto Melara Scarl 
 
11
11
Other with unit amount 
lower than €mil. 10 
1
5 
23
29
 
Joint Venture 
 
Thales Alenia Space SAS 
37 
7
44
Orizzonte - Sistemi Navali 
SpA 
 
39
39
Joint Stock Company Heli
vert 
 
23
23
GIE ATR 
 
23
23
MBDA SAS 
 
19
19
Telespazio S.p.A. 
12
1 
4
5
22
Other with unit amount 
lower than €mil. 10 
 
8
1
9
 
Consortiums 
 
Other with unit amount 
lower than €mil. 10 
2 
10
12
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
Cassa Depositi e Prestiti 
SpA 
 
69
69
Ferrovie dello Stato 
Italiane SpA 
 
31
31
ENAV SpA 
 
14
14
Other with unit amount 
lower than €mil. 10 
 
19
19
Total 
13
-
45 
640
6
704
 
 
% against total for the 
period 
92.9%
n.a.
73.8% 
20.0%
3.8%

Consolidated Financial Statements at 31 December 2022 
 
255 
 
RECEIVABLES at 31 
December 2022 
Non-current 
loans and 
receivables 
Other non-
current 
receivables 
Current loans 
and receivables 
Trade 
receivables 
Other current 
receivables 
Total 
Associates 
 
NH Industries SAS 
 
186
186
Eurofighter Jagdflugzeug 
GmbH 
 
99
99
Iveco - Oto Melara Scarl 
 
51
51
Hensoldt AG 
 
15
15
Macchi Hurel Dubois SAS 
 
15
15
AgustaWestland Aviation 
Services LLC 
 
12
12
Other with unit amount 
lower than €mil. 10 
11 
32
43
 
Joint Venture 
 
Thales Alenia Space SAS 
40 
10
50
MBDA SAS 
 
33
33
GIE ATR 
 
29
29
Orizzonte - Sistemi Navali 
SpA 
 
21
21
Other with unit amount 
lower than €mil. 10 
8
3 
12
2
25
 
Consortiums 
 
Other with unit amount 
lower than €mil. 10 
2 
11
13
 
-
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
-
Ministero dell'economia 
 
85
85
Cassa Depositi e Prestiti 
SpA 
 
71
71
Other with unit amount 
lower than €mil. 10 
5
 
38
1
44
Total 
13
-
56 
720
3
792
 
% against total for the 
period 
100.0%
n.a.
53.3% 
21.6%
1.8%
 
(*) Consortiums over which the Group exercises considerable influence or which are subject to joint control.

Consolidated Financial Statements at 31 December 2022 
 
256 
 
PAYABLES at  31 December 
2021 
Non-current 
loans and 
borrowings 
Other non-
current 
borrowings 
Current loans 
and 
borrowings 
Trade 
payables 
Other 
current 
payables 
Total 
Guarantees 
 
 
Associates 
 
 
NH Industries SAS 
 
93
93
 
Eurofighter Jagdflugzeug 
GmbH 
37 
40
77
 
Gulf System Logistic Services 
Company WLL 
 
24
24
 
Elettronica SpA 
 
14
14
 
Leonardo Helicopters Algerie 
20 
20
 
Other with unit amount 
lower than €mil. 10 
1 
7
4
12
 
 
 
Joint Venture 
 
 
MBDA SAS 
664 
56
720
8 
Telespazio SpA 
31 
2
2
35
152 
GIE ATR 
 
57
2
59
 
Rotorsim Srl 
 
18
18
 
Other with unit amount 
lower than €mil. 10 
 
-
 
 
12
1
13
 
Consortiums 
 
 
Other with unit amount 
lower than €mil. 10 
 
3
3
 
 
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
 
Cassa Depositi e Prestiti SpA 
100
 
1
3
104
 
Enel SpA 
 
14
14
 
Other with unit amount 
lower than €mil. 10 
3 
6
9
414 
Total 
100
-
756 
347
12
1,215
574 
 
 
% against total for the 
period 
2.4%
n.a.
48.5% 
10.3%
0.9%

Consolidated Financial Statements at 31 December 2022 
 
257 
 
PAYABLES at 31 December 
2022 
Non-current 
loans and 
borrowings 
Other non-
current 
borrowings 
Current loans 
and 
borrowings 
Trade 
payables 
Other 
current 
payables 
Total 
Guarantees 
Associates 
 
 
NH Industries SAS 
 
91
91
 
Eurofighter Jagdflugzeug 
GmbH 
85 
60
145
 
Gulf System Logistic Services 
Company WLL 
 
28
28
 
Elettronica SpA 
 
24
24
 
Hensoldt AG 
 
11
11
 
Leonardo Helicopters Algerie 
20 
20
 
Other with unit amount 
lower than €mil. 10 
2 
7
4
13
 
 
 
Joint Venture 
 
 
MBDA SAS 
713 
38
751
8 
Telespazio SpA 
41 
2
2
45
100 
GIE ATR 
 
19
39
58
 
Other with unit amount 
lower than €mil. 10 
 
15
15
 
 
 
Consortiums 
 
 
Other with unit amount 
lower than €mil. 10 
 
4
4
 
 
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
 
Cassa Depositi e Prestiti SpA 
100
 
1
1
102
 
Enel SpA 
 
12
12
 
Other with unit amount 
lower than €mil. 10 
1 
5
1
7
208 
Total 
100
-
862 
317
47
1,326
316 
 
 
 
% against total for the 
period 
2.8%
n.a.
79.7% 
10.4%
3.5%
 
 
(*) Consortiums over which the Group exercises considerable influence or which are subject to joint control. 
 
Trade receivables are commented on later, along with revenue from related parties. 
Current loans and receivables and other current payables to related parties mainly refer to receivables and 
payables from/to joint ventures and payables for subscribed capital unpaid to be paid towards Leonardo 
Helicopters Algerie for €mil. 20.  
The financial exposure to Cassa Depositi e Prestiti (€mil. 100) relates to the loan taken out in 2020 in support 
of investments in R&D and innovation set out in the Industrial Plan.  
Current loans and borrowings from related parties include in particular the amount of €mil. 713 (€mil. 664 at 
31 December 2021) due by Group companies to the joint venture MBDA and payables of €mil. 85 (€mil. 37 
at 31 December 2021), to Eurofighter, 21% owned. As regards the latter, under a cash pooling agreement its 
surplus cash and cash equivalents are distributed among the partners.

Consolidated Financial Statements at 31 December 2022 
 
258 
 
Income statement 
transactions at 31 
December 2021 
Revenue 
Other operating 
income 
Costs 
Other operating 
costs 
Financial income 
Financial 
expenses 
 
Associates 
 
Eurofighter Jagdflugzeug 
GmbH 
584
607 
NH Industries SAS 
373
151 
Gulf System Logistic 
Services Company WLL 
71 
Iveco-Oto Melara Scarl 
71
2 
Macchi Hurel Dubois SAS 
29
 
AgustaWestland Aviation 
Services LLC 
15
2 
Elettronica SpA 
2
50 
Other with unit amount 
lower than €mil. 10 
31
18 
1
 
Joint Venture 
 
GIE ATR 
80
8 
MBDA SAS 
79
104 
2
Thales Alenia Space SAS 
52
2 
Joint Stock Company Heli
vert 
15
2
 
Orizzonte - Sistemi Navali 
SpA 
105
 
Rotorsim Srl 
1
2
17 
Other with unit amount 
lower than €mil. 10 
6
8 
1
 
Consortiums 
 
Consorzio Protezioni 
Balistiche Italia 
14
 
Other with unit amount 
lower than €mil. 10 
9
5 
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
Cassa Depositi e Prestiti 
SpA 
261
2 
1
Ferrovie dello Stato 
Italiane SpA 
11
 
Panavia Aircraft GmbH 
10
 
Poste Italiane SpA 
23
 
ENAV SpA 
20
1 
Enel SpA 
10
84 
Other with unit amount 
lower than €mil. 10 
17
1
2 
Total 
1,818
5
1,134 
-
1
4
 
% against total for the 
period 
12.9%
0.9%
8.9% 
n.a.
0.7%
1.3%

Consolidated Financial Statements at 31 December 2022 
 
259 
 
Income statement 
transactions at 31 
December 2022 
Revenue 
Other operating 
income 
Costs 
Other operating 
costs 
Financial income 
Financial 
expenses 
Associates 
 
Eurofighter Jagdflugzeug 
GmbH 
694
495 
NH Industries SAS 
388
423 
Iveco-Oto Melara Scarl 
116
2 
Macchi Hurel Dubois SAS 
41
 
Hensoldt AG 
35
172 
Gulf System Logistic 
Services Company WLL 
99 
AgustaWestland Aviation 
Services LLC 
22
2 
Euromids SAS 
18
3 
Elettronica SpA 
2
72 
Other with unit amount 
lower than €mil. 10 
27
15 
1
 
Joint Venture 
 
Orizzonte - Sistemi Navali 
SpA 
147
1 
GIE ATR 
117
12 
MBDA SAS 
98
87 
7
Thales Alenia Space SAS 
63
2 
Rotorsim Srl 
2
2
18 
Other with unit amount 
lower than €mil. 10 
9
2
5 
1
 
Consortiums 
 
Cons. G.e.i.e. EuroTorp 
10
1 
Consorzio Protezioni 
Balistiche Italia 
16
 
Other with unit amount 
lower than €mil. 10 
2
2 
 
Companies subject to the 
control or considerable 
influence of the MEF 
 
Cassa Depositi e Prestiti 
SpA 
221
2 
Ministero dell'economia 
42
 
Panavia Aircraft GmbH 
38
 
ENAV SpA 
21
1 
Poste Italiane SpA 
20
 
SOGEI - Società generale 
di informatica SPA 
14
 
ENEL SpA 
11
63 
Other with unit amount 
lower than €mil. 10 
13
1 
1
Total 
2,187
4
1,478 
-
1
9
 
% against total for the 
period 
14.9%
0.5%
11.2% 
n.a.
0.3%
2.4%
 
(*) Consortiums over which the Group exercises considerable influence or which are subject to joint control.

Consolidated Financial Statements at 31 December 2022 
 
260 
 
 
The most significant trade receivables and revenues, in addition to those from joint ventures, are related to 
companies and consortia: 
• 
Eurofighter Jagdflugzeug GmbH in the scope of the EFA Kuwait aeronautical programme; 
• 
NH Industries in the scope of the NH90 helicopter programme; 
• 
Iveco - Oto Melara for production and post-sales assistance on defence and security ground vehicles; 
• 
Trade receivables from Macchi Hurel Dubois for the sale of nacelles, which returned to exceed €mil. 
10, due to the recovery in the civil aviation sector; 
• 
Subsidiaries or companies subject to significant influence on the part of the Ministry of Economy and 
Finance, including relations with Ferrovie dello Stato for the supply of ETR 700 trains and the 
revamping of coaches, whose values for 2022 were lower than €mil. 10, with CDP for supplies to 
subsidiary Fincantieri and with ENAV for the supply of systems and software components for flight 
assistance. 
Costs related to those to Joint Ventures, as well as to companies: 
• 
Eurofighter Jagdflugzeug GmbH and Gulf System Logistic Services Company W.L.L. for operations 
within the EFA/Kuwait programme; the increase in costs to Eurofighter in the comparative period 
was due to the delivery of major components and spare parts of aircraft intended for the Kuwait 
customer while the increase in costs to Gulf reflects the invoicing for the completion of 
infrastructures; 
• 
Elettronica Spa for the support to the fleet of EFA vehicles; 
• 
Subsidiaries or companies subject to significant influence by the Ministry of Economy and Finance, 
including those to Enel. 
37. 
FINANCIAL RISK MANAGEMENT 
The Leonardo Group is exposed to financial risks associated with its operations, specifically related to these 
types of risks: 
• 
interest-rate risks, related to the Group’s financial exposure; 
• 
exchange-rate risks, related to operations in currencies other than the reporting currency; 
• 
liquidity risks, relating to the availability of financial resources and access to the credit market; 
• 
credit risks, resulting from normal commercial transactions or financing activities. 
Leonardo carefully and specifically follows each of these financial risks, with the objective of promptly 
minimising them, even using hedging derivatives. 
The sections below provide an analysis, conducted through sensitivity analysis, of the potential impact on 
the final results deriving from assumed fluctuations in reference parameters. As required by IFRS 7, these 
analyses are based on simplified scenarios applied to the final results of the reference periods and, by their 
own nature, they cannot be considered as indicators of the actual effects of future changes in reference 
parameters with different financial statements and market conditions, and cannot reflect the inter-relations 
and the complexity of reference markets. 
Interest rate risk 
The Leonardo Group is exposed to interest rate risk on borrowings. The management of interest rate risk is 
consistent with the long-standing practice of reducing the risk of fluctuations in interest rates while seeking 
to minimise related borrowing costs.

Consolidated Financial Statements at 31 December 2022 
 
261 
 
In this regard, it should be noted that borrowings at 31 December 2022, equal to €mil. 4,613, included the 
value of lease liabilities equal to €mil. 570 and payables to related parties. 
The amount of fixed-rate borrowings from banking and lending institutions (excluding lease liabilities and 
loans and borrowings with Group’s companies), also through the use of hedging instruments, amounts to 
about 70%, and, consequently, the floating-rate percentage is around 30%. At the date of these financial 
statements, the cost of debt came to about 3.0% p.a., with a residual average life of about 3.3 years. 
At 31 December 2022, the transactions were the following: 
• 
options for €mil. 200 (CAP at 4.20% and Knock out at 5.60% in relation to the 6-month Euribor 
interest rate), originally purchased in order to partially cover the bond issue due 2025.  
• 
floating/fixed interest rate swap for €mil. 300 relating to the EIB loan in the same amount, which 
guarantees a fixed rate of 1.82% on the loan.  
The detail of the main outstanding interest-rate swaps is as follows:   
Notional 
Underlying 
(maturity) 
Fair value 
01.01.2021 
Changes 
Fair value 
31.12.2021 
2020 
2021 
Income 
Expens
es 
CFH 
Reserve 
Options 
200
200
Bond 2025 
(2)
1 
(1) 
IRS fixed/floating/fixed 
300
300
BEI 
(24)
 
11
(13) 
Total notional 
500
500
(26)
1 
-
11
(14) 
 
Notional 
Underlying 
(maturity) 
Fair value 
01.01.2022 
Changes 
Fair value 
31.12.2022 
2021 
2022 
Income 
Expens
es 
CFH 
Reserve 
Options 
200
200
Bond 2025 
(1)
- 
(1) 
IRS floating/fixed 
300
300
BEI 
(13)
 
43
30 
Total notional 
500
500
 
(14)
- 
-
43
29 
 
The table below shows the effects of the sensitivity analysis deriving from the 50-basis-point shift in the 
interest-rate at the reporting date: 
Effect of shift of interest rate curve 
31 December 2021 
31 December 2022 
 
Increase of 50 bps Decrease of 50 
bps 
Increase of 50 bps Decrease of 50 
bps 
 
 
 
Net result 
(3) 
4
(3) 
3 
Equity (*) 
3 
(2)
1 
(1) 
 
(*) Defined as sum of earnings and cash-flow hedge reserve 
 
Exchange rate risk 
Transaction risk 
Due to its commercial operations, the Group’s companies are exposed to the risk of fluctuations in the 
currencies related to those cases in which orders, revenue and costs are expressed in currencies other than 
the functional one used in the financial statements (specifically, US dollars and, to a lesser extent, the pound 
sterling). 
Exchange rate risk management is governed by the directive in force within the Group. The purpose of the 
directive is to standardise management criteria based on industrial-not-speculative strategies so as to contain 
risks within specific limits by carefully and constantly assessing all foreign currency transaction positions. The

Consolidated Financial Statements at 31 December 2022 
 
262 
 
methodology adopted calls for the systematic hedging of commercial cash flows resulting from the 
assumption of contractual commitments that are certain or highly probable as either buyer or seller, thereby 
ensuring current exchange rates at the date of acquisition of multi-year contracts and neutralising the effects 
of exchange-rate fluctuations. As a result, contracts for purchases or sales denominated in a currency 
different from the functional currency are hedged using forward contracts of amounts, maturities, and key 
parameters that are similar to the underlying position. The Group defines the existence of an economic 
relationship between the hedging instrument and the hedged item on the basis of the currency, amounts 
and respective cash flows and assesses whether the derivative designated in each hedging relationship will 
be and has been effective in offsetting changes in the cash flows of the hedged item. In the event that, due 
to their nature or following events that entail their ineffectiveness, derivative instruments held in the 
portfolio should be found to no longer be a hedge, the fair value of the instrument is recognised through 
profit and loss according to accounting principles. In the event the designation of the instrument as a hedge 
should continue to be supported, the cash-flow hedge accounting method of recognition is adopted (Note 
4.3). 
Leonardo carries out these transactions with banks in its own interest and of Group companies. 
At 31 December 2022 the Leonardo Group had outstanding foreign exchange transactions totalling €mil. 
8,057 (notional amount). Overall, the average EUR/USD dollar exchange rate for hedging purposes is 1.091 
on sales and about 1.14 on purchases.   
Notional 
Fair value 
01.01.2021 
Changes 
Fair value 
31.12.2021 
Sales 
Purchases 
Total 
Discontinued 
operation 
Income Expenses 
CFH 
Reserve 
Swap and forward 
transactions 
5,807
4,039
9,846
76 
20
(27)
(108)
(39) 
 
 
 
 
 
Notional 
Fair value 
01.01.2022 
Changes 
Fair value 
31.12.2022 
Sales 
Purchases 
Total 
Discontinued 
operation 
Income Expenses 
CFH 
Reserve 
Swap and forward 
transactions 
5,361
2,696
8,057
(39) 
26
(7)
(81)
(101) 
 
The table below shows the expected due dates of receipts and payments related to derivative instruments 
broken down by main currencies: 
31 December 2021 
31 December 2022 
Notional 
Receipts 
Notional 
Payments 
Notional 
Receipts 
Notional 
Payments 
USD 
GBP 
 
USD 
GBP 
USD 
GBP 
 
USD 
GBP 
Cash-flow and fair-value hedges 
 
Within 1 year 
1,456
11
716 
935
1,581
8
656
1,108
2 to 3 years 
1,695
-
532 
146
2,240
-
513
56
4 to 9 years 
351
-
43 
-
252
-
75
15
 
Total 
3,502
11
1,291 1,081
4,073
8
1,244
1,179
 
Hedging transactions which cannot be classified as 
hedging transactions 
752
2
746 
2
211
4
211
4
 
Total transactions 
4,254
13
2,037 1,083
4,284
12
1,455
1,183
 
The table below shows the effects of the sensitivity analysis carried out on the change in the exchange rates 
of the euro against the US dollar (USD) and the pound sterling (GBP) and, assuming a +/-5% change in the

Consolidated Financial Statements at 31 December 2022 
 
263 
 
euro/US dollar exchange rate and the euro/pound sterling exchange rate compared with the reference rates 
at 31 December 2022 and at 31 December 2021. 
31 December 2021 
31 December 2022 
 
Effect of change in the 
€/GBP rate 
Effect of change in the 
€/USD rate 
 
Effect of change in the 
€/GBP rate 
Effect of change in the 
€/USD rate 
Increase 
of 50 bps 
Decrease of 
50 bps 
Increase of 
50 bps 
Decrease of 50 
bps 
 Increase of 
50 bps 
Decrease of 
50 bps 
Increase of 
50 bps 
Decrease of 50 
bps 
Net result 
(2)
2
(5)
4  
(3)
4
3
(4) 
Equity (*) 
(8)
9
45
(52)  
(9)
10
88
(98) 
 
(*) Defined as sum of earnings and cash flow hedge reserve  
 
Translation risk 
The Group is exposed to “translation risk”, i.e. the risk that assets, liabilities and results in consolidated 
companies whose reporting currency is not the euro (mainly USD and GBP) can have different values in euros 
depending on the performance of exchange rates, which affect the equity reserve named “Translation 
reserve” (Note 20) and results of operations. It should be noted that Leonardo does not hedge translation 
risk relating to its own equity investments, the most important of which are in the USA and in the UK.  
Leonardo UK Ltd., which is Leonardo’s main equity holding in the UK had a positive net financial position 
which is transferred to Leonardo through cash pooling arrangements. Leonardo systematically hedges this 
exposure through exchange-rate derivatives recognised as fair value hedges. As a result, even though the 
Group has no economic exposure, it is subject to balance-sheet volatility directly impacting the amount of 
Group net debt, which is affected by the realigning payables/receivables in foreign currency from third 
parties or, similarly, by the cash effects deriving from the renewal of hedges.  
The effects on the equity of the Group, broken down by the main currencies, are reported in Note 20. 
Liquidity risk 
The Group is exposed to the risk of not being able to finance the prospective requirements deriving from its 
usual business and investment operations, as well as those connected with the volatility of the relevant 
markets and with operations linked to commercial contracts for which there is the risk of renegotiation or 
cancellation. Furthermore, there is the risk of not being able to repay or refinance debts at the expiry dates. 
In order to face these risks the Leonardo Group had at its disposal, for financing its operations, at 31 
December 2022: 
• 
the cash and cash equivalents of €mil.1,511 generated at 31 December 2022 related to Leonardo 
S.p.a. (€mil. 1,040) and to Group companies that, for different reasons, do not fall within the scope 
of the cash pooling system (€mil. 438), in addition to temporarily available cash amounts of the 
companies falling, directly or indirectly, within the scope of the cash pooling, as well as to deposits 
made for different reasons;  
• 
an ESG-linked Revolving Credit Facility (RCF), available to Leonardo S.p.a., amounting to €bil. 2.4, 
comprising a 5-year tranche of €bil. 1.8 expiring in September 2026 and a 3-year tranche of €mil. 600 
expiring in September 2024. Both the RCF tranches had been entirely unused at 31 December 2022; 
• 
a Sustainability-Linked loan of €mil. 260 with the European Investment Bank (EIB) (entirely unused 
at 31 December 2022); 
• 
uncommitted bank credit lines totalling €mil. 810 (entirely unused at 31 December 2022);

Consolidated Financial Statements at 31 December 2022 
 
264 
 
• 
an EMTN (Euro Medium Term Notes) Programme, out of which all the bonds of Leonardo S.p.a. were 
issued, which are currently in place on the Euromarket and which was still available at 31 December 
2022 for a total nominal amount of €mil. 2,400 compared to a total amount of €mil. 4,000 under the 
programme; 
• 
a Framework Programme for the issuance of Multi-Currency Commercial Paper on the European 
market, for a maximum amount of €bil. 1, which was entirely unused at 31 December 2022; 
• 
a RCF available to Leonardo DRS amounting to USDmil. 275, which was also entirely unused at 31 
December 2022; 
• 
short-term credit lines subject to revocation in US dollars, available to subsidiary Leonardo US 
Holding LLC and guaranteed by Leonardo S.p.a., for an overall countervalue of €mil. 178, used at 31 
December 2022 for an overall countervalue of €mil. 38;  
• 
unconfirmed lines of credit for guarantees for a total amount of €mil. 9,678, of which an amount of 
€mil. 2,513 was available at 31 December 2022. 
 
Credit risk 
The Group is exposed to credit risk, which is defined as the probability of an insolvency with respect to a 
credit position with commercial and financial counterparties. 
Regarding commercial transactions, the most significant programmes are made with public sector 
contractors or contractors belonging to public institutions, mainly in the Euro area, in the UK, the US and the 
Middle East. The risks associated with the counterparty, for contracts with countries for which there are no 
usual commercial relations, are analysed and valued at the time of the offer in order to mitigate insolvency 
risks, if any. While solvency is guaranteed with public-entity customers, it can entail an extension of the 
collection times than for other business sectors, creating outstanding credit positions and the subsequent 
need, in some cases, for transactions to convert the receivables into cash. When requested to do so, the 
Group hedges against potential defaults of its customers by entering into insurance policies with leading 
Export Credit Agencies (ECAs) internationally and with major Italian agencies (e.g. SACE). 
The types of contracts entered into by the Group often provide for sizeable retention money possibly 
withheld by customers, as well as back-to-back clauses in case of sub-supplies. All this may inherently extend 
the times for collection of outstanding receivables. 
Furthermore, the Group operates in markets which are or have been recently affected by geopolitical or 
financial tensions. In particular, with reference to the situation at 31 December 2022, we note the following 
relations with countries exposed to credit risk according to the international institutions (SACE): 
 
€mil. 
Zambia 
Turkey 
Pakistan 
Turkmenistan 
Angola 
Other 
Total 
Asset 
- 
113 
73 
13 
109 
43 
351 
Liabilities 
(12) 
(137) 
(35) 
(1) 
(126) 
(60) 
(371) 
Net exposure 
(12) 
(24) 
38 
12 
(17) 
(17) 
(20) 
 
 
As at 31 December 2022, the countries identified by SACE as countries at risk also included Russia and Ukraine 
to which - as indicated in Note 7 to which reference should be made - the Group has no balance sheet 
exposures.

Consolidated Financial Statements at 31 December 2022 
 
265 
 
Finally, the receivables related to certain existing contracts, might not be paid, renegotiated or written off. 
 
The table below summarises trade receivables, with most of the balance claimed, as indicated, from public-
sector contractors or contractors belonging to public institutions: 
(€ billions) 
31 December 2021 
31 December 2022 
Portion due 
1.2
1.0 
- of which: for more than 12 months 
0.4
0.3 
Portion not yet due 
2.0
2.3 
Total trade receivables 
3.2
3.3 
 
A part of the portion due is offset by a liability, in relation to payable items or provisions for risks on any net 
excesses. 
Loans and receivables, amounting to €mil. 118 (€mil. 75 at 31 December 2021) include €mil. 13 (€mil. 14 at 
31 December 2021) classified as “non-current” and consequently excluded from the net financial position. 
Loans and receivables are broken down in the table below: 
31 December 2021 
31 December 2022 
Loans and  receivables from related parties 
13
13 
Other loans and receivables 
1
- 
Non-current loans and receivables 
14
13 
 
Loans and  receivables from related parties 
45
56 
Other loans and receivables 
16
49 
Current loans and receivables 
61
105 
 
Total loans and receivables 
75
118 
 
Both the main trade and financial receivables are impaired based on their probability of default or individually 
in case of particular situations. Vice versa, for receivables that are not impaired individually, impairment 
provisions are accrued, using historical series, statistical data and probability of default on an aggregate basis 
also supported by qualitative analyses. 
During the year, receivables were assigned without recourse for a total volume of €mil. 404 (€mil. 747 in 
2021). The amount of the assignments is lower than the previous year's figure as a result of the further 
streamlining of working capital management processes, which enabled, despite the continuation of 
emergency situations of various kinds, to further improve the dynamics underlying the realisation of 
collection flows. 
Classification of financial assets and liabilities 
The table below shows the fair value hierarchy for the financial assets and liabilities of the Group measured 
at fair value. The fair value of derivatives (classified under other current assets and liabilities) and of current 
securities is determined on the basis of measurement techniques which consider directly observable market 
inputs (the so-called “Level 2”). The fair value of the earn-out linked to the acquisition of Kopter was 
determined on the basis of measurement techniques which do not consider directly observable market 
inputs (the so-called “Level 3”), by discounting back the estimate of the variable amounts payable on the 
basis of the commercial performance of the programme.

Consolidated Financial Statements at 31 December 2022 
 
266 
 
31 December 2021 
31 December 2022 
Level 2 
Level 3 
Total 
Level 2 
Level 3 
Total 
Other non-current 
assets 
-
-
- 
-
-
- 
Other current assets 
108
-
108 
224
-
224 
 
 
Other non-current 
liabilities 
-
17
17 
17
17 
Other current liabilities 
161
-
161 
296
-
296 
 
The total fair value of pension plan assets amounted to €mil. 2,280 (€mil. 4,001 at 31 December 2021), 
classified under non-current assets and deducted from Employee benefits. 
38. 
REMUNERATION TO KEY MANAGEMENT PERSONNEL 
Remuneration paid to persons who have strategic power and responsibility of Leonardo S.p.a. amounted to 
€mil. 12 (€mil. 10 at 31 December 2021).  
Remuneration paid to Directors, excluding managers with strategic responsibility, amounted to €mil. 2 (€mil. 
2 in 2021). This figure includes fees and other compensation, pensions and other benefits, including the 
portion borne by the Company. 
39. 
INFORMATION ON THE IMPACT OF CLIMATE CHANGE 
Leonardo is committed to reducing climate altering emissions, mitigating the risks associated with climate 
change and promoting the transition to a low-carbon economy, above all through research and the 
implementation of innovative solutions. The decarbonization strategy aims not only to reduce emissions 
related to industrial processes (operations) but also those generated by suppliers and customers through the 
use of Leonardo's products and services (Scope 3 emissions). 
In the development of products and services, Leonardo uses materials, processes, and technologies that limit 
energy consumption and help reduce greenhouse gas emissions. In fact, Leonardo makes aircraft that 
consume less fossil fuel through the use of lighter materials and have lower energy requirements, virtual 
training systems that reduce real flight hours, and air, urban, and maritime traffic optimization systems that 
make aviation and transport more environmentally sustainable. Leonardo also participates in the research 
and development of advanced low-impact solutions promoted by major national and European initiatives, 
benefiting from both risk sharing and reduced research costs and time to market, including Clean Aviation 
and Sesar 3.   
At the same time, Leonardo has launched specific training and support programmes for sustainability 
planning and reporting for suppliers in order to accelerate the path to decarbonization along the entire 
supply chain. 
In order to reduce emissions from its operations, Leonardo has launched initiatives, including the investment 
programme for energy self-production from renewable sources (photovoltaics), the extension of LED lighting, 
the upgrading of buildings to increase their eco-efficiency, modifications to the production process to replace 
SF6 greenhouse gases, and the LPS programme that provides a management model for improving efficiency 
of operations. 
In order to highlight the commitment to decarbonization, in November 2022 Leonardo presented its 
commitment to the Science Based Target initiative (SBTi). SBTi supports companies in their decarbonization 
ambition by providing tools, guidance and criteria for setting targets that are in line with the goal of limiting

Consolidated Financial Statements at 31 December 2022 
 
267 
 
temperature increase to 1.5°C, as defined by the 2015 Paris Agreements.  Setting targets according to the 
SBTi methodology will ensure that it bases its decarbonization ambition on a scientific basis and expands its 
commitment to carbon footprint reduction to include indirect Scope 3 emissions. 
The above initiatives are integrated into the Group's business plan. For further details, please refer to the 
Report on Operations (sections "Planet" and "Prosperity" and "Governance"). 
As previously point out, the Group's business plans have been prepared considering, in addition to further 
investments linked to the search for innovative solutions in the field of sustainable business, also the 
prospective aspects and impacts linked to climate change. 
Based on the above the Group does not expect any significant financial impact. 
40. 
SHARE-BASED PAYMENTS 
In order to implement an incentive and retention system for the Group’s employees and associates, starting 
from 2015 Leonardo adopted incentive plans which provide for the assignment of Leonardo shares, subject 
to assessing the attainment of pre-set business targets. These shares will be awarded to the beneficiaries at 
the end of the vesting period, provided that they have met the condition of being still employed with the 
company. The cost recognised in the income statement for the share incentive plans amounted in 2022 to 
€mil. 10 (€mil. 9 in 2021). 
With specific regard to the current Long-Term Incentive Plans, the fair value used to measure the portion 
linked to the performance indicators (Group Net Debt, ROS and starting from the three-year cycle 2021-2023 
the Sustainability indicators) was equal to €11.04 (value of Leonardo shares at the grant date of 31 July 2019) 
with reference to the three-year cycle 2019-2021, € 5.41 (value of Leonardo shares at the grant date of 31 
July 2020) with reference to the three-year cycle 2020-2022, € 6.788 (value of Leonardo shares at the grant 
date of 31 July 2021) with reference to the three-year cycle 2021-2023 and € 9.15 ( value of Leonardo shares 
at the grant date of 31 July 2022) with reference to the three-year cycle 2022-2024. 
Vice versa, the award of the remaining of the shares depends upon market conditions which affect the 
determination of the fair value (“adjusted fair value”). The adjusted fair value, calculated using the “Monte 
Carlo” method in order to simulate the possible performance of the stock and of the other companies within 
the basket, was equal to €6.72 with reference to the three-year cycle 2019-2021, €1.73 with reference to the 
three-year cycle 2020-2022, €3.7 with reference to the three-year cycle 2021-2023 and €6.4 with reference 
to the three-year cycle 2022-2024.

Consolidated Financial Statements at 31 December 2022 
 
268 
 
The input data used to calculate the adjusted fair value were: 
• 
the stock price at the grant date; 
− the average share price in the three months preceding the performance period; 
• 
the risk-free interest rate based on the zero-coupon yield curve in 36 months; 
− the expected volatility of the price of Leonardo shares and of the shares of the other companies 
within the basket based on time series in the 36 months prior to the grant date; 
• 
correlation coefficients between Leonardo and the other companies within the basket on the basis 
of logarithms of the daily performance of the stocks in the 36 months prior to the grant date; 
− dividend distribution forecasts on a historical basis. 
 
During 2022 no shares were awarded under the long-term incentive plan (no. 133,560 shares in 2021). 
 
 
 
For the Board of Directors 
The Chairman 
 (Luciano Carta)

Consolidated Financial Statements at 31 December 2022 
 
269 
 
 
ATTACHMENTS 
Attachment: Disclosure ex-lege 124/2017 
 
In accordance with the provisions of Article 1, paragraphs 125-126, of Law 124 of 4 August 2017, information 
on grants received from public administrations and granted by the Group is provided below. 
 
Grants received 
Worth noting are the provisions of Law no. 124/2017 imposing disclosure obligations on those entities 
carrying out the activity referred to in article 2195 of the Italian Civil Code in relation to sums which are not 
of a general nature and do not consist of fees, remuneration or compensation received from public 
administrations or similar entities. 
Excluded from such scope are any grant consisting of a consideration for the Group's services and any grant 
deriving from bilateral financial relationships, which are peculiar to the Group's business, as well as any 
general measure that falls within the broader general structure of the reference system defined by the State 
(among others, Law 237/1993, Law 297/1999, Development Contracts and Regional Operational Programme, 
Law 808/1985, Regional Laws and National Operational Programmes), the effects of which are described in 
the notes to the Consolidated Financial Statements, based on the accounting standards adopted in the 
preparation of said accounts that can be used by all sector businesses, as well as grants received for 
continuing professional development from interprofessional funds. 
The Group has not received grants falling within the framework of those referred to in article 1, para. 125, of 
Law 124/2017.  
It should also be noted that the transparency of State aid for which there is a publication obligation is 
protected by their publication in the National Register of State Aids referred to in Article no. 52 of Law 234 
of 24 December 2012. 
Grants disbursed 
As a publicly traded company, Leonardo S.p.A. is not subject to the obligations under Article 1, para. 126, in 
accordance with Article 2-bis, para. 2, letter b) of Legislative Decree 33/2013.  
There are no grants disbursed by Leonardo S.p.A. and its Italian subsidiaries in the form of donations or 
disbursements that do not consist of a consideration for services received, not even in the form of a return 
in terms of image.

Consolidated Financial Statements at 31 December 2022 
 
270 
 
Attachment: scope of consolidation

Consolidated Financial Statements at 31 December 2022 
 
271 
 
 
List of companies consolidated on a line-by-line basis (amounts in currency) 
 
 
 
 
 
 
N. 
Company name 
Registered office 
Participating company 
Currency 
Share 
capital 
% Group 
ownership 
% Group 
shareholding 
Direct 
Indirect 
1 
3083683 NOVA SCOTIA LIMITED 
Halifax, Nova Scotia (Canada) 
ENGINEERED SUPPORT SYSTEMS 
INC 
CAD 
- 
 
100 
80.90 
2 
AGUSTAWESTLAND INDIA PRIVATE LTD (IN 
LIQ.) 
New Delhi (India) 
AGUSTAWESTLAND SPA 
AGUSTAWESTLAND LTD 
INR 
11,519,450 
 
100 
100 
3 
AGUSTAWESTLAND INTERNATIONAL LTD 
Yeovil, Somerset (UK) 
AGUSTAWESTLAND SPA 
AGUSTAWESTLAND LTD 
GBP 
511,000 
 
100 
100 
4 
AGUSTAWESTLAND LTD 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
1,520,304 
 
100 
100 
5 
AGUSTAWESTLAND PHILADELPHIA CO 
Wilmington, Delaware (USA) 
LEONARDO US CORPORATION 
USD 
20,000,000 
 
100 
100 
6 
AGUSTAWESTLAND SPA 
Rome 
LEONARDO PARTECIPAZIONI 
SPA 
EUR 
120,000 
 
100 
100 
7 
ALEA SRL 
Polcenigo (Pordenone) 
LEONARDO SPA 
EUR 
120,000 
69.97 
 
69.97 
8 
ALENIA AERMACCHI SPA 
Rome 
LEONARDO PARTECIPAZIONI 
SPA 
EUR 
120,000 
 
100 
100 
9 
ANSALDOBREDA SPA 
Rome 
LEONARDO SPA 
EUR 
10,000,000 
100 
 
100 
10 
DAYLIGHT DEFENCE LLC 
Wilmington, Delaware (USA) 
DAYLIGHT SOLUTIONS INC 
USD 
- 
 
100 
80.90 
11 
DAYLIGHT SOLUTIONS INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
12 
DISPOSITIVI PROTEZIONE INDIVIDUALE 
D.P.I. SRL 
Rome 
LARIMART SPA 
EUR 
309,600 
 
77.92 
46.75 
13 
DRS ADVANCED ISR LLC 
Wilmington, Delaware (USA) 
DRS DEFENSE SOLUTIONS LLC 
USD 
- 
 
100 
80.90 
14 
DRS DEFENSE SOLUTIONS LLC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
- 
 
100 
80.90 
15 
DRS ENVIRONMENTAL SYSTEMS INC 
Wilmington, Delaware (USA) 
ENGINEERED SUPPORT SYSTEMS 
INC 
USD 
2 
 
100 
80.90 
16 
DRS HOMELAND SECURITY SOLUTIONS INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
17 
DRS INTERNATIONAL INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
18 
DRS NAVAL POWER SYSTEMS INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
19 
DRS NETWORK & IMAGING SYSTEMS LLC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
- 
 
100 
80.90 
20 
DRS SIGNAL SOLUTIONS INC 
Wilmington, Delaware (USA) 
DRS DEFENSE SOLUTIONS LLC 
USD 
10 
 
100 
80.90 
21 
DRS SURVEILLANCE SUPPORT SYSTEMS INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
22 
DRS SUSTAINMENT SYSTEMS INC 
Wilmington, Delaware (USA) 
ENGINEERED SUPPORT SYSTEMS 
INC 
USD 
1,000 
 
100 
80.90 
23 
DRS SYSTEMS MANAGEMENT LLC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
24 
DRS SYSTEMS INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
25 
DRS RADA TECHNOLOGIES LTD 
Netanya (Israel) 
LEONARDO DRS INC 
ILS 
1,491,527 
 
100 
80.90 
26 
DRS TECHNOLOGIES CANADA INC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
27 
DRS TECHNOLOGIES CANADA LTD 
Kanata, Ontario (Canada) 
DRS TECHNOLOGIES CANADA 
INC 
CAD 
100 
 
100 
80.90 
28 
DRS TECHNOLOGIES SAUDI ARABIA LLC 
Riyadh (Saudi Arabia) 
LEONARDO DRS INC 
SAR 
2,000,000 
 
49 
39.64 
29 
DRS TECHNOLOGIES UK LIMITED 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
1 
 
100 
100 
30 
DRS TRAINING & CONTROL SYSTEMS LLC 
Tallahassee, Florida (USA) 
DRS DEFENSE SOLUTIONS LLC 
USD 
510 
 
100 
80.90 
31 
DRS UNMANNED TECHNOLOGIES INC 
Wilmington, Delaware (USA) 
DRS TRAINING & CONTROL 
SYSTEMS LLC 
USD 
1 
 
100 
80.90 
32 
ENGINEERED COIL COMPANY 
Jefferson City, Missouri (USA) 
ENGINEERED SUPPORT SYSTEMS 
INC 
USD 
1,000 
 
100 
80.90 
33 
ENGINEERED SUPPORT SYSTEMS INC 
Jefferson City, Missouri (USA) 
LEONARDO DRS INC 
USD 
1 
 
100 
80.90 
34 
ESSI RESOURCES LLC 
Frankfort, Kentucky (USA) 
DRS SUSTAINMENT SYSTEMS 
INC 
USD 
- 
 
100 
80.90 
35 
KOPTER GERMANY GMBH 
Höhenkirchen-Siegertsbrunn 
(Germany) 
KOPTER GROUP AG 
EUR 
25,000 
 
100 
100 
36 
KOPTER GROUP AG 
Mollis, North Glarus 
(Switzerland) 
LEONARDO SPA 
CHF 
32,000,000 
100 
 
100 
37 
LARIMART SPA 
Rome 
LEONARDO SPA 
EUR 
2,500,000 
60 
 
60 
38 
LAUREL TECHNOLOGIES PARTNERSHIP 
Wilmington, Delaware (USA) 
DRS SYSTEMS MANAGEMENT 
LLC 
DRS SIGNAL SOLUTIONS INC 
USD 
- 
 
100 
80.90 
39 
LEONARDO AUSTRALIA PTY LTD 
Essendon, Victoria (Australia) 
LEONARDO INTERNATIONAL SPA 
AUD 
8,366,301 
 
100 
100 
40 
LEONARDO BELGIUM SA 
Grace Hollogne (Belgium) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
EUR 
500,000 
 
100 
100 
41 
LEONARDO CAE ADVANCED JET TRAINING 
SRL 
Villasor (Cagliari) 
LEONARDO SPA 
EUR 
49,040,000 
50 
 
50 
42 
LEONARDO DO BRASIL LTDA 
Itapevi (Brazil) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
BRL 
48,241,788 
 
100 
100 
43 
LEONARDO DRS INC 
Wilmington, Delaware (USA) 
LEONARDO US HOLDING LLC 
USD 
1 
 
80.90 
80.90 
44 
LEONARDO ELECTRONICS US INC 
Wilmington, Delaware (USA) 
LEONARDO UK LTD 
USD 
32,750,000 
 
100 
100 
45 
LEONARDO FOR AVIATION SERVICES (SPC) 
Kuwait City (Kuwait) 
LEONARDO SPA 
KWD 
300,000 
100 
 
100 
46 
LEONARDO GERMANY GMBH 
Neuss (Germany) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
EUR 
2,500,000 
 
100 
100 
47 
LEONARDO GLOBAL SOLUTIONS SPA 
Rome 
LEONARDO SPA 
EUR 
51,000,000 
100 
 
100 
48 
LEONARDO HELICOPTERS USA INC 
Wilmington, Delaware (USA) 
AGUSTAWESTLAND 
PHILADELPHIA CO 
USD 
- 
 
100 
100 
49 
LEONARDO HISPANIA SAU 
Loriguilla, Valencia (Spain) 
LEONARDO INTERNATIONAL SPA 
EUR 
5,189,019 
 
100 
100 
50 
LEONARDO INTERNATIONAL SPA 
Rome 
LEONARDO SPA 
EUR 
1,000,000 
100 
 
100 
51 
LEONARDO LOGISTICS SPA 
Rome 
LEONARDO GLOBAL SOLUTIONS 
SPA 
EUR 
100,000 
 
100 
100 
52 
LEONARDO MALAYSIA SDN BHD 
Kuala Lumpur (Malaysia) 
LEONARDO INTERNATIONAL SPA 
MYR 
2,500,000 
 
100 
100 
53 
LEONARDO PARTECIPAZIONI SPA 
Rome 
LEONARDO SPA 
EUR 
1,000,000 
100 
 
100 
54 
LEONARDO PORTUGAL SA 
Porto Salvo Oeiras (Portugal) 
LEONARDO INTERNATIONAL SPA 
EUR 
100,000 
 
100 
100 
55 
LEONARDO ROMANIA AEROSPACE, 
DEFENCE & SECURITY SA 
Ploiesti (Romania) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
RON 
10,847,960 
 
100 
100 
56 
LEONARDO SAUDI LTD 
Riyadh (Saudi Arabia) 
LEONARDO UK LTD 
SELEX ES (PROJECTS) LTD 
SAR 
500,000 
 
100 
100

Consolidated Financial Statements at 31 December 2022 
 
272 
 
57 
LEONARDO SOUTH AFRICA (PTY) LTD 
Pretoria (Sud Africa) 
LEONARDO INTERNATIONAL SPA 
ZAR 
1,500 
 
100 
100 
58 
LEONARDO TECHNOLOGIES & SERVICES LTD 
Nairobi (Kenya) 
LEONARDO INTERNATIONAL SPA 
KES 
109,600,000 
 
100 
100 
59 
LEONARDO TURKEI HAVACILIK SAVUNMA 
VE GUVENLIK SISTEMLERI AS 
Ankara (Turkey) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
TRY 
79,557,009 
 
100 
100 
60 
LEONARDO UK LTD 
London (UK) 
LEONARDO SPA 
GBP 
314,500,100 
100 
 
100 
61 
LEONARDO US AIRCRAFT INC 
Wilmington, Delaware (USA) 
LEONARDO US CORPORATION 
USD 
44 
 
100 
100 
62 
LEONARDO US CORPORATION 
Wilmington, Delaware (USA) 
LEONARDO US HOLDING LLC 
USD 
10 
 
100 
100 
63 
LEONARDO US HOLDING LLC 
Wilmington, Delaware (USA) 
LEONARDO SPA 
LEONARDO INTERNATIONAL SPA 
USD 
10 
53 
47 
100 
64 
OTO MELARA NORTH AMERICA LLC 
Wilmington, Delaware (USA) 
LEONARDO DRS INC 
USD 
- 
 
100 
80.90 
65 
PARTECH SYSTEMS PTY LTD 
Yerriyong (Australia) 
LEONARDO AUSTRALIA PTY LTD 
AUD 
330 
 
100 
100 
66 
PIVOTAL POWER INC 
Halifax, Nova Scotia (Canada) 
3083683 NOVA SCOTIA LIMITED 
CAD 
- 
 
100 
80.90 
67 
PRECISION AVIATION PROPERTY PTY LTD 
Pretoria (Sud Africa) 
LEONARDO SOUTH AFRICA (PTY) 
LTD 
ZAR 
100 
 
100 
100 
68 
PRECISION AVIATION TRAINING ACADEMY 
PTY LTD 
Pretoria (Sud Africa) 
LEONARDO SOUTH AFRICA (PTY) 
LTD 
ZAR 
1,000 
 
100 
100 
69 
RADA INNOVATIONS LLC 
Delaware (USA) 
RADA SENSORS INC 
USD 
1 
 
100 
80.90 
70 
RADA SENSORS INC 
Delaware (USA) 
DRS RADA TECHNOLOGIES LTD 
USD 
100 
 
100 
80.90 
71 
RADA TECHNOLOGIES LLC 
Delaware (USA) 
RADA SENSORS INC 
USD 
1 
 
100 
80.90 
72 
RADA USA LLC 
Delaware (USA) 
RADA SENSORS INC 
USD 
1 
 
100 
80.90 
73 
REGIONALNY PARK PRZEMYSLOWY 
SWIDNIK SP Z O.O 
Swidnik (Poland) 
PZL-SWIDNIK SA 
PLN 
7,072,000 
 
73.88 
73.88 
74 
SELEX ELSAG LTD 
Basildon, Essex (UK) 
LEONARDO UK LTD 
GBP 
25,800,100 
 
100 
100 
75 
SELEX ES AUSTRALIA PTY LTD 
Melbourne (Australia) 
LEONARDO INTERNATIONAL SPA 
AUD 
500,000 
 
100 
100 
76 
SELEX ES INC 
Wilmington, Delaware (USA) 
LEONARDO INTERNATIONAL SPA 
USD 
1 
 
100 
100 
77 
SELEX ES INTERNATIONAL LTD 
Basildon, Essex (UK) 
LEONARDO SPA 
GBP 
100 
100 
 
100 
78 
SELEX ES MALAYSIA SDN BHD 
Kuala Lumpur (Malaysia) 
LEONARDO INTERNATIONAL SPA 
MYR 
500,000 
 
100 
100 
79 
SELEX ES SPA (IN LIQ.) 
Rome 
LEONARDO PARTECIPAZIONI 
SPA 
EUR 
120,000 
 
100 
100 
80 
T - S HOLDING CORPORATION 
Austin, Texas (USA) 
TECH-SYM LLC 
USD 
280,000 
 
100 
80.90 
81 
TECH-SYM LLC 
Carson City, Nevada (USA) 
LEONARDO DRS INC 
USD 
10 
 
100 
80.90 
82 
TTI TACTICAL TECHNOLOGIES INC 
Ottawa, Ontario (Canada) 
LEONARDO UK LTD 
CAD 
2,500,001 
 
100 
100 
83 
UTM SYSTEMS & SERVICES SRL 
Rome 
LEONARDO SPA 
TELESPAZIO SPA 
EUR 
6,620,000 
66.67 
33.33 
89 
84 
VEGA DEUTSCHLAND GMBH 
Cologne (Germany) 
SELEX ES SPA 
EUR 
25,700 
 
100 
100 
85 
WYTWORNIA SPRZETU KOMUNIKACYJNEGO 
``PZL-SWIDNIK`` 
SPOLKA AKCYJNA 
Swidnik (Poland) 
LEONARDO SPA 
PLN 
137,401,350 
100 
 
100

Consolidated Financial Statements at 31 December 2022 
 
273 
 
 
List of companies consolidated using the equity method (amounts in 
currency) 
 
 
 
 
 
 
N. 
Company name 
Registered office 
Participating company 
Currency 
Share 
capital 
% Group 
ownership 
% Group 
shareholding 
Direct 
Indirect 
1 
ADVANCED AIR TRAFFIC SYSTEMS SDN BHD 
Shah Alam (Malaysia) 
SELEX ES INTERNATIONAL LTD 
MYR 
10,000,000 
 
30 
30 
2 
AGUSTAWESTLAND AVIATION SERVICES LLC 
Abu Dhabi (United Arab 
Emirates) 
LEONARDO SPA 
AED 
58,010,000 
30 
 
30 
3 
AIRBUS TELESPAZIO CAPACITY OPERATOR 
SAS 
Issy Les Moulineaux (France) 
TELESPAZIO FRANCE SAS 
EUR 
11,000,000 
 
49 
32.83 
4 
AMSH BV 
Rotterdam (the 
Netherlands) 
LEONARDO SPA 
EUR 
36,296,316 
50 
 
50 
5 
AVIO SPA 
Rome 
LEONARDO SPA 
EUR 
90,964,213 
30 
 
29.63 
6 
BLCAT INC 
Ottawa, Ontario (Canada) 
LEONARDO CANADA CO 
CAD 
100 
 
50 
50 
7 
C-27J AVIATION SERVICES INC 
Ottawa, Ontario (Canada) 
LEONARDO CANADA CO 
CAD 
10,000 
 
30 
30 
8 
CONSORZIO ATR GIE 
Toulouse (France) 
LEONARDO SPA 
USD 
- 
50 
 
50 
9 
D-FLIGHT SPA 
Rome 
UTM SYSTEMS & SERVICES SRL 
EUR 
83,333 
 
40 
35.60 
10 
EARTHLAB LUXEMBOURG S.A. 
Mamer (Luxembourg) 
TELESPAZIO BELGIUM SRL 
TELESPAZIO FRANCE SAS 
E - GEOS SPA 
EUR 
4,875,000 
 
100 
64.72 
11 
E - GEOS SPA 
Matera 
TELESPAZIO SPA 
EUR 
5,000,000 
 
80 
53.60 
12 
ELETTRONICA SPA 
Rome 
LEONARDO SPA 
EUR 
9,000,000 
31.33 
 
31.33 
13 
EUROFIGHTER JAGDFLUGZEUG GMBH 
Hallbergmoos (Germany) 
LEONARDO SPA 
EUR 
2,556,459 
21 
 
21 
14 
EUROFIGHTER SIMULATION SYSTEMS GMBH 
Munich (Germany) 
LEONARDO SPA 
EUR 
260,000 
24 
 
24 
15 
EUROMIDS SAS 
Paris (France) 
LEONARDO SPA 
EUR 
40,500 
25 
 
25 
16 
GAF AG 
Munich (Germany) 
E - GEOS SPA 
EUR 
256,000 
 
100 
53.60 
17 
GULF SYSTEMS LOGISTICS SERVICES 
COMPANY WLL 
Kuwait City (Kuwait) 
ALENIA AERMACCHI SPA 
KWD 
75,000 
 
40 
40 
18 
G.E.M. ELETTRONICA SRL 
San Benedetto del Tronto 
(Ascoli Piceno) 
LEONARDO SPA 
EUR 
4,500,000 
30 
 
30 
19 
HELIVERT JOINT STOCK COMPANY 
Moscow (Russia) 
LEONARDO SPA 
RUB 
325,010,000 
50 
 
50 
20 
HENSOLDT AG 
Taufkirchen (Germania) 
LEONARDO SPA 
EUR 
105,000,000 
25.10 
 
25.10 
21 
IAMCO - INTERNATIONAL AEROSPACE 
MANAGEMENT COMPANY SCRL 
Venice 
LEONARDO SPA 
EUR 
208,000 
25 
 
25 
22 
ICARUS SCPA (IN LIQ.) 
Turin 
LEONARDO GLOBAL SOLUTIONS 
SPA 
EUR 
3,192,724 
 
53.06 
53.06 
23 
INDUSTRIA ITALIANA AUTOBUS SPA 
Rome 
LEONARDO SPA 
EUR 
21,050,000 
28.65 
 
28.65 
24 
INMOVE ITALIA SRL 
Naples 
ANSALDOBREDA SPA 
EUR 
14,441 
 
100 
100 
25 
IVECO - OTO MELARA SC A RL 
Rome 
LEONARDO SPA 
EUR 
40,000 
50 
 
50 
26 
JIANGXI CHANGHE AGUSTA HELICOPTER CO 
LTD 
Jingdezhen (China) 
LEONARDO SPA 
CNY 
6,000,000 
40 
 
40 
27 
LEONARDO AEROSPACE DEFENSE & 
SECURITY INDIA PRIVATE LTD 
New Delhi (India) 
LEONARDO INTERNATIONAL SPA 
SELEX ES INTERNATIONAL LTD 
INR 
30,000,000 
 
100 
100 
28 
LEONARDO CANADA CO 
Halifax, Nova Scotia 
(Canada) 
LEONARDO INTERNATIONAL SPA 
CAD 
298,421 
 
100 
100 
29 
LEONARDO (CHINA) CO. LTD 
Beijing (China) 
LEONARDO INTERNATIONAL SPA 
USD 
800,000 
 
100 
100 
30 
LEONARDO  ELECTRONICS PENSION SCHEME 
(TRUSTEE) LTD 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
100 
 
100 
100 
31 
LEONARDO FOR TRADING OF MACHINERY 
EQUIPMENT AND DEVICES WLL 
Kuwait City (Kuwait) 
LEONARDO INTERNATIONAL SPA 
KWD 
303,000 
 
93 
93 
32 
LEONARDO FUTUREPLANNER (TRUSTEE) 
LIMITED 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
1 
 
100 
100 
33 
LEONARDO HELICOPTERES ALGERIE SPA 
Bir Mourad Rais (DZ) 
(Algerie) 
LEONARDO SPA 
LEONARDO INTERNATIONAL SPA 
EUR 
55,000,000 
39 
10 
49 
34 
LEONARDO HELICOPTERS PENSION SCHEME 
(TRUSTEE) LTD 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
1 
 
100 
100 
35 
LEONARDO LIMITED 
Yeovil, Somerset (UK) 
LEONARDO UK LTD 
GBP 
1 
 
100 
100 
36 
LEONARDO LOGISTICS POLAND SP Z O.O 
Swidnik (Poland) 
LEONARDO LOGISTICS SPA 
PLN 
5,000 
 
100 
100 
37 
LEONARDO MW Ltd 
Basildon, Essex (UK) 
LEONARDO UK LTD 
GBP 
1 
 
100 
100 
38 
LEONARDO POLAND SP Z O.O 
Varsavia (Poland) 
LEONARDO INTERNATIONAL SPA 
PLN 
850,000 
 
100 
100 
39 
LEONARDO SINGAPORE PTE. LTD 
Singapore (Singapore) 
LEONARDO INTERNATIONAL SPA 
USD 
150,000 
 
100 
100 
40 
LEONARDO TECHNOLOGY PAKISTAN (SMC-
PRIVATE) LIMITED 
Islamabad (Pakistan) 
LEONARDO INTERNATIONAL SPA 
PKR 
30,000,000 
 
100 
100 
41 
LEONARDO & CODEMAR SA 
Maricà (Brazil) 
LEONARDO INTERNATIONAL SPA 
BRL 
4,010,000 
 
51 
51 
42 
LIBYAN ITALIAN ADVANCED TECHNOLOGY 
CO 
Tripoli (Libya) 
LEONARDO SPA 
AGUSTAWESTLAND SPA 
 
EUR 
8,000,000 
25 
25 
50 
43 
MACCHI HUREL DUBOIS SAS 
Versailles (France) 
LEONARDO SPA 
EUR 
100,000 
50 
 
50 
44 
MBDA SAS 
Paris (France) 
AMSH BV 
EUR 
53,824,021 
 
50 
25 
45 
NHINDUSTRIES SAS 
Aix en Provence (France) 
LEONARDO SPA 
EUR 
306,000 
32 
 
32 
46 
ORIZZONTE - SISTEMI NAVALI SPA 
Genoa 
LEONARDO SPA 
EUR 
20,000,000 
49 
 
49 
47 
POLO STRATEGICO NAZIONALE SPA 
Rome 
LEONARDO SPA 
EUR 
3,000,000 
25 
 
25 
48 
RARTEL SA 
Bucharest (Romania) 
TELESPAZIO SPA 
RON 
468,500 
 
61.06 
40.91 
49 
ROTORSIM SRL 
Sesto Calende (Varese) 
LEONARDO SPA 
EUR 
9,800,000 
50 
 
50 
50 
ROTORSIM USA LLC 
Wilmington, Delaware (USA) 
AGUSTAWESTLAND 
PHILADELPHIA CO 
USD 
12.607.452  
 
50 
50 
51 
SELEX ES (PROJECTS) LTD 
Basildon, Essex (UK) 
LEONARDO UK LTD 
GBP 
100 
 
100 
100 
52 
SPACEOPAL GMBH 
Munich (Germany) 
TELESPAZIO SPA 
EUR 
500,000 
 
50 
33.50 
53 
TELESPAZIO ARGENTINA SA 
Buenos Aires (Argentina) 
TELESPAZIO SPA 
TELESPAZIO BRASIL SA 
ARS 
9,950,000 
 
100 
66.96 
54 
TELESPAZIO BELGIUM SRL 
Transinne (Belgium) 
TELESPAZIO SPA 
TELESPAZIO FRENCH GUIANA 
SARL 
EUR 
1,282,750 
 
100 
67

Consolidated Financial Statements at 31 December 2022 
 
274 
 
55 
TELESPAZIO BRASIL SA 
Rio de Janeiro (Brazil) 
TELESPAZIO LATIN AMERICA 
LTDA 
BRL 
58,724,000 
 
98.77 
66.18 
56 
TELESPAZIO FRANCE SAS 
Toulouse (France) 
TELESPAZIO SPA 
EUR 
33,670,000 
 
100 
67 
57 
TELESPAZIO FRENCH GUIANA SARL 
Kourou (Guyana of France) 
TELESPAZIO SPA 
EUR 
7,625 
 
100 
67 
58 
TELESPAZIO GERMANY GMBH 
Darmstadt (Germany) 
TELESPAZIO SPA 
TELESPAZIO FRANCE SAS 
EUR 
44,150 
 
100 
67 
59 
TELESPAZIO IBERICA SL 
Madrid (Spain) 
TELESPAZIO SPA 
EUR 
2,230,262 
 
100 
67 
60 
TELESPAZIO LATIN AMERICA LTDA 
Rio de Janeiro (Brazil) 
TELESPAZIO SPA 
TELESPAZIO UK LTD 
BRL 
56,444,390 
 
100 
67 
61 
TELESPAZIO SPA 
Rome 
LEONARDO SPA 
EUR 
50,000,000 
67 
 
67 
62 
TELESPAZIO UK LTD 
Luton (UK) 
TELESPAZIO SPA 
GBP 
14,400,048 
 
100 
67 
63 
TELESPAZIO UK SL 
Madrid (Spain) 
TELESPAZIO UK LTD 
EUR 
3,100 
 
100 
67 
64 
THALES ALENIA SPACE SAS 
Cannes (France) 
LEONARDO SPA 
EUR 
918,037,500 
33 
 
33 
65 
TORPEDO SOUTH AFRICA (PTY) LTD 
Gauteng (South Africa) 
LEONARDO SPA 
ZAR 
- 
49 
 
49 
66 
VITROCISET JADWALEAN LTD 
Riyadh (Saudi Arabia) 
LEONARDO SPA 
SAR 
2,000,000 
45 
 
45 
  
 
 
List of subsidiaries and associates valued at cost ( amounts in currency) 
 
 
 
 
 
 
N. 
Company name 
Registered office 
Participating company 
Currency 
Share 
capital 
% Group 
ownership 
% Group 
shareholding 
Direct 
Indirect 
1 
ADVANCED MALE AIRCRAFT LLC 
Al Ain, Muwaiji (United Arab 
Emirates) 
LEONARDO SPA 
AED 
200,000 
49 
 
49 
2 
ELSACOM - UKRAINE JOINT STOCK COMPANY 
Kiev (Ukraine) 
LEONARDO PARTECIPAZIONI SPA 
UAH 
7,945,000 
 
49 
49

Consolidated Financial Statements at 31 December 2022 
 
275 
 
Below are the main changes in the scope of consolidation at 31 December 2022 in comparison with 31 December 2021: 
 
Company                                                                              Event                                                     Month 
Companies which entered the scope of consolidation: 
Hensoldt Ag (**) 
acquired 
January 2022 
Blackstart Ltd                                                                         newly established 
June 2022 
Earthlab Luxembourg Sa (**) 
acquired 
July 2022 
Leonardo Us Corporation  
newly established 
August 2022 
Polo Strategico Nazionale Spa (**) 
newly established 
August 2022 
Leonardo Logistics Poland Sp. Z o.o (**) 
newly established 
October 2022 
Rada Electronic Industries Ltd 
acquired 
November 2022 
Rada Sensors Inc 
acquired 
November 2022 
Rada Usa Llc 
acquired 
November 2022 
Rada Innovations Llc 
acquired 
November 2022 
Rada Technologies Llc 
acquired 
November 2022 
Blcat Inc (**) 
acquired 
December 2022 
 
 
Companies which left the scope of consolidation: 
AgustaWestland Holdings Ltd 
deconsolidated 
January 2022 
Kopter North America Llc 
deconsolidated 
January 2022 
Industrie Aeronautiche e Meccaniche Rinaldo Piaggio 
Spa (*) 
sold 
June 2022 
Advanced Acoustic Concepts Llc (**) 
sold 
July 2022 
Drs Global Enterprise Solutions Inc 
sold 
August 2022 
Global Network Services Llc 
sold 
August 2022 
Drs Tsi International Llc 
sold 
August 2022 
Drs Technologies Verwaltungs Gmbh                                 sold 
August 2022         
Drs C3 & Aviation Company                                                 deconsolidated 
September 2022 
Drs Radar Systems Llc                                                            deconsolidated 
September 2022 
World's Wing Sa (in liq.) (**) 
deconsolidated 
December 2022 
Chongqing 
Chuanyi 
Ansaldobreda 
Railway 
Transportation Equipment Company ltd (in liq.) (*) 
deconsolidated 
December 2022 
 
Companies involved in merger transactions: 
Merged company                                             
Merging company                                  Month    
 
 
 
Vitrociset Spa 
Leonardo Spa 
January 2022 
Blackstart Ltd 
Rada Electronic Industries Ltd 
November 2022

Consolidated Financial Statements at 31 December 2022 
 
276 
 
Companies which changed their corporate name: 
Old name 
New name 
Month 
 
 
 
So.Ge.Pa. – Società Generale di Partecipazioni Spa 
Leonardo Partecipazioni Spa 
June 2022 
Leonardo US Holding Inc 
Leonardo US Holding Llc 
October 2022 
Rada Electronic Industries Ltd 
Drs Rada Technologies Ltd 
December 2022 
 
(*): companies valued at cost 
(**): companies valued at equity

Consolidated Financial Statements at 31 December 2022 
 
277 
 
STATEMENT ON THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 154-
BIS, PARAGRAPH 5 OF LEGISLATIVE DECREE 58/98 AS AMENDED 
 
1. The undersigned Alessandro Profumo as the Chief Executive Officer and Alessandra Genco as the Officer 
in charge of Financial Reporting for Leonardo S.p.a., certify, in accordance with Article 154-bis, paragraphs 
3 and 4 of Legislative Decree 58 of 24 February 1998: 
• 
the appropriateness of the financial statements with regard to the nature of the business and 
− the effective application of administrative and accounting procedures in preparing the consolidated 
financial statements at 31 December 2022. 
2. In this respect it is noted that no significant matters arose. 
 
3. It is also certified that: 
3.1 The consolidated financial statements: 
• 
were prepared in accordance with International Financial Reporting Standards endorsed by the 
European Community pursuant to EU Regulation 1606/2002 of the European Parliament and of 
the Council of 19 July 2002; 
• 
correspond to the entries in the books and accounting records; 
• 
were prepared in accordance with Article 154-ter of the aforesaid Legislative Decree 58/1998 
and subsequent amendments and integrations and they provide a true and fair view of the 
financial position and results of operations of the issuer and of the entities included within the 
scope of consolidation. 
3.2 The Report on Operations includes a reliable analysis of the performance and the operating result, 
as well as the position of the issuer and of the entities included within the scope of consolidation, 
together with a description of the main risks and uncertainties they are exposed to. 
 
This statement also is made pursuant to and for the purposes of Article 154-bis, paragraph 2, of Legislative 
Decree 58 of 24 February 1998. 
 
Rome, 9 March 2023 
 
 
 
 
Chief Executive Officer 
 
(Alessandro Profumo) 
 
Officer in charge of financial reporting 
 
(Alessandra Genco)

Consolidated Financial Statements at 31 December 2022 
 
278 
 
 
INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS AS 
AT 31 DECEMBER 2022

Leonardo S.p.A. 
Consolidated financial statements as at December 31, 2022 
 
Independent auditor’s report pursuant to article 14 of 
Legislative Decree n. 39, dated 27 January 2010, and article 
10 of EU Regulation n. 537/2014

EY S.p.A. 
Via Lombardia, 31 
00187 Roma 
Tel: +39 06 324751 
Fax: +39 06 324755504 
ey.com 
 
EY S.p.A. 
Sede Legale: Via Meravigli, 12 – 20123 Milano  
Sede Secondaria: Via Lombardia, 31 – 00187 Roma 
Capitale Sociale Euro 2.525.000,00 i.v. 
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi 
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 
Iscritta all’Albo Speciale delle società di revisione 
Consob al progressivo n. 2 delibera n.10831 del 16/7/1997 
 
A member firm of Ernst & Young Global Limited 
 
 
 
Independent auditor’s report pursuant to article 14 of Legislative 
Decree n. 39, dated January 27, 2010 and article 10 of EU Regulation 
n. 537/2014 
(Translation from the original Italian text) 
 
 
 
To the Shareholders of  
Leonardo S.p.A. 
 
 
Report on the Audit of the Consolidated Financial Statements  
 
Opinion  
We have audited the consolidated financial statements of Leonardo Group (the Group), which 
comprise the statement of financial position as at December 31, 2022, the separate income 
statement, the statement of comprehensive income, the statement of cash flows and the statement of 
changes in equity for the year then ended, and notes to the consolidated financial statements, 
including a summary of significant accounting policies. 
 
In our opinion, the consolidated financial statements give a true and fair view of the financial position 
of the Group as at December 31, 2022, and of its financial performance and its cash flows for the 
year then ended in accordance with International Financial Reporting Standards as adopted by the 
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 
38/2005. 
 
Basis for Opinion 
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our 
responsibilities under those standards are further described in the Auditor’s Responsibilities for the 
Audit of the Consolidated Financial Statements section of our report. We are independent of Leonardo 
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to 
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained 
is sufficient and appropriate to provide a basis for our opinion. 
 
Key Audit Matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in 
our audit of the consolidated financial statements of the current period. These matters were 
addressed in the context of our audit of the consolidated financial statements as a whole, and in 
forming our opinion thereon, and we do not provide a separate opinion on these matters. 
 
 
 
 
We identified the following key audit matters:

2 
 
 
Key Audit Matter 
Audit response 
Recognition of revenues and losses from long-
term contracts with customers 
 
 
Revenues from long-term contracts with 
customers are recognized “over-time” using an 
input method for measuring progress towards 
complete satisfaction of performance 
obligations based on the percentage of 
completion obtained from the ratio of incurred 
costs on the total expected costs for the 
contract over the life of the project (cost to cost 
method). 
The estimation of the total expected project 
costs is, by its nature, complex and 
characterized by significant uncertainties as it 
may be impacted by many factors, including the 
ability to fulfill the obligations assumed towards 
customers, which may also result in penalties 
and additional expenses for significant amounts. 
 
Therefore, the estimate involves a high degree 
of judgment by Directors that may significantly 
affect the contract revenues recognition and 
any loss at completion in cases of negative 
margin expectation. Accordingly, we identified 
this area as a key audit matter. 
 
The disclosures related to the criteria applied for 
the recognition and measurement of revenues 
and margins on long-term contracts with 
customers are included in notes “3.9 Revenues 
and contract assets/liabilities with customers“ 
and “4.4 Estimate of revenues and final costs of 
long- term contracts”. 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
the understanding of the criteria applied 
for the recognition of revenues from 
long-term contracts with customers; 
• 
the assessment of the process and key 
controls over the recognition of 
revenues from long-term contracts with 
customers; 
• 
for a sample of contracts we performed: 
(i) testing of relevant contractual terms 
and conditions in order to verify 
whether those were adequately 
considered in management 
estimates; 
(ii) testing of the reasonableness of key 
assumptions underlying the 
estimation of the life-of-project 
costs based on inquiries, analysis of 
any communications with customers 
and comparative analysis; 
(iii) comparative analysis between 
actual figures and estimates made 
in previous periods in order to 
assess the accuracy of 
management’s forecasting; 
(iv) testing of incurred costs and their 
allocation to proper on-going 
contracts. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter. 
 
 
Test of the recoverability of goodwill 
 
 
Goodwill as at December 31, 2022 amounts to 
Euro 3.925 million. 
 
Directors tested for impairment the Cash 
Generating Units (CGUs) to which goodwill has 
been allocated in order to identify any 
impairment loss in respect of their recoverable 
amount. 
 
The recoverable amount of each CGU is 
determined using the value in use method and it 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
the assessment of the procedure applied 
in the performance of the impairment 
test as approved by the Directors; 
• 
testing of the criteria applied for 
identifying the CGUs and allocating 
relevant assets and liabilities to them; 
• 
the analysis of the expected cash flows 
of each CGU and testing of their 
consistency with the expected cash

3 
is based on complex assumptions that inherently 
involve a degree of judgment by Directors, with 
reference to the expected cash flows over the 
period considered in the Business Plan 2023-
2027, to the estimate of the terminal value and 
the determination of the long-term growth and 
discount rates. 
 
Because of the judgement involved and the 
complexity of the assumptions underlying the 
estimation of the recoverable amount of 
goodwill, we identified this area as a key audit 
matter. 
 
Disclosures on the assumptions and the 
estimations adopted when performing the 
impairment test are included in the notes to the 
consolidated financial statements “4.6 
Impairment of assets“ and “9.  Intangible 
Assets”. 
flows resulting from the Business Plan 
2023-2027; 
• 
the assessment of the reasonableness 
of the estimates made by Directors, also 
by comparing actual figures and 
estimates made in previous periods; 
• 
the assessment of the long-term growth 
and discount rates; 
• 
the assessment of the sensitivity 
analysis performed by Directors on key 
assumptions underlying the impairment 
test. 
 
In performing our procedures we involved our 
experts in valuation techniques. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter. 
 
 
Recognition and subsequent measurement of 
non-recurring costs and development costs 
 
 
Non-recurring costs and developments costs 
capitalized as intangible assets as at December 
31, 2022 amount to an aggregate of Euro 
2.717 million. 
 
The initial recognition of these assets and the 
subsequent assessment of their recoverability 
are based on complex assumptions that 
inherently involve a degree of judgment by 
Directors as influenced by many factors 
including the time horizon of the product 
business plans and management’s ability to 
forecast the commercial success of the 
underlying technologies. 
 
Because of the judgement involved and the 
complexity of the underlying assumptions, we 
identified this area as a key audit matter. 
 
Disclosures on the assumptions and the 
estimations adopted in the recognition and 
subsequent measurement of non-recurring costs 
and development costs are included in the notes 
to the consolidated financial statements “4.1 
Research and development costs “, “4.2 Non-
recurring costs” and “9. Intangible assets”. 
 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
understanding of the processes applied 
in recognizing for non-recurring costs 
and development costs and the process 
related to the assessment of their 
recoverability; 
• 
for a sample of development programs 
we performed: 
(i) substantive procedures aimed at 
verifying internal and external costs 
recognized during the period; 
(ii) assessment of the reasonableness 
of key assumptions underlying the 
product business plans; 
(iii) testing of the discount rates; 
(iv) assessment of the sensitivity 
analysis performed by Directors on 
the key assumptions underlying the 
impairment test. 
 
In performing our procedures we involved our 
experts in valuation techniques. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter.

4 
Responsibilities of Directors and Those Charged with Governance for the 
Consolidated Financial Statements 
The Directors are responsible for the preparation of the consolidated financial statements that give a 
true and fair view in accordance with International Financial Reporting Standards as adopted by the 
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 
38/2005, and, within the terms provided by the law, for such internal control as they determine is 
necessary to enable the preparation of financial statements that are free from material misstatement, 
whether due to fraud or error. 
 
The Directors are responsible for assessing the Group’s ability to continue as a going concern and, 
when preparing the consolidated financial statements, for the appropriateness of the going concern 
assumption, and for appropriate disclosure thereof. The Directors prepare the consolidated financial 
statements on a going concern basis unless they either intend to liquidate the Parent Company 
Leonardo S.p.A. or to cease operations or have no realistic alternative but to do so. 
 
The statutory audit committee (Collegio Sindacale) is responsible, within the terms provided by the 
law, for overseeing the Group’s financial reporting process. 
 
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements  
Our objectives are to obtain reasonable assurance about whether the consolidated financial 
statements as a whole are free from material misstatement, whether due to fraud or error, and to 
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, 
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing 
(ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from 
fraud or error and are considered material if, individually or in aggregate, they could reasonably be 
expected to influence the economic decisions of users taken on the basis of these consolidated 
financial statements. 
 
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have 
exercised professional judgment and maintained professional skepticism throughout the audit. In 
addition: 
• 
we have identified and assessed the risks of material misstatement of the consolidated 
financial statements, whether due to fraud or error, designed and performed audit procedures 
responsive to those risks, and obtained audit evidence that is sufficient and appropriate to 
provide a basis for our opinion. The risk of not detecting a material misstatement resulting 
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control; 
• 
we have obtained an understanding of internal control relevant to the audit in order to design 
audit procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of the Group’s internal control;  
• 
we have evaluated the appropriateness of accounting policies used and the reasonableness of 
accounting estimates and related disclosures made by the Directors; 
• 
we have concluded on the appropriateness of Directors’ use of the going concern basis of 
accounting and, based on the audit evidence obtained, whether a material uncertainty exists 
related to events or conditions that may cast significant doubt on the Group’s ability to 
continue as a going concern. If we conclude that a material uncertainty exists, we are required 
to draw attention in our auditor’s report to the related disclosures in the financial statements 
or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the Group to cease to continue as a going 
concern;

5 
• 
we have evaluated the overall presentation, structure and content of the consolidated 
financial statements, including the disclosures, and whether the consolidated financial 
statements represent the underlying transactions and events in a manner that achieves fair 
presentation; 
• 
we have obtained sufficient appropriate audit evidence regarding the financial information of 
the entities or business activities within the Group to express an opinion on the consolidated 
financial statements. We are responsible for the direction, supervision and performance of the 
group audit. We remain solely responsible for our audit opinion. 
 
We have communicated with those charged with governance, identified at an appropriate level as 
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and 
significant audit findings, including any significant deficiencies in internal control that we identify 
during our audit.  
 
We have provided those charged with governance with a statement that we have complied with the 
ethical and independence requirements applicable in Italy, and we have communicated them all 
matters that may reasonably be thought to bear on our independence, and where applicable, the 
actions taken to eliminate relevant risks or the safeguard measures applied. 
 
From the matters communicated with those charged with governance, we have determined those 
matters that were of most significance in the audit of the financial statements of the current period 
and are therefore the key audit matters. We have described these matters in our auditor’s report. 
 
Additional information pursuant to article 10 of EU Regulation n. 537/14 
The Shareholders of Leonardo S.p.A., in the general meeting held on May 20, 2020, engaged us to 
perform the audits of the financial statements and consolidated financial statements for each of the 
years ending December 31, 2021 to December 31, 2029. 
 
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU 
Regulation n. 537/2014, and that we have remained independent of the Group in conducting the 
audit. 
 
We confirm that the opinion on the consolidated financial statements included in this report is 
consistent with the content of the additional report to the audit committee (Collegio Sindacale) in 
their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/2014.   
 
Report on compliance with other legal and regulatory requirements 
 
Opinion on the compliance with Delegated Regulation (EU) 2019/815 
The Directors of Leonardo S.p.A. are responsible for applying the provisions of the European 
Commission Delegated Regulation (EU) 2019/815 for the regulatory technical standards on the 
specification of a single electronic reporting format (ESEF – European Single Electronic Format) (the 
“Delegated Regulation”) to the consolidated financial statements, to be included in the annual 
financial report. 
We have performed the procedures under the audit standard SA Italia n. 700B, in order to express an 
opinion on the compliance of the consolidated financial statements as at December 31, 2022 with the 
provisions of the Delegated Regulation. 
In our opinion, the consolidated financial statements as at December 31, 2022 have been prepared in 
the XHTML format and have been marked-up, in all material aspects, in compliance with the 
provisions of the Delegated Regulation.

6 
Due to certain technical limitations, some information included in the explanatory notes to the 
consolidated financial statements, when extracted from the XHTML format to an XBRL instance, may 
not be reproduced in an identical manner with respect to the corresponding information presented in 
the consolidated financial statements in XHTML format. 
 
Opinion pursuant to article 14, paragraph 2, subparagraph e), of Legislative 
Decree n. 39 dated January 27, 2010 and of article 123-bis, paragraph 4, of 
Legislative Decree n. 58, dated February 24, 1998 
The Directors of Leonardo S.p.A. are responsible for the preparation of the Report on Operations and 
of the Report on Corporate Governance and Ownership Structure of Leonardo Group as at December 
31, 2022, including their consistency with the related consolidated financial statements and their 
compliance with the applicable laws and regulations.  
We have performed the procedures required under audit standard SA Italia n. 720B, in order to 
express an opinion on the consistency of the Report on Operations and of specific information 
included in the Report on Corporate Governance and Ownership Structure as provided for by article 
123-bis, paragraph 4, of Legislative Decree n. 58, dated February 24, 1998, with the consolidated 
financial statements of Leonardo Group as at December 31, 2022 and on their compliance with the 
applicable laws and regulations, and in order to assess whether they contain material misstatements. 
In our opinion, the Report on Operations and the above mentioned specific information included in 
the Report on Corporate Governance and Ownership Structure are consistent with the consolidated 
financial statements of Leonardo Group as at December 31, 2022 and comply with the applicable 
laws and regulations. 
With reference to the statement required by art. 14, paragraph 2, subparagraph e), of Legislative 
Decree n. 39, dated January 27, 2010, based on our knowledge and understanding of the entity and 
its environment obtained through our audit, we have no matters to report. 
 
Statement pursuant to article 4 of Consob Regulation implementing Legislative 
Decree n. 254, dated December 30, 2016 
The Directors of Leonardo S.p.A. are responsible for the preparation of the non-financial information 
pursuant to Legislative Decree n. 254, dated December 30, 2016. We have verified that non-financial 
information has been approved by Directors. 
Pursuant to article 3, paragraph 10, of Legislative Decree n. 254, dated December 30, 2016, such 
non-financial information is subject to a separate compliance report signed by us. 
 
 
Rome, March 16, 2023 
 
EY S.p.A. 
Signed by: Riccardo Rossi, Auditor 
 
 
 
The accompanying consolidated financial statements of Leonardo S.p.A. constitute a non-official 
version which is not compliant with the provisions of the Commission Delegated Regulation (EU) 
2019/815.  This independent auditor’s report has been translated into the English language solely 
for the convenience of international readers. Accordingly, only the original text in Italian language is 
authoritative.

Separate Financial Statements at 31 December 2022 
 
279 
 
SEPARATE FINANCIAL STATEMENT AT 31 DECEMBER 2022 LEONARDO 
- SOCIETÀ PER AZIONI

Separate Financial Statements at 31 December 2022 
 
280 
 
 
ACCOUNTING STATEMENTS TO THE SEPARATE FINANCIAL STATEMENTS AT 31 
DECEMBER 2022

Separate Financial Statements at 31 December 2022 
 
281 
 
Separate income statement 
 
Euro 
Note 
2021 
of which with 
related parties 
 
2022 
of which with 
related parties 
 
Revenues 
27 
9,332,231,748 
2,215,976,888
9,555,715,284
2,625,062,843 
Other operating income 
28 
398,650,905 
7,831,720
629,495,658
9,945,325 
Purchase and personnel expenses 
29 
(8,605,057,567) 
(1,795,747,778)
(8,673,749,184)
(2,161,796,489) 
Amortisation, depreciation and financial assets 
value adjustments 
30 
(387,659,171) 
(503,160,662)
 
Other operating expenses 
28 
(432,241,850) 
(77,973)
(654,064,156)
(326,004) 
Income before tax and financial expenses 
 
305,924,065 
354,236,941
 
 
 
 
Financial income 
31 
262,993,570 
15,087,227
1,732,704,805
14,679,518 
Financial expense 
31 
(355,369,148) 
(17,473,791)
(317,613,086)
(30,831,973) 
Operating profit/loss before income taxes and 
discontinued operations 
 
213,548,488 
1,769,328,659
 
Income taxes 
32 
(36,310,855) 
(68,821,029)
 
Net profit/(loss) for the period 
 
177,237,633 
1,700,507,630
 
  
Statement of comprehensive income  
 
Euro 
 
2021 
 
2022 
Profit /(Loss) for the period 
 
 
177,237,633
1,700,507,630 
 
 
 
Other comprehensive income (expense): 
 
 
 
 
Comprehensive income/expense which will not be 
subsequently reclassified within the profit /(loss) for 
the period: 
 
 
 
 
 
 
 
 
- Measurement of defined-benefit plans: 
 
 
(8,027,011)
10,268,375 
- revaluation 
 
(8,027,011) 
10,268,375
 
 
 
 
- Tax effect 
 
 
-
-
277,491 
 
 
(8,027,011)  
10,545,866 
 
 
 
 
Comprehensive income/expense which will not be 
subsequently reclassified within the profit /(loss) for 
the period: 
 
 
 
- Changes in cash flow hedges: 
 
 
(61,772,449)
391,171 
- change generated in the period 
 
(95,312,040) 
(18,853,501)
 
- transferred to the profit (loss) for the period 
 
33,539,591 
19,244,672
 
 
 
 
- Tax effect 
 
 
14,825,542
(94,077) 
 
 
(46,946,907)  
297,094 
Total other comprehensive income (expense), net 
of tax: 
 
 
(54,973,918)
10,842,960 
Total comprehensive income 
 
 
122,263,715
1,711,350,590

Separate Financial Statements at 31 December 2022 
 
282 
 
Statement of financial position 
 
Euro 
Note 
31 December 
2021 
of which with 
related parties 
 
31 December 
2022 
of which with 
related parties 
 
 
 
Intangible assets 
8 
3,139,946,543 
3,187,528,399
 
Property, plant and equipment 
9 
791,532,952 
915,516,734
 
Right of use 
10 
509,321,001 
668,023,008
 
Equity investments 
11 
7,684,035,919 
9,638,110,253
 
Receivables 
12 
463,520,185 
442,865,723
133,500,660
88,614,703 
Deferred tax assets 
32 
786,875,942 
840,744,083
 
Other non current assets 
12 
20,031,671 
33,103,474
 
Non-current assets 
 
13,395,264,213 
15,416,526,611
 
 
 
 
Inventories 
13 
4,191,975,511 
3,948,856,252
 
Assets from contracts 
14 
2,655,015,997 
2,381,318,738
 
Trade receivables 
15 
2,992,960,230 
1,134,387,402
3,121,395,939
1,132,810,977 
Income tax receivables 
16 
64,056,091 
33,961,452
 
Loans and receivables 
15 
77,052,837 
63,398,322
325,756,876
277,272,797 
Other assets 
17 
375,363,430 
27,134,722
488,146,468
26,694,064 
Cash and cash equivalents 
18 
1,875,397,692 
1,039,514,625
 
Current assets 
 
12,231,821,788 
11,338,950,350
 
 
 
 
Non-current assets held for sale 
19 
236,867,745 
-
- 
 
 
 
Total assets 
 
25,863,953,746 
26,755,476,961
 
 
 
 
 
 
 
Share capital 
 
2,499,097,262 
2,499,097,262
 
Other reserves 
 
3,537,081,414 
5,159,614,499
 
Total equity 
20 
6,036,178,676 
7,658,711,761
 
 
 
 
 
 
 
Loans and borrowings (non current) 
21 
3,793,035,645 
471,498,072
3,424,966,639
631,087,301 
Employee benefits 
23 
269,509,199 
245,735,166
 
Provisions for risks and charges 
22 
498,398,077 
677,981,169
 
Deferred tax liabilities 
32 
79,626,470 
86,987,756
 
Other non-current liabilities 
24 
809,309,352 
143,609,253
732,936,896
157,210,134 
Non-current liabilities 
 
5,449,878,743 
5,168,607,626
 
 
 
 
Liabilities from contracts 
14 
6,779,498,706 
6,751,375,914
 
Trade payables 
25 
2,739,935,981 
760,091,697
2,475,331,081
667,020,089 
Loans and borrowings (current) 
21 
2,834,299,953 
2,112,064,006
2,438,741,383
2,336,537,165 
Income tax payables 
16 
29,232,337 
64,428,416
 
Provisions for short-term risks and charges 
22 
850,310,564 
785,954,264
 
Other current liabilities 
24 
1,144,618,786 
36,009,726
1,412,326,516
80,861,400 
Current liabilities 
 
14,377,896,327 
13,928,157,574
 
 
 
 
Total liabilities 
 
19,827,775,070 
19,096,765,200
 
Total liabilities and equity 
 
25,863,953,746 
26,755,476,961

Separate Financial Statements at 31 December 2022 
 
283 
 
Statement of cash flows 
 
Euro 
Note 
2021 
of which with 
related parties 
2022 
of which with 
related parties 
 
 
 
Gross cash flows from operating activities 
33 
921,975,812 
1,133,854,603
 
Change in working capital 
33 
(379,869,812) 
(8,744,104)
(49,632,623)
(62,241,850) 
Change in other operating assets and liabilities and 
provisions for risks and charges 
33 
35,174,255 
63,698,301
(101,108,090)
18,972,987 
Interest paid 
 
(148,434,255) 
(2,385,638)
(150,960,654)
(16,152,690) 
Income taxes (paid)/received 
 
(20,838,304) 
(11,591,598)
 
Cash flows generated (used) from operating 
activities 
 
408,007,696 
820,561,638
 
 
 
 
Investments in property, plant and equipment and 
intangible assets 
 
(371,409,025) 
(471,073,654)
 
Sales of property, plant and equipment and 
intangible assets 
 
4,133,199 
3,284,322
 
Dividends received 
 
121,385,228 
269,032,291
 
Other investing activities 
33 
(386,593,972) 
(613,456,065)
 
Cash flows generated (used) from investing 
activities 
 
(632,484,570) 
(812,213,106)
 
 
 
 
Bond buy repayments 
 
(738,584,000) 
(555,508,000)
 
Net change in other loans and borrowings 
 
415,530,735 
466,277,321
(209,555,935)
92,257,120 
Dividends paid 
 
- 
(79,680,998)
 
Cash flows generated (used) from financing 
activities 
 
430,626,389 
(844,744,933)
 
 
 
 
Net increase (decrease) in cash and cash 
equivalents 
 
206,149,515 
(836,396,401)
 
Exchange rate differences and other changes 
 
5,764,013 
513,334
 
 
 
 
Cash and cash equivalents at 1 January 
 
1,663,484,164 
1,875,397,692
 
 
 
Cash and cash equivalents at 31 December 
 
1,875,397,692 
1,039,514,625

Separate Financial Statements at 31 December 2022 
 
284 
 
Statement of changes in equity 
 
Euro 
Share capital 
Retained 
earnings 
Cash flow 
hedge reserve 
Revaluation 
reserve of 
defined-benefit 
plans 
Merger surplus Total equity 
 
 
 
1 January 2021 
2,497,872,382 2,773,224,170
(11,735,775)
(62,388,726)
720,062,704 5,917,034,755 
 
 
 
Profit (loss) for the period 
- 
177,237,633
-
-
- 
177,237,633 
Other comprehensive income (expense) 
- 
-
(46,946,996)
(8,027,012)
- 
(54,974,008) 
Total comprehensive income (expense) 
- 
177,237,633
(46,946,996)
(8,027,012)
- 
122,263,625 
 
 
 
Repurchase of treasury shares less sold shares 
1,224,880 
-
-
-
- 
1,224,880 
Total transactions with owners of the parent, recognised 
directly in equity 
1,224,880 
-
-
-
- 
1,224,880 
Other changes 
- 
(4,344,584)
-
-
- 
(4,344,584) 
31 December 2021 
2,499,097,262 2,946,117,219
(58,682,771)
(70,415,738)
720,062,704 6,036,178,676 
 
 
 
1 January 2022 
2,499,097,262 2,946,117,219
(58,682,771)
(70,415,738)
720,062,704 6,036,178,676 
 
 
 
Profit (loss) for the period 
- 1,700,507,630
-
-
- 1,700,507,630 
Other comprehensive income (expense) 
- 
-
297,094
10,545,866
- 
10,842,960 
Total comprehensive income (expense) 
- 1,700,507,630
297,094
10,545,866
- 1,711,350,590 
 
 
 
Dividends resolved 
- 
(80,543,019)
-
-
- 
(80,543,019) 
Total transactions with owners of the parent, recognised 
directly in equity 
- 
(80,543,019)
-
-
- 
(80,543,019) 
 
 
 
Effect from Mergers/Demergers 
- 
-
-
-
(14,259,687) 
(14,259,687) 
Stock option/grant plans - performance's value 
- 
5,232,072
-
-
- 
5,232,072 
Other changes 
- 
753,129
-
-
- 
753,129 
 
 
 
31 December 2022 
2,499,097,262 4,572,067,031
(58,385,677)
(59,869,872)
705,803,017 7,658,711,761

Separate Financial Statements at 31 December 2022 
 
285 
 
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AT 31 DECEMBER 2022  
1. GENERAL INFORMATION 
Leonardo S.p.a. is a company limited by shares based in Rome (Italy), at Piazza Monte Grappa 4, and is listed 
on the Italian Stock Exchange (FTSE MIB). 
The Company is a major Italian high technology organization operating in the Helicopters, Defence Electronics 
& Security, Aircraft and Aerostructures business sectors. 
2. FORM, CONTENT AND APPLICABLE ACCOUNTING STANDARDS 
In application of EU Regulation 1606/2002 of 19 July 2002, the financial statements at 31 December 2022 
were prepared in accordance with the international accounting standards (IFRS) endorsed by the European 
Commission, supplemented by the relevant interpretations (Standing Interpretations Committee - SIC and 
International Financial Reporting Interpretations Committee - IFRIC) issued by the International Accounting 
Standards Board (IASB) and in force at the year-end. 
The general principle used in preparing these separate financial statements is the historical cost method, 
except for those items that, in accordance with IFRS, are obligatory recognised at fair value, as indicated in 
the valuation criteria of each item. 
The separate financial statements are composed of the separate income statement, the statement of 
comprehensive income, the statement of financial position, the statement of cash flows, the statement of 
changes in equity and the related notes to the financial statements.  
In consideration of the significant values, the figures in these notes are shown in millions of euros unless 
otherwise indicated. Among the options permitted by IAS 1, the Company has chosen to present its balance 
sheet by separating current and non-current items and its income statement by the nature of the costs. 
Instead, the statement of cash flows was prepared using the indirect method.  
The International Financial Reporting Standards (IFRS) used for preparing these separate financial 
statements, drawn up under the going-concern assumption, are the same that were used in the preparation 
of the separate financial statements at 31 December 2021 except for what indicated below (Note 4). 
Preparation of the separate financial statements required management to make certain valuations and 
estimates. The main areas affected by estimates or assumptions of particular importance or that have 
significant effects on the balances shown are described in Note 4 to the Consolidated Financial Statements, 
to which reference is made. 
The Board of Directors of 9 March 2023 resolved to submit to shareholders the draft financial statements at 
31 December 2022, authorizing their circulation in the same venue and set the dates for the Ordinary 
Shareholders’ Meeting to be held between 2 and 10 May 2023, on first and second call. 
The separate financial statements were prepared in accordance with IFRS and are subject to a statutory audit 
by EY S.p.A.. 
3. ACCOUNTING PRINCIPLES 
The accounting policies and criteria are the same adopted, where applicable, for the annual consolidated 
financial statements, to which reference is made, except for the recognition and measurement of equity 
investment in subsidiaries, jointly controlled companies and associates recognised at their purchase or 
incorporation cost. In case of any impairment losses their recoverability is verified through the comparison

Separate Financial Statements at 31 December 2022 
 
286 
 
between their carrying amount and the higher of their value in use that is determined by discounting 
prospective cash flows of the equity investment, where applicable, and the assumed sales value (fair value) 
which is determined on the basis of recent transactions or market multiples. The portion of losses (if any) 
exceeding the carrying amount is recognised through profit or loss in a specific provision under liabilities to 
the extent that the Company states the existence of legal or implicit obligations to cover such losses, which 
are in any case within the limits of the book equity. If the impaired investee shows a subsequent 
improvement in performance which leads to believe that the reasons for the impai 
rment cease to exist, 
the equity investments are revalued to the extent of the impairment losses recognised in previous periods 
under “adjustments to equity investments”. In order to define the reversals of the value of an equity 
investment, the Company monitors, on an annual basis, any equity investment whose value has been 
previously written down and analyses whether the conditions are fulfilled for its reversal. Specifically, the 
analysis covers business plans, profitability levels, and future cash flows approved by corporate bodies and 
the results of sensitivity analyses are evaluated against the basic assumptions used to determine the 
recoverable value. The results of the write-back performed in 2022 are reported in Note 5. Dividends from 
subsidiaries and associates are recognised in the income statement in the year in which they are resolved. 
Finally, with reference to transactions between entities under joint control, which are not governed by IFRS, 
either from the point of view of the purchaser/assignee or from that of the seller/assignor, Leonardo 
recognises such transactions recognising directly in equity any gain on the transfer or sale of its subsidiaries. 
In the event the Group has evidence of an impairment loss of the investment, in excess of the amount 
accounted for under the equity method, the Group will proceed with calculating the impairment to be 
recorded in the income statement which is determined as the difference between the recoverable amount 
and the carrying amount of the investment. The fair value of equity investments, in the event this method 
applies, is calculated based on the bid price of the last trading day of the month for which the IFRS report 
was prepared, or based on financial valuation techniques for not listed instruments. 
Investments available for sale, like those acquired with the sole purpose of being disposed within the 
subsequent twelve months, are classified separately within “assets held for sale”. 
4. EFFECTS OF CHANGES IN ACCOUNTING POLICIES ADOPTED 
No significant changes occurred in the period with reference to the application of the accounting policies 
adopted by the Company. 
5. SIGNIFICANT EVENTS AND TRANSACTIONS DURING THE YEAR 
In February 2022 Russia launched an offensive - which is still ongoing - against Ukraine, generating profound 
changes in the global geopolitical and economic scene. The process of integration and implementation of a 
European Defense and Security and, at the same time, the increase in Defense spending of EU and 
neighbouring countries have accelerated demand for security with consequent opportunities for companies 
operating in the sector. On the other hand, relations with Russia are significantly affected by the increasing 
number of sanctions imposed by the European Union, as well as by other countries and other International 
Bodies, on logistics and economy. Leonardo has a not particularly significant exposure to these two countries 
and is continuing to monitor the situation to promptly identify the consequences on its present and 
prospective position. In view of the continuation of this scenario, which does not suggest a resolution in the 
short term, Leonardo has written down its net exposure to the two countries involved (mainly referable to 
Russia), for a total amount of €mil. 33, including tax effects. 
The pandemic from Covid-19 already generated a significant reduction in production and price increases for 
some raw materials in the late 2020s due to prolonged lockdowns. In addition, the high recovery in demand

Separate Financial Statements at 31 December 2022 
 
287 
 
for electronic components from other industries has further reduced their availability for the Aerospace and 
Defence industries, which are a niche market. The aforementioned advent of the Russia-Ukraine conflict has 
then engendered a sudden surge in energy costs resulting in inflation peaks not seen in decades. 
With regard to the issue of availability of raw materials and rising prices, the Company implements 
procurement strategies that have mitigated the impacts. Specifically, the available inventory and long-term 
contracts already in place with suppliers have enabled the Company to feed production lines although there 
has been production slippage that has mainly impacted the Electronics businesses. It is believed that the 
actions promptly taken since the beginning of the pandemic, such as increasing long-term contracts with 
suppliers and increasing stockpiling, can contain the effects of the shortage of raw materials for which we 
are in any case witnessing a stabilisation of supply times.  
On the other hand, as far as inflationary pressure is concerned, 2022 has begun to show the first significant 
signs of various kind of costs on the increase of prices. The increase in labour costs has been contained thanks 
to the current contract that postpones by one year the application of the variable factor linked to inflation 
(HICP). With regard to energy costs, the Company was not affected by the surge in prices thanks to the 
purchasing policy anticipated in previous years for both Gas and Electricity. Finally, even for the purchase of 
goods and services for production, the Company was able to contain the consequences of inflation in 2022 
thanks to the existing inventory, the contracts signed and the specific actions it had taken. The price increases 
recorded are limited to some specific components in the electronics sector. 
With regard to 2023, on the other hand, price increases are expected on all cost variables with gradual 
stabilisation as early as from 2024 as forecast by leading institutes and economists. 
In order to cope with these expected inflationary pressures, the Company has long launched specific 
mitigation actions in order to ensure adequate profitability of the business. The actions essentially concern 
the adjustment to selling prices, the extension of the use of special 'indexation' clauses in new contracts, 
careful monitoring of energy price trends with an increase in own production and reduced consumption, and 
the review of contracts and the supplier base. The above-mentioned variables, excluding the mitigation 
actions put in place, have been included in the latest updates to the product business plans and in the 
Company's revised economic and financial plans. 
In June 2022 the governmental Norwegian Defence Materiel Agency (NDMA) formalised a request for 
termination by default under the contract - regulated by Norwegian law - for the supply of fourteen NH90 
helicopters, which had been entered into in 2001 with NH Industries (NHI), a French company controlled by 
Leonardo, Airbus Helicopters and Fokker Aerostructure, due to alleged delays and non-compliant products. 
The contract has been subject to extensions and amendments over the years and was expected to be 
completed by the end of 2023. NDMA's request is to return the 13 helicopters that it has already received 
and accepted and ask for reimbursement of the sums it has disbursed, including interest. NHI considers this 
request for termination by default to be legally unfounded and reasonably disputable in the appropriate 
venue due to a lack of factual and legal basis and misinterpretation of the contract and Norwegian law, as 
well as due to a breach of confidentiality obligations. By giving effect to the above request for termination 
between September and December 2022 NDMA enforced the remaining bank guarantees issued by Leonardo 
on behalf of NHI for a total amount of €mil. 69.7 (including interest of €mil. 19.3). It should be noted that 
Leonardo’s share of enforcement is proportional to the stake it holds in the project - approximately 41% - 
and, therefore, equal to €mil. 28.7 (including interest of €mil. 8). The actions put in place in order to reach a 
settlement of the matter are still ongoing. 
Within the scope of the strategic/corporate rationalisation project of certain Company assets with a view to 
a more efficient and effective operation of industrial activities, the following industrial transactions are worth 
noting:

Separate Financial Statements at 31 December 2022 
 
288 
 
− Acquisition of the stake in Hensoldt AG. 3 January 2022 saw the completion of the acquisition from 
Square Lux Holding II S.à r.l., a company controlled by funds advised by Kohlberg Kravis & Roberts & 
Co. L.P., of a 25.1% stake in Hensoldt AG, a company that is the leading German player in the field of 
sensor solutions for defence and security applications, with an ever-expanding portfolio in sensor, 
data management and robotics, at a price of €mil. 606 (in addition to transaction costs). The 
transaction is an important step towards achieving the strategic   objective of acquiring a leading 
position in the European Defence Electronics market, as defined in the “Be Tomorrow – Leonardo 
2030” Plan, and reflects Leonardo’s determination to play a leading role in the ongoing consolidation 
process, also with a view to future cooperation programmes at continental level;  
− National Strategic Hub for the Cloud. On 11 July 2022, following the exercise of the right of first 
refusal in compliance with the regulations and tender documentation, the partnership composed of 
TIM, Leonardo, Cassa Depositi e Prestiti (CDP, through its subsidiary CDP Equity) and Sogei was 
notified of the awarding of the tender for the design, implementation and operation of the National 
Strategic Hub (NSH) infrastructure for the provision of cloud services to Public Authorities. On 4 
August, a joint venture was established among the members of the partnership in the form of a joint-
stock company, with a view to ensuring the highest possible level of data efficiency, security and 
reliability in support of Public Authorities. On 24 August, PSN signed, with the Department for Digital 
Transformation of the Presidency of the Council of Ministers, the Agreement for the concession of 
the infrastructure, which will have a term of 13 years;  
− Merger by incorporation of Vitrociset. On 1 January 2022 the merger by incorporation of Vitrociset 
Spa took legal, accounting and tax effect. Such transaction marked the completion of the integration 
process between the two companies that had been started in 2019 with the acquisition of the entire 
capital of Vitrociset.  
During 2022, work also commenced on the process of concentrating the assets held by Leonardo Spa in the 
USA into a single legal entity. The project, which will be completed during 2023, provides for Leonardo US 
Holding to control two companies – Leonardo DRS and Leonardo US Corporation -, which will directly or 
indirectly hold all the U.S. companies, except for Leonardo US Electronics that, for the time being, will remain 
directly invested in by Leonardo UK.  
In this context, the following transactions were completed during 2022: 
− Leonardo US Corporation was established; 
− in September, Leonardo transferred 50% of its investment in Leonardo US Holding Llc to Leonardo 
International S.p.a.. The value of this net transfer, amounting to €mil. 1,462, was determined with 
the support of an independent third-party that took account of the aforesaid reorganisation process 
in the valuation. This valuation entailed the write-back, equal to €mil. 1,290, of the investment in 
Leonardo US Holding, since the conditions that in 2011 and 2012 had led to write it down no longer 
obtained, in light also of the evidence acquired in the context of the transactions carried out in the 
United States; 
− 
Leonardo US Holding contributed its stake in Leonardo US Aircraft to Leonardo US Corporation; 
− 
acquisition of RADA and listing of Leonardo DRS. On 29 November 2022 Leonardo announced, 
through the US subsidiary Leonardo US Holding; 
− 
the completion of the merger between the US subsidiary Leonardo DRS, Inc. (“Leonardo DRS”) and 
the Israeli company RADA Electronic Industries Ltd. (“RADA”), listed on NASDAQ and the Tel Aviv 
Stock Exchange (“TASE”), with a market capitalisation that fluctuated between USDmil. 500 and 
USDmil. 600 during the year. RADA is active in the business of short-range, low-cost tactical defence 
radars, particularly suitable for land-based Short Range Air Defense and Counter-UAV applications.

Separate Financial Statements at 31 December 2022 
 
289 
 
RADA’s products constitute a strategic expansion of DRS and the Leonardo Group’s portfolio by 
completing the offering of sensors on board land vehicles, and have different functional and 
configuration features from the radars that are currently in the portfolio of the Electronics division 
of Leonardo and of Hensoldt AG, thus making them complementary in an integrated offering 
perspective. This transaction also enables Leonardo to establish a concrete footprint in Israel, in line 
with its objective of international expansion. Through this operation, RADA has lost its status as a 
listed company and has become a wholly owned subsidiary of DRS, which has then been listed on the 
stock exchange. Leonardo continues to hold an 80.5% stake in Leonardo DRS, through the US 
subsidiary Leonardo US Holding, while the remaining 19.5% is in the hands of the present 
shareholders of RADA. The shares of Leonardo DRS were listed on NASDAQ and the Tel Aviv Stock 
Exchange ("TASE") with the symbol "DRS" as from the start of trading operations on NASDAQ on 29 
November 2022 and on the TASE on 30 November 2022; 
− 
on 23 December 2022, Leonardo S.p.A. contributed to Leonardo US Holding its stake in 
AgustaWestland Philadelphia Corporation for an amount of €mil. 237 ($mil. 250). The investment 
itself was subsequently transferred by Leonardo US Holding to Leonardo US Corporation. 
From a financial perspective, Leonardo completed the following capital market transactions during 2022: 
− in January Leonardo repaid the remaining amount of €mil. 556 of the bond issued in December 2009, 
which had reached its natural expiry;  
− in November Leonardo entered into a Sustainability-linked loan agreement with the European 
Investment Bank (EIB) for an amount of €mil. 260, in line with the sustainability strategy it pursues, 
aimed at supporting some investment projects envisaged in the Group’s business plan. The loan will 
have a term of 12 years and a four-year pre-amortisation period and provides for a margin 
adjustment based on Leonardo’s achievement of certain indicators (KPIs) linked to the ESG goals of 
which: the first one related to the reduction of CO2 emissions through eco-efficiency of industrial 
processes and the second one related to the achievement of ESG-linked technology targets (increase 
in per capita computing power of Leonardo as a key enabler and booster in research, numerical 
simulation, big data analytics and artificial intelligence). The achievement of ESG-linked targets will 
trigger an adjustment to the margin applied to the credit facility; 
− in December Leonardo proceeded with the early repayment of the Term Loan of €mil. 500 entered 
into in 2018 and expiring in November 2023. 
In August Leonardo endorsed a framework Programme for the issuance of Commercial Papers on the 
European market (Multi-Currency Commercial Paper Programme), for a maximum amount of €bil. 1, which 
was entirely unused at the date of this report. 
Moreover, in June the EMTN (Euro Medium Term Note) programme was renewed for further 12 months, 
which regulates possible bond issues on the European market for a maximum nominal value of €bil. 4. At the 
date of this report, the Programme is used for a total of €bil. 1.6.  
Note that financial covenants are included in the ESG-linked Revolving Credit Facility and the ESG-linked Term 
Loan, both signed in 2021, and imply the Leonardo compliance with two financial ratios (the ratio of Group 
Net Debt excluding payables to the joint ventures MBDA and Thales Alenia Space and lease liabilities to 
EBITDA including amortisation of rights of use must be no higher than 3.75 and the ratio of EBITDA including 
amortisation of rights of use to Net interest must be no lower than 3.25) which are tested on an annual basis 
on year-end consolidated data and which had been complied with in full at 31 December 2022. These 
covenants are also included in the loan agreement with CDP for €mil. 100 as well as all the EIB loans in place 
(used for a total amount of €mil. 500 at 31 December 2022). In relation to this Annual Financial Report, the 
financial covenants have been largely met (the two ratios are equal to 1.0 and 16.1 respectively).

Separate Financial Statements at 31 December 2022 
 
290 
 
Finally, it should be pointed out that in December 2022 – in implementing a protocol of intent signed with 
the national trade unions on early retirements under Article 4 of Law 92/2012 (Fornero Act) - an agreement 
was executed, which involved up to a maximum of no. 400 employees in the Corporate and Staff functions 
of Leonardo S.p.A., for whom the requirements will be met for retirement by 30 November 2028, with exits 
planned in the two-year period from 2023 to 2024, together with the definition of the terms and conditions 
for joining the scheme. A similar agreement was signed with the union representatives of the executive staff, 
up to a maximum of 45 managers. In February 2023, the collection of expressions of interest was completed. 
By the end of April 2023, the Italian Social Security Institute [INPS] will verify whether requirements are met 
for the staff members who expressed their interest to benefit from early retirement benefits. The charges 
resulting from this manoeuvre have been preliminarily set at €mil. 97. 
With regard to the comparative period, taking account of the effects of the pandemic on the civil sector and 
considering the changed prospects for the commercial aviation market, Leonardo had embarked on the 
actions aimed at mitigating the impact on the industrial performance of the Aerostructures Division. In this 
context, on 21 July 2021 trade union agreements were signed to make the instruments identified for the 
early retirement of employees operational for a number of up to a maximum of 500 employees who would 
meet the criteria for early retirement in the three-year period from 2021 to 2023. Finally, in November 2021 
the Indian Ministry had lifted the ban on the Leonardo Group entering the Indian market, which is why it had 
been no longer considered convenient or consistent to bring an action against the local Government which 
would, however, have taken a very long time and had uncertain chances of success.  
6. SIGNIFICANT POST-BALANCE SHEET EVENTS 
No significant events occurred after the end of the financial year. 
7. SEGMENT INFORMATION 
In accordance with the compliance model followed, management has adopted operating segments that 
correspond to the business sectors in which the Company operates: Helicopters, Defence Electronics & 
Security, Aircraft and Aerostructures. For a more detailed analysis of the main programmes, outlooks and 
operating indicators for each segment, reference should be made to the Report on Operations. It should be 
noted that, until the 2021 financial statements, the Aircraft and Aerostructures segments were aggregated 
into the single Aeronautics segment, which was subsequently spun off to provide a more consistent 
representation of the underlying company strategies and business trends.

Separate Financial Statements at 31 December 2022 
 
291 
 
8. INTANGIBLE ASSETS 
Intangible assets 
Goodwill 
Development 
costs 
Non-
recurring 
costs 
Concessions, 
licenses and 
trademarks 
Acquired 
through 
business 
combinations 
Other 
intangible 
assets 
Total 
1 January 2021 
 
 
Cost 
917
951
2,247 
534
96
375
5,120 
Amortisation, depreciation 
and write-offs 
(210)
(591)
(630) 
(473)
(55)
(288)
(2,247) 
Carrying amount 
707
360
1,617 
61
41
87
2,873 
 
 
Investments (net of grants) 
-
74
115 
186
-
46
421 
Sales 
-
(2)
- 
-
-
-
(2) 
Depreciation 
-
(24)
(44) 
(22)
(2)
(20)
(112) 
Impairment losses 
-
(11)
(30) 
-
-
-
(41) 
Other changes 
-
-
2 
9
1
(11)
1 
31 December 2021 
707
397
1,660 
234
40
102
3,140 
broken down as follows: 
 
 
Cost 
917
1,022
2,364 
728
96
412
5,539 
Depreciation 
-
(545)
(513) 
(494)
(57)
(286)
(1,895) 
Impairment losses 
(210)
(80)
(191) 
-
1
(24)
(504) 
Carrying amount 
707
397
1,660 
234
40
102
3,140 
 
 
Investments (net of grants) 
-
44
98 
9
-
53
204 
Sales 
-
(1)
- 
-
-
-
(1) 
Depreciation 
-
(30)
(63) 
(24)
(2)
(25)
(144) 
Impairment losses 
-
(1)
(21) 
-
-
(1)
(23) 
Other changes 
1
(3)
5 
18
-
(9)
12 
31 December 2022 
708
406
1,679 
237
38
120
3,188 
broken down as follows: 
 
 
Cost 
918
1,107
2,466 
758
97
462
5,808 
Depreciation 
-
(616)
(575) 
(521)
(59)
(318)
(2,089) 
Impairment losses 
(210)
(85)
(212) 
-
-
(24)
(531) 
Carrying amount 
708
406
1,679 
237
38
120
3,188 
 
 
31 December 2021 
 
 
Gross value 
4,794 
 
Grants 
3,034 
 
 
 
31 December 2022 
 
Gross value 
4,678 
 
Grants 
3,000 
 
 
The item increased by €mil. 48 as a result of new investments net of related grants and amortisation charges 
for the period. 
Investments for the period are mainly related to Helicopters (€mil. 107) and Defence Electronics & Security 
(€mil. 63). 
Commitments were in place for the purchase of intangible assets for €mil. 18 at 31 December 2022 (€mil. 27 
at 31 December 2021). 
As set out in Notes 4.1 and 4.2 of the consolidated financial statements, to which reference should be made, 
impairment tests on development costs and non-recurring costs are carried out – if conditions obtain- using

Separate Financial Statements at 31 December 2022 
 
292 
 
the discounted cash flow method. The cash flows used are those of the product business plans, discounted 
on the basis of a WACC rate determined by applying the Capital Asset Pricing Model. 
Goodwill 
 
Goodwill is allocated to the Cash Generating Units (CGUs) or groups of CGUs concerned, which are 
determined with reference to the Group’s organisational, management and control structure coinciding, as 
is known, with the Group’s four business segments. At the recognition of the mergers and demergers 
occurred in 2016 within the creation of the One Company, the goodwill was allocated, in accordance with 
the principle of “continuity of values”, to the same CGUs as those in the Consolidated Financial Statements, 
differentiating the part of goodwill related to net assets recognised line-by-line from that related to foreign 
equity investments, for which goodwill was recognised on the basis of the investments’ values. 
Compared to 31 December 2021, the CGUs on which the goodwill is allocated have been affected by the spin-
off of the Aeronautics segment into the Aircraft and Aerostructures segments, which was carried out to 
provide a more consistent representation of the underlying company strategies and business trends. 
Goodwill previously allocated to Aeronautics has been allocated in full to the Aircraft segment, on the basis 
of the relative fair value. 
The breakdown of goodwill recognised by business sector at 31 December 2022 is as follows: 
31 December 2021 
31 December 2022 
Helicopters 
459
459 
Electronics for the Defence and Security 
188
189 
Aircraft 
60
60 
707
708 
 
Goodwill is tested for impairment in order to determine any possible loss in value, making reference to the 
CGU as a whole, including, in accordance with the organisational and operational model, the equity 
investments falling within the scope of consolidation, which are then included and tested in the same year 
as the impairment. Therefore, only the equity investments that are not tested together with goodwill are 
subject to an impairment test separately, if required.  
The test is done by individual CGU by comparing the carrying amount with the greater of the value in use of 
the CGU and amount recoverable by sale (fair value). In practice, the Company has established an operational 
hierarchy between calculating the fair value net transaction costs and value in use, where the value in use is 
estimated first, and then only after, if it is lower than the carrying value, is the fair value net of transaction 
costs determined. In particular, the value in use is measured by the unlevered discounting of the cash flows 
resulting from the Group’s five-year business plans prepared by the CGU’s management and incorporated 
into the plan approved by Leonardo’s Board of Directors, projected beyond the explicit time horizon covered 
by the plan according to the perpetuity growth method (terminal value), using growth rates (“g-rate”) no 
greater than those forecast for the markets in which the given CGU operates. The cash flows used were those 
provided for in the plans adjusted to exclude the effects of any future business restructurings, not yet 
approved, or future investments for improving future performance. Specifically, these cash flows are those 
generated before financial expense and taxes – determined on a notional basis - and include investments in 
capital assets and monetary changes in working capital, while excluding cash flows from financial 
management, extraordinary events or the payment of dividends. The basic macro-economic assumptions 
were made on the basis of external information sources, where available, while the profitability and growth 
estimates used in the plans were calculated by management based on past experience and expected 
prospective developments in the markets in which the Company operates.

Separate Financial Statements at 31 December 2022 
 
293 
 
These cash flows are discounted on a weighted-average cost of capital (WACC) basis calculated using the 
Capital Asset Pricing Model method. The following factors were taken into account in calculating WACCs, 
which were also determined using the data referable to the main competitors operating in each sector: 
• 
the risk-free rate was determined using the 10-year gross yield of government bonds of the 
geographic market of the CGU;  
• 
the market premium determined using the computations of external providers; 
• 
the sector beta; 
• 
the cost of debt; 
• 
the debt/equity ratio. 
On the contrary, the growth rates used to project the CGU’s cash flows beyond the explicit term of the plan 
were estimated by making reference to the growth assumptions of the individual sectors in which said CGUs 
operate. These assumptions are based on the internal processing of external sources, making reference to a 
period of time that is usually ten years. The g-rates used for the purposes of the impairment test were equal 
to 2%, consistently with the actions taken in previous financial years, even in the presence of higher expected 
growth rates in some sectors.  
Below are mostly important assumptions for the purposes of estimating the cash flows used in determining 
the value in use: 
• 
WACC;  
• 
g-rate; 
• 
ROS; 
• 
trend in Defence budgets. 
In estimating these assumptions, the management made reference, in the case of external variables, to 
internal information processed on the basis of external surveys, as well as on its knowledge of the markets 
and of the specific contractual situations. 
The following WACCs and (nominal) growth rates were used at 31 December 2022 and 2021: 
31 December 2021 
31 December 2022 
Wacc 
g-rate 
Wacc 
g-rate 
Helicopters 
7.0% 
2.0%
8.6% 
2.0% 
Electronics for the Defence and Security 
6.1% 
2.0%
7.5% 
2.0% 
Aircraft 
6.7% 
2.0%
8.1% 
2.0% 
 
Testing revealed no signs of impairment but showed, on the contrary, significant positive margins 
(Headroom). Sensitivity analysis was conducted on the results of the tests, making reference to the 
assumptions for which it is reasonable to believe that a change in the same may significantly modify the 
results of the test. The wide positive margins recorded in all sectors are such that they may not be significantly 
modified by any changes in the assumptions described above. In any case, the results for all CGUs are 
reported below for information purposes. The table below shows, for the 2022 and 2021 financial years, the 
headroom relating to the base scenario, compared with the results of the following sensitivity analyses: (i) 
increase by 50 basis points in the interest rate used to discount cash flows across all the CGUs, other 
conditions being equal; (ii) reduction by 50 basis points in the growth rate used in calculating the terminal 
value, other conditions being equal; (iii) reduction by half point in the operating profitability applied to the 
terminal value, other conditions being equal.

Separate Financial Statements at 31 December 2022 
 
294 
 
31 December 2021 
Margin (base case) 
Margin post sensitivity 
Wacc 
g-rate 
ROS TV 
Helicopters 
1,545
1,020
1,105
1,309 
Electronics for the Defence and Security 
12,006
10,346
10,585
11,573 
Aircraft 
7,663
7,025
7,125
7,418 
 
 
31 December 2022 
Margin (base case) 
Margin post sensitivity 
Wacc 
g-rate 
ROS TV 
Helicopters 
1,321
 
967
1,041
1,135 
Electronics for the Defence and Security 
8,479
 
7,481
7,668
8,188 
Aircraft 
5,730
 
5,389
5,455
5,587 
 
Development costs and non-recurring charges 
Investments of the item “development costs” related in particular to Defence Electronics & Security for €mil. 
31 and to Helicopters for €mil. 12. The investments of “Non-recurring costs” refer to the Helicopters sector 
for €mil. 76 and to the Defence Electronics & Security sector for €mil.22. 
As regards programmes that benefit from the provisions of Law 808/85 and that are classified as functional 
to national security, the portion of capitalised non-recurring costs, pending the fulfilment of the legal 
requirements for the classification under receivables, is separately classified among “other non-current 
assets” (Note 12). The related amount is calculated on the basis of the management’s estimate that takes 
account of both reasonable certainty of obtaining grants and the effects arising from time value in the event 
that, once they have been obtained, they are deferred over more than one financial period. Receivables for 
grants assessed by the grantor in relation to capitalised costs (shown here net of the related grants) are 
illustrated in Note 28. 
The impairment for the year mainly refers to write-downs linked to programmes in the Aircraft business 
segment. Impairment tests of non-recurring costs and development costs are performed on the most 
significant programmes in terms of capitalisation or risk or when impairment indicators emerge. They are 
carried out – if conditions obtain- using the discounted cash flow method. The cash flows used are those of 
the product business plans, discounted on the basis of a WACC rate determined by applying the Capital Asset 
Pricing Model. As stated in the section on accounting principles, product business plans factor in all 
investments related to climate change issues. 
At 31 December 2022, total research and development costs, including also “development costs” and “non-
recurring costs” just mentioned, amount to €mil. 1,192 (€mil. 1,105 at 31 December 2021), of which €mil. 
164 expensed (€mil. 149 at 31 December 2021). 
Concessions Licenses and Trademarks 
The item “Concessions, licenses and trademarks” remains essentially unchanged with an increase, net of 
amortization charges for the period, of €mil. 3. 
Other intangible assets 
“Other assets” mainly include software, intangible assets in progress and advances.

Separate Financial Statements at 31 December 2022 
 
295 
 
9. PROPERTY, PLANT AND EQUIPMENT  
Property, plant and equipment 
Land and 
buildings 
Plant and 
machinery 
Equipment 
Other tangible 
assets 
Total 
1 January 2021 
 
 
Cost 
38
1,240 
1,853
852
3,983 
Amortisation, depreciation and write-
offs 
(33)
(984) 
(1,662)
(538)
(3,217) 
Carrying amount 
5
256 
191
314
766 
 
 
Investments 
-
7 
36
117
160 
Sales 
-
- 
-
(3)
(3) 
Depreciation 
(1)
(52) 
(36)
(28)
(117) 
Other changes 
1
35 
21
(71)
(14) 
31 December 2021 
5
246 
212
329
792 
broken down as follows: 
 
 
Cost 
27
1,272 
1,909
890
4,098 
Amortisation, depreciation and write-
offs 
(22)
(1,026) 
(1,697)
(561)
(3,306) 
Carrying amount 
5
246 
212
329
792 
Investments 
-
13 
45
202
260 
Sales 
-
- 
-
(4)
(4) 
Depreciation 
(1)
(55) 
(45)
(30)
(131) 
Other changes 
2
33 
28
(64)
(1) 
31 December 2022 
6
237 
240
433
916 
broken down as follows: 
 
 
Cost 
28
1,316 
1,995
1,024
4,363 
Amortisation, depreciation and write-
offs 
(22)
(1,079) 
(1,755)
(591)
(3,447) 
Carrying amount 
6
237 
240
433
916 
 
The item showed an increase due to the new investments, net of the depreciation charges for the period, 
and as a result of investments in tangible assets under construction.  
Investments in 2022 are mainly related to Aircraft for €mil. 81, Aerostructures for €mil. 49, Defence 
Electronics & Security for €mil. 84 and Helicopters for €mil. 37. 
The item “Other property, plant and equipment” includes also the amount of property, plant and equipment 
under completion (€mil. 272 at 31 December 2022 and €mil. 169 at 31 December 2021). 
Commitments for the acquisition of tangible assets were in place for €mil. 162 at 31 December 2022 (€mil. 
147 at 31 December 2021).

Separate Financial Statements at 31 December 2022 
 
296 
 
10. RIGHT OF USE 
Right of use 
Right of use of land and 
buildings 
Right of use of 
equipment 
Total 
1 January 2021 
 
 
 
Cost 
757 
48 
805 
Amortisation, depreciation and write-offs 
(197) 
(22) 
(219) 
Carrying amount 
560 
26 
586 
New Contract submission 
12 
15 
27 
Closing and contract modifications 
13 
4 
17 
Depreciation 
(106) 
(15) 
(121) 
31 December 2021 
479 
30 
509 
broken down as follows: 
 
 
 
Cost 
782 
64 
846 
Amortisation, depreciation and write-offs 
(303) 
(34) 
(337) 
Carrying amount 
479 
30 
509 
 
 
 
New Contract submission 
52 
2 
54 
Closing and contract modifications 
212 
1 
213 
Depreciation 
(109) 
(14) 
(123) 
Other changes 
14 
1 
15 
31 December 2022 
648 
20 
668 
broken down as follows: 
 
 
 
Cost 
892 
61 
953 
Amortisation, depreciation and write-offs 
(243) 
(42) 
(285) 
Carrying amount 
649 
19 
668 
 
During 2022 this item showed an increase of €mil. 159 mainly due to the signature of new contracts, net of 
amortisation for the period. 
The Company has opted to exclude from the scope of application, the leases with a term of less than 12 
months and those concerning assets of modest value, the effects of which were therefore recognised among 
“costs for purchases”.  
 At 31 December 2022 acquisition commitments were in place for short-term leases for €mil. 3 (€mil. 4 at 31 
December  2021). 
11. EQUITY INVESTMENTS 
31 December 2021 
31 December 2022 
Equity 
investments 
Risk provisions 
Total 
Equity 
investments 
Risk provisions 
Total 
1 January 
7,691
(4)
7,687 
7,684
(14)
7,670 
Acquisitions/subscriptio
ns 
246
-
246 
2,446
10
2,456 
Effect from 
Mergers/Demergers 
-
-
- 
(43)
-
(43) 
Write-back/Write-down 
(13)
(10)
(23) 
1,322
(1)
1,321 
Disposals 
(2)
-
(2) 
(1,462)
-
(1,462) 
Other changes 
(238)
-
(238) 
(309)
-
(309) 
31 December 
7,684
(14)
7,670 
9,638
(5)
9,633

Separate Financial Statements at 31 December 2022 
 
297 
 
Appendices no. 1 and 2 to these Notes provide, respectively, the changes that occurred in the year and 
detailed information on equity investments showing the total of assets and liabilities, as required by IFRS 12. 
The carrying amount of equity investments, if conditions obtain, is tested for impairment in order to 
determine any possible loss in value. As mentioned, the carrying amount of individual equity investments is 
mainly tested by making reference to the relevant divisions; for any information on the procedures for the 
performance of tests and any related information, reference should then be made to Note 4.6 of the 
Consolidated Financial Statements. 
Among the changes that occurred during the period were the following transactions: 
• acquisition of capital quotas in the following investments: 
− Hensoldt AG, equal to €mil. 618, a company that is the leading German player in the field of sensor 
solutions for defence and security applications. The equity interest held by Leonardo is 25%; 
− Leonardo CAE Advanced Jet Training S.r.l. equal to €mil. 10, a company specialising in providing 
support for the activities of the International Flight Training School (IFTS). The interest held by 
Leonardo in the capital remained unchanged compared to 2021 (50%); 
− Polo Strategico Nazionale S.p.A., equal to €mil. 3, promoted by the Department for Digital 
Transformation of the Prime Minister's Office under Mission 1 of the NRRP (National Recovery and 
Resilience Plan). Leonardo’s share in the capital is equal to 25% (see Note 5); 
• within the scope of the reorganisation of the Leonardo group companies in the United States (see Note 
5), the completion of the following transactions through Leonardo US Holding LLC: 
− a repayment of capital of €mil. 309 of Leonardo US Holding LLC; 
− the value write-back of previous write-downs charged to Leonardo US Holding LLC for €mil. 1,290; 
− the sale of 50%, equal to €mil. 1.462, in Leonardo US Holding LLC to direct subsidiary Leonardo 
International S.p.A. with the simultaneous recapitalisation of the latter company for the same 
amount; 
− the recapitalisation of Leonardo US Holding LLC, equal to €mil. 237, through the acquisition of direct 
subsidiary of AgustaWestland Philadelphia Corporation (see Note 19);  
• the recapitalisations of Leonardo Partecipazioni S.p.A., equal to €mil. 39, of which an amount of €mil. 10 
by using the Provision for risks on equity investments, and of Kopter, equal to €mil. 86 (see Note 34); 
• the write-down, equal to €mil. 9, of which an amount of €mil. 1 under the provision for risks on equity 
investments, includes the losses recorded by Industria Italiana Autobus S.p.A. for the period; 
• the revaluation, equal to €mil. 40, includes the improvement recorded in the volumes of Consorzio ATR 
GIE in 2022;    
• the accounting effect of the merger, equal to €mil. 43, concerns Vitrociset S.p.A. (see Note 5).  
The recoverability of the carrying amount of equity investments is verified, where the prerequisites are met, 
including through impairment tests, from which no critical issues have emerged. 
Finally, below is reported a comparison of the carrying amounts and the average market price of the listed 
shares of Avio S.p.A. and Hensoldt AG in December 2022:  
Listed company N° of shares 
held 
Stock price 
 
Book value 
Unit Difference 
in € 
Total Difference 
in €mil. 
Unit € 
Total €mil. 
 
Unit € 
Total €mil. 
Avio Spa 
7,809,307 
10.04
78.40 
10.84
84.70 
(0.80)
(6.30) 
Hensoldt AG 
26,355,000 
21.85
575.80 
23,45
618.04 
(1.60)
(42.20)

Separate Financial Statements at 31 December 2022 
 
298 
 
The losses in value at 31 December 2022 of the listed companies were not considered material due to the 
lack of a permanent valuation over the time. 
12. RECEIVABLES AND OTHER NON-CURRENT ASSETS 
31 December 2021 
31 December 2022 
Deferred grants under Law no. 808/85 
10
6 
Related parties receivables (Note 34) 
443
88 
Other non-current receivables 
11
39 
Non-current receivables 
464
133 
 
Prepayments - non-current portion 
5
4 
Non-recurring costs pending under Law no. 808/1985 
15
29 
Non-current assets 
20
33 
 
Non-current receivables showed a decrease of €mil. 331, mainly attributable to related parties, the details of 
which are reported in Note 34 .  
Non-current assets showed an increase of €mil. 13 essentially related to the item “Non-recurring costs 
pending under Law 808/1985”.  
The changes during the year and the composition of assets by maturity, currency and geographical area are 
shown in Appendices nos. 3, 4, 5 and 6 to these Notes. 
 
13. INVENTORIES 
31 December 2021 
 
31 December 2022 
Raw materials, supplies and consumables 
1,549
1,634 
Work in progress and semi-finished goods 
1,002
984 
Finished goods and merchandise 
37
42 
Assets from contracts point in time 
154
224 
Advances to suppliers 
1,450
1,065 
4,192
3,949 
 
Inventories showed a decrease in the period equal to €mil. 243.  
Provisions for write-down are entered against the inventories to cover any obsolescence, slow-moving items 
or if the entry value is higher than the net realisable value, for a total amount of €mil. 591 (€mil. 589 al 31 
December 2021).  
Point-in-time contract assets include production progress recorded on contracts that do not meet the 
requirements for the recognition of revenues on an over time basis.

Separate Financial Statements at 31 December 2022 
 
299 
 
14. CONTRACT ASSETS AND LIABILITIES 
31 December 2021 
 
31 December 2022 
Contract assets (gross) 
5,336
5,360 
Liabilities from contracts 
(2,681)
(2,979) 
Contract assets (net) 
2,655
2,381 
Contract liabilities (gross) 
6,779
6,958 
Assets from contracts 
-
(207) 
Contract liabilities (net) 
6,779
6,751 
 
Contract assets are stated among assets, net of related liabilities if, based on an analysis carried out on a 
contract-by-contract basis, the gross amount of work executed at the reporting date exceeds advances 
received from customers, or, among liabilities, if advances exceed the relevant work. This offsetting is 
performed only with regard to contract assets and liabilities and not to point-in-time contract assets classified 
among inventories. If the progress payments and advances from customers have not been collected at the 
reporting date, the corresponding amount is recognised as a receivable from customers.  
Below is a breakdown of net contract assets: 
31 December 2021 
 
31 December 2022 
Cost incurred and margins recognised 
5,217
5,567 
Advanced received 
(9,341)
(9,937) 
Net value 
(4,124)
(4,370) 
 
15. TRADE AND FINANCIAL RECEIVABLES 
31 December 2021 
31 December 2022 
Trade 
Financial 
Trade 
Financial 
Receivables 
2,236 
16
2,395 
68 
Allowance for doubtful accounts 
(377) 
(2)
(407) 
(19) 
Related parties current receivables (Note 34) 
1,134 
63
1,133 
277 
2,993 
77
3,121 
326 
 
The “Provision for bad debts” mainly includes the effects of the application of IFRS 9. 
The composition of assets by currency and geographical area is shown in Appendices nos. 5 and 6 to these 
Notes. The ageing of receivables together with an analysis of how the Company manages credit risk is 
reported under Note 35. 
 
16. RECEIVABLES AND PAYABLES FOR INCOME TAXES 
At 31 December 2022 income tax receivables and payables amounted to €mil. 34 (€mil.64 at 31 December 
2021) and €mil. 64 (€mil. 29 at 31 December 2021) respectively. 
The increase in payables is mainly attributable to the calculation of IRES (corporate income tax) and IRAP 
(regional tax on production) taxes determined on the 2022 result. 
The changes during the year and the composition of assets and liabilities by currency and geographical area 
are shown in Appendices nos. 5, 6, 9 and 10 to these Notes.

Separate Financial Statements at 31 December 2022 
 
300 
 
17. OTHER CURRENT ASSETS 
 
31 December 2021 
31 December 2022 
Derivatives 
81
211 
Prepaid expenses - current portion 
57
63 
Receivables for grants 
56
59 
Receivables from employees and social security 
49
35 
Indirect tax receivables 
17
33 
Deferred receivables under Law no. 808/85 
4
2 
Other related parties receivables (Note 34) 
27
27 
Other assets 
84
58 
375
488 
 
This item showed an increase of €mil. 113 compared to 2021, mainly as a result of an increase in derivative 
assets for €mil. 130, mainly due to the fluctuations in the Euro/US Dollar exchange rates. 
The breakdown of current assets from related parties is commented on in Note 34 . 
The changes during the year and the composition of assets by currency and geographical area are shown in 
Appendices nos. 5 and 6 to these Notes. 
The table below provides the breakdown of derivative assets and liabilities. 
Fair value at 
31 December 2021 
31 December 2022 
Assets 
Liabilities 
Net 
Assets 
Liabilities 
Net 
Trading 
-
(1) 
(1)
-
(1)
(1) 
Cash flow hedge 
-
(13) 
(13)
30
-
30 
Trading 
5
(5) 
-
21
(21)
- 
Cash flow hedge 
76
(131) 
(55)
160
(245)
(85) 
 
The cash flow hedge is the forward instrument hedging trade items denominated in foreign currency.  
 
18. CASH AND CASH EQUIVALENTS 
The balance of “Cash and cash equivalents” at 31 December 2022, equal to €mil. 1,040 (€mil. 1,875 al 31 
December 2021), was mainly the result of net cash flows realised by the Company’s divisions during the year. 
Cash and cash equivalents at 31 December 2022 include €mil. 5 of term deposits (€mil. 2 at 31 December 
2021). 
19. ASSETS AND LIABILITIES HELD FOR SALE  
At 31 December 2021 the item included, for €mil. 237, the investment value in AgustaWestland Philadelphia 
Corporation, a 100% controlled company. As part of the project to reorganize the Leonardo Group’s presence 
in North America, in December 2022, the company was entirely sold to Leonardo US Holding LLC.

Separate Financial Statements at 31 December 2022 
 
301 
 
20. EQUITY 
31 December 2021 
31 December 2022 
Capital 
2,499
2,499 
Legal reserve 
318
327 
Extraordinary reserve 
392
392 
Reserve for actuarial gains/(losses) in equity 
(70)
(60) 
Cash flow hedge reserve 
(59)
(58) 
Stock grant reserve 
40
45 
Merger/demerger surplus reserve 
720
706 
Retained earnings and other reserves 
2,019
2,107 
Net profit/(loss) for the period 
177
1,701 
Equity 
6,036
7,659 
 
The composition of the share capital is as follows: 
Number of 
ordinary shares  
Par value 
 
Treasury 
shares value  
Costs incurred 
(net of tax 
effect) 
 
Total 
Outstanding shares 
578,150,395
2,544 
-
(19)
2,525 
Treasury shares 
(2,843,120)
- 
(26)
-
(26) 
31 December 2021 
575,307,275
2,544 
(26)
(19)
2,499 
Repurchase of treasury shares net of the 
portion  sold 
-
- 
-
-
- 
31 December 2022 
575,307,275
2,544 
(26)
(19)
2,499 
 
 
Broken down as follows: 
 
 
Outstanding shares 
578,150,395
2,544 
-
(19)
2,525 
Treasury shares 
(2,843,120)
- 
(26)
-
(26) 
 
The share capital, fully subscribed and paid-up, is divided into 578,150,395 ordinary shares with a par value 
of € 4.40 each, including no. 2,843,120 treasury shares. 
At 31 December 2022 the Ministry of Economy and Finance owned around 30.204% of the share capital. 
The equity broken down by available and distributable reserves is shown in Appendix no. 7 to these Notes. 
The cash flow hedge reserve includes changes in fair value of derivatives used by the Company to hedge its 
exposure to currency net of the effect of deferred taxes until the moment in which the “underlying position” 
is recognised in the income statement. When this condition is met, the reserve is recognised in the income 
statement to offset the economic effects of the hedged transaction. 
The revaluation reserve includes the effects of the valuation of actuarial gains and losses with reference to 
severance pay.

Separate Financial Statements at 31 December 2022 
 
302 
 
21. LOANS AND BORROWINGS 
31 December 2021 
31 December 2022 
 
Non current 
Current 
Total 
Non current 
Current 
Total 
Bonds 
1,589
619
2,208 
1,592
36
1,628 
Bank loans and 
borrowings 
1,599
49
1,648 
1,081
22
1,103 
Related parties loans 
and borrowings (Note 
34) 
472
2,112
2,584 
631
2,336
2,967 
Lease liabilities 
75
25
100 
62
19
81 
Other financial debts 
58
29
87 
59
26
85 
3,793
2,834
6,627 
3,425
2,439
5,864 
 
The item decreased by €mil. 763 mainly as a result of the change in bonds and in bank loans and borrowings. 
Related parties loans and borrowings increased by€mil. 383 and included at 31 December lease liabilities 
amounting to €mil. 580 (€mil. 437 at 31 December 2021). The breakdown is shown in Note 34. 
The main clauses that regulate the Company’s loans and borrowings are provided in the section on “Financial 
Transactions” of the Report on Operations. Below is the breakdown in loans and borrowings: 
 
1 January 2021 New borrowings 
Repayments/Pay
ment of 
coupons 
Other net 
increase 
(decrease) 
Exchange 
differences 
31 December 
2021 
Bonds 
2,969
-
(739) 
(22)
-
2,208
Bank loans and 
borrowings 
896
800
(46) 
(2)
-
1,648
Related-parties loans and 
borrowings 
2,417
-
- 
149
18
2,584
Lease liabilities 
104
-
- 
(4)
-
100
Other financial debts 
107
-
- 
(20)
-
87
6,493
800
(785) 
101
18
6,627
 
1 January 2022 New borrowings 
Repayments/Pay
ment of 
coupons 
Other net 
increase 
(decrease) 
Exchange 
differences 
31 December 
2022 
Bonds 
2,208
-
(556) 
(24)
-
1,628
Bank loans and 
borrowings 
1,648
-
(546) 
(1)
2
1,103
Related-parties loans and 
borrowings 
2,584
-
(152) 
562
(27)
2,967
Lease liabilities 
100
-
- 
(19)
-
81
Other financial debts 
87
-
- 
(2)
-
85
6,627
-
(1,254) 
516
(25)
5,864
 
 
Below is the reconciliation of the financial liabilities with the cash flows from financing activities in 2022:

Separate Financial Statements at 31 December 2022 
 
303 
 
31 December 2021 
 
31 December 2022 
Balance at 1 January 
6,493
6,627 
Changes included in cash flows from financing activities 
95
(762) 
- Bond issue (Repayments) 
(739)
(556) 
- Term loan and BEI Subscription 
800
(546) 
- Net change in other borrowings 
34
340 
Non-monetary movements: 
39
(1) 
- Non-monetary items of lease liabilities 
44
49 
- Exchange rate effects 
18
(25) 
- Accrued interest 
(23)
(25) 
 
Balance at 31 December 
6,627
5,864 
 
Bonds 
Below are the bonded loans in place and listed on the Luxembourg Stock Exchange:  
Year of issue 
Maturity 
Currency 
Outstanding nominal 
amount (mil.)(*) 
Annual coupon 
Type of offer 
2005 
2025 
€ 
500 
4.88% 
European institutional 
2017 
2024 
€ 
600 
1.50% 
European institutional 
2020 
2026 
€ 
500 
2.38% 
European institutional 
(*)Residual nominal amounts in case of issues subject to the buy-back transactions 
  
The item decreased on account of the repayment of the residual portion (€mil. 556) of the 2009 bonded loan 
of an original amount of €mil. 600 reaching its expiry date. 
The Company’s issues are governed by rules with standard legal clauses for these types of corporate 
transactions on institutional markets that do not require any undertaking with regard to compliance with 
specific financial parameters (financial covenants) but they do require negative pledge and cross-default 
clauses. Based on negative pledge clauses, the Company is expressly prohibited from pledging collateral 
security or other obligations to secure its debt in the form of bonds or listed financial instruments or financial 
instruments that qualify for listing, unless these guarantees are extended to all bondholders. Exceptions to 
this prohibition are securitisation and, as from July 2006, the establishment of assets for the use indicated in 
Article 2447-bis et seq. of the Italian Civil Code. On the contrary, the cross-default clauses give the 
bondholders the right to request early redemption of the bonds in their possession in the event of default by 
the Company that results in a failure to make payment beyond pre-set limits. 
Bank loans and borrowings 
The item decreased by €mil. 545 as a result of the early repayment of the €mil. 500 Term-Loan subscribed in 
2018 and expiring in November 2023. 
The item includes loan agreements entered into with the European Investment Bank (EIB) amounting to:  
− €mil. 200 subscribed in December 2020 and used in January 2021, maturity date 2033; 
− €mil. 300 subscribed in 2018, maturity date 2031. 
Both loans have been raised to finance investment projects provided for in the Group’s Industrial Plan. 
The item also includes the ESG-linked Term Loan facility raised and used in December 2021 equal to €mil. 
600, with a duration of 5 years and maturity date the beginning of 2027.

Separate Financial Statements at 31 December 2022 
 
304 
 
Related parties loans and borrowings 
Payables to related parties amounting to €mil. 2,967 increased by €mil. 383 compared to 31 December 2021. 
The item includes among others the loan agreement of €mil. 100 entered into in 2020 with Cassa Depositi e 
Prestiti (CDP) aimed at co-financing some investment projects provided for in the Industrial Plan and lease 
liabilities for €mil. 580 (€mil. 437 at 31 December 2021). 
For a more detailed breakdown of related parties loans and borrowings, reference is made to Note 34 . 
Other financial debts 
The item includes the residual balance of subsidised loans, related to programmes and projects of the 
companies and business units merged. 
Exposure to changes in interest rates of the financial liabilities is as follows: 
Bonds 
Bank loans and 
borrowings 
Related parties 
loans and 
borrowings (Note 
34) 
Lease liabilities 
Other financial 
debts 
Total 
31 December 
2021 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating fixed 
Within 1 year 
-
619
22 
27
1,993 
119
-
25
29
- 
2,044
790 
2 to 5 years 
-
1,589
631 
38
100 
217
-
48
58
- 
789
1,892 
Beyond 5 years 
-
-
768 
162
53 
102
-
27
-
- 
821
291 
Total 
-
2,208
1,421 
227
2,146 
438
-
100
87
- 
3,654
2,973 
 
Bonds 
Bank loans and 
borrowings 
Related parties 
loans and 
borrowings (Note 
34) 
Lease liabilities 
Other financial 
debts 
Total 
31 December 
2022 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating 
fixed 
floating fixed 
Within 1 year 
-
36
22 
-
2,286 
108
-
19
26
- 
2,334
163 
2 to 5 years 
-
1,592
749 
62
100 
362
-
36
59
- 
908
2,052 
Beyond 5 years 
-
-
131 
139
- 
111
-
26
-
- 
131
276 
Total 
-
1,628
902 
201
2,386 
581
-
81
85
- 
3,373
2,491 
 
Lease liabilities 
The item lease liabilities at 31 December 2022 amounted to €mil. 661 (€mil. 537 at 31 December 2021)  of 
which €mil. 81 (€mil. 100 at 31 December 2021) to third parties and €mil. 580 (€mil. 437 at 31 December 
2021) to related parties. 
******** 
Below is the financial information prepared in accordance with the scheme required under CONSOB 
communication DEM/6064293 of 28 July 2006 and updated in accordance with the ESMA guidelines 32-382-
1138 of 4 March 2021 as implemented in the CONSOB warning notice no. 5/21 of 29 April 2021.

Separate Financial Statements at 31 December 2022 
 
305 
 
31 December 2021 
 
31 December 2022 
A - Cash 
(1,875)  
(1,040) 
C - Other current financial assets 
-  
- 
D - Liquidity 
(1,875) 
(1,040) 
E - Current financial debt (*) 
2,138 
2,077 
F - Current portion of non-current financial debt 
619 
36 
G - Current financial debt 
2,757 
2,113 
H - Net current financial debt (funds) 
882 
1,073 
I - Non-current financial debt (*) 
3,793 
3,425 
J - Debt instruments (**) 
(8) 
19 
K - Trade payables and other non-current liabilities 
165 
170 
L - Non-current financial debt 
3,950 
3,614 
 
 
M - Total financial debt 
4,832 
4,687 
(*) Includes leasing payables for € mil. 661, of which € mil. 126 current (€ mil. 537 at 31 December 2021, of which € mil. 144 current) 
(**) Includes the fair value of foreign exchange derivatives hedging debt items 
 
 The reconciliation between Net Financial Debt and Group Net Debt, used as KPI, is as follows:  
 
Note 
31 December 2021 
31 December 2022 
Net financial debt com. CONSOB no. DEM/6064293 
 
4,832 
4,687 
Non-current payables to MED (Law 808/1985) 
24 
(165) 
(170) 
Non current financial receivables from Group's  consolidated entities 
 
(430) 
(75) 
Net debt (KPI) 
 
4,237 
4,442

Separate Financial Statements at 31 December 2022 
 
306 
 
22. PROVISIONS FOR RISKS AND CHARGES AND CONTINGENT LIABILITIES 
Guarantees 
given 
Restructuring 
Penalties 
Product 
guarantees 
Contracts 
(final losses) 
Other 
provisions 
Total 
1 January 2021 
Current 
35
53
10 
113
294
440
945 
Non current 
-
28
4 
68
-
319
419 
35
81
14 
181
294
759
1,364 
 
 
Allocations 
1
66
3 
59
45
152
326 
Uses 
-
(38)
(7) 
(10)
-
(64)
(119) 
Reversals 
-
-
- 
(33)
(112)
(80)
(225) 
Other changes 
(1)
1
4 
25
15
(42)
2 
31 December 2021 
35
110
14 
222
242
725
1,348 
Broken down as follows: 
Current 
35
48
8 
138
242
379
850 
Non current 
-
62
6 
84
-
346
498 
35
110
14 
222
242
725
1,348 
Allocations 
2
97
1 
81
67
303
551 
Uses 
(1)
(32)
- 
(14)
-
(14)
(61) 
Reversals 
(14)
-
(4) 
(48)
(126)
(174)
(366) 
Other changes 
(1)
(7)
- 
-
76
(76)
(8) 
31 December 2022 
21
168
11 
241
259
764
1,464 
Broken down as follows: 
Current 
21
39
7 
161
259
299
786 
Non current 
-
129
4 
80
-
465
678 
21
168
11 
241
259
764
1,464 
 
The amount of the provision for risks showed an increase of €mil. 116 compared to the previous year.  
The provision for “restructuring” showed an increase of €mil. 58 and includes the effects of the early 
retirement schemes under Article 4 of Law 92/2012 (Fornero Act), provided for in the agreement signed with 
the national trade unions in January 2023 (see Note 5) and in 2021.  
“Other provisions for risks and charges” mainly include: 
• 
the provision for tax disputes of €mil. 61 (€mil. 54 at 31 December 2021), of which new accruals to 
provisions for €mil. 13; 
• 
the provision for litigation with employees and former employees of €mil. 18 (€mil. 24 at 31 
December 2021) of which new accruals to provisions for €mil. 5; 
• 
the provision for critical issues on contracts equal to €mil. 380 (€mil. 292 at 31 December 2021), of 
which new accruals to provisions for €mil. 234, attributable in particular to the Aircraft division. 
 
With regard to risks, below is a summary of the criminal proceedings that are currently underway against 
Leonardo Spa, as well as certain former directors and executives, concerning acts committed during the 
performance of their duties at the Company. With specific reference to the events that occurred in 2022 and 
in early 2023: 
 
• 
On 22 May 2019 the Supreme Court rejected the appeals submitted against the judgment whereby 
on 8 January 2018 the Milan Court of Appeal had acquitted the former Chairman and Chief Executive 
Officer of Leonardo and the former Chief Executive Officer of AgustaWestland SpA of the charges for 
the crimes under Articles 110, 112, paragraph 1, 318, 321 and 322-bis, paragraph 2(2) of the Italian

Separate Financial Statements at 31 December 2022 
 
307 
 
Criminal Code and Article 2 of Legislative Decree 74/2000, within the proceedings brought in relation 
to the supply of twelve AW 101 VIP/VVIP helicopters to the Indian Government. 
In respect of these companies, it is recalled that on 25 July 2014, pursuant to Article 58 of Legislative 
Decree 231/2001, the Public Prosecutor dismissed the proceedings against Leonardo, holding 
groundless, following the conclusion of investigations, the Company’s involvement from both a 
factual and legal point of view. The Prosecutor also acknowledged that since 2003 the Company has 
adopted, actually implemented and regularly updated an Organisational, Management and Control 
Model that is conceptually suitable to prevent offences like the one in question and is also focused 
on compliance processes as to guarantee adequate standards of fairness and ethical conduct. In 
addition, on 28 August 2014 the Judge for Preliminary Investigations (GIP, Giudice delle Indagini 
Preliminari) of the Court of Busto Arsizio – in granting the motions put forth by the companies – 
imposed administrative penalties pursuant to Article 63 of Legislative Decree 231/2001 and Article 
444 and ff. of the Italian Code of Criminal Procedure, amounting to €80,000 for AgustaWestland SpA 
and €300,000 for AgustaWestland Ltd, and ordered the confiscation of the equivalent of €mil. 7.5. In 
this regard, on 20 April 2021 the Court of Appeal of Brescia, following the requests by 
AgustaWestland SpA and AgustaWestland Ltd for the review of the abovementioned rulings, revoked 
the rulings challenged and acquitted the aforesaid companies. Since times for a possible appeal to 
the Supreme Court expired, the ruling became definitive.  
As regards the investigations started by the Indian Judicial Authority (CBI) in February 2013 for the 
same facts referred to above, on 2 February 2018 a notice was served on AgustaWestland 
International Ltd., whereby the latter was invited to appear at the hearing to be held on 30 May 2018 
before the Patiala House Court in New Delhi within the criminal proceedings brought therein against 
the aforesaid company and other entities and persons, including Leonardo Spa. 
On 13 April 2018 the Milan Public Prosecutor’s Office served the abovementioned notice of invitation 
to appear at the hearing on 30 May 2018 on Leonardo Spa. The Company submitted an application 
for enforcement review before the Judge for Preliminary Investigations (GIP) of the Court of Milan, 
which was rejected on 22 May 2018, as well as an appeal before the Lazio Regional Administrative 
Court. The Company also took the same legal actions with respect to the service of the notice of 
invitation to appear in court at the hearing on 10 September 2018. By a judgment dated 3 July 2019, 
the Lazio Regional Administrative Court rejected the appeals submitted by Leonardo Spa; the 
Company then filed an appeal against the abovementioned measures. By a judgment dated 7 May 
2020 the Council of State granted the appeals submitted by Leonardo.  
Leonardo Spa has brought the same lawsuits before the administrative Court and before the Judge 
for Preliminary Investigations of the Court of Milan, including with reference to the services of notice 
of invitation to appear at the hearings set on 18 September 2019 and 18 December 2019. The Lazio 
Regional Administrative Court, by judgment dated 24 September 2021, rejected the appeals 
submitted by Leonardo; the Company filed an appeal with the Council of State, which,  by judgment 
handed down at a plenary meeting on 6 December 2022, granted the appeal filed by Leonardo, 
annulling the orders issued by the Ministry of Justice. 
With regard to objecting to the execution of a judicial measure, the Judge of Preliminary 
Investigations of the Court of Milan granted the claims submitted by Leonardo by an order filed on 
22 March 2022 while revoking the decrees whereby the notifications had been ordered by the Milan 
Public Prosecutor's Office. 
On the contrary AgustaWestland International Ltd appeared at the hearings set within the 
proceedings brought by the Central Bureau of Investigation and the proceedings are continuing 
before the Patiala House Court of New Delhi. 
On 28 August 2019 the Public Prosecutor’s Office of Milan served on Leonardo Spa a notice of 
invitation to appear at the hearing of 18 September 2019 within further proceedings brought by the

Separate Financial Statements at 31 December 2022 
 
308 
 
Indian Judicial Authority (Directorate of Enforcement) in relation to the supply of 12 AW 101 VIP/VVIP 
helicopters to the Indian Government. The Company submitted an application for enforcement 
review before the Judge for Preliminary Investigations of the Court of Milan, as well as an appeal 
with the Lazio Regional Administrative Court, even in relation to this notice. The Lazio Regional 
Administrative Court, by the same judgment of 24 September 2021, rejected the appeal submitted 
by Leonardo which filed an appeal with the Council of State. The latter granted the appeal submitted 
by Leonardo by a judgment handed down at a Plenary Meeting on 6 December 2022. With regard to 
objecting to the execution of a judicial measure, the Judge of Preliminary Investigations of the Court 
of Milan revoked, in the same order of 22 March 2022, the decree whereby the notification had been 
ordered by the Milan Public Prosecutor's Office. 
Finally, it should be noted that on 11 February 2020 a notice was served on AgustaWestland 
International Ltd whereby it was invited to appear in court within the proceedings brought by the 
Indian Judicial Authority (Directorate of Enforcement). The proceedings initiated by the Indian 
Authorities (CBI and Directorate of Enforcement) are currently pending in a preliminary phase before 
the Rouse Avenue Court in New Delhi; 
• 
By appeal to the Supreme Court served on 12 January 2022, the attorney general challenged the 
judgment whereby on 19 January 2021 the Court of Appeals of Milan rejected the appeals submitted 
against the judgment whereby on 15 June 2017 the Court of Milan acquitted certain directors of the 
then-Breda Termomeccanica SpA, subsequently Ansaldo SpA, who served during the period from 
1973 to 1985, charged with having committed the crimes under Article 589, paragraphs 1, 2 and 3, 
Article 40, paragraph 2, Article 41, paragraph 1 of the Italian Criminal Code, Article 2087 of the Italian 
Civil Code and Article 590, paragraphs 1, 2, 3, 4 and 5, of the Italian Criminal Code, for violation of 
the rules governing the prevention of occupational diseases. Leonardo had entered appearance in 
the civil action within the abovementioned proceedings. On 8 November 2022 the Supreme Court 
declared that the appeal was inadmissible; 
• 
With reference to the criminal proceedings pending before the Court of Vercelli against three former 
employees of AgustaWestland SpA (who are currently working for Leonardo – Helicopters Division) 
and an employee of AgustaWestland Philadelphia Corporation for the crime referred to in Article 449 
of the Italian Criminal Code in relation to Articles 428 and 589 of the Italian Criminal Code, relating 
to the accident that occurred in Santhià on 30 October 2015, the Court acquitted the defendants by 
judgment published on 14 February 2023, because the fact does not exist, setting a time limit of 90 
days for the filing of the grounds for the decision. 
 
Based upon the information gathered and the results of the analysis carried out so far, the Directors of 
Leonardo did not allocate any specific provisions in relation to these cases. Any negative developments - 
which cannot be foreseen, nor determined to date - arising from any internal investigations or judicial 
investigations being conducted, will be subject to consistent assessment for the purposes of provisions (if 
any).  
* * * * * * * * 
With regard to the provisions for civil, tax and administrative disputes, it is underlined that the Company’s 
operations regard industries and markets where many disputes, both as petitioner and plaintiff, are settled 
only after a considerable period of time, especially in cases where the customer is a government entity. 
Pursuant to the IFRSs, provisions have only been set aside for risks that are deemed probable and for which 
the amount can be determined. No specific provisions have been set aside for certain disputes in which the 
Company is defendant as these disputes are reasonably expected to be settled, based on current knowledge, 
satisfactorily and without significantly impacting the Company. Of particular note are the following disputes:

Separate Financial Statements at 31 December 2022 
 
309 
 
• 
the proceedings brought by Firema under extraordinary management before the Court of Naples 
against the directors and statutory and independent auditors of Firema Trasporti (General Register 
32257/13) in order to have them declared responsible for the financial collapse caused to the 
company, within which Leonardo and AnsaldoBreda have been summoned as parties concerned by 
the former directors Giorgio and Gianfranco Fiore.  
As to the action brought by GMR against Leonardo and AnsaldoBreda due to an abuse of economic 
dependence before the Court of Naples (General Register 16312/15), at the hearing held on 1 
October 2020 the President of the Division first pointed out some issues connecting the two 
proceedings and then referred the present case before the judge of the proceedings under General 
Register 32257/13 in order for the proceedings to be possibly joined. 
In both proceedings Leonardo and AnsaldoBreda appeared before the court requesting that, on the 
merits, the claims submitted against them be dismissed as clearly groundless as of fact and as of 
right. 
At the hearing held on 4 October 2022 the Court: (i) with regard to proceedings under General 
Register no. 32257/13, took note of the death of Mr Gianfranco Fiore and declared the 
discontinuance of the trial; (ii) with regard to proceedings under General Register no. 16312/15, 
merely adjourned the case to the hearing on 8 November 2022, which was then postponed several 
times until 23 May 2023, for re-joining with the first proceedings, which had been resumed in the 
meantime; 
• 
The proceedings brought by Mr Pio Deiana (to have a deed of settlement entered into with former 
Ansaldo Industria declared null and void) before the Rome Court of Appeal – which had been 
discontinued following the latter's death and then resumed by his sister. During the course of the 
proceedings, the existence of another heir of the deceased person was noted; accordingly, at the last 
hearing on 26 October 2022, the Court declared the latter's non-appearance and set a hearing for 
the specification of conclusions on 18 December 2024. 
 
* * * * * * * * 
 
Moreover, given their complexity, their cutting-edge technological content and the nature of the 
customers, the Company’s long-term contracts are sometimes affected by disputes with customers in 
relation to the compliance of works with customer specifications and product performances. The 
Company adjusts the estimated contract costs for foreseeable issues, also taking into account the 
possible developments in the relevant disputes. With regard to contracts in progress affected by 
uncertainties and issues under discussion with customers we point out that: 
• 
by a request for arbitration filed on 25 October 2019, Leonardo S.p.a. and PSC S.p.A. (collectively 
referred to as “LP” unincorporated joint venture) initiated arbitration proceedings against Galfar 
Misnad Engineering & Contracting W.L.L., Salini-Impregilo S.p.A. (now Webuild) and Cimolai S.p.A. 
(collectively referred to as “GSIC” unincorporated joint venture) to seek an order imposing them to 
pay, among others, the fees that were still unpaid and any additional costs relating to the subcontract 
that had been entered into between the parties on 22 September 2016, whereby GSIC appointed LP 
to provide supplies and carry out certain manufacturing operations. These electrical, mechanical and 
plumbing plant engineering works are included in the general contract, awarded to GSIC, for the 
design and construction of the Al Bayt Stadium in Al Khor City (Qatar). The regular progress of the 
subcontracted works was strongly affected by a number of delays not attributable to LP, as well as 
by numerous additions and variations to the works that had been initially agreed and the 
shortcomings of the technical documentation prepared by GSIC. On the other hand, the latter 
submitted allegations to the contrary, while also charging LP with having caused damage to its 
organisation.

Separate Financial Statements at 31 December 2022 
 
310 
 
In this context, on a preliminary basis LP asked the court to order GSIC to pay the remaining 
instalments of the fees initially envisaged in the subcontract, as well as any and all additional costs 
incurred for a total of about QAR mil. 1,500 (about €mil. 388 at 17 February 2023). On the other hand, 
GSIC contested any charges and asked the court, on a counterclaim basis, to order LP to compensate 
for any damage the latter had allegedly caused, for a total of QAR mil. 721 (about €mil. 186 at 17 
February 2023). 
From a procedural point of view, the phase for the exhibition of documents between the parties was 
completed in December 2021 following an initial exchange of briefs and statements (including the 
Memorial of claim submitted by LP in November 2020 and the subsequent Memorial of defence and 
counterclaim submitted by GSIC in July 2021). In addition to the hearing held in Doha from 4 to 15 
July 2022, the Arbitral Tribunal revised the trial schedule, expecting to issue the final award by July 
2023. 
 
23. EMPLOYEE BENEFIT OBLIGATIONS 
31 December 2021 
31 December 2022 
Severance pay provision 
239
208 
Defined contribution plans 
31
38 
270
246 
 
The severance pay provision showed a reduction essentially due to early retirements under art. 4 of Law 
92/2012 (Fornero Act).  
The amount of the costs related to employee benefit obligations, which was recognised during the year under 
financial expense, is equal to €mil. 2 (€mil.1 at 31 December 2021). 
Below are the changes in the severance pay: 
31 December 2021 
31 December 2022 
Opening balance 
250
239 
Net interest expense 
1
2 
Remeasurement 
8
(10) 
Actuarial losses (gains) through equity - financial assumptions 
8 
(10) 
Benefits paid 
(19)
(27) 
Other changes 
(1)
4 
Closing balance 
239
208 
 
It should be noted that the portion of cost for the year relating to amounts transferred to pension funds or 
to a treasury fund managed by INPS is recognised according to the rules for defined-contribution plans, 
without any actuarial assessment.  
The main actuarial assumptions used in the valuation of defined-benefit plans and of the portion of the 
severance pay that has maintained the nature of defined-benefit plan are as follows: 
31 December 2021 
31 December 2022 
Discount rate (annual) 
0.7%
3.7% 
Inflation rate 
1.4%
2.2% 
 
The sensitivity analysis for each significant actuarial assumption, which shows the effects on bonds in 
absolute value, is as follows:

Separate Financial Statements at 31 December 2022 
 
311 
 
31 December 2021 
31 December 2022 
-0.25% 
+0.25% 
-0.25% 
+0.25% 
Discount rate (annual) 
3 
(3)
2 
(2) 
Inflation rate 
(2) 
2
(2) 
2 
 
The average duration of the severance pay is five years. 
 
24. OTHER NON-CURRENT AND CURRENT LIABILITIES 
31 December 2021 
31 December 2022 
Non current 
 
Current 
 Non current 
 
Current 
Employee obligations (*) 
49 
 
359
41
 
367
Deferred income 
151 
 
65
122
 
124
Amounts due to social security institutions 
1 
 
195
-
 
195
Payables to MED (Law no. 808/85) 
165 
 
-
170
 
-
Payables to MED for monopoly costs (Law no. 
808/85) 
220 
 
16
185
 
45
Indirect tax liabilities 
- 
 
63
-
 
88
Derivatives 
- 
 
150
-
 
267
Other liabilities 
79 
 
262
58
 
246
Other payables to related parties (Note 34) 
144 
 
36
157
 
81
809 
 
1,146
733
 
1,413
 
 
 
 
 
 
(*) Non-current item includes other employee benefits related to seniority bonuses 
 
The item increased by €mil. 191 compared to 2021 mainly due to the increase in derivative liabilities for €mil. 
117, essentially determined by the fluctuation of the Euro/US Dollar exchange rate and by the increase in  
deferred income for €mil. 30. 
“Deferred income” specifically includes subsequent years rentals already collected in past years in relation 
to the agreements for the sale of “Ansaldo” trademark, royalties and grants collected.  
The payables to the Ministry for Economic Development (MED) under Law 808/1985 relate to monopoly 
costs accrued on national security and similar projects, as well as payables for grants received from MED for 
the development of programmes not related to national security and similar projects eligible for benefits 
under Law 808/1985.  
The breakdown of other payables to related parties is described in Note 34 . 
“Other payables” mainly refer to contractual agreement and penalties for €mil. 116, commissions and 
royalties for €mil. 39. 
The changes recorded during the year and the composition of liabilities by maturity, currency and 
geographical area are shown in Appendices nos. 8, 9 and 10 to these Notes.

Separate Financial Statements at 31 December 2022 
 
312 
 
25. TRADE PAYABLES 
31 December 2021 
31 December 2022 
Suppliers 
1,980
1,808 
Trade payables to related parties (Note 34) 
760
667 
2,740
2,475 
 
26. GUARANTEES AND OTHER COMMITMENTS 
At 31 December 2022 the Company had in place the following guarantees:  
31 December 2021 
 
31 December 2022 
Guarantees in favour of related parties (Note 34) 
4,011
3,782 
Guarantees in favour of third parties 
7,805
8,101 
Guarantees given to third parties 
1,954
1,732 
Unsecured guarantees given 
13,770
13,615 
     
Specifically, the main guarantees issued consist of: 
• 
bank and insurance sureties in favour of third-party companies for an amount of €mil. 8,101 (€mil. 
7,805 at 31 December 2021); 
• 
bank and insurance counter-guarantees issued in the interest of related parties for €mil. 1,200 (€mil. 
951 at 31 December 2021); 
• 
direct commitments issued by the Company in favour of tax authorities, customers and co-suppliers 
(Parent Company Guarantee) for €mil. 1,730 (€mil. 1,952 at 31 December 2021), in favour of related 
parties for €mil. 2,582 (€mil. 3,060 at 31 December 2021) and in favour of other companies for €mil. 
2 (€mil. 2 at 31 December 2021).  
In addition to the above commitments, the Company issued non-binding letters of patronage on behalf of 
subsidiaries and certain associates in support for their commercial activities. 
 
27. REVENUES 
2021 
2022 
Revenue from contracts with customers 
6,808
6,640 
Change in contract assets 
308
291 
Revenue and change in contract assets from related parties (Note 34) 
2,216
2,625 
Total revenues 
9,332
9,556 
 
The performance in terms of revenues by business sector at Group level is commented on in the Report on 
Operations.  
Below is the breakdown of revenue by timing of reporting: 
2021 
2022 
Revenues recognized at point in time 
1,658
1,429 
Revenues recognized over time 
7,674
8,127 
Total 
9,332
9,556 
 
Revenues were realised in the following geographical areas:

Separate Financial Statements at 31 December 2022 
 
313 
 
2021 
2022 
Italy 
2,298
2,060 
United Kingdom 
286
389 
Rest of Europe 
2,559
2,619 
United states of America 
920
1,159 
Rest of the world 
3,269
3,329 
9,332
9,556 
 
28. OTHER OPERATING INCOME (EXPENSES) 
2021 
2022 
Income 
Expenses 
Net 
Income 
Expenses 
Net 
Grants for research and development costs (*) 
26 
-
26  
26
-
26 
Other operating grants 
10 
-
10  
4
-
4 
Gains/losses on sales of intangible asset, property, 
plant and equipment 
- 
-
-  
2
-
2 
Reversals/accruals to provisions for risks 
216 
(242)
(26)  
360
(439)
(79) 
Exchange rate difference on operating items 
117 
(134)
(17)  
155
(163)
(8) 
Insurance reimbursements 
8 
-
8  
3
-
3 
Indirect taxes 
- 
(9)
(9)  
-
(9)
(9) 
Other operating income (expenses) 
14 
(47)
(33)  
69
(43)
26 
Other operating income (expenses) from related 
parties (Note 34) 
8 
-
8  
10
-
10 
399 
(432)
(33)
629
(654)
(25) 
 
(*) To which must be added “Non-recurring costs pending under Law 808/1985”” (Note 12) equal to €mil. 15 (no increase at 31 December 2021) 
and “Non-current and current receivables for measures pending under Law 808/1985” (Note 12 and Note 17 respectively) equal to €mil. 5 (€mil. 
50 at 31 December 2021). 
 
Other income, net of operating expenses, at 31 December 2022 remained substantially unchanged compared 
to the previous year, showing an increase of €mil. 8. The main changes involved the use of and accruals to 
provisions for risks. In particular: 
- 
the product warranty provision for an accrual of €mil. 81 and uses of €mil. 48; 
- 
the provision for onerous contracts (final losses) for an accrual of €mil. 67 and uses of €mil. 126; 
- 
the provision for critical issues on contracts for an accrual of €mil. 234 and uses of €mil. 70.

Separate Financial Statements at 31 December 2022 
 
314 
 
29. PURCHASE AND PERSONNEL EXPENSES 
2021 
2022 
 
 
Purchase of materials from third parties 
2,362
2,365 
Change in inventories of raw materials 
127
(77) 
Costs for purchases from related parties (Note 34) 
1,166
1,340 
Purchases 
3,655
3,628 
 
 
Services rendered by third parties 
2,214
2,110 
Costs of  leases 
54
59 
Royalties 
22
24 
Services rendered by related parties (Note 34) 
630
822 
Services 
2,920
3,015 
 
Wages and salaries 
1,520
1,583 
Social security contributions 
434
457 
Costs related to defined-contribution plans 
104
116 
Employee disputes 
-
(4) 
Restructuring costs - net 
80
108 
Other personnel expenses net of cost recovery 
15
9 
Personnel expenses 
2,153
2,269 
 
Change in finished goods, work in progress and semi-finished products 
112
(62) 
Internal work capitalised 
(235)
(176) 
 
Total purchases and personnel expenses 
8,605
8,674 
 
The average workforce at 31 December 2022 was equal to 29,792 units, showing an increase 794 units 
compared to 2021.  
The figure of total workforce at 31 December 2022, equal to 30,457 units, showed an increase of 718 units 
compared to 2021. 
The figure related to the average workforce is affected by the presence of part-time employees and 
personnel that took extended leave. 
The increase in headcount was mainly attributable to the personnel (average workforce of 543 at 31 
December 2022) of the former Vitrociset Spa, merged by incorporation into Leonardo Spa (see Note 5). 
The increase in labour cost was also affected by both the aforementioned merger and the increase in 
restructuring costs. 
Below is the breakdown of workforce by category: 
Average Workforce 
Total Workforce 
 
31 December 
2021 
31 December 
2022 
Change 
31 December 
2021 
31 December 
2022 
Change 
Senior managers (*) 
817
834
17 
832
875
43 
Middle managers 
3,352
3,493
141 
3,470
3,642
172 
Clerical employees 
17,090
17,907
817 
17,718
18,573
855 
Manual labourers (**) 
7,739
7,558
(181) 
7,719
7,367
(352) 
Total 
28,998
29,792
794 
29,739
30,457
718 
(*) Includes pilots 
(**) Includes senior manual labours

Separate Financial Statements at 31 December 2022 
 
315 
 
30. AMORTISATION, DEPRECIATION AND FINANCIAL ASSETS VALUE ADJUSTMENTS 
2021 
2022 
Amortisation of intangible assets 
 
112
 
144 
Development costs 
24 
30 
 
Non-recurring costs 
43 
63 
 
Acquired through business combinations 
2 
2 
 
Concessions, licenses and trademarks 
22 
24 
 
Other intangible assets 
21 
25 
 
Depreciation of property, plant and equipment and 
investment properties 
 
117
131 
Depreciation of right of use 
 
121
123 
Impairment of other assets 
 
41
23 
Financial assets value adjustments 
 
(3)
 
82 
Contract assets and liabilities 
(9) 
(3) 
 
Operating receivables 
8 
16 
 
Other financial assets 
(2) 
69 
 
 
388
 
503 
 
Amortisation, depreciation and financial assets value adjustments showed an increase of €mil. 115 compared 
to 2021. Financial assets value adjustments refer to evaluations periodically carried out in order to assess the 
recoverability of the financial assets recognised in the separate financial statements, in compliance with the 
provisions of IFRS 9 on impairment. 
31. FINANCIAL INCOME AND EXPENSE 
2021 
 
2022 
Income 
Expenses 
Net 
 
Income 
Expenses 
Net 
Interest to/from banks 
- 
(14)
(14)  
2
(19)
(17) 
Interest on lease liabilities 
- 
(3)
(3)  
-
(2)
(2) 
Interest and other charges on bonds 
- 
(79)
(79)  
-
(50)
(50) 
Commissions 
- 
(16)
(16)  
-
(10)
(10) 
Dividends 
121 
-
121  
269
-
269 
Premiums (paid) received on IRS 
- 
(4)
(4)  
-
(4)
(4) 
Premiums (paid) received on forwards 
38 
(33)
5  
35
(56)
(21) 
Income and charges from equity investments and 
securities 
13 
-
13  
-
-
- 
Value adjustments on equity investments 
- 
(97)
(97)  
1,330
(44)
1,286 
Fair value gains (losses) through profit or loss 
21 
(25)
(4)  
25
(5)
20 
Exchange rate differences 
40 
(39)
1  
38
(44)
(6) 
Financial income (expense) - related parties (Note 34) 
15 
(17)
(2)  
15
(31)
(16) 
Other financial income and expense 
15 
(29)
(14)  
19
(52)
(33) 
263 
(356)
(93)  
1,733
(317)
1,416 
  
The improvement in net financial income and expense was equal to €mil. 1,509 compared to 2021 and is 
mainly due to the value adjustment of investments that includes the write-back for €mil. 1,290 of Leonardo 
US Holding (see Note 5). 
Dividends, equal to €mil. 269, increased by €mil.148 compared to 31 December 2021 (€mil. 121). 
Fair value results through profit or loss are as follows:

Separate Financial Statements at 31 December 2022 
 
316 
 
2021 
 
2022 
Income 
Expenses 
Net 
 
Income 
Expenses 
Net 
Ineffective portion of hedging swap 
21 
(25)
(4)  
24
(5)
19 
Gains (charges) on FVTPL 
- 
-
-  
1
-
1 
  
32. INCOME TAXES 
Income taxes can be broken down as follows: 
2021 
2022 
IRES (corporate income tax) 
-
(52) 
IRAP (reg. tax on production) 
(13)
(32) 
Benefit under consolidated tax mechanism 
7
- 
Tax related to previous periods 
-
(13) 
Provisions for tax disputes 
1
(12) 
Deferred tax - net 
(11)
41 
Other taxes 
(20)
(1) 
Total income taxes 
(36)
(69) 
 
Below is an analysis of the composition of the theoretical and effective tax rates for 2022 and 2021: 
2021 
2022 
Profit (loss) before income taxes 
214
1,769 
 
Tax rate 
16.8%
3.9% 
Theoretical tax 
(51)
(425) 
Permanent differences 
(1)
(1) 
Timing differences 
(4)
- 
Unrecognised  tax consolidation  benefit 
(4)
- 
Dividends 
28
61 
Reversal (Impairment) of equity investments 
(6)
317 
IRAP tax 
(13)
(32) 
Net deferred tax assets 
(7)
13 
Registration of deferred tax assets on tax losses 
-
5 
Tax provision 
1
(12) 
Other taxes 
21
5 
Total tax through profit or loss 
(36)
(69) 
Theoretical tax 
24.0%
24.0% 
Permanent differences 
(0.5%)
(0.1%) 
Timing differences 
(1.9%)
n.a. 
Unrecognised  tax consolidation  benefit 
(1.9%)
n.a. 
Dividends 
13.1%
3.4% 
Reversal (Impairment) of equity investments 
(2.8%)
17.9% 
IRAP tax 
(6.1%)
(1.8%) 
Net deferred tax assets 
(3.3%)
0.7% 
Registration of deferred tax assets on tax losses 
n.a.
0.3% 
Tax provision 
0.5%
(0.7%) 
Other taxes 
9.8%
0.3% 
Total tax 
(16.8%)
(3.9%) 
 
The effective tax rate went from (16.8%) in 2021 to 3.9% in 2022.

Separate Financial Statements at 31 December 2022 
 
317 
 
It should be noted that a portion of deferred tax assets related to tax losses. In this regard, during the year 
they were written off with a reversal through profit or loss for €mil. 64 and new deferred tax assets of €mil. 
5 were recognised on losses valued on the basis of the taxable income envisaged by the business plans. At 
the end of the year, there were no losses which had not been measured for the Company. 
Deferred taxes and related receivables and payables at 31 December 2022 were the result of the following 
differences: 
2021 
2022 
Deferred tax assets on tax losses 
3
(59) 
Property, plant and equipment and intangible assets 
28
(7) 
Provision for risks and impairment 
(16)
58 
Other 
(26)
49 
Deferred taxes recognised through profit or loss 
(11)
41 
 
31 December 2021 
31 December 2022 
Financial statement 
 
Financial statement 
Assets 
Liabilities 
Net 
 
Assets 
Liabilities 
Net 
Deferred tax assets on tax losses 
64
- 
64
5 
-
5 
Property, plant and equipment and 
intangible assets 
21
(19) 
2
22 
(26)
(4) 
Provision for risks and impairment 
527
- 
527
588 
-
588 
Other 
144
(56) 
88
177 
(38)
139 
Deferred taxes recognised through balance 
sheet 
756
(75) 
681
792 
(64)
728 
Cash-flow hedge derivatives 
20
(1) 
19
38 
(19)
19 
On actuarial gains and losses 
11
(4) 
7
11 
(4)
7 
Deferred taxes recognised through equity 
31
(5) 
26
49 
(23)
26 
787
(80) 
707
841 
(87)
754 
  
33. CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES 
2021 
2022 
Net result 
177
1,701 
Amortisation, depreciation and financial assets value adjustments 
388
503 
Income taxes 
36
69 
Net allocations to the provisions for risks and inventory write-downs 
163
278 
Net financial expense /(income) 
91
(1,416) 
Other non-monetary items 
67
(1) 
922
1,134 
 
The changes in working capital are as follows: 
2021 
2022 
Inventories 
559
232 
Contract assets and liabilities 
(507)
206 
Trade receivables and payables 
(432)
(488) 
(380)
(50) 
 
The changes in other operating assets and liabilities are as follows:

Separate Financial Statements at 31 December 2022 
 
318 
 
2021 
2022 
Payment of pension plans 
(20)
(27) 
Changes in provisions for risks and other operating items 
55
(74) 
35
(101) 
 
Changes in other investing activities include dividends received and the effects of acquisitions and sales of 
equity investments. Below is a breakdown: 
2021 
2022 
Strategic transactions 
(3) 
(616) 
Dividends received 
63 
161 
Changes in other investment and divestment activities 
(447) 
(158) 
(387) 
(613) 
  
The outlay of €mil. 616 related to transactions on equity investments that for their nature qualify as “strategic 
transactions” refers to the acquisition of Hensoldt AG.

Separate Financial Statements at 31 December 2022 
 
319 
 
34. FINANCIAL TRANSACTIONS WITH RELATED PARTIES 
Related party transactions are carried out at arm’s length, as is settlement of the interest-bearing receivables 
and payables when not governed by specific contractual conditions. The relevant financial statements 
amounts are shown below. The statement of cash flows presents the impact of related party transactions on 
cash flows: 
Receivables at  31 December 2021 
Non-current 
loans and 
receivables 
Current loans 
and 
receivables 
Trade 
receivables 
Receivables 
from 
consolidated 
tax mechanism 
Other current 
and non-
current 
receivables 
Total 
Subsidiaries 
AgustaWestland Philadelphia Co 
189
1
190 
Kopter Group AG 
190
2
192 
Leonardo UK Ltd 
266
266 
Leonardo Global Solutions SpA 
86
5
4
13
108 
Leonardo Belgium SA 
9
9 
Leonardo Australia PTY Ltd 
21
21 
Leonardo Malaysia SDN BHD 
14
14 
So.Ge.Pa. Società Generale di Partecipazioni SpA 
17
17 
Leonardo US Holding Llc 
137
137 
Vitrociset SpA 
20 
5
25 
Other with unit amount lower than €mil. 10 
38
1
2
41 
Associates 
NHIndustries SAS 
192
192 
Eurofighter Jagdflugzeug Gmbh 
117
117 
Iveco - Oto Melara S.c.a.r.l. 
11
11 
AgustaWestland Aviation Services LLC 
17
17 
Advanced Air Traffic System SDH BHD 
12
12 
Elettronica SpA 
2
2 
Other with unit amount lower than €mil. 10 
1
2 
19
22 
Joint Venture 
GIE ATR 
23
23 
MBDA SAS 
15
15 
Thales Alenia Space SAS 
37 
6
43 
Joint  Stock Company Helivert 
20
20 
Orizzonte Sistemi Navali SpA 
39
39 
Telespazio SpA 
12
1 
3
5
21 
Other with unit amount lower than €mil. 10 
2
2 
Consortiums 
Other with unit amount lower than €mil. 10 
1 
2
3 
Companies subject to the control or considerable 
influence of the MEF 
CDP Cassa Depositi e Prestiti SPA 
69
69 
Poste Italiane SpA 
9
9 
ENAV SpA 
13
13 
Other with unit amount lower than €mil. 10 
 
8
8 
Other related parties 
Other with unit amount lower than €mil. 10 
2 
6
1
9 
Total 
443
63 
1,134
10
17
1,667 
% against total for the period 
95.5%
81.8% 
37.9%
2.7%
4.5%

Separate Financial Statements at 31 December 2022 
 
320 
 
Receivables at 31 December 2022 
Non-current 
loans and 
receivables 
Current loans 
and 
receivables 
Trade 
receivables 
Receivables 
from 
consolidated 
tax mechanism 
Other current 
and non-
current 
receivables 
Total 
Subsidiaries 
AgustaWestland Philadelphia Co 
127
1
128 
W.S.K. PZL-Swidnik S.A. 
15
15 
Selex ES SpA (In Liquid.) 
1
15
16 
Kopter Group AG 
199 
3
202 
Leonardo UK Ltd 
184
184 
Leonardo Global Solutions SpA 
75
1 
3
7
86 
Leonardo CAE Advanced Jet Training Srl 
31
31 
Leonardo Belgium SA 
11
11 
Leonardo Australia PTY Ltd 
13
13 
Leonardo Malaysia SDN BHD 
25
25 
Leonardo Logistics SpA 
23 
4
27 
Leonardo do Brasil LTDA 
10
10 
Other with unit amount lower than €mil. 10 
1 
21
22 
Associates 
 
NHIndustries SAS 
186
186 
Eurofighter Jagdflugzeug Gmbh 
97
97 
Iveco - Oto Melara S.c.a.r.l. 
50
50 
AgustaWestland Aviation Services LLC 
12
12 
Macchi Hurel Dubois SAS 
15
15 
Polo Strategico Nazionale SpA 
8
8 
Other with unit amount lower than €mil. 10 
8 
25
33 
Joint Venture 
 
GIE ATR 
29
29 
Orizzonte Sistemi Navali SpA 
21
21 
MBDA SAS 
28
28 
Thales Alenia Space SAS 
40 
9
49 
Other with unit amount lower than €mil. 10 
7
3 
11
1
22 
Consortiums 
 
Other with unit amount lower than €mil. 10 
2 
4
6 
Companies subject to the control or considerable 
influence of the MEF 
 
CDP Cassa Depositi e Prestiti SPA 
71
71 
Ministero dell'Economia e delle Finanze 
85
85 
Other with unit amount lower than €mil. 10 
5
 
29
1
35 
Other related parties 
 
Other 
1
 
5
1
1
8 
 
 
Total 
88
277 
1,133
2
25
1,525 
% against total for the period 
66.2%
85.0% 
36.3%
0.4%
5.1%
  
As regards the most important loans and receivables we note that: 
• 
Non-current loans and receivables, equal to €mil. 88 (€mil. 443 at 31 December 2021) were down by 
€mil.355 mainly as a result of the settlement of the receivable amounting to €mil.137 of Leonardo 
US Holding Llc, and for €mil.190 of the reclassification under current loans and receivables of the 
three-year loan “Revolving credit facility” granted in 2021 to Kopter Group AG to develop AW09 
single-engine helicopter.; 
• 
Current loans and receivables equal to €mil. 277 (€mil. 63 at 31 December 2021) increased by 
€mil.214 and include financing activities conducted by Leonardo in favour of the Group companies, 
as a result of the abovementioned centralisation of Treasury resources; 
• 
Other receivables equal to €mil. 27 (€mil. 27 at 31 December 2021) included amounts deriving from 
the Group tax consolidation mechanism, recognised by Leonardo, the party having a legal 
relationship with the Tax Authority; 
• 
Trade receivables equal to €mil. 1,133 (€mil. 1,134 at 31 December 2021) include receivables related 
to services rendered in the interest and in favour of the Group’s companies.

Separate Financial Statements at 31 December 2022 
 
321 
 
Payables at 31 December 2021 
Current and 
non-current 
loans and 
borrowings 
Trade payables 
Payables from 
consolidated 
tax mechanism 
Other current 
payables 
Total 
Guarantees 
Subsidiaries 
AgustaWestland Philadelphia Co 
53
59 
143
255
475 
AgustaWestland SpA 
20 
1
9
30
 
Leonardo UK Ltd 
878
111 
989
1,558 
Ansaldobreda SpA 
121
 
1
122
223 
Larimart SpA 
11
11 
22
1 
Leonardo Logistics SpA 
7
46 
1
54
1 
Leonardo Global Solutions SpA 
591
42 
633
5 
Leonardo US Aircraft Inc 
19 
19
 
W.S.K. PZL-Swidnik S.A. 
53 
53
128 
Selex ES International Ltd 
50
 
50
 
Leonardo Saudi Limited 
4 
4
12 
Selex ES Australia  PTY ltd 
24 
24
 
Leonardo US Holding Llc 
 
-
538 
Leonardo DRS Inc 
3 
3
232 
Leonardo International SpA 
21
 
1
22
113 
So.Ge.Pa. Società Generale di Partecipazioni SpA 
3
 
1
2
6
94 
Vitrociset SpA 
4 
1
5
34 
Other with unit amount lower than €mil. 10 
26 
6
32
 
Associates 
 
 
Eurofighter Jagdflugzeug Gmbh 
37
40 
77
 
Elettronica SpA 
14 
14
 
Gulf System Logistic Services Company WLL 
24 
24
 
Iveco Oto Melara Scarl 
 
4
4
 
NH Industries SAS 
93 
93
 
Industria Italiana Autobus SpA 
 
-
23 
Leonardo Hélicoptères Algérie SpA 
16
 
16
 
Other with unit amount lower than €mil. 10 
6 
6
 
Joint Venture 
-
 
AVIONS DE TRANSPORT REGIONAL - GIE ATR 
57 
2
59
 
MBDA SAS 
664
56 
720
8 
Telespazio SpA 
31
1 
2
34
152 
Rotorsim Srl 
18 
18
 
Other with unit amount lower than €mil. 10 
6 
6
 
Consortiums 
Other with unit amount lower than €mil. 10 
2 
2
 
Companies subject to the control or considerable 
influence of the MEF 
 
 
Cassa Depositi e Prestiti Spa 
100
1 
3
104
 
Enel Spa 
14 
14
 
Other related parties 
 
 
Other 
1
6 
1
2
10
414 
 
 
Total 
2,584
760 
13
167
3,524
4,011 
% against total for the period 
39.0%
27.7% 
1.1%
8.5%
29.1%

Separate Financial Statements at 31 December 2022 
 
322 
 
Payables at 31 December 2022 
Current and 
non-current 
loans and 
borrowings 
Trade payables 
Payables from 
consolidated 
tax mechanism 
Other current 
payables 
Total 
Guarantees 
Subsidiaries 
AgustaWestland Philadelphia Co 
58
54 
157
269
585 
Leonardo UK Ltd 
1,002
81 
1,083
1,647 
Ansaldobreda SpA 
41
 
23
64
214 
Larimart SpA 
8
12 
20
1 
Leonardo Logistics SpA 
52 
1
53
1 
Leonardo Global Solutions SpA 
748
38 
1
787
4 
Leonardo US Aircraft, Inc 
14 
14
 
W.S.K. PZL-Swidnik S.A. 
13
33 
46
356 
Selex ES International Ltd 
48
 
48
 
Leonardo Malaysia SDN BHD 
13 
13
 
Leonardo Saudi Limited 
 
-
13 
Leonardo US Holding Llc 
 
-
245 
Leonardo DRS Inc 
 
-
208 
Leonardo International SpA 
36
 
1
37
102 
Leonardo Partecipazioni SpA 
58
 
2
2
62
90 
Leonardo CAE Advanced Jet Training Srl 
21 
21
 
Other with unit amount lower than €mil. 10 
44 
3
47
Associates 
 
Eurofighter Jagdflugzeug GmbH 
85
60 
145
Elettronica SpA 
24 
24
Gulf System Logistic Services Company WLL 
27 
27
NH Industries SAS 
91 
91
Industria Italiana Autobus SpA 
 
-
43 
Leonardo Hélicoptères Algérie SpA 
16
 
16
Other with unit amount lower than €mil. 10 
9 
4
13
Joint Venture 
 
-
AVIONS DE TRANSPORT REGIONAL - GIE ATR 
19 
39
58
 
MBDA SAS 
713
38 
751
8 
Telespazio SpA 
41
2 
2
45
100 
Other with unit amount lower than €mil. 10 
11 
11
Consortiums 
Other with unit amount lower than €mil. 10 
2 
2
 
Companies subject to the control or considerable 
influence of the MEF 
Cassa Depositi e Prestiti SPA 
100
1 
1
102
165 
Enel SpA 
12 
12
 
Other with unit amount lower than €mil. 10 
1 
1
 
Other related parties 
 
 
Other 
8 
1
1
10
 
 
Total 
2,967
667 
31
207
3,872
3,782 
% against total for the period 
50.6%
26.9% 
2.2%
9.6%
27.8% 
  
As regards the most important loans and borrowings we note that: 
• 
Other payables of €mil. 238 (€mil. 180 at 31 December 2021were up by €mil 58 and include for €mil. 
31 the values deriving from the Group tax consolidation mechanism recognised by the Company, for 
€mil. 39 the payables deriving from the management of the ATR GIE Consortium and for €mil. 157 
the payables to AgustaWestland Philadelphia Corporation discounted following the acquisition of the 
license related to the AW60 tiltrotor project; 
• 
Loans and borrowings from related parties, equal to €mil. 2,967 (€mil. 2,584 at 31 December 2021) 
include a fixed amount of €mil. 580 (€mil. 437 at 31 December 2021) linked to lease transactions in 
accordance with IFRS16, and the other current financial debt relationships arising from net cash 
inflows achieved by the Group companies during the year, which were contributed to Leonardo as a 
result of the Group’s cash pooling system; among these, the item includes a payable of €mil. 713 
(€mil. 664 at 31 December 2021) to the MBDA Joint ventures and the loan of €mil. 100 taken out

Separate Financial Statements at 31 December 2022 
 
323 
 
with Cassa Depositi e Prestiti (CDP), which is aimed at co-financing some investment projects 
envisaged in the Industrial Plan. 
The changes during the year and the composition of assets and liabilities by maturity, currency and 
geographical area are shown in Appendices nos. 3, 4, 5, 6, 8, 9 and 10 to these Notes. 
Below are all income statement transactions with the Leonardo’s related parties for the years 2022 and 2021: 
Income statement transactions at 31 December 2021 
Revenue 
Other 
operating 
revenues 
Purchase and 
Service 
expenses 
Other 
operating  
expenses 
Financial 
income 
Financial 
expenses 
Subsidiaries 
AgustaWestland Philadelphia Co 
128
 
70
 
Leonardo Logistics SpA 
1
 
95
 
Leonardo Global Solutions SpA 
 
121
13 
Leonardo UK Ltd 
203
2 
128
1
1 
Larimart SpA 
 
17
 
Leonardo Belgium SA 
19
 
6
 
Leonardo Australia (PTY) Ltd 
35
 
17
 
Leonardo Malaysia SDN BHD 
35
 
13
 
Leonardo Electronics US Inc. 
 
9
 
Leonardo Saudi Limited 
 
11
 
Vitrociset SpA 
3
 
14
4
 
Kopter Group AG 
4
 
7
 
W.S.K. PZL-Swidnik S.A. 
7
2 
140
 
Other with unit amount lower than €mil. 10 
30
36
 
Associates 
 
 
Eurofighter Jagdflugzeug GmbH 
584
 
607
 
Elettronica SpA 
2
 
50
 
EUROMIDS S.A.S. 
9
 
3
 
Gulf System Logistic Services Company WLL 
 
71
 
NHIndustries SAS 
373
 
151
 
Iveco-Oto Melara Scarl 
71
 
2
 
Macchi Hurel Dubois SAS 
29
 
 
AgustaWestland Aviation  Services LLC 
15
 
2
 
Advanced Air Traffic  Syst. SHD BHD 
9
 
1
 
Other with unit amount lower than €mil. 10 
13
 
4
 
Joint Venture 
GIE ATR 
80
 
8
 
Orizzonte Sistemi Navali S.p.A. 
105
MBDA SAS 
47
 
103
2 
Thales Alenia Space France Sas 
51
 
2
 
Rotorsim Srl 
1
2 
17
 
Joint Stock Company Helivert 
15
2 
 
Other with unit amount lower than €mil. 10 
2
 
3
 
Consortiums 
Cons. G.e.i.e. Eurotorp 
9
 
 
Other with unit amount lower than €mil. 10 
 
5
 
Companies subject to the control or considerable 
influence of the MEF 
Enel SpA 
10
84
CDP Cassa Depositi e Prestiti SPA 
261
2
1 
Enav SpA 
17
 
1
 
Poste Italiane SpA 
23
 
 
Panavia Aircraft GMBH 
10
 
 
Other with unit amount lower than €mil. 10 
13
 
1
 
Other related parties 
Other 
2
 
2
3
 
Total 
2,216
8 
1,796
-
15
17 
% against total for the period 
23.7%
2.0% 
20.9%
0.0%
5.7%
4.8%

Separate Financial Statements at 31 December 2022 
 
324 
 
Income statement transactions at 31 December 2022 
Revenue 
Other 
operating 
revenues 
Purchase and 
Service 
expenses 
Other 
operating  
expenses 
Financial 
income 
Financial 
expenses 
Subsidiaries 
AgustaWestland Philadelphia Co 
144
 
90
 
Leonardo Logistics SpA 
 
131
 
Leonardo Global Solutions SpA 
 
134
13 
Leonardo CAE Advanced Jet Training Srl 
35
 
21
 
Leonardo for Aviation Services (SPC) 
 
23
 
Leonardo UK Ltd 
178
2 
152
1
9 
Larimart SpA 
 
19
 
Leonardo Belgium SA 
24
 
8
 
Leonardo Australia PTY Ltd 
35
 
13
 
Leonardo Malaysia SDN BHD 
56
 
19
 
Leonardo Electronics US Inc. 
 
10
 
Kopter Group AG 
4
 
6
6
 
W.S.K. PZL-Swidnik S.A. 
11
3 
174
 
Other with unit amount lower than €mil. 10 
27
 
42
4
1 
Associates 
Eurofighter Jagdflugzeug GmbH 
694
 
495
 
Elettronica SpA 
2
 
72
 
EUROMIDS S.A.S. 
18
 
3
 
Gulf System Logistic Services Company WLL 
 
96
 
HENSOLDT AG 
15
 
23
 
NH Industries SAS 
388
 
423
 
Iveco-Oto Melara Scarl 
116
 
2
 
Macchi Hurel Dubois SAS 
41
 
 
AgustaWestland Aviation  Services LLC 
22
 
2
 
Other with unit amount lower than €mil. 10 
24
 
9
 
Joint Venture 
GIE ATR 
117
 
12
 
Orizzonte Sistemi Navali S.p.A. 
147
 
1
 
MBDA SAS 
65
 
86
7 
Thales Alenia Space SAS 
63
 
2
 
Rotorsim Srl 
2
2 
18
 
Other with unit amount lower than €mil. 10 
7
2 
4
 
Consortiums 
 
 
Cons. G.e.i.e. Eurotorp 
10
 
1
 
Other with unit amount lower than €mil. 10 
2
 
2
 
Companies subject to the control or considerable 
influence of the MEF 
 
 
Enel SpA 
11
63
CDP Cassa Depositi e Prestiti SPA 
221
2
Enav SpA 
21
 
1
 
Ministero dell'Economia e delle Finanze 
42
 
 
Poste Italiane SpA 
20
 
 
Panavia Aircraft GMBH 
38
 
 
Sogei SpA 
14
 
 
Other with unit amount lower than €mil. 10 
11
 
1
 
Other related parties 
 
 
Other 
1 
2
4
1 
Total 
2,625
10 
2,162
-
15
31 
% against total for the period 
27.5%
1.6% 
24.9%
0.0%
0.9%
9.8% 
  
“Financial income (expense)” relates to interest on loans and receivables and loans and borrowings and 
commissions which mainly arise from the centralisation of the management of Group treasury resources 
within Leonardo. In carrying out its treasury management functions, the Company acts as the main 
counterparty, always at arm’s length, for the financial assets and liabilities of the subsidiaries within the scope 
of such centralisation.

Separate Financial Statements at 31 December 2022 
 
325 
 
35. FINANCIAL RISK MANAGEMENT 
Leonardo Spa is exposed to financial risks associated with its operations, specifically related to these types 
of risks: 
• 
interest-rate risks, related to the Company’s financial exposure; 
• 
exchange-rate risks, related to operations in currencies other than the reporting currency; 
• 
liquidity risks, relating to the availability of financial resources and access to the credit market; 
• 
credit risks, resulting from normal commercial transactions or financing activities. 
The Company carefully and specifically follows each of these financial risks, with the objective of promptly 
minimising them, even using hedging derivatives. 
The sections below provide an analysis, conducted through sensitivity analysis, of the potential impact on 
the final results deriving from assumed fluctuations in reference parameters. As required by IFRS 7, these 
analyses are based on simplified scenarios applied to the final results of the reference periods and, by their 
own nature, they cannot be considered as indicators of the actual effects of future changes in reference 
parameters with different financial statements and market conditions, and cannot reflect the inter-relations 
and the complexity of reference markets. 
Below is the main information related to the abovementioned risks. However, for further details reference 
is made to the section on “Financial risk management” of the consolidated financial statements. 
Interest rate risk 
Leonardo is exposed to interest rate risk on borrowings. The management of interest rate risk is consistent 
with the long-standing practice of reducing the risk of fluctuations in trends in interest rates while seeking to 
minimise related borrowing costs. 
In this regard, it should be noted that loans and borrowings at 31 December 2022, equal to €mil. 5,864, 
included lease liabilities of €mil. 661. The amount of fixed-rate loans and borrowings (including by using 
hedging instruments) was equal to about 42% and, consequently, the amount at variable rate was equal to 
about 58%. 
At 31 December 2022, the transactions were the following: 
• 
options for €mil. 200 (CAP at 4.20% and Knock out at 5.60% in relation to the 6-month Euribor interest 
rate), originally purchased in order to partially cover the bond issue due 2025;  
• 
floating/fixed interest rate swap for €mil. 300 relating to the EIB loan in the same amount, which 
guarantees a fixed rate of 1.82% on the loan.  
The detail of the main interest-rate swaps at 31 December 2022 is as follows: 
Notional 
Underlying 
(maturity) 
Fair value 
01.01.2021 
Changes 
Fair value 
31.12.2021 
2020 
2021 
Income 
Expens
e 
CFH 
Reserve 
Options 
200
200
Bond 2025 
(2)
1 
-
-
(1) 
IRS fixed/floating 
300
300
BEI 2031 
(24)
- 
-
11
(13) 
Total notional 
500
500
 
(26)
1 
-
11
(14)

Separate Financial Statements at 31 December 2022 
 
326 
 
Notional 
Underlying 
(maturity) 
Fair value 
01.01.2022 
Changes 
Fair value 
31.12.2022 
2021 
2022 
Income 
Expens
e 
CFH 
Reserve 
Options 
200
200
Bond 2025 
(1)
- 
-
-
(1) 
IRS fixed/floating 
300
300
BEI 2031 
(13)
- 
-
43
30 
Total notional 
500
500
 
(14)
- 
-
43
29 
 
 
The table below shows the effects of the sensitivity analysis for 2022 and 2021 on derivatives on interest 
rates at 31 December 2022 deriving from the 50-basis-point shift in the interest rate curve (bps): 
 
Effect of shift of interest rate curve 
31 December 2021 
31 December 2022 
 
Increase of 50 
bps 
Decrease of 50 
bps 
Increase of 50 
bps 
Decrease of 50 
bps 
Net result 
(5) 
7
(8)
8 
Equity (*) 
- 
-
(4)
4 
(*): Defined as sum of earnings and cash-flow hedge reserve 
 
 
  
 
Exchange rate risk 
Due to its commercial operations, the Company is exposed to the risk of fluctuations in the currencies related 
to those cases in which orders, revenue and costs are expressed in currencies other than the functional one 
used in the financial statements (specifically, US dollars and, to a lesser extent, the pound sterling). 
Exchange-rate risk management for the Group is governed by the Directive issued by Leonardo Spa, the 
purpose of which is to standardise management criteria based on industrial-not-speculative strategies so as 
to contain risks within specific limits by carefully and constantly assessing all foreign currency transaction 
positions. The methodology adopted calls for the systematic hedging of commercial cash flows resulting from 
the assumption of contractual commitments that are certain or highly probable as either buyer or seller, 
thereby ensuring current exchange rates at the date of acquisition of multi-year contracts and neutralising 
the effects of exchange-rate fluctuations. As a result, contracts for purchases or sales denominated in a 
currency different from the functional currency are hedged using forward contracts of amounts, maturities, 
and key parameters that are similar to the underlying position. The Company defines the existence of an 
economic relationship between the hedging instrument and the hedged item on the basis of the currency, 
amounts and respective cash flows and assesses whether the derivative designated in each hedging 
relationship will be and has been effective in offsetting changes in the cash flows of the hedged item. In the 
event that, due to their nature or following events that entail their ineffectiveness, derivative instruments 
held in the portfolio should be found to no longer be a hedge, the fair value of the instrument is recognised 
through profit and loss according to accounting principles. In the event the designation of the instrument as 
a hedge should continue to be supported, the cash-flow hedge accounting method of recognition is adopted 
(see Note 4.3 of the Consolidated Financial Statements). 
Leonardo carries out these transactions with banks in its own interest and of Group companies. 
The Company hedges the risks related to short-term financial payables and receivables denominated in 
currencies other than the euro and had entered into foreign exchange transactions at 31 December 2022, 
totaling €mil. 6,323 (notional amount), as detailed in the following table:

Separate Financial Statements at 31 December 2022 
 
327 
 
Notional 2021 
Notional 2022 
Sales 
Purchases 
Total 
Sales 
Purchases 
Total 
Swap and forward 
transactions 
3,715
2,834
6,549 
4,038
2,285
6,323 
 
As a result of the financial centralisation, the cash flows of the Group’s foreign companies were recharged to 
Leonardo through intercompany transactions mainly denominated in GBP and USD. This risk is hedged using 
mirror transactions of payables/receivables to/from third parties in the currency of intercompany items or 
through specific exchange-rate derivatives, classified as fair-value hedges. The table below shows the 
expected due dates of receipts and payments related to derivative instruments broken down by main 
currencies: 
31 December 2021 
31 December 2022 
Notional 
Receipts 
Notional 
Payments 
Notional 
Receipts 
Notional 
Payments 
Cash-flow and fair-value hedges 
USD 
GBP 
 
USD 
GBP 
USD 
GBP 
 
USD 
GBP 
Within 1 year 
2,013
49
1,257 1,305
1,636
62
612
1,357
2 to 3 years 
800
2
84 
5
1,355
-
219
31
4 to 9 years 
189
-
8 
-
456
-
1
17
Total transactions 
3,002
51
1,349 1,310
3,447
62
832
1,405
 
The table below shows the effects of the sensitivity analysis carried out on the change in the exchange rates 
of the euro against the US dollar (USD) and the pound sterling (GBP) and, assuming a +/-5% change in the 
euro/pound sterling exchange rate and in the euro/US dollar exchange rate compared with the reference 
rates at 31 December 2022 and 31 December 2021. 
31 December 2021 
 
31 December 2022 
 
Effect of change in the 
€/GBP rate 
Effect of change in the 
€/USD rate 
 
Effect of change in the 
€/GBP rate 
Effect of change in the 
€/USD rate 
Increase 
of 50 bps 
Decrease of 
50 bps 
Increase of 
50 bps 
Decrease of 50 
bps 
 Increase of 
50 bps 
Decrease of 
50 bps 
Increase of 
50 bps 
Decrease of 50 
bps 
Net result 
2
(2)
(1)
1  
3
(1)
7
(8) 
Equity (*) 
(6)
7
54
(60) 
(3)
5
99
(109) 
(*): Defined as sum of earnings and cash-flow hedge reserve 
 
Liquidity risk 
Leonardo is exposed to liquidity risk, i.e. the risk of not being able to finance the prospective requirements 
arising from usual business and investment operations, as well as those connected with the volatility of the 
relevant markets in relation to commercial contracts at risk of renegotiation or cancellation. Moreover, there 
is the risk of not being able to repay or finance debts at the expiry dates.  
In order to face the series of above-mentioned risks, Leonardo has adopted a series of instruments aimed at 
optimizing the management of financial resources by resorting to bank and bond transactions.  
In order to finance its operations, the Company had at its disposal at 31 December 2022: 
- 
the cash and cash equivalents of €mil. 1,040 generated at 31 December 2022; 
- 
an ESG-linked Revolving Credit Facility (RCF), available to the Company, amounting to €bil. 2.4, 
comprising a 5-year tranche of €bil. 1.8 expiring in September 2026 and a 3-year tranche of €mil. 600 
expiring in September 2024. Both the RCF tranches had been entirely unused at 31 December 2022; 
- 
a sustainability-linked loan for an amount of €mil. 260 with the European Investment Bank (EIB) entirely 
unused at 31 December 2022;

Separate Financial Statements at 31 December 2022 
 
328 
 
- 
uncommitted bank credit lines totaling €mil. 810, entirely unused at 31 December 2021; 
- 
the ESG-Linked Term Loan credit line of €mil. 600 subscribed and entirely used at December 2022 
expiring in 2027;  
- 
the EMTN (Euro Medium Term Note) Programme, out of which all the bonds of Leonardo Spa were 
issued, which are currently in place on the Euromarket and which had been used for a total nominal 
amount of €mil. 2,400 at 31 December 2022, compared to a total amount of €mil. 4,000 under the 
programme; 
- 
a Framework Programme for the issuance of Multi-Currency Commercial Papers on the European 
market, for a maximum amount of €mil. 1,000, which had been entirely unused at 31 December 2022; 
- 
unconfirmed lines of credit for guarantees for a total amount of €mil. 9,678, of which an amount of €mil. 
2,513 was available at 31 December 2022. 
Credit risk 
The Company is exposed to credit risk, which is defined as the probability of an insolvency with respect to a 
credit position with commercial and financial counterparties. 
Regarding commercial transactions, the most significant programmes are made with public sector 
contractors or contractors belonging to public institutions, mainly in the Euro area, in the UK, the US and the 
Middle East. The risks associated with the counterparty, for contracts with countries for which there are no 
usual commercial relations, are analysed and valued at the time of the offer in order to mitigate insolvency 
risks, if any. While solvency is guaranteed with public-entity customers, collection times are longer (in some 
countries they are significantly longer) than for other business sectors, creating significant outstanding credit 
positions and the subsequent need for transactions to convert the receivables into cash. On the other hand, 
the Company hedges, when deemed appropriate, against potential defaults in the payment of its receivables 
by entering into insurance policies with leading Export Credit Agencies (ECAs) internationally and with major 
Italian agencies (e.g. SACE). 
The types of contracts entered into by the Group provide for sizeable retention money withheld by 
customers, as well as back-to-back clauses in case of sub-supplies. These cases inherently extend the times 
for collection of outstanding receivables. 
Furthermore, the Company operates in markets which are or have been recently affected by geopolitical or 
financial tensions. In particular, with reference to the situation at 31 December 2022, we note the following 
relations with countries exposed to credit risk according to the international institutions (SACE): 
(€ millions) 
Libya 
Zambia 
Turkey 
Turkmenistan 
Angola 
Pakistan 
Other 
Total 
Assets 
1
- 
93
13
109
69
26
311
Liabilities 
(12)
(12) 
(137)
(1)
(126)
(35)
(34)
(357)
Net exposure 
(11)
(12) 
(44)
12
(17)
34
(8)
(46)
  
As at 31 December 2022, the countries identified by SACE as countries at risk included Ukraine, to which - as 
indicated in Note 6 to which reference should be made - the Company has no balance sheet exposures. 
Finally, the receivables related to these agreements might not be paid, renegotiated or written off. 
The table below summarizes trade receivables at 31 December 2022 and 2021 (values in €bil.) 
31 December 2021 
31 December 2022 
Portion due 
0.7
0.5 
- of which: for more than 12 months 
0.2 
0.2 
Portion not yet due 
2.3
2.5 
Total trade receivables 
3.0
3.0

Separate Financial Statements at 31 December 2022 
 
329 
 
A part of the portion due is offset by a liability, in relation to payable items or provisions for risks on any net 
excesses. 
Loans and receivables, equal to €mil. 414 (€mil. 520 at 31 December 2021) include €mil. 12 (€mil. 13 at 31 
December 2021) classified as “non-current” and subsequently excluded from the net financial position. The 
table below shows the breakdown of loans and receivables: 
31 December 2021 
 
31 December 2022 
Loans and  receivables from related parties 
443
88 
Non-current loans and receivables 
443
88 
Loans and  receivables from related parties 
14
277 
Other loans and receivables 
63
49 
Current loans and receivables 
77
326 
Total loans and receivables 
520
414 
 
Both the main trade and financial receivables are impaired based on their probability of default or individually 
in case of particular situations. Vice versa, for receivables that are not impaired individually, impairment 
provisions are accrued, using historical series, statistical data and probability of default on an aggregate basis 
also supported by qualitative analyses. 
During the year, receivables were assigned without recourse for a total volume of €mil. 50 (€mil. 169 in 2021). 
The amount of the assignments is significantly lower than the previous year's figure, due to the effects of 
making the processes to manage working capital more efficient, which has allowed a further improvement 
in the dynamics underlying the realisation of collection flows, despite the continuation of emergency 
situations of various kinds. 
Classification of financial assets and liabilities 
The table below shows the fair value hierarchy for the financial assets and liabilities of Leonardo Spa 
measured at fair value. The fair value of derivatives (classified under other current assets and liabilities) and 
of current securities is determined on the basis of measurement techniques which consider directly 
observable market inputs (the so-called “Level 2”). The fair value of the earn-out linked to the acquisition of 
Kopter was determined on the basis of measurement techniques which do not consider directly observable 
market inputs (the so-called “Level 3”), by discounting back the estimate of the variable amounts payable on 
the basis of the commercial performance of the programme. 
31 December 2021 
31 December 2022 
Level 2 
Level 3 
Total 
Level 2 
Level 3 
Total 
Other non current 
assets 
-
-
- 
-
-
- 
Other assets 
150
-
150 
267
-
267 
 
 
Other non-current 
liabilities 
-
16
16 
-
16
16 
Other current liabilities 
81
-
81 
211
-
211 
 
36. REMUNERATION TO KEY MANAGEMENT PERSONNEL 
 
Remuneration paid to persons who have strategic power and responsibility of Leonardo S.p.a. amounted to 
€mil. 12 (€mil. 10 at 31 December 2021).

Separate Financial Statements at 31 December 2022 
 
330 
 
Remuneration paid to Directors, excluding managers with strategic responsibility, amounted to about €mil. 
2 (€mil. 2 in 2021). This figure includes fees and other compensation, pensions and other benefits, including 
the portion borne by the Company. 
37. SHARE-BASED PAYMENTS 
In order to implement an incentive and retention system for the Group’s employees and associates, starting 
from 2015 Leonardo adopted incentive plans which provide for the assignment of Leonardo shares, subject 
to assessing the attainment of pre-set business targets. These shares will be awarded to the beneficiaries at 
the end of the vesting period, provided that they have met the condition of being still employed with the 
company. The cost recognised in the income statement for the share incentive plans amounted in 2022 to 
€mil. 5 (€mil. 9 in 2021). 
With specific regard to the Long-Term Incentive Plan, the fair value used to measure the portion linked to 
the performance indicators (Group Net Debt, ROS and starting from the three-year cycle 2021-2023 
Sustainability Indicators) was equal to € 11.04 (the value of Leonardo shares at the grant date of 31 July 2019) 
with reference to the three-year cycle 2019-2021, to € 5.41 (the value of Leonardo shares at the grant date 
of 31 July 2020) with reference to the three-year cycle 2020-2022 and to € 6.788 (the value of Leonardo 
shares at the grant date of 31 July 2021) with reference to the three-year cycle 2021-2023 and € 9.15 (the 
value of Leonardo shares at the grant date of 31 July 2022) with reference to the three-year cycle 2022-2024. 
Vice versa, the award of the remaining amount of the shares depends upon market conditions which affect 
the determination of the fair value (“adjusted fair value”). The adjusted fair value, calculated using the 
“Monte Carlo” method in order to simulate the possible performance of the stock and of the other companies 
within the basket, was equal to € 6.72 with reference to the three-year cycle 2019-2021, € 1.73 with reference 
to the three-year cycle 2020-2022, € 3.7 with reference to the three-year cycle 2021-2023 and € 6.4 with 
reference to the three-year cycle 2022-2024. 
The input data used to calculate the adjusted fair value were: 
• 
the stock price at the grant date; 
• 
the average share price in the three months preceding the performance period; 
• 
the risk-free interest rate based on the zero-coupon yield curve in 36 months; 
• 
the expected volatility of the price of Leonardo shares and of the shares of the other companies 
within the basket based on time series in the 36 months prior to the grant date; 
• 
correlation coefficients between Leonardo and the other companies within the basket on the basis 
of logarithms of the daily performance of the stocks in the 36 months prior to the grant date; 
• 
dividend distribution forecasts on a historical basis. 
In 2022, no shares were granted under the long-term incentive plan (no. 133,560 shares in 2021).

Separate Financial Statements at 31 December 2022 
 
331 
 
PROPOSAL TO THE SHAREHOLDERS’ MEETING 
Dear Shareholders, 
 
The 2022 financial statements, which we submit for your approval, close with a net profit of 
1,700,507,630.03 . 
In light of the foregoing, we submit the following proposed resolution for your approval: 
 
“The Ordinary Shareholders’ Meeting of “LEONARDO - Società per azioni: 
− considering the Report of the Board of Directors; 
− considering the Report of the Board of Statutory Auditors; 
− having examined the financial statements at 31 December 2022; 
− having acknowledged the report of EY S.p.A. 
resolves 
−  to approve the Directors’ Report on operations and the financial statements at 31 December 2022; 
−  to approve the proposal posed by the Board of Directors of allocating the profit € 
1,700,507,630.03  for the 2022 financial year as follows: 
− as to € 85,025,381.50, equal to 5% of the profit, to legal reserve; 
− as to € 0.14, on account of dividend, by paying it, including any withholding prescribed by 
law, as from 24 May 2023, with "detachment date" of coupon no. 13 falling on 22 May 2023 
and "record date" (i.e. date on which the dividend is payable, pursuant to Art.83-terdecies 
of Legislative Decree no. 58 of 24 February 1998 and Art. 2.6.6, paragraph 2, of the 
Regulations for the Markets organised and managed by Borsa Italiana S.p.A.) falling on 23 
May 2023; the above provisions refer to each ordinary share that will be outstanding at the 
detachment date of the coupon, excluding treasury shares in portfolio at that date, without 
prejudice to the regime of those that will be actually awarded, under the current incentive 
plans, during the current financial year; 
− with regard to the remaining amount, to retained earnings.” 
 
 
For the Board of Directors 
The Chairman  
(Luciano Carta)

Separate Financial Statements at 31 December 2022 
 
332 
 
ATTACHMENT: DISCLOSURE EX-LEGE 124/2017 
In accordance with the provisions of Article 1, paragraphs 125-126, of Law 124 of 4 August 2017, information 
is provided below on grants received from public administrations and granted to Leonardo S.p.a.  
Grants received 
Worth noting are the provisions of Law no. 124/2017 imposing disclosure obligations on those entities 
carrying out the activity referred to in article 2195 of the Italian Civil Code in relation to sums which are not 
of a general nature and do not consist of fees, remuneration or compensation received from public 
administrations or similar entities. 
Excluded from such scope are any grant consisting of a consideration for Company's services and any grant 
deriving from bilateral financial relationships, which are peculiar to the Company's business, as well as any 
general measure that falls within the broader general structure of the reference system defined by the State 
(among others, Law 237/1993, Law 297/1999, Development Contracts and Regional Operational Programme, 
Law 808/1985, Regional Laws and National Operational Programmes), the effects of which are described in 
the notes to the Separate Financial Statements, based on the accounting standards adopted in the 
preparation of said accounts that can be used by all sector businesses, as well as grants received for 
continuing professional development from interprofessional funds. 
The Company has not received grants falling within the framework of those referred to in article 1, para. 125, 
of Law 124/2017. 
It should also be noted that the transparency of State aid for which there is a publication obligation is 
protected by their publication in the National Register of State Aids referred to in Article no. 52 of Law 234 
of 24 December 2012. 
Grants disbursed 
As a publicly traded company, Leonardo S.p.a. is not subject to the obligations under article 1, para. 126 
pursuant to art. 2-bis, para. 2, letter b) of Legislative Decree 33/2013. 
There are no grants disbursed by Leonardo S.p.a. in the form of donations or disbursements that do not 
consist of a consideration for services received, not even in the form of a return in terms of image.

Separate Financial Statements at 31 December 2022 
 
333 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Appendices

Separate Financial Statements at 31 December 2022 
 
334 
 
Appendix no.1 (€ mil) - EQUITY INVESTMENTS 
1/3 
% 
Equity investments in subsidiaries 
31 December 
2021 
Movements of the year 
31 December 
2022 
Carrying 
amount 
Acquis./Subscri
ptions/paymen
ts of capital 
Disposal 
Reversals 
/Impairment 
Other changes 
Carrying 
amount 
68 
ALEA SRL 
3 
- 
- 
- 
- 
3 
100 ANSALDOBREDA SpA 
17 
- 
- 
- 
- 
17 
100 KOPTER GROUP AG 
172 
86 
- 
- 
- 
258 
60 
LARIMART SpA 
14 
- 
- 
- 
- 
14 
100 LEONARDO FOR AVIATION SERVICES (SPC) 
1 
- 
- 
- 
- 
1 
100 LEONARDO GLOBAL SOLUTIONS SpA 
850 
- 
- 
- 
- 
850 
100 LEONARDO INTERNATIONAL SpA 
149 
1,462 
- 
- 
- 
1,611 
100 LEONARDO PARTECIPAZIONI SpA 
- 
29 
- 
- 
- 
29 
100 LEONARDO UK Ltd 
2,804 
- 
- 
- 
- 
2,804 
53 
LEONARDO US HOLDING, Llc 
1,944 
237 
(1,462) 
1,290 
(309) 
1,700 
100 SELEX ES INTERNATIONAL LTD 
54 
- 
- 
- 
- 
54 
67 
TELESPAZIO SpA (*) 
190 
- 
- 
- 
- 
190 
67 
UTM SYSTEMS  & SERVICES SRL 
4 
- 
- 
- 
- 
4 
100 VITROCISET S.P.A. 
43 
- 
- 
- 
(43) 
- 
100 W.S.K. PZL-SWIDNIK S.A. 
143 
- 
- 
- 
- 
143 
 
Other with unit amount lower than €mil. 10 
 
1 
- 
- 
- 
1 
TOTAL EQUITY INVESTMENTS IN SUBSIDIARIES 
6,388 
1,815 
(1,462) 
1,290 
(352) 
7,679 
of which Cost 
8,355 
1,815 
(1,462) 
 
(352) 
8,356 
 
Write-back/Write-down 
(1,967) 
 
 
1,290 
 
(677) 
 
 
(*): joint control

Separate Financial Statements at 31 December 2022 
 
335 
 
Appendix no.1 (€ mil) - EQUITY INVESTMENTS 
2/3 
% 
Equity investments in associates 
31 December 
2021 
Movements of the year 
31 December 
2022 
Carrying 
amount 
Acquis./Subscri
ptions/paymen
ts of capital 
Disposal 
Reversals 
/Impairment 
Other changes 
Carrying 
amount 
30 
AGUSTAWESTLAND AVIATION 
SERVICES LLC 
4 
- 
- 
- 
- 
4 
50 
AMSH BV (*) 
481 
- 
- 
- 
- 
481 
30 
AVIO SpA 
85 
- 
- 
- 
- 
85 
50 
AVIONS DE TRANSPORT REG. - ATR GIE 
192 
- 
- 
40 
- 
232 
31 
ELETTRONICA SpA 
7 
- 
- 
- 
- 
7 
21 
EUROFIGHTER JAGDFLUGZEUG  GmbH 
9 
- 
- 
- 
- 
9 
24 
EUROFIGHTER SIMULATION SYSTEMS 
GmbH 
2 
- 
- 
- 
- 
2 
30 
G.E.M. ELETTRONICA S.R.L. 
5 
- 
- 
- 
- 
5 
25 
HENSOLDT AG 
- 
618 
- 
- 
- 
618 
29 
INDUSTRIA ITALIANA AUTOBUS SpA 
8 
- 
- 
(8) 
- 
- 
40 
JIANGXI CHANGHE AGUSTA 
HELICOPTERS CO 
2 
- 
- 
- 
- 
2 
50 
LEONARDO CAE ADVANCED JET 
TRAINING S.R.L 
15 
10 
- 
- 
- 
25 
39 
LEONARDO HELICOPTERES ALGERIE 
21 
- 
- 
- 
- 
21 
49 
ORIZZONTE SISTEMI NAVALI SpA 
16 
- 
- 
- 
- 
16 
25 
POLO STRATEGICO NAZIONALE SPA 
- 
3 
- 
- 
- 
3 
50 
ROTORSIM S.R.L. 
28 
- 
- 
- 
- 
28 
33 
THALES ALENIA SPACE SAS (*) 
401 
- 
- 
- 
- 
401 
 
Other with unit amount lower than 
€mil. 10 
3 
- 
- 
- 
- 
3 
TOTAL EQUITY INVESTMENTS IN ASSOCIATES 
1,279 
631 
- 
32 
- 
1,942 
of which Cost 
1,937 
631 
- 
- 
- 
2,568 
 
Write-back/Write-down 
(658) 
- 
- 
32 
- 
(626) 
 
 
 
(*): joint control 
 
Appendix no.1 (€ mil) - EQUITY INVESTMENTS 
3/3 
% 
Other companies 
31 December 
2021 
Movements of the year 
31 December 2022 
Carrying 
amount 
Acquis./Subscri
ptions/paymen
ts of capital 
Disposal 
Reversals 
/Impairment Other changes Carrying amount 
15 
PANAVIA  AIRCRAFT GMBH 
3 
- 
- 
- 
- 
3 
17 
SKYDWELLER AERO INC. 
10 
- 
- 
- 
- 
10 
 
Other with unit amount lower than 
€mil. 10 
4 
- 
- 
- 
- 
4 
TOTAL EQUITY INVESTMENTS IN OTHER COMPANIES 
17 
- 
- 
- 
- 
17 
of which Cost 
18 
3 
- 
- 
1 
22 
 
Write-back/Write-down 
(1) 
- 
- 
- 
(1) 
(2) 
 
 
 
 
 
 
 
TOTAL EQUITY INVESTMENTS 
7,684 
2,446 
(1,462) 
1,322 
(352) 
9,638 
of which Cost 
10,310 
2,449 
(1,462) 
- 
(351) 
10,946 
 
Write-back/Write-down 
(2,626) 
- 
- 
1,322 
(1) 
(1,305)

Separate Financial Statements at 31 December 2022 
 
336 
 
Appendix no.2 (€mil.) - LIST OF EQUITY INVESTMENTS 
1/4 
Equity investments in subsidiaries 
 
 
 
 
 
 
 
 
Name 
Office 
Reporting 
date 
Share capital 
(total) 
Currency 
Equity 
Total 
Assets 
Total 
Liabilities 
Profit 
(loss) Ownership 
Net equity 
in 
financial 
statement
s 
Carrying 
amount 
ALEA SRL 
Polcenigo (PN) 
31/12/2022 
129,383
 
5 
5 
- 
- 
68 
3 
4 
ANSALDOBREDA SpA 
Napoli (IT) 
31/12/2022 
10,000,000
 
81 
135 
54 
51 
100 
81 
17 
KOPTER GROUP AG 
Wetzikon (CH) 
31/12/2022 
32,000,000
CHF 
217 
444 
226 
(22) 
100 
217 
258 
LARIMART SpA 
Roma (IT) 
31/12/2022 
2,500,000
 
32 
57 
25 
5 
60 
19 
14 
LEONARDO FOR 
AVIATION SERVICES 
(SPC) 
Kuwait 
31/12/2021 
300,000
KWD 
363 
5,147 
4,784 
63 
100 
363 
1 
LEONARDO GLOBAL 
SOLUTIONS SpA 
Roma (IT) 
31/12/2022 
51,000,000
 
891 
1,193 
302 
15 
100 
891 
850 
LEONARDO 
INTERNATIONAL SpA 
Roma (IT) 
31/12/2022 
1,000,000
 
1,884 
1,956 
72 
- 
100 
1,884 
1,611 
LEONARDO 
PARTECIPAZIONI SpA 
Roma (IT) 
31/12/2022 
1,000,000
 
29 
153 
124 
- 
100 
29 
29 
LEONARDO UK Ltd 
Basildon (UK) 
31/12/2022 
314,500,100
GBP 
2,666 
4,669 
2,003 
203 
100 
2,666 
2,804 
LEONARDO US 
HOLDING Llc 
Wilmington 
(USA) 
31/12/2022 
10
USD 
3,335 
3,382 
47 
1,065 
53 
1,768 
1,700 
SELEX ES 
INTERNATIONAL Ltd 
Basildon (UK) 
31/12/2022 
100
GBP 
50 
50 
- 
1 
100 
50 
54 
TELESPAZIO SpA (*) 
Roma (IT) 
31/12/2022 
50,000,000
 
266 
622 
355 
35 
67 
178 
190 
UTM SYSTEMS & 
SERVICES Srl 
Roma (IT) 
31/12/2022 
6,620,000
 
4 
5 
1 
(1) 
67 
3 
4 
W.S.K. PZL-SWIDNIK SA 
Swidnik  (PL) 
31/12/2022 
307,642,000
PLN 
163 
501 
338 
27 
100 
163 
143 
TOTAL EQUITY INVESTMENTS IN SUBSIDIARIES
7,679 
 
(*): joint control

Separate Financial Statements at 31 December 2022 
 
337 
 
Appendix no.2 (€mil.) - LIST OF EQUITY INVESTMENTS 
2/4 
Equity investments in associates 
 
 
 
 
 
 
 
Name 
Office 
Reporting 
date 
Share capital 
(total) 
Currency 
Equity 
Total 
Assets 
Total 
Liabilities 
Profit 
(loss) Ownership 
Net equity 
in 
financial 
statement
s 
Carrying 
amount 
ADVANCED MALE 
AIRCRAFT LLC 
Al Ain (EAU) 
n.d. 
200,000
AED 
n.d. 
n.d. 
n.d. 
n.d. 
49 
- 
- 
AGUSTAWESTLAND 
AVIATION SERVICES LLC 
Abu Dhabi City 
(EAU) 
31/12/2022 
58,010,000
AED 
24 
43 
18 
2 
30 
7 
4 
AMSH BV (*) 
Rotterdam (NL) 
31/12/2021 
36,296,316
 
1,219 
1,219 
- 
172 
50 
610 
481 
AVIO SpA 
Roma (IT) 
31/12/2021 
90,964,212
 
291 
1,277 
986 
5 
30 
87 
85 
AVIONS DE TRANSPORT 
REGIONAL - GIE ATR 
Blagnac Cedex 
(FR) 
31/12/2021 
n.d.
USD 
(81) 
1,044 
1,125 
(81) 
50 
(41) 
232 
ELETTRONICA SpA 
Roma (IT) 
31/12/2022 
9,000,000
 
128 
n.d. 
n.d. 
32 
31 
40 
7 
EUROFIGHTER 
JAGDFLUGZEUG GMBH 
Hallbergmoos 
(DE) 
31/12/2021 
639,114
 
32 
1,333 
1,301 
9 
21 
7 
9 
EUROFIGHTER 
SIMULATION SYSTEMS 
GMBH 
Hallbergmoos 
(DE) 
31/12/2021 
260,000
 
6 
12 
6 
2 
24 
1 
2 
EUROMIDS SAS 
Parigi (FR) 
31/12/2021 
40,500
 
4 
43 
39 
- 
25 
1 
1 
G.E.M. ELETTRONICA 
SRL 
Ascoli Piceno (IT) 
31/12/2021 
4,500,000
 
14 
43 
29 
1 
30 
4 
5 
HENSOLDT AG 
Taufkirchen (DE) 
31/12/2021 
105,000,000
 
1,857 
2,758 
901 
32 
25 
464 
618 
IAMCO-INT. AEROSPACE 
MANAG. COMPANY 
SCRL 
Venezia (IT) 
31/12/2021 
208,000
 
2 
10 
8 
1 
25 
1 
- 
INDUSTRIA ITALIANA 
AUTOBUS SpA 
Roma (IT) 
31/12/2021 
21,050,000
 
40 
203 
163 
(27) 
29 
12 
- 
IVECO OTO MELARA 
SCRL 
Roma (IT) 
31/12/2021 
40,000
 
- 
300 
300 
- 
50 
- 
- 
JIANGXI CHANGHE 
AGUSTA HELICOPTERS 
CO 
Jingdezhen (CN) 
31/12/2022 
48,403,000
CNY 
6 
12 
6 
- 
40 
2 
2 
JOINT STOCK COMPANY 
HELIVERT 
Mosca (RU) 
31/12/2022 
325,010,000
RUB 
(9) 
30 
40 
1 
50 
(5) 
- 
LEONARDO CAE 
ADVANCED JET 
TRAINING SRL 
Decimomannu 
(IT) 
31/12/2021 
29,040,000
 
27 
28 
1 
(2) 
50 
14 
25 
LEONARDO 
HELICOPTERES ALGERIE 
SpA 
Ain Arnat (DZA) 
31/12/2022 
7,420,165
DZD 
50 
50 
- 
- 
39 
20 
21 
LIBYAN ITALIAN 
ADVANCED TECH. Co. 
Tripoli (LY) 
31/12/2011 
8,000,000
LYD 
1 
5 
4 
(1) 
25 
- 
- 
MACCHI HUREL DUBOIS 
SAS 
Versailles (FR) 
31/12/2021 
100,000
 
1 
17 
16 
- 
50 
1 
- 
NH INDUSTRIES SAS 
Aix en Provence 
(FR) 
31/12/2022 
306,000
 
9 
8,380 
8,371 
1 
32 
3 
2 
ORIZZONTE SISTEMI 
NAVALI SpA 
Genova (IT) 
31/12/2021 
20,000,000
 
36 
2,238 
2,202 
- 
49 
18 
16 
POLO STRATEGICO 
NAZIONALE SpA 
Roma (IT) 
31/12/2022 
3,000,000
 
7 
62 
55 
5 
25 
2 
3 
ROTORSIM Srl 
Sesto Calende 
(IT) 
31/12/2022 
9,800,000
 
75 
90 
15 
5 
50 
38 
28 
THALES ALENIA SPACE 
SAS (*) 
Cannes (FR) 
31/12/2021 
918,037,500
 
1,206 
1,590 
384 
85 
33 
398 
401 
TOTAL EQUITY INVESTMENTS IN ASSOCIATES
1,942 
 
(*): joint control

Separate Financial Statements at 31 December 2022 
 
338 
 
Appendix no.2 (€mil.) - LIST OF EQUITY INVESTMENTS 
3/4 
Consortiums 
 
 
 
 
 
 
 
Name 
Office 
Reporting 
date 
Share capital 
(total) 
Currency 
Equity 
Total 
Assets 
Total 
Liabilities 
Profit 
(loss) Ownership 
Net equity 
in 
financial 
statement
s 
Carrying 
amount 
CONAI  CONSORZIO 
NAZIONALE 
IMBALLAGGI 
Roma (IT) 
31/12/2021 
15,073,170
 
25 
95 
70 
6 
- 
- 
- 
CONSORZIO BI-REX 
Bologna (IT) 
31/12/2021 
235,000
 
1 
7 
6 
- 
45 
- 
- 
CONS. CREO 
L'Aquila (IT) 
31/12/2021 
774,685
 
- 
3 
3 
- 
99 
- 
1 
CONS. ERION WEEE 
Milano (IT) 
31/12/2021 
3,787,621
 
63 
91 
28 
32 
- 
- 
- 
CONSORZIO IANUA 
Genova (IT) 
31/12/2021 
49,716
 
- 
- 
- 
- 
17 
- 
- 
CONS. IMPRENDITORI 
GIUGLIANO ASI 
Giugliano (IT) 
31/12/2021 
50,000
 
- 
1 
1 
- 
15 
- 
- 
CONSORZIO KIDS 
Roma (IT) 
31/12/2021 
100,000
 
- 
- 
- 
- 
90 
- 
- 
CONS. PER L'ENERGIA 
VARESE 
Varese (IT) 
31/12/2021 
80,242
 
- 
- 
- 
- 
1 
- 
- 
CONS. SISTEMA 
SOLDATO SICURO -SISS 
Roma (IT) 
31/12/2022 
40,000
 
- 
- 
- 
- 
65 
- 
- 
CONSORZIO TESSERA 
Venezia (IT) 
31/12/2021 
40,000
 
- 
- 
- 
- 
90 
- 
- 
E-SPAT - E-NET SERVIZI 
DI PRESIDIO E 
ASSISTENZA TECNICA 
Roma (IT) 
31/12/2021 
10,000
 
- 
2 
2 
- 
92 
- 
- 
EUROTORP G.E.I.E 
Vallauris (FR) 
31/12/2016 
n.d.
 
- 
- 
- 
1 
50 
- 
- 
LEONARDO TECHNICAL 
TRAINING 
Napoli (IT) 
31/12/2021 
211,123
 
- 
3 
3 
- 
61 
- 
- 
TICOM - CONS. PER LE 
TECNOL. 
DELL'INFORMAZ.E 
COMUNICAZ. 
Campi Bisenzio 
(IT) 
31/12/2021 
10,000
 
- 
- 
- 
- 
100 
- 
- 
TOTAL EQUITY INVESTMENTS IN CONSORTIUMS
1

Separate Financial Statements at 31 December 2022 
 
339 
 
Appendix no.2 (€mil.) - LIST OF EQUITY INVESTMENTS 
4/4 
Other companies 
 
 
 
 
 
 
 
Name 
Office 
Reporting 
date 
Share capital 
(total) 
Currency 
Equity 
Total 
Assets 
Total 
Liabilities 
Profit 
(loss) Ownership 
Net equity 
in 
financial 
statement
s 
Carrying 
amount 
A4ESSOR SAS 
Gennevilliers (FR) 
31/12/2021 
123,100
 
1 
65 
64 
- 
19 
- 
- 
AGGREG. PUBL-PRIV. 
SULLA LOGISTICA 
MARE-TERRA SCARL 
Napoli (IT) 
31/12/2021 
81,000
 
- 
1 
1 
- 
8 
- 
- 
CIRA CENTRO ITALIANO 
RICERCHE 
AEROSPAZIALI SCPA 
Capua (IT) 
31/12/2021 
985,224
 
113 
151 
38 
2 
12 
14 
- 
CENTRO PER GLI STUDI 
DI TECNICA NAVALE 
CETENA SpA 
Genova (IT) 
31/12/2021 
1,000,000
 
9 
34 
25 
1 
3 
- 
- 
COMPAGNIA AEREA 
ITALIANA SpA 
Roma (IT) 
31/12/2021 
3,526,846
 
9 
34 
25 
- 
- 
- 
- 
COMPETENCE 
INDUSTRY 
MANUFACTURING 4.0 
Torino (IT) 
31/12/2021 
3,460,000
 
4 
10 
6 
- 
4 
- 
- 
DISTRETTO 
AEREOSPAZIALE DELLA 
SARDEGNA SCARL 
Cagliari (IT) 
31/12/2021 
97,112
 
- 
- 
- 
- 
6 
- 
- 
DISTRETTO LIGURE 
DELLE TECNOLOGIE 
MARINE SCARL 
La Spezia (IT) 
31/12/2021 
1,140,000
 
1 
14 
13 
- 
10 
- 
- 
DISTRETTO 
TECNOLOGICO 
AEROSPAZIALE DELLA 
CAMPANIA SCARL 
Capua (IT) 
31/12/2021 
827,500
 
1 
5 
4 
- 
4 
- 
- 
DISTRETTO 
TECNOLOGICO 
AEROSPAZIALE SCARL 
Brindisi (IT) 
31/12/2021 
150,000
 
2 
13 
11 
- 
19 
- 
- 
E.O.S. S.C.R.L. 
Bruxelles (BE) 
31/12/2021 
72,000
 
- 
1 
1 
- 
2 
- 
- 
EUROPEAN SATELLITE 
NAVIGATION 
INDUSTRIES GMBH (in 
Liq.) 
Ottobrunn (DE) 
12/11/2019 
264,000
 
- 
3 
3 
- 
19 
- 
- 
I.M.A.S.T. SCRL 
Napoli (IT) 
31/12/2021 
689,000
 
2 
6 
4 
- 
7 
- 
- 
ISTITUTO DELLA ENCICL. 
ITALIANA TRECCANI SpA 
Roma (IT) 
31/12/2021 
62,124,105
 
82 
97 
15 
- 
3 
2 
3 
LOGISTICA DIGITALE SRL 
Cernusco sul 
Naviglio (IT) 
31/12/2021 
120,000
 
1 
11 
10 
(2) 
10 
- 
- 
PANAVIA AIRCRAFT 
GMBH 
Hallbergmoos 
DE) 
31/12/2021 
10,225,838
 
45 
189 
144 
3 
15 
7 
3 
SECBAT SARL 
Saint - Cloud (FR) 
31/12/2021 
32,000
 
1 
15 
14 
- 
14 
- 
- 
SIIT SCPA 
Genova (IT) 
31/12/2021 
600,000
 
1 
2 
1 
- 
12 
- 
- 
SKYDWELLER AERO INC 
Delaware (USA) 
31/12/2022 
474,004
USD 
41 
65 
24 
2 
17 
- 
10 
TEC DATABENC SCARL 
Napoli (IT) 
31/12/2021 
30,000
 
- 
- 
- 
- 
3 
- 
- 
VITROCISET 
JADWALEAN LTD 
Ryadh (KSA) 
n.d. 
2,000,000
RIAL 
SAUDITA 
- 
- 
- 
- 
45 
- 
- 
TOTAL EQUITY INVESTMENTS IN OTHER COMPANIES
16 
TOTAL EQUITY INVESTMENTS
9,638

Separate Financial Statements at 31 December 2022 
 
340 
 
  
Appendix no.3 (€ mil.)- NON-CURRENT RECEIVABLES 
31 December 2021 
Movements of the year 
31 December 2022 
 
 
Residual 
nominal 
amount 
Impairment Carrying 
amount 
Disburseme
nt 
Reclass. 
Reimburse
ments 
Residual 
nominal 
amount 
Impairment Carrying 
amount 
Receivables 
21
-
21
28 
- 
(4)
45
-
45 
- Receivables from 
subsidiaries 
443
-
443
29 
(212) 
(172)
88
-
88 
Total receivables 
464
-
464
57 
(212) 
(176)
133
-
133 
    
Appendix no. 4  (€ mil.) - ASSETS BROKEN DOWN BY MATURITY 
31 December 2021 
31 December 2022 
Amounts due 
Amounts due 
 
 from 2nd to 5th 
subsequent year beyond 5th year 
Total 
 from 2nd to 5th 
subsequent year beyond 5th year 
Total 
Receivables 
18 
3 
21
42
3 
45
Non-current loans and receivables 
from relates parties 
398 
45 
443
62
26 
88
Other non current assets 
20 
- 
20
33
- 
33
Total receivables and non-current 
assets 
436 
48 
484
137
29 
166
    
Appendix no.5 (€ mil.) - FOREIGN CURRENCY ASSETS 
31 December 2021 
31 December 2022 
In foreign 
currency 
in Euro 
Total 
In foreign 
currency 
in Euro 
Total 
Receivables 
- 
21 
21
-
45 
45
Non-current loans and receivables 
from relates parties 
327 
116 
443
5
83 
88
Other non current assets 
- 
20 
20
-
33 
33
Total receivables and other non-
current assets 
327 
157 
484
5
161 
166
Deferred tax assets 
- 
787 
787
-
841 
841
Total non-current assets 
327 
944 
1,271
5
1,002 
1,007
Loans and receivables 
- 
14 
14
-
49 
49
Loans and receivables form related 
parties 
- 
63 
63
200
77 
277
- 
77 
77
200
126 
326
Trade receivables 
372 
1,487 
1,859
413
1,575 
1,988
Trade receivables from related 
parties 
294 
840 
1,134
268
865 
1,133
666 
2,327 
2,993
681
2,440 
3,121
Other assets 
87 
261 
348
30
431 
461
Other receivables from related 
parties 
1 
26 
27
1
26 
27
88 
287 
375
31
457 
488
Income tax receivables 
6 
58 
64
7
27 
34
Cash and cash equivalents 
121 
1,754 
1,875
113
927 
1,040
Total current assets 
881 
4,503 
5,384
1,032
3,977 
5,009

Separate Financial Statements at 31 December 2022 
 
341 
 
Appendix no.6 (€ mil.) - ASSETS BY GEOGRAPHICAL AREA 
31 December 2021 
31 December 2022 
Italy 
Rest of 
Europe 
North 
America 
Rest of 
the world 
Total 
 
Italy 
Rest of 
Europe 
North 
America 
Rest of 
the world 
Total 
Receivables 
20
-
- 
1
21
16
29
-
-
45
Non-current loans and receivables 
from relates parties 
116
190
137 
-
443
83
-
5
-
88
Other non current assets 
20
-
- 
-
20
33
-
-
-
33
Total receivables and other non-
current assets 
156
190
137 
1
484
132
29
5
-
166
Deferred tax assets 
787
-
- 
-
787
841
-
-
-
841
Total non-current assets 
943
190
137 
1
1,271
973
29
5
-
1,007
Loans and receivables 
14
-
- 
-
14
13
36
-
-
49
Loans and receivables form related 
parties 
27
36
- 
-
63
38
238
1
-
277
41
36
- 
-
77
51
274
1
-
326
Trade receivables 
435
353
120 
951
1,859
456
422
160
950
1,988
Trade receivables from related 
parties 
219
626
191 
98
1,134
355
601
130
47
1,133
654
979
311 
1,049
2,993
811
1,023
290
997
3,121
Other assets 
292
26
6 
24
348
425
6
-
30
461
Other receivables from related 
parties 
26
-
1 
-
27
3
23
1
-
27
318
26
7 
24
375
428
29
1
30
488
Income tax receivables 
55
-
- 
9
64
27
-
-
7
34
Cash and cash equivalents 
1,838
2
3 
32
1,875
1,013
1
-
26
1,040
Total current assets 
2,906
1,043
321 
1,114
5,384
2,330
1,327
292
1,060
5,009

Separate Financial Statements at 31 December 2022 
 
342 
 
Appendix no.7 (€ mil.) - AVAILABLE AND DISTRIBUTABLE RESERVES 
Nature/description 
 
Amount 
Possible use 
Distributable portion  
Reserve subject to deferred 
taxation under Article 110 
of Legislative Decree 
104/2020 
Share capital (*) 
2,499 
 
Capital reserves: 
 
 
Treasury share reserve 
B 
 
 
 
 
Revenue reserves 
 
 
Legal reserve 
327 
B 
318 
Extraordinary reserve 
392 
A,B,C 
392
136 
Reserve for actuarial gains (losses) in 
equity 
(60) 
B 
 
Cash flow hedge reserve 
(58) 
B 
 
Stock grant Reserve 
45 
B 
 
Reserve for merger and demerger 
surplus 
706 
A,B,C 
706
 
Retained earnings and other reserve 
2,107 
A,B,C 
1,960
141 
Total 
5,958 
 
3,058
595 
 
 
 
Net profit/(loss) for the period 
1,701 
A,B,C 
1,616
 
 
 
 
Constraint ex art. 2426 paragraph 1 
no. 5 Civil Code 
 
 
(2,085)
 
 
 
 
Total equity 
7,659 
 
2,589
 
 
 
 
 
 
 
 
 
 
(*) less treasury shares for € mil. 26 and costs for capital increase for € mil. 19 
(**) The tied-up amount of €mil. 141 as per tax requirement (Article 110 of Legislative Decree 104/2020) is allocated to the reserve for  "Capital 
gains from transactions under common control" 
Keys: 
 
 
A: for capital increase 
 
 
B:  for loss coverage 
 
 
C:  for distribution to shareholders 
 
 
    
 
Appendix no.8 (€ mil.) - LIABILITIES BROKEN DOWN BY MATURITY 
31 December 2021 
31 December 2022 
Amounts due 
Amounts due 
from 2nd to 5th 
subsequent year beyond 5th year 
Total 
from 2nd to 5th 
subsequent year beyond 5th year 
Total 
Other non-current liabilities 
323 
486 
809
297
436 
733
Loans and borrowings (non current) 
2,362 
959 
3,321
2,486
308 
2,794
Non-current loans and borrowings to 
related parties 
367 
105 
472
473
158 
631
Total non-current liabilities 
3,051 
1,550 
4,602
3,256
902 
4,158

Separate Financial Statements at 31 December 2022 
 
343 
 
Appendix no.9 (€ mil.) - FOREIGN CURRENCY LIABILITIES 
31 December 2021 
31 December 2022 
In foreign 
currency 
in Euro 
Total 
In foreign 
currency 
in Euro 
Total 
 
 
 
Loans and borrowings (non current) 
1
3,320 
3,321
 
2
2,792
2,794 
Non-current loans and borrowings to 
related parties 
53
419 
472
 
58
573
631 
54
3,739 
3,793
 
60
3,365
3,425 
Deferred tax assets 
-
80 
80
 
-
87
87 
Other non-current liabilities 
-
666 
666
 
20
556
576 
Other non-current liabilities to 
related parties 
144
- 
144
 
157
-
157 
Total non-current liabilities 
198
4,485 
4,683
 
237
4,008
4,245 
Loans and Borrowings 
4
718 
722
 
3
100
103 
Related-parties loans and borrowings 
1,120
992 
2,112
 
1,158
1,178
2,336 
1,124
1,710 
2,834
 
1,161
1,278
2,439 
Trade payables 
385
1,595 
1,980
 
266
1,542
1,808 
Trade payables to related parties 
214
546 
760
 
172
495
667 
599
2,141 
2,740
 
438
2,037
2,475 
Other liabilities 
24
1,085 
1,109
 
24
1,308
1,332 
Other payables to related parties 
-
36 
36
 
-
81
81 
24
1,121 
1,145
 
24
1,389
1,413 
Income tax payables 
1
28 
29
 
-
64
64 
Total current liabilities 
1,748
5,000 
6,748
 
1,623
4,768
6,391

Separate Financial Statements at 31 December 2022 
 
344 
 
Appendix no. 10 (€ mil) - LIABILITIES BY GEOGRAPHICAL AREA 
31 December 2021 
31 December 2022 
 
 
Italy 
Rest of 
Europe 
North 
America 
Rest of 
the world 
Total 
Italy 
Rest of 
Europe 
North 
America 
Rest of 
the world 
Total 
 
Loans and borrowings (non current) 
2,820
500
- 
1
3,321
2,310
483
-
1
2,794
Non-current loans and borrowings to 
related parties 
419
-
53 
-
472
573
-
58
-
631
3,239
500
53 
1
3,793
2,883
483
58
1
3,425
Deferred tax assets 
80
-
- 
-
80
87
-
-
-
87
Other non-current liabilities 
666
-
- 
-
666
556
-
20
-
576
Other non-current liabilities to 
related parties 
-
-
144 
-
144
-
-
157
-
157
Total non-current liabilities 
3,984
500
197 
1
4,682
3,526
483
235
1
4,245
Loans and Borrowings 
670
48
- 
4
722
78
22
-
3
103
Related-parties loans and borrowings 
483
1,629
- 
-
2,112
460
1,860
-
16
2,336
1,153
1,677
- 
4
2,834
538
1,882
-
19
2,439
Trade payables 
1,322
281
230 
146
1,980
1,291
192
136
189
1,808
Trade payables to related parties 
236
349
78 
97
760
218
305
71
73
667
1,558
630
308 
243
2,740
1,509
497
207
262
2,475
Other liabilities 
992
76
5 
36
1,109
1,275
14
-
43
1,332
Other payables to related parties 
36
-
- 
-
36
81
-
-
-
81
1,028
76
5 
36
1,145
1,356
14
-
43
1,413
Income tax payables 
26
1
- 
2
29
63
-
-
1
64
Total current liabilities 
3,765
2,384
313 
285
6,748
3,466
2,393
207
325
6,391
 
 
 
 
 
 
 
 
 
For the Board of Directors  
The Chairman 
(Luciano Carta)

Separate Financial Statements at 31 December 2022 
 
345 
 
STATEMENT ON THE SEPARATE FINANCIAL STATEMENTS PURSUANT TO ART. 154-BIS, 
PARAGRAPH 5 OF LEGISLATIVE DECREE 58/98 AS AMENDED 
 
1. The undersigned Alessandro Profumo as the Chief Executive Officer and Alessandra Genco as the Officer 
in charge of Financial Reporting for Leonardo Spa, certify, in accordance with Article 154-bis, paragraphs 
3 and 4 of Legislative Decree 58 of 24 February 1998: 
• 
the appropriateness of the financial statements with regard to the nature of the business and 
• 
the effective application of administrative and accounting procedures in preparing the separate 
financial statements at 31 December 2022. 
2. In this respect it is noted that no significant matters arose. 
 
3. It is also certified that: 
3.1 The separate financial statements: 
• 
were prepared in accordance with International Financial Reporting Standards endorsed by the 
European Community pursuant to EU Regulation 1606/2002 of the European Parliament and of the 
Council of 19 July 2002; 
• 
correspond to the entries in the books and accounting records; 
• 
provide a true and fair view of the financial position and results of operations of the issuer.  
3.2 The Report on Operations includes a reliable analysis of the performance and the operating result, as 
well as the position of the issuer, together with a description of the main risks and uncertainties it is 
exposed to. 
 
This statement also is made pursuant to and for the purposes of Article 154-bis, paragraph 2, of Legislative 
Decree 58 of 24 February 1998. 
 
Rome, 9 March 2023 
 
 
 
 
 
Chief Executive Officer 
(Alessandro Profumo) 
Officer in charge of financial reporting 
(Alessandra Genco)

Separate Financial Statements at 31 December 2022 
 
346 
 
 
INDEPENDENT AUDITOR’S REPORT ON THE SEPARATE FINANCIAL STATEMENTS AS AT 
31 DECEMBER 2022

Leonardo S.p.A. 
Financial statements as at December 31, 2022 
 
Independent auditor’s report pursuant to article 14 of 
Legislative Decree n. 39, dated 27 January 2010, and article 
10 of EU Regulation n. 537/2014

EY S.p.A. 
Via Lombardia, 31 
00187 Roma 
Tel: +39 06 324751 
Fax: +39 06 324755504 
ey.com 
 
EY S.p.A. 
Sede Legale: Via Meravigli, 12 – 20123 Milano  
Sede Secondaria: Via Lombardia, 31 – 00187 Roma 
Capitale Sociale Euro 2.525.000,00 i.v. 
Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi 
Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 
Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 
Iscritta all’Albo Speciale delle società di revisione 
Consob al progressivo n. 2 delibera n.10831 del 16/7/1997 
 
A member firm of Ernst & Young Global Limited 
 
 
 
Independent auditor’s report pursuant to article 14 of Legislative 
Decree n. 39, dated January 27, 2010 and article 10 of EU Regulation 
n. 537/2014 
(Translation from the original Italian text) 
 
 
 
To the Shareholders of  
Leonardo S.p.A. 
 
 
Report on the Audit of the Financial Statements  
 
Opinion  
We have audited the financial statements of Leonardo S.p.A. (the Company), which comprise the 
statement of financial position as at December 31, 2022, the separate income statement, the 
statement of comprehensive income, the statement of cash flows and the statement of changes in 
equity for the year then ended, and notes to the financial statements, including a summary of 
significant accounting policies. 
 
In our opinion, the financial statements give a true and fair view of the financial position of the 
Company as at December 31, 2022, and of its financial performance and its cash flows for the year 
then ended in accordance with International Financial Reporting Standards as adopted by the 
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 
38/2005. 
 
Basis for Opinion 
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our 
responsibilities under those standards are further described in the Auditor’s Responsibilities for the 
Audit of the Financial Statements section of our report. We are independent of the Company in 
accordance with the regulations and standards on ethics and independence applicable to audits of 
financial statements under Italian Laws. We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our opinion. 
 
Key Audit Matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in 
our audit of the financial statements of the current period. These matters were addressed in the 
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and 
we do not provide a separate opinion on these matters.

We identified the following key audit matters: 
 
 
Key Audit Matter 
Audit response 
Recognition of revenues and losses from long-
term contracts with customers 
 
 
Revenues from long-term contracts with 
customers are recognized “over-time” using an 
input method for measuring progress towards 
complete satisfaction of performance 
obligations based on the percentage of 
completion obtained from the ratio of incurred 
costs on the total expected costs for the 
contract over the life of the project (cost to cost 
method). 
The estimation of the total expected project 
costs is, by its nature, complex and 
characterized by significant uncertainties as it 
may be impacted by many factors, including the 
ability to fulfill the obligations assumed towards 
customers, which may also result in penalties 
and additional expenses for significant amounts. 
 
Therefore, the estimate involves a high degree 
of judgment by Directors that may significantly 
affect the contract revenues recognition and 
any loss at completion in cases of negative 
margin expectation. Accordingly, we identified 
this area as a key audit matter. 
 
The disclosures related to the criteria applied for 
the recognition and measurement of revenues 
and margins on long-term contracts with 
customers are included in notes “3. Accounting 
principles”, “14. Contract assets and liabilities”, 
“22. Provisions for risk and charges and 
contingent liabilities” and “27. Revenues”. 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
the understanding of the criteria applied 
for the recognition of revenues from 
long-term contracts with customers; 
• 
the assessment of the process and key 
controls over the recognition of 
revenues from long-term contracts with 
customers; 
• 
for a sample of contracts we performed: 
(i) testing of relevant contractual terms 
and conditions in order to verify 
whether those were adequately 
considered in management 
estimates; 
(ii) testing of the reasonableness of key 
assumptions underlying the 
estimation of the life-of-project 
costs based on inquiries, analysis of 
any communications with customers 
and comparative analysis; 
(iii) comparative analysis between 
actual figures and estimates made 
in previous periods in order to 
assess the accuracy of 
management’s forecasting; 
(iv) testing of incurred costs and their 
allocation to proper on-going 
contracts. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter. 
 
 
Test of the recoverability of goodwill and 
equity investments 
 
 
Goodwill as at December 31,2022 amounts to 
Euro 708 million; Equity investments amount to 
Euro 9.638 million after recognizing a reversal 
of an impairment loss in Leonardo US Holding 
LLC investment of Euro 1.290 million. 
 
Directors tested for impairment the Cash 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
the assessment of the procedure applied 
in the performance of the impairment 
test as approved by the Directors; 
• 
testing of the criteria applied for 
identifying the CGUs and allocating

2 
Generating Units (CGUs) to which goodwill and 
equity investments have been allocated in order 
to identify any impairment loss in respect of 
their recoverable amount. 
 
The recoverable amount of each CGU is 
determined using the value in use method and it 
is based on complex assumptions that inherently 
involve a degree of judgment by Directors, with 
reference to the expected cash flows over the 
period considered in the Business Plan 2023-
2027, to the estimate of the terminal value and 
the determination of the long-term growth and 
discount rates. 
 
Because of the judgement involved and the 
complexity of the assumptions underlying the 
estimation of the recoverable amount of 
goodwill and equity investments, we identified 
this area as a key audit matter. 
 
Disclosures on the assumptions and the 
estimations adopted when performing the 
impairment test are included in the notes “3. 
Accounting Principles“, “8. Intangible Assets” 
and “11. Equity investments”. 
relevant assets and liabilities to them; 
• 
the assessment of the presence of any 
impairment indicator on the 
recoverability of equity investments and 
reversals of impairment losses; 
• 
the analysis of the expected cash flows 
of each CGU and testing of their 
consistency with the expected cash 
flows resulting from the Business Plan 
2023-2027; 
• 
the assessment of the reasonableness 
of the estimates made by Directors, also 
by comparing actual figures and 
estimates made in previous periods; 
• 
the assessment of the long-term growth 
and discount rates; 
• 
the assessment of the sensitivity 
analysis performed by Directors on key 
assumptions underlying the impairment 
test. 
 
In performing our procedures we involved our 
experts in valuation techniques. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter. 
 
 
Recognition and subsequent measurement of 
non-recurring costs and development costs 
 
 
Non-recurring costs and developments costs 
capitalized as intangible assets as at December 
31, 2022 amount to an aggregate of Euro 
2.085 million. 
 
The initial recognition of these assets and the 
subsequent assessment of their recoverability 
are based on complex assumptions that 
inherently involve a degree of judgment by 
Directors as influenced by many factors 
including the time horizon of the product 
business plans and management’s ability to 
forecast the commercial success of the 
underlying technologies. 
 
Because of the judgement involved and the 
complexity of the underlying assumptions, we 
identified this area as a key audit matter. 
 
Disclosures on the assumptions and the 
 
Our audit procedures in response to the key 
audit matter included, among others: 
• 
understanding of the processes applied 
in recognizing for non-recurring costs 
and development costs and the process 
related to the assessment of their 
recoverability; 
• 
for a sample of development programs 
we performed: 
(i) substantive procedures aimed at 
verifying internal and external costs 
recognized during the period; 
(ii) assessment of the reasonableness 
of key assumptions underlying the 
product business plans; 
(iii) testing of the discount rates; 
(iv) assessment of the sensitivity 
analysis performed by Directors on 
the key assumptions underlying the 
impairment test.

3 
estimations adopted in the recognition and 
subsequent measurement of non-recurring costs 
and development costs are included in the notes 
“3. Accounting principles“ and “8. Intangible 
Assets”. 
 
In performing our procedures we involved our 
experts in valuation techniques. 
 
Lastly, we have reviewed the disclosures 
provided in the notes to the financial statements 
regarding this key audit matter. 
 
 
Responsibilities of Directors and Those Charged with Governance for the Financial 
Statements 
The Directors are responsible for the preparation of the financial statements that give a true and fair 
view in accordance with International Financial Reporting Standards as adopted by the European 
Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005, and, 
within the terms provided by the law, for such internal control as they determine is necessary to 
enable the preparation of financial statements that are free from material misstatement, whether due 
to fraud or error. 
 
The Directors are responsible for assessing the Company’s ability to continue as a going concern and, 
when preparing the financial statements, for the appropriateness of the going concern assumption, 
and for appropriate disclosure thereof. The Directors prepare the financial statements on a going 
concern basis unless they either intend to liquidate the Company or to cease operations or have no 
realistic alternative but to do so. 
 
The statutory audit committee (Collegio Sindacale) is responsible, within the terms provided by the 
law, for overseeing the Company’s financial reporting process. 
 
Auditor’s Responsibilities for the Audit of the Financial Statements  
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee 
that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will always 
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 
considered material if, individually or in aggregate, they could reasonably be expected to influence the 
economic decisions of users taken on the basis of these financial statements. 
 
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have 
exercised professional judgment and maintained professional skepticism throughout the audit. In 
addition: 
• 
we have identified and assessed the risks of material misstatement of the financial 
statements, whether due to fraud or error, designed and performed audit procedures 
responsive to those risks, and obtained audit evidence that is sufficient and appropriate to 
provide a basis for our opinion. The risk of not detecting a material misstatement resulting 
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control; 
• 
we have obtained an understanding of internal control relevant to the audit in order to design 
audit procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of the Company’s internal control;  
• 
we have evaluated the appropriateness of accounting policies used and the reasonableness of 
accounting estimates and related disclosures made by the Directors;

4 
 
• 
we have concluded on the appropriateness of Directors’ use of the going concern basis of 
accounting and, based on the audit evidence obtained, whether a material uncertainty exists 
related to events or conditions that may cast significant doubt on the Company’s ability to 
continue as a going concern. If we conclude that a material uncertainty exists, we are required 
to draw attention in our auditor’s report to the related disclosures in the financial statements 
or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the Company to cease to continue as a going 
concern; 
• 
we have evaluated the overall presentation, structure and content of the financial statements, 
including the disclosures, and whether the financial statements represent the underlying 
transactions and events in a manner that achieves fair presentation. 
 
We have communicated with those charged with governance, identified at an appropriate level as 
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and 
significant audit findings, including any significant deficiencies in internal control that we identify 
during our audit.  
 
We have provided those charged with governance with a statement that we have complied with the 
ethical and independence requirements applicable in Italy, and we have communicated them all 
matters that may reasonably be thought to bear on our independence, and where applicable, the 
actions taken to eliminate relevant risks or the safeguard measures applied. 
 
From the matters communicated with those charged with governance, we have determined those 
matters that were of most significance in the audit of the financial statements of the current period 
and are therefore the key audit matters. We have described these matters in our auditor’s report. 
 
Additional information pursuant to article 10 of EU Regulation n. 537/14 
The Shareholders of Leonardo S.p.A., in the general meeting held on May 20, 2020, engaged us to 
perform the audits of the financial statements and consolidated financial statements for each of the 
years ending December 31, 2021 to December 31, 2029. 
 
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU 
Regulation n. 537/2014, and that we have remained independent of the Company in conducting the 
audit. 
 
We confirm that the opinion on the financial statements included in this report is consistent with the 
content of the additional report to the audit committee (Collegio Sindacale) in their capacity as audit 
committee, prepared pursuant to article 11 of the EU Regulation n. 537/2014.   
 
 
Report on compliance with other legal and regulatory requirements 
 
Opinion on the compliance with Delegated Regulation (EU) 2019/815 
The Directors of Leonardo S.p.A. are responsible for applying the provisions of the European 
Commission Delegated Regulation (EU) 2019/815 for the regulatory technical standards on the 
specification of a single electronic reporting format (ESEF – European Single Electronic Format) (the 
“Delegated Regulation”) to the financial statements, to be included in the annual financial report.

5 
 
We have performed the procedures under the audit standard SA Italia n. 700B, in order to express an 
opinion on the compliance of the financial statements as at December 31, 2022 with the provisions of 
the Delegated Regulation. 
In our opinion, the financial statements as at December 31, 2022 have been prepared in the XHTML 
format in compliance with the provisions of the Delegated Regulation. 
 
Opinion pursuant to article 14, paragraph 2, subparagraph e), of Legislative 
Decree n. 39 dated January 27, 2010 and of article 123-bis, paragraph 4, of 
Legislative Decree n. 58, dated February 24, 1998 
The Directors of Leonardo S.p.A. are responsible for the preparation of the Report on Operations and 
of the Report on Corporate Governance and Ownership Structure of Leonardo S.p.A. as at December 
31, 2022, including their consistency with the related financial statements and their compliance with 
the applicable laws and regulations.  
We have performed the procedures required under audit standard SA Italia n. 720B, in order to 
express an opinion on the consistency of the Report on Operations and of specific information 
included in the Report on Corporate Governance and Ownership Structure as provided for by article 
123-bis, paragraph 4, of Legislative Decree n. 58, dated February 24, 1998, with the financial 
statements of Leonardo S.p.A. as at December 31, 2022 and on their compliance with the applicable 
laws and regulations, and in order to assess whether they contain material misstatements. 
In our opinion, the Report on Operations and the above mentioned specific information included in 
the Report on Corporate Governance and Ownership Structure are consistent with the financial 
statements of Leonardo S.p.A. as at December 31, 2022 and comply with the applicable laws and 
regulations. 
With reference to the statement required by art. 14, paragraph 2, subparagraph e), of Legislative 
Decree n. 39, dated January 27, 2010, based on our knowledge and understanding of the entity and 
its environment obtained through our audit, we have no matters to report. 
 
 
Rome, March 16, 2023 
 
EY S.p.A. 
Signed by: Riccardo Rossi, Auditor 
 
 
The accompanying financial statements of Leonardo S.p.A. constitute a non-official version which is 
not compliant with the provisions of the Commission Delegated Regulation (EU) 2019/815.  This 
independent auditor’s report has been translated into the English language solely for the convenience 
of international readers. Accordingly, only the original text in Italian language is authoritative.

Separate Financial Statements at 31 December 2022 
 
347 
 
 
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’ MEETING

1 
REPORT OF THE BOARD OF STATUTORY AUDITORS  
TO THE SHAREHOLDERS’ MEETING OF LEONARDO S.P.A. 
CALLED TO APPROVE THE 2022 FINANCIAL STATEMENTS 
(PURSUANT TO ART. 153 OF LEGISLATIVE DECREE NO. 58/1998) 
 
 
To the Shareholders' Meeting of the company Leonardo S.p.a. 
 
Dear Shareholders, 
the Board of Statutory Auditors of the company Leonardo S.p.a. (hereinafter also “the 
Company”) hereby submits its report pursuant to Article 153 of Legislative Decree No. 58/1998 
(T.U.F. - Testo Unico della Finanza, Consolidated Law on Financial Intermediation) to report 
on the activity performed. 
The Board of Statutory Auditors serving at present was appointed by the Shareholders’ 
Meeting on 19 May 2021 and will terminate its mandate with the Shareholders' Meeting to 
approve the Financial Statements as at 31 December 2023.  
The Board of Statutory Auditors consists of the following members: Mr Luca Rossi, 
Chairman, Ms Anna Rita de Mauro, Ms Sara Fornasiero, Mr Leonardo Quagliata and Mr Amedeo 
Sacrestano, Regular Auditors.  
The Shareholders’ Meeting held on 20 May 2020 appointed the independent auditing firm 
EY S.p.A. (hereinafter also the “Auditing Firm”), to carry out the statutory audit of accounts 
starting from 2021 and for the period from 2021 to 2029. 
During the year ended on 31 December 2022 the Board of Statutory Auditors, also in its 
capacity as Internal Control and Auditing Committee, carried out the checks and other 
supervisory activities in compliance with the relevant laws and regulations in force, as well as 
the Corporate Governance Code, the Rules of Conduct of the Board of Statutory Auditors of 
listed companies issued by the National Council of Chartered Accountants and Accounting 
Experts and the Communications issued by CONSOB regarding corporate checks and the 
activities of the Board of Statutory Auditors.  
During the year, by the Decree of the President of the Council of Ministers of 1 June 2022, 
Leonardo S.p.a. was subject to the audit of the Court of Auditors pursuant to Art. 12 of Law 
No. 259 of 21 March 1958. We point out that, by virtue of the provisions of Art. 12 of Law No. 
259/1958, the Delegated Judge for the audit of the financial transactions attends the meetings 
of the Board of Directors and of the Board of Statutory Auditors of Leonardo S.p.a.

2 
This report has been prepared in accordance with the instructions provided by CONSOB 
with Communication DEM/1025564 of 6 April 2001 as amended and supplemented.  
*   *   * 
The Board of Statutory Auditors has adopted its own Rules of Procedure which govern the 
role, organization and the methods of functioning of the body, in line with the main 
organizational aspects of Leonardo’s corporate governance model, in the light of the principles 
and rules laid down by the Corporate Governance Code and by the Rules of conduct of the 
boards of statutory auditors of listed companies. 
During the year the Board of Statutory Auditors – in the meeting held on 28 February 2023 
– provided for the self-assessment of the independence of its members, whose outcome 
confirmed the existence of the independence requirements for all its members. It is hereby 
acknowledged that no Statutory Auditor has had any interests, on his/her own behalf or on 
behalf of third parties, in any transaction of the Company during the financial year and that 
the members of the Board of Statutory Auditors have complied with the cumulation of offices 
required by Art. 144-terdecies of the Issuers’ Regulation.  
As required by the Corporate Governance Code, the Board of Statutory Auditors, within the 
scope of the tasks assigned to it by law, verified the correct application of the assessment 
criteria and procedures adopted by the Board of Directors to assess the independence of its 
members. 
As in previous years, the Board carried out a self-assessment process relating to the 2022 
financial year, thus making use of the support of the external consultant (Eric Salmon & 
Partners S.r.l.) for the third year running. This self-assessment process was aimed at gathering 
the opinions of the members of the Board of Statutory Auditors regarding both the work and 
the composition of the Board itself, in line with the provisions of the Rules of Conduct of the 
Board of Statutory Auditors of listed companies issued by the National Council of Chartered 
Accountants and Accounting Experts. The results, the assessments carried out and the 
conclusive instructions of the Board of Statutory Auditors were discussed collectively and 
subsequently collected in the document called "Analysis of the results and comments of the 
Statutory Auditors", on the basis of which an executive summary was prepared, sent to the 
Board of Directors and whose content was incorporated in the Report on Corporate Governance 
and Shareholder Structure. 
*   *   * 
The Board of Statutory Auditors regularly met during the year, minuting the control 
activities carried out. As part of the activities and tasks assigned to the Board of Statutory 
Auditors while implementing the relevant regulations, the Board of Statutory Auditors:

3 
a) 
held twenty-seven meetings in 2022 and seven meetings from the beginning of 2023 
to the date of this report and carried out audits and gathered information from the heads of 
the different corporate functions, periodically meeting the top positions for an exchange of 
information on the performance of the corporate transactions, thus acquiring the knowledge 
necessary to monitor, pursuant to Art. 149 of T.U.F., the compliance with the law and the 
memorandum of association, the compliance with the principles of correct management and 
the adequacy of the organizational structure, the internal control system, the administrative-
accounting system, also pursuant to Art. 2086 of the Italian Civil Code and of Legislative 
Decree No. 14 of 12 January 2019 (Business Crisis and Insolvency Code), as well as the 
implementation of the corporate governance rules from the codes of conduct and the adequacy 
of the instructions given to the subsidiaries, without any remark; relations with the Company's 
personnel were inspired by mutual collaboration in compliance with the subjective roles and 
areas of competence and each body or function of the Company has fulfilled the reporting 
obligations provided for by the applicable regulation; 
b) 
attended the Shareholders’ Meeting held on 31 May 2022 in its ordinary session, to 
which the Shareholders were able to intervene exclusively through the designated 
representative, pursuant to Art. 106 of Legislative Decree No. 18/2020, subsequently 
converted into Law No. 27/2020, whose efficacy was extended by Law Decree No. 228 of 30 
December 2021, converted with amendments by Law No. 15 of 25 February 2022, until 31 
July 2022;  
c) 
attended the twelve meetings held by the Board of Directors during 2022 and the three 
meetings held from the beginning of 2023 to the date of this report, during which it was 
informed of the work done and of the financial transactions which are materially important in 
terms of the Company’s assets and financial position carried out by the Company and its 
subsidiaries, thus obtaining adequate and timely information on their performance;  
d) 
attended the fourteen meetings of the Control and Risks Committee, the seven 
meetings of the Remuneration Committee, the eight meetings of the Nomination and 
Governance Committee, the seven meetings of the Sustainability and Innovation Committee 
held in 2022 and the five meetings of the Control and Risks Committee, the two meetings of 
the Remuneration Committee, the two meetings of the Nomination and Governance 
Committee, the three meetings of the Sustainability and Innovation Committee held from the 
beginning of 2023 to the date of this report, thus acknowledging that the above-mentioned 
Committees have worked in compliance with the provisions of the Corporate Governance Code 
and their own Rules of Procedure. 
An effective flow of information is in place between the Board of Statutory Auditors, the 
Board of Directors, the internal Committees and the Company’s offices.

4 
The collaboration and discussions with the Control and Risks Committee, also through the 
organization of joint meetings on topics of common interest, have been fruitful and effective 
and have, among other things, allowed to complete the analysis process of the Board of 
Statutory Auditors on risk control and management, thus acquiring further information with 
respect to that obtained through the constant contacts and meetings with the Chief Audit 
Executive (“CAE”) and the Chief Risk Officer of the Company, as well as with the other persons 
involved in any capacity in the internal control and risk management system including the 
Group General Counsel. 
The Board of Statutory Auditors, in particular, acknowledges that during the meetings of 
the Control and Risks Committee, checks were carried out, as established by the Corporate 
Governance Code and the Committee's Rules of Procedure, regularly presented to the Board 
of Statutory Auditors also as Internal Control and Auditing Committee, in particular monitoring 
the adequacy and effectiveness of the Internal Control and Risks Management System, with 
respect to the Company’s characteristics and the risk factor accepted and of the Work Plan 
prepared by the CAE and referred to the audits of Leonardo planned for 2022 and carried out 
by the Group Internal Audit O.U. (“GIA”) in the relevant period (April 2022 – March 2023). 
Furthermore, the Board of Statutory Auditors acknowledged that the Control and Risks 
Committee expressed its favourable opinion on 8 March 2023 on the annual assessment of the 
adequacy of the Internal Control and Risks Management System. Furthermore, the Board of 
Statutory Auditors acknowledged that the Board of Directors, on 9 March 2023, assessed, also 
in light of Art. 2086 of the Italian Civil Code, the adequacy of the organizational, administrative 
and accounting structure of the Company and strategic subsidiaries, also for the purpose of 
timely detection of the company's crisis and loss of business continuity, after having heard the 
CAE and obtained the opinion of the Control and Risks Committee with specific reference to 
the Internal Control and Risks Management System; 
e) 
as part of the periodic meetings with the CAE, it acknowledged the results of the control 
activities carried out in 2022 and concluded in the first months of 2023, in line with the audit 
plan and the special audits carried out from time to time, following reports received from the 
Company or requested by management. From the recurring audit activities, the opportunity 
sometimes emerged to implement improvement actions on the processes examined that, after 
being shared with the corporate management, were reflected in Action Plans whose 
implementation was monitored by the GIA O.U. on a quarterly basis and whose results were 
transmitted to the Top management. As for Special Audit activities required to the GIA O.U. 
by management or the Whistleblowing Committee, the Board acknowledged that the results 
of some audits, in a few cases, led to the Leonardo management taking management initiatives 
in order also to strengthen and implement corporate procedures. The Board also acknowledged 
the results of the "Quality Assurance and Improvement Plan" (QAIP) of the GIA O.U. prepared

5 
in order to monitor and improve the effectiveness, efficiency and quality of its activities; the 
results revealed, for all the audits sampled, a General Compliance with international standards 
and best practices that is the "highest compliance degree" required by the Institute of Internal 
Auditors. Furthermore, the Board was informed that the GIA O.U. intends to develop, also for 
2023, internal audit activities on the quality of its work, through a new Quality Assurance & 
Improvement Plan. The results of the 2022 Plan and the activities envisaged by the new 2023 
QAIP were analyzed by the Control and Risks Committee in the meeting of 25 January 2023 
and explained to the Board of Directors on 26 January 2023;  
f) 
received information about the activities carried out by the GIA O.U. in order to 
evaluate the operations of the Internal Control over Financial Reporting (hereinafter ICFR) 
system at Leonardo S.p.a. and the companies falling under the scope of Law 262/2005. In 
addition to the Test 262 activities for 2022, the Board was informed by the GIA O.U. about the 
specific monitoring (the so-called “Detection Audit”), as an anti-fraud component of the ICFR 
Model. Following the performance of these activities, the GIA O.U. informed the Board of 
Statutory Auditors that no critical issues emerged such as to affect the reliability of the Internal 
Control System with regard to Accounting and Financial Information; 
g) 
received information about the Control Model on the Leonardo Non-Financial Reporting, 
designed also to allow the issue a “reasonable assurance” opinion by the independent auditing 
firm in relation to a set of selected of indicators within the consolidated non-financial 
statement;  
h) 
periodically met with the Officer in charge of financial reporting;  
i) 
periodically met the Surveillance Body pursuant to Legislative Decree No. 231/2001;  
j) 
received regular reports prepared by the Whistleblowing Committee, based on the 
“Whistleblowing Management Guidelines” by virtue of which the statutory auditors are 
informed by the Surveillance Body at the same time as the members of the Whistleblowing 
Committee about the reports received by the Company. Within such context, the Board was 
informed of both the decisions taken from time to time by the Surveillance Body and of the 
results of the audits carried out, commissioned to the GIA O.U. or to other relevant functions 
by the Whistleblowing Committee; 
k) 
also participated, in the person of the Chairman, in the meetings of the Coordinating 
and Consultative Body for the prevention of corruption, chaired by the Chairman of the Board 
of Directors and composed of the Chairman of the Control and Risks Committee, the Chairman 
of the Surveillance Body and the Chairman of the Board of Statutory Auditors; it was also 
informed of the activity carried out by the same Body within the framework of the reports that 
it periodically provides to the Board;

6 
l) 
was informed of the activities carried out by the Anti-corruption organizational unit, 
acknowledging the annual audit, by the Certification Body, of the ISO 37001:2016 (“Anti-
bribery Management System”) certification; 
m) 
was periodically updated regarding the main disputes of the Company and the Group, 
thus monitoring their progress during the financial year; 
n) 
during 2022 and from the beginning of 2023 to the date of this report, received from 
the independent auditing firm information on the audit strategy, the areas of attention, the 
checks performed and the related outcomes, as well as the essential issues encountered in 
carrying out the activity pursuant to the provisions of Art. 19 of Legislative Decree No. 39/2010 
and Art. 11 of Regulation (EU) No. 537/2014; 
o) 
verified the full compliance with of the obligations regarding regulated, privileged or 
required information by the Supervisory Authorities;  
p) 
received every six months from the Company, through the Legal, Corporate Affairs, 
Compliance, Criminal Law and Anti-corruption organizational unit, information on Transactions 
with Related Parties initiated or concluded during the period, including those exempt 
transactions under Consob Regulation No. 17221/2010 as amended and supplemented and 
the Leonardo S.p.A. procedure, as well as the information on the distribution of the powers to 
represent the Company; 
q) 
verified the timeliness of the information flows between the Parent Company and the 
other Group companies and the adequacy of the instructions given to the subsidiaries, pursuant 
to Art. 114, paragraph 2, of T.U.F.; 
r) 
received adequate information, with reference to the provisions of Articles 15 et seq. 
of the Market Regulation, relating to the subsidiaries established and regulated by the laws of 
non-EU countries, by the CAE on 7 March 2023, brought to the attention also of the Control 
and Risks Committee, showing, for the companies that are significant according to the criteria 
set by the Issuers’ Regulation, a control environment substantially adequate to the 
requirements referred to in the above-mentioned Art. 15. Therefore, the preparation of a 
specific adjustment plan is not required;  
s) 
verified that the Report on Corporate Governance and Shareholder Structure contains 
all the information required by Art. 123-bis of T.U.F. as well as other information provided in 
compliance with the regulation governing issuers listed on regulated markets;  
t) 
was informed of changes in the organizational structure, thus supervising the 
existence, updating and effective dissemination of the corporate directives and procedures and 
the general adequacy of the organizational structure; 
u) 
supervised the adequacy of the internal control system and the administrative and 
accounting system and the reliability of the latter as a means of accurately reporting business 
operations;

7 
v) 
met with the Boards of Statutory Auditors of the main subsidiaries in order to acquire 
information in particular regarding the operation of the company business, the reliability of the 
internal control system and the company organization, the relevant dispute - as required by 
Art. 151 of T.U.F. - and compliance with internal procedures issued by the Parent Company. 
In particular, the checks were aimed at acquiring information and assessments regarding the 
management and control systems of the subsidiaries: on these profiles the Boards of Statutory 
Auditors of the Group companies did not represent critical issues worthy of mention. All the 
Boards of Statutory Auditors involved also expressed a positive opinion regarding the adequacy 
of the organizational, administrative and accounting system of the respective companies; no 
breach of procedures qualifying as material or significant emerged, nor any gaps or 
inadequacies in the internal control systems; for foreign companies controlled directly by 
Leonardo S.p.a. the supervisory activity of the Board developed with the collaboration of the 
Group Internal Audit organizational unit. Specifically, in relation to the 2022 ordinary Audit 
Plan, the Board was periodically informed, together with the Control and Risks Committee, 
about the results of the audits carried out at the said Leonardo Group foreign companies and 
about the related results expressed in the audit reports; 
w) 
actively participated in all the meetings organized by the Company as part of the 
“Induction” program proposed to the Corporate Bodies, in compliance with the Corporate 
Governance Code, in order to increase the skills and knowledge of the business sectors in 
which the Company operates and to investigate news introduced by legislation and regulation 
that have a direct impact on the supervisory role of the Board of Statutory Auditors; 
x) 
received, on a quarterly basis, an update by the Chief Executive Officer regarding the 
exercise of the delegated powers granted by the Board of Directors and the implementation of 
the Board's resolutions.  
The Board of Statutory Auditors, also in compliance with the recommendations of the 
CONSOB Resolution DEM/1025564 of 6 April 2001, reports that it has not found any critical 
issues regarding the main transactions of greater financial and economic importance, carried 
out during the reporting period, including through subsidiaries, which are shown in the draft 
financial statements to which reference should be made. 
With reference to significant transactions having an impact on the overall operating model 
of the Company, the Board of Statutory Auditors monitored, in close relation with the 
independent directors (and in particular with the Control and Risks Committee), a set of 
organizational changes that the Company has put in place during the year for the 
implementation and monitoring of the initiatives envisaged in the Industrial Plan. 
The Board of Statutory Auditors did not detect any atypical and/or unusual transactions 
that, due to their significance or relevance, the nature of the counterparties, the object of the 
transaction, the methods for determining the transfer price and the timing of the event, could

8 
give rise to doubts regarding the correctness/completeness of the information in the financial 
statements, conflict of interests, safeguarding of corporate assets, protection of minority 
shareholders. 
*   *   * 
Furthermore, the Board, in the course of the activities carried out: 
a) 
find no omissions or reprehensible facts; 
b) 
acknowledged that no reports were made by Shareholders pursuant to Art. 2408 of 
the Italian Civil Code; 
c) 
acknowledged that no complaints were received; 
d) 
acknowledged that no appeals were notified to the Company related to reports to a 
court pursuant to Art. 2409, first paragraph, of the Italian Civil Code, nor was the Bord 
required to make reports pursuant to Art. 2409, paragraph 7, of the Italian Civil Code; 
e) 
was not required to take action due to omissions by the Board of Directors pursuant to 
Art. 2406 of the Italian Civil Code; 
f) 
made no reports to the Board of Directors pursuant to and for the purposes of Art. 25-
octies of Legislative Decree No. 14/2019; 
g) 
expressed its opinion in all the cases provided for by the law and by the corporate 
governance code and, in particular, with regard to the correct application of the criteria for 
assessing the independence of directors and the remuneration of the CEO and CAE;  
h) 
verified the methods of actual implementation of the corporate governance rules, as 
well as the conclusion of the process of adaptation to the Corporate Governance Code; 
i) 
also supervised the corporate documents and information to the market, in particular: 
- 
noted that the Report on Operations to the financial statements for the financial 
year 2022 contains adequate information on transactions with related parties and 
has verified, pursuant to Art. 4, sixth paragraph, of the Regulation approved by 
CONSOB with resolution 17221 of 12 March 2010 as amended, the compliance of 
the “Procedure for Related Parties Transactions”, implemented by the Company, 
with the principles listed in the same Regulation, as well as full compliance with 
this procedure for individual transactions with related parties entered into during 
the financial year;  
- 
ascertained that the 2022 Integrated Annual Report had been drafted on the single 
electronic reporting format provided for by the European Commission Delegated 
Regulation No. 2019/815 of 17 December 2018; 
- 
supervised communications to the market, thus monitoring the adequacy of the 
related procedures;

9 
f) 
acknowledges that, in compliance with the recommendations of the joint Banca 
d’Italia-CONSOB-ISVAP document No. 4 of 3 March 2010, the Impairment Test procedure 
governed by IAS 36 received the favorable opinion of the Control and Risks Committee on 28 
February 2023 and was approved by the Board of Directors on 1 March 2023; in this regard, 
the Board monitored the substantive and formal legitimacy of the impairment process;  
g) 
verified that the Company has fulfilled the obligations provided for by Legislative 
Decree No. 254/2016 and that, in particular, has prepared the Integrated Annual Report as a 
single document that includes the consolidated non-financial statement in accordance with the 
provisions of Articles 3 and 4 of the same decree; it also verified that the above-mentioned 
statement was accompanied by the report of the Independent Auditing firm EY S.p.A. pursuant 
to Art. 3, paragraph 10, of Legislative Decree No. 254/2016 that certified that the Directors 
had prepared the non-financial statement, as part of the Report on Operations of the 
Integrated Annual Report; by virtue of a specific assignment, the Auditing Firm also issued on 
16 March 2023 a report, without qualifications, in the form of "Negative Assurance", on the 
compliance of the information relating to the non-financial statement, in all material aspects, 
with articles 3 and 4 of Legislative Decree 254/2016 and with the GRI standards, as well as a 
“reasonable assurance” on a set of selected indicators within the consolidated non-financial 
statement. 
*   *   * 
The responsibility for expressing an opinion on the financial statements pursuant to Article 
14 of Legislative Decree No. 39 of 27 January 2010 lies with the auditing firm EY S.p.A., 
entrusted with the statutory audit of the accounts. 
Since the Board of Statutory Auditors is not entrusted with the analytical control on the 
merits of the content of the financial statements, the Board of Statutory Auditors supervised 
the Directors' compliance with the procedural rules relating to the preparation, approval and 
publication of the draft financial statements, assessing their overall compliance with the law 
with regard to their formation and structure, and supervised the process of preparing and 
presenting the financial statement disclosures to the Shareholders' Meeting. 
The Auditing Firm released the reports pursuant to Art. 14 of Legislative Decree No. 39 of 
27 January 2010 and of articles 10 and 11 of EU Regulation No. 537/2014; the aforementioned 
reports show that there are no qualifications or emphasis of matters, nor statements issued 
pursuant to subparas. e) and f) of Art. 14, second paragraph of Legislative Decree No. 
39/2010. 
More specifically, the Board examined the Independent Auditors' Reports on the 
Consolidated Financial Statements of the Leonardo Group and on the Separate Financial 
Statements of the Company for the year ended 31 December 2022 issued, pursuant to Art. 14

10 
of Legislative Decree No. 39/2010 and Art. 10 of the EU Reg. No. 537/2014, on 16 March 2023 
and with which the auditor certified that: 
- 
the consolidated financial statements of the Group as at 31 December 2022 and the 
separate financial statements of the Company provide a true and fair view of the 
financial position as at 31 December 2022, the result of operations and the cash flows 
for the financial year then ended in compliance with the International Financial 
Reporting Standards adopted by the European Union as well as the provisions issued 
in implementation of Art. 9 of Legislative Decree No. 38/2005 and are prepared in 
compliance with the European Commission Delegated Regulation (EU) 2019/815 of 17 
December 2018; 
- 
the Report on Operations and some specific information contained in the Report on 
Corporate Governance and Shareholder Structure indicated in Art. 123-bis, paragraph 
4, of Legislative Decree No. 58/1998 are consistent with the financial statements of 
the Company and with the consolidated financial statements of the Group and drafted 
in compliance with the law; 
- 
the opinion on the separate financial statements and consolidated financial statements 
expressed in the aforementioned Reports is in line with what is shown in the Additional 
Report prepared pursuant to Art. 11 of EU Regulation No. 537/2014. 
The Board also examined the contents of the Additional Report pursuant to Art. 11 of EU 
Regulation No. 537/2014, which is sent to the Board of Directors, whose examination shows 
no aspects that need to be highlighted in this report. 
The Board, pursuant to Art. 19 of Legislative Decree No. 39/2010 and Art. 150, paragraph 
3 of T.U.F., periodically met the Auditing Firm for a constant exchange of information useful 
to perform their respective tasks. During the meetings and from the exchange of information, 
no facts or situations emerged worthy of mention in this Report.  
The Board monitored the observance of the Company's procedure and policy for the 
assignment of tasks to the Group Auditing Firm, which envisages specific information and 
authorization flows and procedures for the assignment of such appointments aimed at allowing 
the Board of Statutory Auditors to carry out its supervision activities properly. From the set of 
information flows put in place in compliance with the provisions of the procedure and the policy 
for the assignment of appointments to the Group Auditing Firm, which the Board considers 
adequate, no critical issues or anomalies emerged that could affect the opinions on the 
separate financial statements and the consolidated financial statements of the Company.  
Pursuant to Art. 149-duodecies of the Issuers Regulation, a summary table is attached to 
the notes to the financial statements and shows the fees paid to the Auditing Firm and to the 
entities belonging to its network for auditing, assurance and other services provided to 
Leonardo S.p.a. and its subsidiaries, in relation to which the Board:

11 
- 
verified that no assignments were granted that were not permitted under Art.5, 
paragraph 1, of EU Regulation No. 537/2014; 
- 
carried out a monitoring process in order to verify that the Auditing Firm, in relation to 
the "non-audit services” provided to Leonardo S.p.a. and its subsidiaries complied with 
the limits set by Art. 4, paragraph 2, of EU Regulation No. 537/2014; 
- 
declares that the fees for the aforementioned assignments for the financial year 
amount to a total of € 665,000 and relate (i) for € 156,000 to the limited assurance 
engagement (negative assurance) on the consolidated non-financial statement (ii) for 
€ 424,000 to the reasonable assurance engagement on a selection of performance 
indicators (KPIs) included in the consolidated non-financial statement and (iii) for € 
85,000 to other assurance services. 
Taking into account the declarations of independence issued by EY S.p.A., as well as the 
tasks assigned to it and to the companies belonging to its network by Leonardo S.p.a. and by 
its subsidiaries, the Board believes that there are no critical aspects to report on the 
independence of the Auditing Firm. 
During the supervisory activity performed by the Board of Statutory Auditors in accordance 
with the methods described above, on the basis of the information and data acquired, no facts 
emerged from which to infer that the law and the memorandum of association were not 
complied with or that justified any reports to the Supervisory Authority or the mention in this 
report. 
*   *   * 
With regard to the result for the 2022 financial year, which recorded a net profit of € 1,700.5 
million, the Board of Directors set out in detail the formation of the result and the events that 
generated it in the Report on Operations and in the Explanatory Notes.  
On the basis of the supervisory activities carried out up to today, taking into account the 
above and within its sphere of competence, the Board of Statutory Auditors, pursuant to Article 
153, paragraph 2, of the T.U.F. finds no grounds for objecting to the proposal to approve the 
financial statements for the year ended 31 December 2022, nor the proposal for the allocation 
of the relevant FY result as requested by the Board of Directors. 
 
16 March 2023  
 
ON BEHALF OF THE BOARD OF STATUTORY AUDITORS 
           The Chairman  
             Luca Rossi

Separate Financial Statements at 31 December 2022 
 
348 
 
INFORMATION PURSUANT TO ARTICLE 149 DUODECIES OF THE ISSUER REGULATION 
 
The following statement reports the fees for the year 2022 for auditing and assurance services and for tax 
and other services provided by the same auditing firm and entities belonging to the auditing firm’s network. 
 
 
Entity providing the 
services 
To 
Fees for the 2022 year 
(€ thousands) 
 
 
 
 
Auditing services 
EY SpA 
Parent Company 
2.663 
 
EY SpA 
Subsidiaries 
635 
 
EY Network 
Subsidiaries 
7.171 
 
 
 
 
Assurance services 
EY SpA 
Parent Company 
651 
 
EY SpA 
Subsidiaries 
14 
 
EY Network 
Subsidiaries 
- 
 
 
 
 
 
 
 
 
Other services 
EY SpA 
Parent Company 
- 
 
EY Network 
Parent Company 
- 
 
EY Network 
Subsidiaries 
- 
 
 
 
 
Total 
 
 
11.134

Methodology note of the Non-Financial Statement 
 
349 
 
ANNEX TO THE REPORT ON OPERATIONS - NOTES TO THE NFS

Methodology note of the Non-Financial Statement 
 
350 
 
METHODOLOGY NOTE OF THE NFS 
 
The Consolidated Non-Financial Statement (NFS) in accordance with Legislative Decree 254/2016 is an 
integral part of the Integrated Annual Report 2022 and is prepared annually in accordance with the most up-
to-date version of the GRI Sustainability Reporting Standards of the Global Reporting Initiative (GRI). The 
Integrated Report has been prepared taking into consideration the Integrated Reporting Framework, the 
standards of the Sustainability Accounting Standards Board (SASB) for the Aerospace & Defense93 sector, the 
Sustainable Development Goals (SDGs), the Ten Principles of the United Nations Global Compact, the 
recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and the "core" metrics 
contained in the White Paper "Measuring Stakeholder Capitalism - Towards Common Metrics and Consistent 
Reporting of Sustainable Value Creation" by the World Economic Forum (WEF)94.  
The NFS covers the 2022 fiscal year (1 January 2022 – 31 December 2022), includes all fully consolidated 
companies (see "Reporting Scope" section for more information) and was approved by the Leonardo S.p.A. 
Board of Directors at its meeting on March 9, 2023. The Sustainability and Innovation Committee and Control 
and Risks Committee reviewed the overall approach of the NFS, as well as the completeness and transparency 
of the disclosure, issuing a prior opinion for approval by the Board of Directors. 
In compliance with D. lgs. 254/2016, the Consolidated Non-Financial Statements 2022, with the exception of 
the disclosures related to the indicators summarized in the paragraph "Table of Contents SASB" and "Table 
of Contents TCFD (Task Force on Climate-related Financial Disclosure)”, was subject to limited review, in 
accordance with the provisions of the "International Standard on Assurance Engagements ISAE 3000 
(Revised) - Assurance Engagements Other than Audits or Reviews of Historical Financial Information" 
(hereinafter "ISAE 3000 Revised"), issued by the International Auditing and Assurance Standards Board 
(IAASB), by EY S. p.A. 
In addition, with reference to FY2022 and for the second consecutive year, a selection of indicators (below 
shown) has been subjected to comprehensive examination (reasonable assurance) in accordance with the 
provisions of the "International Standard on Assurance Engagements ISAE 3000 (Revised) - Assurance 
Engagements. Other than Audits or Reviews of Historical Financial Information" (hereinafter "ISAE 3000 
Revised"), issued by the International Auditing and Assurance Standards Board (IAASB), by EY S.p.A. The 
indicators subjected to full examination are listed below:  
 
• 
GRI 302-1: Energy consumption within the organization;  
• 
GRI 302-3: Energy intensity - (calculated on consolidated revenues);  
• 
GRI 305-1: Direct (Scope 1) GHG emissions;  
• 
GRI 305-2: Energy indirect (Scope 2) GHG emissions;  
• 
GRI 305-4: GHG emissions intensity - (calculated on consolidated revenues);  
• 
GRI 303-3: Water withdrawal;  
• 
GRI 306-3: Waste generated;  
• 
GRI 405-1: Diversity of governance bodies and employees;  
                                                           
93 The Integrated Reporting Framework and the standards issued by the Sustainability Accounting Standards Board (SASB) were merged within the 
IFRS Foundation with the work completed, in August 2022, on the consolidation of the Value Reporting Foundation (VRF), which, in turn, had been 
created in June 2021 through the merger of the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board 
(SASB). The International Sustainability Standards Board (ISSB), created within the IFRS Foundation to develop sustainability-related disclosure 
standards, promotes the use of both of them. 
94 For more details, reference should be made to the section on the Correlation Table of the Non-Financial Statement.

Methodology note of the Non-Financial Statement 
 
351 
 
• 
GRI 401-1: New employee hires and employee turnover (including details of women hired with STEM 
degrees);  
• 
GRI 404-1: Average hours of training per year per employee;  
• 
GRI 403-9: Work-related injuries.  
 
The audit was carried out according to the procedures set out in the “Independent Auditors’ Report on the 
NFS as of December 31st, 2022”, included in this document. For additional information about the scope of 
the audit work and the procedures performed by the independent auditors, reference should be made to the 
Independent Auditors’ Report included in the document. The information summarised in the GRI Content 
Index is included in the scope of the limited assurance engagement.  
Quantitative indicators reported in the pages referred to in the Content Index that are not related to any GRI 
Standards general or topic-specific disclosure, are not subject to the limited assurance performed by EY S.p.A. 
 
The document is published on the Company’s website at www.leonardo.com. 
SUSTAINABILITY GOVERNANCE 
The Board of Directors, supported by the Sustainability and Innovation Committee and the Control and Risks 
Committee, is responsible for setting out the key guidelines on sustainability and establishing whether 
sustainability objectives have been pursued in line with the Business Plan. 
Furthermore, all the Board Committees provide their support to the Board - each one within the sphere of 
its respective competence - in considering the topics that are material for Leonardo for the purposes of 
generating long-term value. The Sustainability and Innovation Committee is composed of four non-executive 
and independent Directors and, in agreement - for the areas of competence - with the Control and Risks 
Committee, it also monitors Leonardo's positioning in the main Sustainability/ESG indices, promotes the 
methods of interaction with stakeholders (stakeholder engagement), examines the general approach of the 
NFS, supports the Company in setting out and assessing technological capabilities and in establishing 
academic and research networks. The Sustainability Organisational Unit (OU), under the responsibility of the 
Chief Technology and Innovation Officer (CTIO), is responsible for guidance, management, monitoring and 
strategic dialogue on Group sustainability issues. Reporting and relations with financial stakeholders on ESG 
issues are instead managed, under the responsibility of the Chief Financial Officer (CFO), by the ESG & 
Integrated Reporting OU, within Administration and Budget, and by the Investor Relations & Credit Rating 
Agencies OU, respectively, with the aim of providing a full and integrated view of the Company.  
The Sustainability Coordinators – within the various divisions, Corporate functions and Group companies -
are the internal connection point and are involved in the process of setting out, implementing and monitoring 
the Sustainability Plan, ensuring consistency between strategic objectives, Sustainability Plan and non-
financial indicators.  
In order to strengthen the governance system, the remuneration policy also includes the achievement of 
objectives linked to specific ESG (Environmental, Social, Governance) indicators95. 
In February 2022, Leonardo formalised its new company rules on Sustainability, publishing the Group Policy, 
which sets out the sustainability model adopted by the Group, including in terms of responsibilities, and the 
Operating Procedure that outlines the underlying processes96. At the same time, a new “Environmental 
                                                           
95 For more details, reference should also be made to the Corporate Governance Report 2023 and the Remuneration Report 2022. 
96 The sustainability model was the subject of a review (overview) on the part of the internal audit unit in 2022.

Methodology note of the Non-Financial Statement 
 
352 
 
Strategy & Projects” O.U. was established within the Sustainability O.U. to support Leonardo's important 
ambition on environmental sustainability issues. 
In addition, work continued on the integration of sustainability issues into the company's core processes 
during the year; among them, the integration of the Be Tomorrow Strategic Plan with sustainability elements 
was strengthened while taking account of ESG risks and related mitigation actions to be put in place. In 2022, 
the investment procedure was also in such a way as to enhance how investments contribute to the 
achievement of the United Nations Sustainable Development Goals (SDGs), in line with the Group's goals. 
 
Sustainability operating model 
 
 
 
MATERIALITY ANALYSIS 
The materiality analysis allows the identification and evaluation of the impacts that are relevant for the Group 
and its stakeholders. The result is a list of material topics that supports and steers the preparation of the 
Integrated Annual report, the identification of key targets and the definition of the Sustainability Plan. As 
required by the operating sustainability model, Leonardo proceeds with updating, on an annual basis, the 
materiality analysis for an appropriate integration of the stakeholder perspective into company processes. 
The last update is the outcome of an analysis, which was started in 2022 and completed in 2023 with the 
approval on the part of the top management and the presentation to the Sustainability and Innovation 
Committee of the Board of Directors, on economic and financial, environmental, social and corporate 
governance issues. In 2022 Leonardo found itself operating in a rapidly changing scenario. In light of this and 
of the changes in regulations and reporting standards, with the support of a group of experts, Leonardo 
decided to strengthen its materiality analysis by introducing a preliminary direct discussion with stakeholders 
into the process while ensuring alignment with the requirements of the GRI Standards and following the 
SASB's guidelines. Specifically, two focus groups were organised with key stakeholders, representing the 
Group's entire value chain, which helped map, identify and set out impact topics.  
The 21 topics identified were subsequently the subject of an online survey – targeted at an expanded sample 
of external stakeholders (266) and Group management staff (50 people) - in which they were asked to rate 
the Company's impact. In the stakeholder and management consultation, the dual materiality perspective 
was also scrutinised, asking them to assess both the Group's impact on economy, environment and people 
Sustainability 
Governance and 
Strategic Guidance
Implementation
Sustainability and Innovation Committee; Control and Risks Committee
Divisional and Central Functions
AFC Presidium 
interaction on economic-financial 
plans
OU Sustainability
OU ESG & Integrated 
Reporting
Sustainability Dedicated Organisational Units (OUs)
Key central OUs
Sustainability coordinators
of Divisions, Operating Companies and central OUs
CTIO/CPO/CFO
CEO / General Manager
Initiative Project Managers

Methodology note of the Non-Financial Statement 
 
353 
 
(defined in impact topics) and what the topics have on Leonardo's value creation. A complementary 
examination of the impact topics was also conducted through data intelligence tools, big data analytics and 
semantic analysis, leveraging large databases of peers' documents, regulations and press articles.  
The sum of these steps led to the prioritisation of impact topics, and then, following the guidance of GRI 
standards, a materiality threshold was applied to the topics97, leading to the identification of a list of 18 
material topics. In addition to supporting and guiding the Group's reporting, they form an integral part of the 
goal-setting process and the Sustainability Plan. With a view to dynamic materiality, impact topics found to 
be non-material because they are below the threshold (i.e., Digital Sobriety, Development of Territories and 
Communities, Geopolitical Context, and Natural Resource Management and Ecosystem Conservation), will 
be monitored throughout the year as their impact might evolve in today's changing environment. In 
particular, Leonardo's Management has decided to add to the list of material topics also the Natural Resource 
Management and Ecosystem Conservation in consideration of the impacts associated with it as well as the 
importance of this aspect in the Group's strategy, also evidenced by the strengthening of the related 
objective. 
 
 
 
 
 
                                                           
97 The materiality threshold is statistically defined as the mean of the distribution of scores minus the standard deviation. 
22%
13%
10%
10%
15%
8%
8%
14%
Stakeholder by category
Suppliers
University/Research
Center
Customers
Government/Institut
ion
Consultants
Category
associations
Industrial partners
Others
79%
9%
3%
9%
Stakeholders by country
Italy
United Kingdom
United States
Rest of the world

Methodology note of the Non-Financial Statement 
 
354 
 
REPORTING SCOPE  
The 2022 environmental reporting scope98 covered 105 sites around the world. The scope has been based on 
the materiality of the environmental impact from operating sites, the number of employees of Leonardo 
SpA’s and its subsidiaries consolidated on a line-by-line basis. In order to ensure consistency with the 
consolidation criteria of the Consolidated Financial Statements, the Group’s environmental data do not 
include those of the joint ventures. 
The personnel reporting scope corresponds to 100% of companies consolidated on a line-by-line basis in the 
2022 Consolidated Financial Statements. Any possible limitations are set out from time to time in this 
document. 
Sites covered by the environmental reporting scope 
2020 
2021 
2022 
Italy 
52 
55 
54 
United Kingdom  
8 
7 
7 
United States  
31 
32 
32 
Poland 
1 
1 
1 
Rest of the World 
12 
12 
11 
Total sites  
103 
106 
105 
 
                                                           
98 Environmental data, as reported through the Group's web-based system (and in particular those relating to energy consumption), were obtained 
through: direct measurements (e.g., meters and consumption measurement systems); calculations (e.g., bills; purchase orders/invoices); estimates 
based on the number of employees and/or activities carried out. In particular, with regard to emissions into the atmosphere, where sites have 
monitoring systems (e.g., industrial sites), these are calculated from laboratory analyses carried out during the year. If these analyses are not carried 
out (e.g., at office sites and/or in cases where the production processes conducted are not characterised by emissions into the atmosphere), the 
Group's reporting system automatically calculates the NOX and SO2 emissions produced, based on the annual consumption of methane and diesel fuel 
for the production of energy/heat and emission coefficients available in literature.

Methodology note of the Non-Financial Statement 
 
355 
 
Country  
Sites included in the environmental reporting scope  
Italy 
Abbadia San Salvatore, Anagni, Aprilia, Benevento, Brescia, Brindisi, Cameri, Campi Bisenzio, Carsoli, Cascina Costa 
di Samarate, Caselle Nord, Caselle Sud, Catania, Chieti, Cisterna di Latina, Foggia, Frosinone, Fusaro Bacoli, Genoa 
– Cyber Security, Genoa – Electronics, Giugliano, Grottaglie, La Spezia, L'Aquila, Livorno, Montevarchi, Nerviano, 
Nola, Palermo, Pisa – Electronics, Pisa – Helicopters, Pomezia, Pomigliano, Pozzuoli, Rome Larimart, Rome Via 
Tiburtina, 1020, Rome Piazza Monte Grappa, Rome Faustiniana, Rome Via Flaminia, Rome Via Laurentina, Rome 
Via Pastrengo, Rome Via Sardegna, Rome Via Tiburtina KM 12,400, Ronchi dei Legionari, S. Maurizio Canavese, 
Sesto Calende, Taranto, Turin, Venegono Campo Volo, Venegono Superiore, Venice – Helicopters, Venice – 
Aeronautics, Vergiate, Villaputzu 
United 
Kingdom  
Basildon Sigma House, Bristol Building 430, Edinburgh, Lincoln, Luton, Southampton, Yeovil 
United 
States  
Arlington, Austin, Broussard, Burnsville, Cypress, Dallas 1057 Sherman Street, Dallas 1300 Sherman Street, Dallas 
Expressway, Danbury, Dayton, Dulles, Fitchburg, Fort Walton Beach, Germantown, Hauppauge, High Ridge, 
Huntsville, Johnstown Airport, Largo, Lemont Furnace, Madison, Melbourne Babcock, Menomonee Falls, Milton, 
Milwaukee, Overland Park, Philadelphia, San Diego, Sidman, St. Louis, Tampa, West Plains 
Belgium 
Grâce Hollogne 
Canada 
Bedford, Ottawa 
Germany 
Neuss, Backnang 
Poland 
Swidnik 
Romania 
Ploiesti 
Spain 
Loriguilla 
Switzerland  
Mollis, Uznach, Wetzikon 
Turkey 
Ankara

Methodology note of the Non-Financial Statement 
 
356 
 
INDICATORS – DETAILS 
GRI INDICATORS 
ENVIRONMENTAL INDICATORS 
 
Energy 
 
 
 
 
GRI 302-
1/3 
Energy consumption within the organisation (GRI 302-1) 
 
Unit 
2020 
2021 
2022 
Non-renewable energy consumed 
 
TJ 
2,815 
2,982 
2,836 
Natural gas 
 
TJ 
2,621 
2,699 
2,575 
Diesel oil for energy and/or heat generation 
 
TJ 
3 
2 
5 
Fuel oil 
 
TJ 
- 
- 
- 
Other (LPG, fuels used for product tests) 
 
TJ 
191 
281 
257 
Energy purchased for electricity and district heating 
 
TJ 
2,545 
2,493 
2,473 
Electrical energy from conventional sources 
 
TJ 
436 
460 
469 
Electrical energy from renewable sources 
 
TJ 
1,916 
1,805 
1,790 
District heating 
 
TJ 
193 
228 
214 
Self-generated energy 
 
TJ 
134 
138 
126 
Energy sold 
 
TJ 
- 
- 
- 
Total 
 
TJ 
5,493 
5,614 
5,435 
 
 
 
 
 
 
Energy intensity (GRI 302-3) 
 
Unit 
2020 
2021 
2022 
Energy consumption/Revenues 
 
MJ/€ 
0.41 
0.40 
0.37 
  
Water and water discharge 
 
GRI 302-
1/3 
Water withdrawal by source and category (GRI 303-3) 
 
Unit 
2020 
2021 
2022 
Water supply systems 
 
megaliters 
2,197 
2,349 
2,142 
of which freshwater 
 
megaliters 
2,123 
2,126 
1,976 
of which other water 
 
megaliters 
74 
223 
166 
Wells 
 
megaliters 
2,901 
3,175 
2,849 
of which freshwater 
 
megaliters 
2,792 
3,053 
2,299 
of which other water 
 
megaliters 
109 
122 
550 
Other sources 
 
megaliters 
190 
364 
338 
of which freshwater 
 
megaliters 
188 
354 
338 
of which other water 
 
megaliters 
2 
10 
0 
Total 
 
megaliters 
5,287 
5,888 
5,329

Methodology note of the Non-Financial Statement 
 
357 
 
Water withdrawal from water-stressed areas by source and category (GRI 
303-3) 
Unit 
2020 
2021 
2022 
Water supply systems 
megaliters 
590 
519 
425 
of which freshwater 
megaliters 
584 
511 
423 
of which other water 
megaliters 
6 
8 
2 
Wells 
megaliters 
162 
146 
124 
of which freshwater 
megaliters 
60 
35 
59 
of which other water 
megaliters 
102 
111 
65 
Other sources 
megaliters 
5 
14 
8 
of which freshwater 
megaliters 
5 
5 
8 
of which other water 
megaliters 
0 
9 
0 
Total 
megaliters 
757 
679 
556 
 
 
 
 
 
Water discharge by type of destination (GRI 303-4) 
Unit 
2020 
2021 
2022 
Sewers 
megaliters 
3,707 
3,993 
3,112 
Surface water 
megaliters 
240.8 
257 
860 
Seawater 
megaliters 
14.3 
14 
24 
Other use 
megaliters 
26 
15 
12 
Total 
megaliters 
3,989 
4,279 
4,007 
 
 
 
 
 
Water discharge to water-stressed areas by type of destination and 
category (GRI 303-4) 
Unit 
2021 
2022 
2022 
Freshwater 
megaliters 
3,554 
3,989 
3,528 
of which in areas with water stress 
megaliters 
491 
462 
383 
Other water 
megaliters 
434 
291 
480 
of which in areas with water stress 
megaliters 
34 
21 
62 
Total 
megaliters 
3,989 
4,279 
4,007 
  
Waste 
 
 
GRI 306-3 
Waste produced by type and disposal 
 
Unit 
2020 
2021 
2022 
Non-hazardous 
 
t 
26,337 
21,642 
20,472 
Recovered 
 
t 
16,379 
13,333 
13,631 
Disposed 
 
t 
9,958 
8,309 
6,841 
Hazardous 
 
t 
8,136 
8,242 
9,528 
Recovered 
 
t 
1,688 
1,988 
1,707 
Disposed 
 
t 
6,448 
6,254 
7,821 
Total waste produced (hazardous and non-hazardous) 
 
t 
34,474 
29,884 
30,001 
NOTE: 
 
- Environmental data may be subject to estimates, should final data not be available.

Methodology note of the Non-Financial Statement 
 
358 
 
Emissions 
 
 
GRI 305-1/2/3/4/7 
CO2e emissions (GRI 305-1/2/3) 
 
Unit 
2020 
2021 
2022 
Direct emissions (Scope 1) 
 
t 
359,711 
262,984 
213,107 
Indirect emissions (Scope 2 market-based) 
 
t 
63,003 
62,029 
63,924 
Indirect emissions (Scope 2 location-based) 
 
t 
248,958 
215,907 
213,040 
Other indirect emissions (Scope 3) 
 
t 
207,425 
220,472 
243,425 
Total Scopes 1, 2 market-based, 3 
 
t 
630,139 
545,485 
520,457 
Total Scopes 1, 2 location-based, 3 
 
t 
816,094 
699,363 
669,573 
 
 
 
 
 
 
CO2e emission intensity (GRI 305-4) 
 
Unit 
2020 
2021 
2022 
Total emissions (Scope 1 + Scope 2 market-based)/Revenues 
 
g/€ 
31.52 
22.99 
18.83 
Total emissions (Scope 1 + Scope 2 location-based)/Revenues 
 
g/€ 
45.39 
33.88 
28.96 
 
 
 
 
 
 
Other emissions (GRI 305-7) 
 
Unit 
2020 
2021 
2022 
NOx 
 
t 
178 
162 
143 
SO2 
 
t 
1 
1 
2 
VOC 
 
t 
109 
99 
166 
VIC 
 
t 
2 
3 
3 
Heavy metal 
 
t 
0,6 
0,5 
0.4 
Particulate 
 
t 
17 
13 
19

Methodology note of the Non-Financial Statement 
 
359 
 
EMPLOYEE INDICATORS 
Information on employees and other workers 
GRI 2-7, 2-8 
Employees by employment contract, employment type and gender 
Unit 
2020 
2021 
2022 
Total employees 
N. 
49,882 
50,413 
51,392 
Men 
N. 
40,764 
41,073 
41,639 
Women 
N. 
9,118 
9,340 
9,753 
Permanent employment contracts 
N. 
49,178 
49,669 
50,570 
Men 
N. 
40,211 
40,495 
41,022 
Women 
N. 
8,967 
9,174 
9,548 
Fixed-term contracts 
N. 
704 
744 
822 
Men 
N. 
553 
578 
617 
Women 
N. 
151 
166 
205 
Full-time contracts (permanent) 
N. 
47,952 
48,587 
49,498 
Men 
N. 
39,956 
40,280 
40,778 
Women 
N. 
7,996 
8,307 
8,720 
Part-time contracts (permanent) 
N. 
1,226 
1,082 
1,072 
Men 
N. 
255 
215 
244 
Women 
N. 
971 
867 
828 
Employees by professional category and gender 
Unit 
2020 
2021 
2022 
Managers 
N. 
1,152 
1,174 
1,227 
Men 
N. 
1,010 
1,018 
1,051 
Women 
N. 
142 
156 
176 
Middle managers 
N. 
6,113 
6,243 
6,512 
Men 
N. 
5,009 
5,063 
5,244 
Women 
N. 
1,104 
1,180 
1,268 
White collars 
N. 
28,806 
29,413 
30,302 
Men 
N. 
22,222 
22,648 
23,228 
Women 
N. 
6,584 
6,765 
7,074 
Blue collars 
N. 
13,765 
13,538 
13,304 
Men 
N. 
12,477 
12,299 
12,069 
Women 
N. 
1,288 
1,239 
1,235 
Pilots 
N. 
46 
45 
47 
Men 
N. 
46 
45 
47 
Women 
N. 
- 
- 
- 
Employees by Country and gender 
Unit 
2020 
2021 
2022 
Italy 
N. 
31,052 
31,661 
32,327 
Men 
N. 
26,018 
26,402 
26,847 
Women 
N. 
5,034 
5,259 
5,480 
United States 
N. 
7,299 
7,274 
7,143 
Men 
N. 
5,406 
5,413 
5,307 
Women 
N. 
1,893 
1,861 
1,836 
United Kingdom 
N. 
7,387 
7,375 
7,540 
Men 
N. 
6,060 
6,015 
6,057 
Women 
N. 
1,327 
1,360 
1,483 
Poland 
N. 
2,586 
2,548 
2,578 
Men 
N. 
2,109 
2,073 
2,076 
Women 
N. 
477 
475 
502 
Other countries 
N. 
1,558 
1,555 
1,804 
Men 
N. 
1,171 
1,170 
1,352 
Women 
N. 
387 
385 
452

Methodology note of the Non-Financial Statement 
 
360 
 
Employees by employment contract and Country 
Unit 
2020 
2021 
2022 
Permanent employment contracts 
N. 
49,178 
49,669 
50,570 
Italy 
N. 
30,966 
31,464 
32,193 
United States 
N. 
7,248 
7,228 
7,082 
United Kingdom 
N. 
6,982 
7,011 
7,164 
Poland 
N. 
2,469 
2,502 
2,458 
Other countries 
N. 
1,513 
1,464 
1,673 
Temporary employment contracts 
N. 
704 
744 
822 
Italy 
N. 
86 
197 
134 
United States 
N. 
51 
46 
61 
United Kingdom 
N. 
405 
364 
376 
Poland 
N. 
117 
46 
120 
Other countries 
N. 
45 
91 
131 
Workers other than employees 
Unit 
2020 
2021 
2022 
Supervised workers 
N. 
1,853 
1,790 
1,919 
  
NOTE: 
- With regards to the total Leonardo’s workforce: 50,286 full-time employees and 1,106 part-time employees.

Methodology note of the Non-Financial Statement 
 
361 
 
Employment 
GRI 401-1/3
New employee hires and employee turnover (GRI 401-1) 
Unit 
2020
2021
2022
Total hires and gender breakdown 
N. 
3,222
3,753
4,984
Percentage of hires on total employees 
% 
6
7
10
Men 
N. 
2,477
2,862
3,781
% 
77
76
76
Women 
N. 
745
891
1,203
% 
23
24
24
Number and percentage of hires by age group 
 
 
 
 
< 30 years 
N. 
1,319
1,585
2,189
% 
41
42
44
30-50 years 
N. 
1,339
1,616
2,208
% 
42
43
44
> 50 years 
N. 
564
552
587
% 
18
15
12
Number and percentage of hires by Country 
 
 
 
 
Italy 
N. 
919
1,456
2,121
% 
29
39
43
United States 
N. 
1,244
1,298
1,158
% 
39
35
23
United Kingdom 
N. 
736
689
1,278
% 
23
18
26
Poland 
N. 
74
64
144
% 
2
2
3
Other countries 
N. 
249
246
283
% 
8
7
6
Number of hires with STEM degree 
N. 
n.a.
1,527
2,217
Men 
N. 
n.a.
1231
1,728
Women 
N. 
n.a.
296
489
Total employees leaving and gender breakdown 
N. 
3,094
3,303
4,176
Percentage of employees leaving on total employees 
% 
6
7
8
Men 
N. 
2,430
2,599
3,323
% 
79
79
80
Women 
N. 
664
704
853
% 
21
21
20
Number and percentage of employees leaving by age group 
 
 
 
 
< 30 years 
N. 
544
601
814
% 
18
18
19
30-50 years 
N. 
745
1081
1,429
% 
24
33
34
> 50 years 
N. 
1,805
1,621
1,933
% 
58
49
46
Number and percentage of employees leaving by Country 
 
 
 
 
Italy 
N. 
1,073
911
1,409
% 
35
28
34
United States 
N. 
918
1311
1,428
% 
30
40
34
United Kingdom 
N. 
661
732
911
% 
21
22
22
Poland 
N. 
186
102
114
% 
6
3
3
Other countries 
N. 
256
247
314
% 
8
7
8
Return to work and retention rates after parental leave (GRI 401-3) 
Unit 
2020
2021
2022
Employees entitled to parental leave 
N. 
49,882
50,413
51,392
Men 
N. 
40,764
41,073
41,639

Methodology note of the Non-Financial Statement 
 
362 
 
Employment 
GRI 401-1/3
Women 
N. 
9,118
9,340
9,753
Rate of return to work by gender 
% 
96
95
94
Men 
% 
97
97
95
Women 
% 
94
92
89
Retention rate by gender 
% 
98
95
93
Men 
% 
100
96
95
Women 
% 
95
93
88
Employees who took parental leave during the reporting period, by gender 
N. 
1,790
1,504
1,757
Men 
N. 
1,135
1,039
1,235
Women 
N. 
655
465
522
Employees who returned to work at the end of the parental leave during the 
reporting period, by gender 
N. 
1,661
1,542
1,518
Men 
N. 
1,107
1,079
1,141
Women 
N. 
554
463
377
Employees who returned to work at the end of the parental leave and continued to 
work 12 months after their return, by gender 
N. 
1,696
1,579
1,240
Men 
N. 
1,065
1,027
948
Women 
N. 
631
552
292
  
Occupational health and safety 
GRI 403-9
Injuries of employees 
Unit 
2020
2021
2022
Number of injuries 
N. 
213
246
200
Injury Rate (IR) by gender and Country 
i 
2.60
2.91
2.35
Men 
i 
2.76
3.13
2.57
Women 
i 
1.90
1.93
1.40
Italy 
i 
2.78
3.53
2.98
Men 
i 
3.00
3.72
3.21
Women 
i 
1.57
2.55
1.80
United States 
i 
3.68
2.73
2.06
Men 
i 
3.72
3.28
2.17
Women 
i 
3.57
1.13
1.74
United Kingdom 
i 
0.83
1.15
0.31
Men 
i 
0.92
1.13
0.39
Women 
i 
0.42
1.24
0.00
Poland 
i 
1.02
1.63
1.60
Men 
i 
0.93
1.70
1.67
Women 
i 
1.41
1.30
1.26
Number of injuries with high consequences 
N. 
-
-
1
Injury Rate with high consequences 
i 
-
-
0
 
Injuries of workers not employees 
Unit 
2020
2021
2022
Number of injuries 
N. 
9
11
10
Total Injury Rate 
i 
2.58
3.30
4.35
Number of injuries with high consequences 
N. 
-
-
-
Injury Rate with high consequences 
i 
-
-
-
 
Work-related fatalities 
Unit 
2020
2021
2022
Work-related fatalities 
N. 
-
-
-
Fatality Rate of employees 
i 
-
-
-
Number of fatalities of workers not employees 
N. 
-
-
-
Number of fatalities of workers not employees 
i 
-
-
-

Methodology note of the Non-Financial Statement 
 
363 
 
 NOTES: 
- The injury is defined in this way if it has been communicated to the agencies/authorities/regulators and if it has caused the inability to work to one 
or more days.  
- The Injury Rate (IR) is calculated using the following formula: (Total injuries/Total worked hours)*1,000,000. Workers not-employees refer to the 
category of supervised workers.  
 
Training 
GRI 404-1 
Average hours of training per employee 
Unit 
2020
2021
2022
Training hours 
hours 
16.2
31.8
20.6
Training hours by gender 
 
Men 
hours 
16.1
32.6
20.7
Women 
hours 
16.8
28.3
20.3
Training hours by employee category 
 
Managers 
hours 
20.0
29.0
16.1
Middle managers 
hours 
20.0
28.8
20.4
White collars 
hours 
17.2
27.4
20.5
Blue collars 
hours 
11.9
43.0
21.5

Methodology note of the Non-Financial Statement 
 
364 
 
Diversity and equal opportunities 
GRI 405-1
Diversity of governance bodies and employees 
Unit 
2020
2021
2022
Composition of governance bodies 
 
Men 
% 
58
58
58
Women 
% 
42
42
42
< 30 years 
% 
-
-
-
30-50 years 
% 
25
25
25
> 50 years 
% 
75
75
75
Breakdown of employees by category and gender 
 
Men 
 
Managers 
% 
88
87
86
Middle managers 
% 
82
81
81
White collars 
% 
77
77
77
Blue collars 
% 
91
91
91
Pilots 
% 
100
100
100
Women 
 
Managers 
% 
12
13
14
Middle managers 
% 
18
19
19
White collars 
% 
23
23
23
Blue collars 
% 
9
9
9
Pilots 
% 
-
-
-
Breakdown of employees by category and age group 
 
 
 
 
< 30 years 
 
 
 
 
Managers 
% 
-
-
-
Middle managers 
% 
-
-
-
White collars 
% 
11
11
13
Blue collars 
% 
15
14
13
Pilots 
% 
-
-
-
30-50 years 
 
Managers 
% 
35
34
36
Middle managers 
% 
42
42
43
White collars 
% 
54
54
53
Blue collars 
% 
55
53
57
Pilots 
% 
35
33
32
> 50 years 
 
Managers 
% 
65
66
64
Middle managers 
% 
58
58
56
White collars 
% 
35
35
34
Blue collars 
% 
31
31
30
Pilots 
% 
65
67
68

Methodology note of the Non-Financial Statement 
 
365 
 
Equal remuneration for women and men 
GRI 405-2 
Ratio of basic salary of women to men by employee category 
Unit 
2020
2021
2022
Italy 
 
Managers 
% 
97
96
91
Middle managers 
% 
96
96
97
White collars 
% 
95
97
97
Blue collars 
% 
98
97
97
United States 
 
Managers 
% 
89
92
95
Middle managers 
% 
88
89
88
White collars 
% 
74
75
74
Blue collars 
% 
85
86
82
United Kingdom 
 
Managers 
% 
103
100
107
Middle managers 
% 
92
94
96
White collars 
% 
84
82
86
Blue collars 
% 
82
76
79
Poland 
 
Managers 
% 
73
70
69
Middle managers 
% 
87
98
98
White collars 
% 
88
88
88
Blue collars 
% 
92
91
90
 
Ratio of remuneration of women to men by employee category 
Unit 
2020
2021
2022
Italy 
 
Managers 
% 
97
94
84
Middle managers 
% 
92
92
91
White collars 
% 
90
92
91
Blue collars 
% 
89
92
88
United States 
 
Managers 
% 
97
94
94
Middle managers 
% 
86
88
88
White collars 
% 
72
73
71
Blue collars 
% 
82
84
82
United Kingdom 
 
Managers 
% 
94
96
98
Middle managers 
% 
93
94
96
White collars 
% 
81
83
85
Blue collars 
% 
67
68
66
Poland 
 
Managers 
% 
97
69
60
Middle managers 
% 
85
99
98
White collars 
% 
78
79
80
Blue collars 
% 
87
88
85

Methodology note of the Non-Financial Statement 
 
366 
 
ECONOMIC INDICATORS 
Direct economic value generated and distributed 
GRI 201-1
€ millions 
2020 
2021 
2022 
Direct economic value generated 
14,644 
15,364 
16,365 
Economic value distributed 
13,178 
13,810 
14,179 
Operating costs 
9,128 
9,523 
9,568 
Value distributed to employees 
3,427 
3,762 
4,010 
Value distributed to providers of capital 
494 
335 
410 
Value distributed to Public Administration 
44 
185 
107 
Value distributed to shareholders 
81 
0 
81 
Value distributed to community 
4 
5 
3 
Economic value retained 
1,466 
1,554 
2,186 
Notes: 
- Starting from 2022, in order to ensure a further adherence with GRI Standard 201-1, a different representation compared to previous reports is 
provided. 
- Generated economic value includes: value of the production, income from equity investments and other financial incomes.  Value distributed to 
shareholders refers to dividends paid during the reporting year. 
 
GRI 207-1 Approach to tax 
GRI 207-2 Tax governance, control and risk management 
GRI 207-3 Stakeholder engagement and management of concerns related to tax 
Consistently with the principles of the BEPS (Base Erosion and Project Sharing) project99, Leonardo ensures 
its business complies with purely industrial and commercial approach and goals. The choice of jurisdictions 
where Group entities are is justified only by business reasons and not by fiscal advantages. In this regard, 
correct fulfilment of tax obligations is ensured by the Company’s internal procedures that identify roles and 
responsibilities, both in the operational and in the control areas enabling access to the necessary information 
flows. Leonardo has adopted a tax strategy which in Italy was approved in 2017 and in Great Britain is 
approved on an annual basis. Leonardo has also joined the Cooperative Compliance Scheme and has 
established a Tax Control Framework, i.e., a system for detecting, measuring, managing and controlling tax 
risk, included in the context of the company and internal control system. The approach to tax is inspired by 
the following values: 
> 
properly managing the “tax burden” related to its business while protecting the interests of all 
stakeholders, including the government and local communities in which Leonardo operates; 
> 
managing all results in compliance with national tax laws as regards both form and substance, in 
conformity with principles, while conducting, on an ongoing basis, an analysis of updates on national 
and international laws consistently with the activities carried out; 
> 
promoting performance in compliance with the law, transparency, simplicity, with trust and 
collaboration, truthfulness and professional correctness; 
> 
establishing good relations with the tax authorities with utmost transparency and collaboration in 
order to solve complex tax issues, while promptly providing accurate and correct information, in 
response to questions and information requested; 
> 
establishing decision-making processes regarding investments in low-tax regime countries, based on 
economic reasons and not for tax avoidance and/or planning purposes; 
> 
establishing an adequate information flow spread across all company levels, including top 
management, in order to enable the BoD to take action as the body in charge of internal control; 
                                                           
99 The BEPS project, promoted by the OECD, is part of the actions to counter aggressive tax planning policies and to avoid the shifting of the tax base 
from high-tax countries to others with low or no tax burden by multinational companies, aiming to establish single and transparent rules shared at 
international level.

Methodology note of the Non-Financial Statement 
 
367 
 
> 
investing in the development of the professional skills of employees involved in tax activities. 
Tax returns and payments are subject to audits on the part of independent auditors. 
The Chief Executive Officer and the Officer in charge of financial reporting participate in tax-related decisions, 
in terms of both strategy and operations. They are responsible for monitoring tax risk management, the 
performance of the tax department, and the resources allocated in order to reduce tax risk while the BoD 
designs the related strategy. 
For companies that meet the requirements prescribed by the relevant domestic regulations, Leonardo 
complies with the provisions governing transfer pricing documentation, in accordance with the instructions 
of the Chapter V of OECD Transfer Pricing Guidelines. Finally, Leonardo always acts by adopting a transparent 
and collaborative approach with all institutions and trade associations in order to support the development 
of effective tax systems in the various Countries in which it operates. 
 
GRI 207-4 Country-by-Country Reporting 
The table below is consistent with the information provided to the Revenue Agency (Revenue Agency 
Director’s Order file 275956 of 28 November 2017) within the framework of the “Country-by-Country 
Reporting” (CBCR). This information has been prepared by taking account of the OECD guidelines relating to 
this requirement. Therefore, although the figures shown are derived from the same database, they do not 
follow the rules of representation and preparation of the data included in the Group’s consolidated financial 
statements. In particular, the main changes refer to the following requirements of the OECD guidelines, as 
reported in the abovementioned Order: 
> 
perimeter of companies: inclusion of all companies; 
> 
allocation by Country: allocation of items relating to permanent establishments in the Countries in 
which they operate, instead of the registered offices of the companies to which they belong, used to 
prepare consolidated financial statements; 
> 
definitions: levels of aggregation of specific data that are not immediately comparable with the 
values reported in the consolidated financial statements. 
    
Tax - Country-by-Country Reporting (Year 2020) 
GRI 207-4 
Tax jurisdiction 
Notes 
USA 
UK 
Poland 
Italy 
Other 
countries 
Revenues from third parties 
1 
2,903 
2,109 
56 
8,951 
389 
Revenues from related parties 
2 
221 
225 
157 
853 
96 
Total revenues 
3 
3,124 
2,334 
213 
9,804 
485 
Profit/(Loss) before income taxes* 
4 
93 
213 
27 
1 
(89) 
Income taxes paid (based on cash accounting) 
5 
6 
(57) 
(8) 
43 
(83) 
Income taxes accrued in the year 
 
9 
37 
5 
27 
12 
Workforce 
6 
7,300 
7,387 
2,586 
31,131 
1,782 
Property, 
plant 
and 
equipment 
other 
than 
cash 
and cash equivalents 
7 
241 
181 
36 
1,653 
66 
 
 
 
 
 
 
 
*Note: the value referred to Other countries was revised with the aim of ensuring consistency with the data submitted to the national reference agency.

Methodology note of the Non-Financial Statement 
 
368 
 
Tax - Country-by-Country Reporting (Year 2021) 
GRI 207-4 
Tax jurisdiction 
Notes 
USA 
UK 
Poland 
Italy 
Other 
countries 
Revenues from third parties 
1 
3,165 
2,203 
53 
9,550 
378 
Revenues from related parties 
2 
188 
206 
176 
847 
99 
Total revenues 
3 
3,353 
2,409 
229 
10,397 
477 
Profit/(Loss) before income taxes 
4 
163 
263 
30 
166 
12 
Income taxes paid (based on cash accounting) 
5 
4 
(17) 
(4) 
(28) 
(8) 
Income taxes accrued in the year 
 
12 
43 
6 
24 
12 
Workforce 
6 
7,253 
7,338 
2,548 
31,521 
1,753 
Property, 
plant 
and 
equipment 
other 
than 
cash 
and cash equivalents 
7 
339 
193 
36 
1,660 
68 
  
NOTES: 
1. Revenues from third parties: include all revenues (as defined below), net of those from companies subject to CBCR. 
2. Revenues from related parties: include all revenues (as defined below) from companies subject to CBCR. 
3. Revenues: include all revenues and financial income, net of dividends. 
4. Profit/(Loss) before income taxes: includes the result before tax and the result from discontinued operations. 
5. Income taxes paid: positive value indicates receipts, while negative value indicates payments. This includes payments for current tax and for tax 
disputes. 
6. Workforce: number of employees entered in the register on the last day of the period (31 December). 
7. Property, plant and equipment other than cash and cash equivalents: include tangible assets and investment property.

Methodology note of the Non-Financial Statement 
 
369 
 
OTHER INDICATORS 
1.  Trade union relations  
Industrial Relations (% on total employees) 
Unit 
2022 
Employees covered by collective bargaining 
% 
72 
Employees who are members of trade unions 
% 
32 
  
In Italy, 100% of employees are covered by collective bargaining agreements. In 2022, the hours of strike on 
the total hours worked was 0.03%. 
2.  Employee training  
Average hours of training per employee 
Unit 
2022 
Total average training hours 
n. 
20.6 
Mandatory training 
n. 
11.0 
Non mandatory training 
n. 
9.6 
Average hours of training per employee by age group 
Unit 
2022 
< 30 years 
n. 
29.9 
30-50 years 
n. 
21.9 
> 50 years 
n. 
16.0 
N. employees who received training 
Unit 
2022 
N. employees who received training in the reporting period 
n. 
47,378 
  
3.  Employee health and safety 
Health and safety indicators 
Unit 
2022 
Occupational Disease Rate (ODR) 
i 
0.02 
Lost Days Rate (LDR) 
i 
13.60 
Absenteeism Rate (AR) 
i 
4.93 
  
Details on indicator calculation: ODR is calculated using the following formula: (Total cases of occupational 
diseases/Total worked hours)*200,000. LDR is calculated using the following formula: (Total days of lost 
work/Total worked hours)*200,000. AR is calculated using the following formula: (Total days of 
absence/Total working days)*100.

Methodology note of the Non-Financial Statement 
 
370 
 
4.  Employee performance appraisal  
Performance appraisal 
 
 
Total employees assessed 
Unit 
2022 
Employees with performance appraisal 
N. 
29,977 
 
%. 
58 
Employees assessed on the total workforce - by gender 
Unit 
2022 
Men 
% 
56 
Women 
% 
67 
Employees assessed on the total workforce - by category 
Unit 
2022 
Managers 
% 
88 
Middle managers 
% 
86 
White collars 
% 
68 
Blue collars 
% 
21 
Employees assessed on the total employees assessed - by gender 
Unit 
2022 
Men 
% 
78 
Women 
% 
22 
Employees assessed on the total employees assessed - by category 
Unit 
2022 
Managers 
% 
4 
Middle managers 
% 
19 
White collars 
% 
68 
Blue collars 
% 
9

Methodology note of the Non-Financial Statement 
 
371 
 
5.  Diversity – Ethnic minorities  
Ethnic minority US employees 
Unit 
2022 
Employees from minorities by gender 
N. 
1,722 
Men 
N. 
1,182 
Women 
N. 
540 
Ethnic minority employees by category 
N. 
1,722 
Managers 
N. 
9 
Men 
N. 
7 
Women 
N. 
2 
Middle managers 
N. 
213 
Men 
N. 
159 
Women 
N. 
54 
White collars 
N. 
690 
Men 
N. 
467 
Women 
N. 
223 
Blue collars 
N. 
808 
Men 
N. 
547 
Women 
N. 
261 
Pilots 
N. 
2 
Men 
N. 
2 
Women 
N. 
- 
Ethnic minority employees by type 
N. 
1,722 
Asian 
N. 
481 
of which managers and middle managers 
N. 
55 
Black or African American 
N. 
386 
of which managers and middle managers 
N. 
39 
American Indian (Alaska Native) 
N. 
114 
of which managers and middle managers 
N. 
22 
Hispanic or Latino 
N. 
585 
of which managers and middle managers 
N. 
81 
Native Hawaiian 
N. 
3 
of which managers and middle managers 
N. 
1 
Other Pacific Islander 
N. 
9 
of which managers and middle managers 
N. 
1 
Mixed / Multiple ethnic 
N. 
144 
of which managers and middle managers 
N. 
23 
Other 
N. 
- 
of which managers and middle managers 
N. 
-

Methodology note of the Non-Financial Statement 
 
372 
 
Ethnic minority UK employees 
Unit 
2022 
Employees from minorities by gender 
N. 
220 
Men 
N. 
163 
Women 
N. 
57 
Ethnic minority employees by category 
N. 
220 
Managers 
N. 
1 
Men 
N. 
- 
Women 
N. 
1 
Middle managers 
N. 
25 
Men 
N. 
20 
Women 
N. 
5 
White collars 
N. 
188 
Men 
N. 
138 
Women 
N. 
50 
Blue collars 
N. 
6 
Men 
N. 
5 
Women 
N. 
1 
Pilots 
N. 
- 
Men 
N. 
- 
Women 
N. 
- 
Ethnic minority employees by type 
N. 
220 
Asian / Asian British 
N. 
116 
of which managers and middle managers 
N. 
15 
Black African / Black British / Caribbean 
N. 
42 
of which managers and middle managers 
N. 
2 
Mixed / Multiple ethnic (White and Black Caribbean, White and Black African, White and Asian, Any 
other Mixed or multiple ethnic background) 
N. 
42 
of which managers and middle managers 
N. 
6 
Other 
N. 
20 
of which managers and middle managers 
N. 
3 
  
6.  Diversity – Disability 
Employees with disability 
Unit 
2022 
Total employees with disability 
N. 
1,560 
Employees belonging to minorities groups by professional category 
 
 
Managers 
N. 
10 
Middle managers 
N. 
151 
White collars 
N. 
985 
Blue collars 
N. 
414 
  
7.  Gender diversity 
Gender pay gap 
First 
quartile 
Second 
quartile 
Third 
quartile 
Last 
quartile 
Total 
Men 
82% 
78% 
78% 
87% 
81% 
Women 
18% 
22% 
22% 
13% 
19% 
2022 remuneration ratio 
93% 
99% 
101% 
93% 
98% 
 
First quartile: employees with higher remuneration 
Second quartile: employees with medium-high remuneration 
Third quartile: employees with low-medium remuneration 
Fourth quartile: employees with lower remuneration 
 
Remuneration ratio is calculated on 95.3% of employees using the following formula: women average 
remuneration/men average remuneration. The total median value of the remuneration ratio is 104%. 10% 
of employees with the highest remuneration is composed of 15% women and 84% men.

Methodology note of the Non-Financial Statement 
 
373 
 
Top management composition 
Unit 
2022 
Men 
% 
85 
Women 
% 
15 
 
For the “top management” category, the percentage is calculated by considering first-level (reporting directly 
to the Chief Executive Officer) and second level management positions. 
The executive team (CEO included) consists of 26 men (87%) and 4 women (13%). 
8.  Certifications 
Health and safety management systems 
Unit 
2022 
Employees at ISO 45001-certified sites on total employees 
% 
80 
Environmental management systems 
 
 
Employees at ISO14001-certified sites on total employees 
% 
75 
Quality management systems 
 
 
Employees at ISO 9001-certified sites on total employees 
% 
86 
Employees at AS/EN 9100-certified sites on total employees 
% 
74 
  
ISO 45001-certified sites are 61, ISO 14001-certified sites are 63, ISO 50001-certified sites are 8, ISO 9001-
certified sites are 86, AS/EN 9100-certified sites are 63. 
 
9.  Data privacy 
In terms of personal data privacy, in line with the applicable privacy regulations100, Leonardo adopts adequate 
technical and organisational measures to respect fundamental rights and freedoms and mitigate the risks 
associated with any possible violation. For this purpose, it has implemented processes, procedures and 
technologies to ensure the broadest protection of the data of employees, collaborators, guests, customers, 
suppliers and any natural person whose personal data are processed by Leonardo. The organisational 
structures and technologies used allow for the accurate and prompt detection of security threats and 
breaches. Processes, procedures and technologies are subject to periodical audits to ensure full compliance 
with the highest standards of protection. Leonardo has designated a Group Data Protection Officer who 
oversees, monitors, and provides specialist advice to Leonardo when acting as both a data controller and a 
data processor, acts as a contact person for the supervisory authority and for data subjects in relation to any 
and all matters concerning the processing of their personal data and the exercise of their rights, with regard 
to the protection of personal data. By means of training, numerous reporting channels and support tools, in 
the event of situations or episodes that put people's data at risk, all employees and collaborators are trained 
and enabled to immediately give notices to the competent departments in order to adopt remedial and risk 
mitigation measures in accordance with law, according to the methods and schedules set out in the 
procedures for handling data breaches and managing security incidents in general. If requests are submitted 
to exercise rights regarding the protection of personal data, Leonardo has set up specific organisational 
processes and information flows that make it possible to provide information regarding data processing in a 
transparent and easily accessible form and to follow up such requests promptly and effectively. Furthermore, 
Leonardo only uses suppliers that present sufficient guarantees to meet the requirements of the applicable 
privacy legislation and implements risk assessment and mitigation processes in any case of transfer of 
personal data outside the European Economic Area, in full compliance with current legislation. 
                                                           
100   The protection of personal data is a fundamental right of the individual under the Charter of Fundamental Rights of the European Union (Article 
8). In Europe, the protection of natural persons with regard to the processing of personal data is regulated, in particular, by Regulation (EU) 
2016/679 of the European Parliament and of the Council of 27 April 2016.

Methodology note of the Non-Financial Statement 
 
374 
 
 
10.  Supply chain management 
Leonardo manages the sustainability of its supply chain by integrating environmental, social and governance 
parameters in any and all phases of collaboration with suppliers: from the application to become a supplier, 
to the pre-qualification and qualification phases to enter the register, from the selection criteria to the 
contract Terms and Conditions, up to the verification audits and development plans of suppliers.  
Potential suppliers of Leonardo must first pass a pre-qualification phase to establish whether they meet 
economic-financial, ethical-legal, social and environmental requirements. This is the preliminary assessment 
of the risk associated with establishing an industrial relationship with a potential supplier and consists of 
audits carried out both through an exchange of documents and through infoproviders. If there are risk 
factors, relating for example to ownership structures and final beneficiaries, an additional reputational 
analysis is carried out, with the support of specialist databases. The rate of dependence of turnover on the 
Leonardo Group is also measured during pre-qualification. Failure to meet even one of these requirements 
prevents the company from accessing Leonardo's Register of Suppliers. 
This is followed by the qualification phase, during which the technical and operational capabilities linked to 
specific supplies are assessed, as are the minimum requirements demanded by Leonardo regarding 
environmental management, health and safety protection, cyber security and intellectual property 
protection, which are also regulated by specific contractual clauses at any time101. After having made the 
requirements relating to cyber security and intellectual property more homogeneous in 2021, in 2022 the 
process was extended to all divisions with massive application to all suppliers subject to qualification. 
Moreover, Leonardo examines any possible certification uploaded to the Purchasing Portal by potential 
suppliers.  
According to the product sector, an additional qualification, the Product Qualification, may be necessary to 
ascertain compliance with technical/technological requirements and the production process applied in the 
manufacture of the purchased component that will form part of a product configuration. Successful 
completion of the qualification phase is necessary for the award of a tender and the assignment of a purchase 
order, and therefore to become actual suppliers of Leonardo. Furthermore, for some product areas, supplier 
selection takes also account of the availability of specific additional ESG requirements, for example ISO 
14001, ISO 45001 and other quality and cyber security certifications.  
The ongoing satisfaction of the requirements is monitored through periodic control activities throughout the 
term of the contractual relationship, both through recurring audits (every two years for pre-qualification 
requirements and every three years for qualification requirements) and through audit plans, going as far as 
temporary or definitive exclusion from the Register in cases of serious or repeated failures. As for supplier 
audits on HSE issues, every year Leonardo sets out an audit plan and selects the suppliers that will have to 
be audited in the subsequent year, giving priority to those operating within Leonardo sites whose activities 
carried out and/or products supplied may have an impact on compliance with environmental or occupational 
health and safety regulations. Suppliers may also be selected to be audited for whom risk factors have 
emerged in relation to environmental, and occupational health and safety issues, either through reports or 
during the requalification phase, or even suppliers selected on a random basis. The audit consists of checks 
carried out by Leonardo personnel or by a third-party entity and is also an opportunity to inform the supplier 
of any possible opportunity for improvement. In any case of non-conformity, Leonardo always asks the 
                                                           
101   By including clauses in their contracts, suppliers are required to ensure that their subcontractors also comply with the same requirements.

Methodology note of the Non-Financial Statement 
 
375 
 
supplier to take a corrective action, reported by the supplier in an Action Plan, complete with the related 
date of implementation, which is verified by Leonardo in the subsequent audit. 
Supplier relations are managed through a dedicated Portal (Procurement Portal) to ensure transparency and 
traceability of information, and the storage of all supporting documentation. 
 
Work progress on Sustainability Objectives 
Unit 
2021 
2022 
Target 
year 
Implementation of development programmes of the supply chain and medium/long-
term partnerships, focusing on SMEs, to improve business sustainability 
no. of 
suppliers 
>150 
165 
2023 
To manage more 75% of the value ordered by Leonardo Divisions through digital 
collaboration platforms* 
% 
70 
82 
2022 
Raising awareness/training on SDGs and support tools for reporting to more than 80% 
of key suppliers (over 500 suppliers) 
no. of 
suppliers 
66 
336 
2023 
100% of LEAP partners with targets and plans set out on green energy, reduction of 
CO2, emissions, waste recycling, water consumption  
% 
15 
40 
2023 
*Recurring suppliers included. Leonardo DRS excluded from the perimeter. 
  
11.  Ozone-depleting substances 
Emissions of ozone-depleting substances 
Unit 
2022
SF6 emissions 
t CO2e 
38,443
HFC emissions 
t CO2e 
9,353
Total SF6 and HFC emissions 
t CO2e 
47,796
Quantity of ozone-depleting substances emitted in atmosphere 
t CFC-11e 
0.00220

Methodology note of the Non-Financial Statement 
 
376 
 
 
CONTENT INDEXES 
GRI CONTENT INDEX 
The GRI table is reported below, which is in line with requirement 7 of GRI 1: Foundation 2021 included in 
the GRI Universal Standards 2021. References reported refer to the 2022 Report on Operations or to the 
other documents where expressly stated: the 2023 Corporate Governance Report (FY 2022), the Code of 
Ethics and the Anti-Corruption Code. 
Statement of use 
Leonardo has reported in accordance with the GRI Standards for the period 1 
January 2022 – 31 December 2022. 
GRI 1 used 
GRI 1: Foundation 2021 
Applicable 
GRI 
Sector 
Standard(s) 
GRI Sector Standard not available yet 
 
 
GRI 
STANDARDS/  
OTHER SOURCE  
DISCLOSURE 
LOCATION/OMISSION 
General disclosures  
GRI 
2: 
General 
Disclosures 
– 
version 
2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2-1 
Organizational 
details  
Leonardo SpA 
Leonardo S.p.A.’s registered office is in Piazza Monte Grappa, 4 - 
Rome (Italy)  
Group profile 
2-2 Entities included in 
the 
organization’s 
sustainability reporting 
Consolidation principles and area  
Methodology note of the NFS 
2-3 Reporting period, 
frequency and contact 
point 
FY 2022  
Annual Financial Report  
ir@leonardocompany.com 
The report is published on 9 March 2023 
2-4 
Restatements 
of 
information 
Any restatements or adjustments of information are indicated in 
the document from time to time

Methodology note of the Non-Financial Statement 
 
377 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
2-5 External assurance  
Methodology note of the NFS 
Independent Auditors’ Report  
2-6 Activities, value chain 
and 
other 
business 
relationships  
Profile 
Business sectors  
Business model  
Group results and financial position  
Sector results and outlook  
Supply chain value  
 
 
 
2-7 Employees 
Table GRI 2-7 
Inclusion and employment protection  
Profile 
 
2-8 Workers who are not 
employees  
Table GRI 2-8 
2-9 
Governance 
structure 
and 
composition  
Corporate governance 
Corporate governance – Corporate governance model 
Table Corporate Governance Model 
2-10  
Nomination 
and 
selection of the highest 
governance body  
Corporate governance 
 
CORPORATE GOVERNANCE REPORT 2023 – Diversity criteria and 
policies  
2-11 Chair of the highest 
governance body  
Corporate governance 
CORPORATE GOVERNANCE REPORT 2023 – Par. Corporate 
governance information and Par. 4.9. Directors’ interests and 
transactions with related parties  
2-12 Role of the highest 
governance 
body 
in 
overseeing 
the 
management of impacts  
Corporate Governance 
Sustainability targets and plan  
Sustainability governance  
 
CORPORATE GOVERNANCE REPORT 2023 – Board of Directors and 
Committees

Methodology note of the Non-Financial Statement 
 
378 
 
2-13 
Delegation 
of 
responsibility 
for 
managing impacts  
Corporate governance 
Sustainability targets and plan  
Sustainability governance  
2-14 Role of the highest 
governance 
body 
in 
sustainability reporting 
Corporate governance 
Sustainability governance  
2-15 Conflicts of interests 
Responsible business conduct 
 
Code of Ethics Par. 6 Conflict of interests 
 
Organisational, Management and Control Model under Legislative 
Decree 231 of 8 June 2001 (pages 14; 24; 29) 
 
CORPORATE GOVERNANCE REPORT 2023 Par. 4.3 Composition - 
Curricula of the Directors, Par 4.9  
Directors’ interests and Transactions with Related Parties  
2-16 Communication of 
critical concerns  
Responsible business conduct  
2-17 
Collective 
knowledge of the highest 
governance body 
Sustainability Governance  
Corporate Governance Report 2023 --> par. Board Induction  
2-18 Evaluation of the 
performance 
of 
the 
highest governance body 
Corporate Governance 
 
Corporate Governance Report 2023 --> par. Self-evaluation and 
succession of Directors  
 
2-19 
Remuneration 
policies  
Corporate Governance Report 2023 -> par. 8.2 
The ESG indicators stated in the 2022 remuneration policy (MBO 
and LTIP sections) are reported below: 
MBO 
> 
Inclusion in the Dow Jones Sustainability Index: Inclusion 
in the 2022 index. 
> 
Rate of injury: 2.35 in 2022. 
LTIP 
 
> 
 Intensity of CO2 emissions Scope 1 + Scope 2 (Location 
Based) / Revenues: 33.88 in  
2021, 28.96 in 2022.

Methodology note of the Non-Financial Statement 
 
379 
 
> 
% of women hired with STEM degree out of total new 
hires with STEM qualification: 20.9% in the two-year 
period 2022-2021, 19.4% in 2021. 
2-20 
Process 
to 
determine remuneration  
In accordance with applicable regulations, Leonardo’s 
Shareholders' Meeting is called upon to resolve on the 
remuneration policy 
Corporate Governance Report 2023 -> par. Remuneration 
Committee 
Remuneration Report 2022 -> page 27 
2-21 
Annual 
total 
compensation ratio 
Corporate Governance – Remuneration policy  
 
The ratio of the percentage increase in CEO’s total pay to the 
percentage increase in the median total pay of employees is 34. 
 
For the calculation, remuneration received by employees during 
the year was used, according to the cash principle accounting 
method. 
2-22 
Statement 
on 
sustainable development 
strategy  
 Strategy and outlook 
Sustainability targets and plan  
2-23 Policy commitments  Responsible business conduct  
transito of Values available on the website. 
Code of Ethics -> par. 11 "External relations " 
Policy on human rights

Methodology note of the Non-Financial Statement 
 
380 
 
2-24 Embedding policy 
commitment 
Corporate Governance – Remuneration policy  
People – Respect for human rights  
2-25 
Processes 
to 
remediate 
negative 
impacts  
Business model  
Methodology note of the NFS – Materiality analysis  
Strategy and outlook – Materiality analysis  
Corporate Governance – Responsible business conduct  
2-26 
Mechanisms 
for 
seeking 
advice 
and 
raising concerns  
Dedicated channels made available by Leonardo to enable the 
transmission of reports, even anonymous, are those described in 
the Whistleblowing Management Guidelines102.  
They have been circulated within and outside the Group to ensure 
maximum publicity. 
 
Furthermore, Leonardo DRS implements an Ethics Helpline 
available 24/7 managed by a third-party company103. 
 
Responsible business conduct 
                                                           
102 The Whistleblowing Management Guidelines are available on the website. 
103 The helpline website is https://secure.ethicspoint.com/domain/media/en/gui/80079/index.html.

Methodology note of the Non-Financial Statement 
 
381 
 
2-27 Compliance with 
laws and regulations 
With regard to environmental issues, during 2022 the number of 
violations of environmental laws reported by the control bodies 
amounted to 2 (6 in 2021, 11 in 2020, 6 in 2019 and 9 in 2018), 
none of which resulted in fines imposed during the year. 
During 2022, 8 environmental incidents occurred, of which: 1 
caused by a vehicle belonging to a third party, passing through a 
road adjacent to a site owned by Leonardo, which, leaving the 
roadway and hitting the guardrail, resulted in the spillage of 
chemical product (diesel fuel) on a green area owned by 
Leonardo; 4 for refrigerant gas spill, promptly contained and 
managed and for which the equipment or part of it was replaced; 
1 for chemical (antifreeze) spill; 2 for surfactant spillage into the 
sewage system. 
Within the context of remediation processes, there was no 
damage caused to the environment for which Leonardo has been 
definitively found to be liable, and no fines were imposed on 
Leonardo for environmental offences. 
 
 
In addition, 5 violations of health and safety regulations were 
reported by the control bodies, which resulted in 3 fines 
amounting to € 4,538.  
 
For a summary of criminal proceedings, reference should be made 
to Note 22 in the chapter on Notes to the Consolidated Financial 
Statements at 31 December 2022. 
2-28 
Membership 
of 
associations 
World: 
> 
AIAC (Aerospace Industries Association of Canada) 
> 
CIS International - The Center for Internet Security 
> 
Heli Offshore 
> 
TCCA (Tetra and Critical Communications Association)  
 
Europe: 
> 
ASD (Aerospace and Defence Industries Association of 
Europe) 
> 
ECSO (European Cyber Security Organization) 
> 
ERT (European Roundtable for of Industrialists) 
> 
EOS (European Organization for Security) 
> 
ETSI (European Telecommunication Standards Institute) 
> 
EUROCAE (European Organisation for Civil Aviation 
Equipment) 
> 
Gaia X 
 
Italy: 
> 
AIAD (Italian Industry Federation for Aerospace, Defence 
and Security) – associated with CONFINDUSTRIA 
> 
ANITEC-ASSINFORM (Association of Information & 
Communication Technology companies) - associated with 
CONFINDUSTRIA 
> 
Air Tech Italy

Methodology note of the Non-Financial Statement 
 
382 
 
> 
Global Compact Network Italia (GCNI) Foundation 
> 
UNAVIA (Association for Standardisation, Training and 
Qualification in the Aerospace, Defence & Security 
sectors)  
> 
Italian National Unification Body (UNI) 
 
United Kingdom: 
> 
ADS (Aerospace Defence Security & Space) – the major 
trade association in the AD&S sector in the United 
Kingdom  
> 
techUK (Information Technology Telecommunications 
and Electronics Association) 
> 
make UK (formerly Federation of engineering employers) 
– represents the manufacturing sector in the United 
Kingdom  
> 
CBI (Confederation of British Industry) – the major 
entrepreneurs association of the United Kingdom, 
represents the enterprises at regional, national and 
International level  
> 
5% Club – employer movement offering training 
opportunities 
> 
Team Defence Information – Non-profit collaborative 
organisation to modernise and transform Defence 
support in the United Kingdom 
> 
Social Value UK (national network that works with its 
members to promote change in how they report social 
value in order to improve well-being and reduce 
inequality and environmental degradation) 
 
United States: 
> 
NDIA (National Defense Industry Association)  
> 
SIA (Satellite Industry Association)  
> 
AIA (Aerospace Industry Association) 
 
Poland: 
> 
Association of Polish Aviation Industry 
> 
Aviation Valley - Association of Aerospace Industry 
Entrepreneurs Group 
> 
Association of Employers of Defense and Aerospace 
Industries  
> 
Association of Lublin Cluster of Advanced Aviation 
Technologies 
> 
Italian Chamber of Commerce and Industry in Poland.           
 
In 2022, membership fees for trade associations, industry and 
business support organisations, technical interest bodies and think 
tanks totalled approximately €mil. 5.3 (approximately €mil. 5.8 in 
2021, approximately €mil. 5.2 in 2020, approximately €mil. 5 in 
2019 and approximately €mil. 5 in 2018). In particular, the most

Methodology note of the Non-Financial Statement 
 
383 
 
significant contributions in 2022 concerned Confindustria 
(associated local bodies) for €mil. 2.5 and AIAD (Italian Industry 
Federation for Aerospace, Defence and Security) for €mil. 1.15. 
2-29 
Approach 
to 
stakeholder engagement 
Stakeholder engagement  
Responsible business conduct  
 
2-30 
Collective 
bargaining agreements 
 
Stakeholder engagement 
Inclusion and employment protection  
Human capital and skill enhancement  
Table – Other indicators  
 
Where there is no collective bargaining agreement, the general 
principles laid down in paragraph 3 of Leonardo’s Code of Ethics 
(Human Resources, Employment Policy and Privacy Protection) 
and paragraph 5 of Leonardo’s Charter of Values (Rights and 
Sustainability) still apply to employees. 
Material Topics 
GRI 
3: 
Material 
Topics 2021 
3-1 Process to determine 
material topics 
 
Methodology note of the NFS – Materiality analysis Strategy and 
outlook – Materiality analysis  
3-2 List of material topics  Methodology note of the NFS – Materiality analysis Strategy and 
outlook – Materiality analysis  
Diversity and inclusion 
GRI 
3: 
Material 
topics 2021 
3-3 
Management 
of 
material topics  
Promotion, or lack of development, of an inclusive, meritocratic 
and equitable corporate environment and culture, where 
diversity, including gender diversity, is recognized as an enabling 
factor for value creation. 
 
Inclusion and employment protection  
Respect for human rights  
GRI 201: Economic 
Performance–2016 
201-3 Defined benefit 
plan 
obligations 
and 
other retirement plans 
Group companies use various pension schemes, as described in 
Note 3.16 in the chapter on Notes to the Consolidated Financial 
Statements at 31 December 2022. 
GRI 
401: 
Employment –2016 
401-3 Parental leave  
Table GRI 401-3 
In Italy, the rules governing permits and leaves to protect 
maternity and paternity are laid down in Legislative Decree 
151/2001 and the remaining relevant legislation. 
GRI 
402: 
Labor/Management 
Relations 2016 
402-1 Minimum notice 
periods 
regarding 
operational changes  
In Italy and abroad, Leonardo applies the mechanisms allowed by 
the regulations and the agreements with the trade unions. In Italy, 
this issue is regulated by the National Collective Bargaining 
Agreement (CCNL), as well as by any relevant union agreements.

Methodology note of the Non-Financial Statement 
 
384 
 
GRI 405: Diversity 
and 
equal 
opportunity 2016 
405-2 Ratio of basic 
salary and remuneration 
of women to men 
Table GRI 405-2 
Other indicators – Gender diversity  
 
Working conditions and occupational health and safety  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Impacts related to workers' health and safety and their labor 
standards. Guaranteeing and promoting fundamental rights, 
promoting social dialogue, labor relations, and workers' health 
and safety. Among issues to be considered are work-life balance, 
management of organisational change, and measures aimed at 
improving the business climate 
 
Health and safety  
GRI 
403: 
Occupational 
Health and Safety 
2018 
403-1 
Occupational 
health 
and 
safety 
management system  
Health and safety  
 
403-2 
Hazard 
identification, 
risk 
assessment, and incident 
investigation 
Health and safety  
Decarbonisation path 
403-3 
Occupational 
health services 
Health and safety  
 
403-4 
Worker 
participation, 
consultation, 
and 
communication 
on 
occupational health and 
safety 
Health and safety  
403-5 Worker training on 
occupational health and 
safety  
Health and safety  
 
403-6 
Promotion 
of 
worker health 
Health and safety  
 
403-7 Prevention and 
mitigation 
of 
occupational health and 
safety impacts directly 
linked 
by 
business 
relationships 
Health and safety  
 
403-9 
Work-related 
injuries  
Health and safety  
Table GRI 403-9  
Skills management and talent attraction  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Creation of value (or lack thereof) for employees and target 
communities through careful selection, recruitment, management 
and retention of people and talent, valuing and retaining them, 
including through remuneration policies and continuous training. 
Attracting new talent by promoting the sector/industry strengths, 
innovative skills and values of the Group.

Methodology note of the Non-Financial Statement 
 
385 
 
 
Human capital and skill enhancement  
GRI 
401: 
Employment 2016 
401-1 New employee 
hires 
and 
employee 
turnover 
Inclusion and employment protection 
Human capital and skill enhancement  
In 2022, voluntary resignations accounted for 5.3% of total 
employees. 
GRI 404: Training 
and Education 2016 
404-1 Average hours of 
training per year per 
employee 
Other indicators – Employee training  
Table GRI 404-1  
Active support to the development of skills in the STEM area  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics 
Promotion of partnerships and projects, in the medium and long 
term, aimed at encouraging courses of study in the area of 
science, technology, engineering and mathematics (STEM) in 
order to bring new skills to the Group while conveying to students 
the value of the Company's business. 
GRI 404: Training 
and Education 2016 
404-2 
Programs 
for 
upgrading 
employee 
skills 
and 
transition 
assistance programs 
Human capital and skill enhancement  
Sustainable supply chain  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Impacts related to carbon footprint and non-compliance with 
human rights along the supply chain, monitored through policies, 
procedures and objectives to improve supplier performance and 
efficiency, and with the active involvement of suppliers in the 
Group's strategic path to sustainability with the aim of meeting 
the highest ethical, social and environmental standards. Increasing 
the competitiveness and sustainability performance of suppliers, 
including SMEs, even through supply chain development or 
training programs.  
 
Respect for human rights  
Sustainable supply chain  
Other indicators – Supply chain management  
GRI 
204: 
Procurement 
Practices 2016 
204-1 
Proportion 
of 
spending 
on 
local 
suppliers 
Supply chain value  
GRI 308: Supplier 
Environmental 
Assessment 2016 
308-1 New suppliers that 
were 
screened 
using 
environmental criteria 
Sustainable supply chain management  
GRI 407: Freedom of 
Association 
and 
Collective 
Bargaining 2016 
407-1 Operations and 
suppliers in which the 
right 
to 
freedom 
of 
association and collective 
bargaining may be at risk 
Supply chain value  
Other indicators – Supply chain management  
GRI 414: Supplier 
Social 
Assessment 
2016 
414-1 New suppliers that 
were 
screened 
using 
social criteria 
Sustainable supply chain management  
Other indicators – Supply chain management

Methodology note of the Non-Financial Statement 
 
386 
 
Responsible and ethical business conduct  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Reputational and/or sanction-related impacts arising from 
unethical or illegal behaviour (e.g., anti-corruption non-
compliance), and from the failure to respect human rights, 
guarded through a governance and control system in line with the 
company's values and best practices, and characterised by 
continuous and constructive communication with stakeholders 
aimed at strengthening the relationship of trust and collaboration. 
 
Responsible business conduct  
GRI 
205: 
Anti-
corruption 2016 
205-2 
Communication 
and training about anti-
corruption policies and 
procedures 
Leonardo's anti-corruption policies are communicated to all 
members of governing bodies, employees and business partners, 
in all geographies in which the Group operates. 
 
In addition, anti-corruption training for new hires continued in 
2022, with 91% of users taking the course. 
 
With the new internal regulation on Business Compliance of 2021 
Leonardo extended the training requirement to distributors and 
resellers as well; eligibility for signing contracts is now conditional 
on passing the end-of-course test. 
 
Responsible business conduct  
 
Anti-Corruption Code pages 3-4 
205-3 
Confirmed 
incidents of corruption 
and actions taken 
Provision for risks and contingent liabilities  
 
In 2022 there were no convictions against Group Companies, nor 
dismissals due to confirmed cases of corruption. 
GRI 
206: 
Anti-
competitive 
behaviour 2016 
206-1 Legal actions for 
anti-competitive 
behaviour, 
anti-trust, 
and monopoly practices  
No legal actions were commenced in 2022 related to unfair 
competition, anti-trust and monopoly practices. 
GRI 
415: 
Public 
Policy 2016 
415-1 
Political 
contributions  
Code of Ethics page 14 
 
As provided for in Leonardo’s Code of Ethics, the Company does 
not contribute company funds to political and trade union parties, 
movements, committees and organizations, or to their 
representatives and/or candidates; therefore, Leonardo did not 
pay any political contribution in 2022. The prohibition in the Code 
of Ethics on political contributions applies to all Group companies 
worldwide, including the United States. For more details, please 
see the Code of Ethics and Business conduct of Leonardo DRS. 
In the United States, where voluntary contributions to Political 
Action Committees (PACs) by employees are allowed, the

Methodology note of the Non-Financial Statement 
 
387 
 
operation of the PAC is supervised and monitored for legal 
compliance to ensure they are not used as vehicles for corruption. 
Sound corporate governance 
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Integrity and effectiveness of the Board of Directors, including in 
relation to top management remuneration policies; corporate 
structure that takes into account environmental, social and 
governance factors; transparent management of shareholder and 
stakeholder relations based on reliable financial and non-financial 
information. Possible adverse impacts arising from poor 
integration of social, environmental, and governance factors into 
decision-making processes. 
 
Paragraph GRI 207-1/3 
GRI 207: Tax 2019 
207-1 Approach to tax  
Paragraph GRI 207-1 
207-2 Tax governance, 
control, 
and 
risk 
management 
Paragraph GRI 207-2 
207-3 
Stakeholder 
engagement 
and 
management of concerns 
related to tax 
Paragraph GRI 207-2 
207-4 
Country-by-
country reporting 
Table GRI 207-4 
GRI 405: Diversity 
and 
equal 
opportunity 2016 
405-1 
Diversity 
of 
governance bodies and 
employees 
Inclusion and employment protection 
Corporate Governance 
Table GRI 405-1  
Environmental impact of the use of materials  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Environmental impacts related to the use of materials in relation 
to the entire product life cycle. Research and development on 
innovative materials and actions to integrate the principle of 
circularity into the business model. 
 
Natural resources management in industrial processes  
Circular economy 
GRI 301: Materials 
2016 
301-1 Materials used by 
weight or volume 
In 2022, Leonardo purchased about 14.7 ktons of raw materials, 
among which: about 7.5 ktons of iron, ferroalloys and steel, about

Methodology note of the Non-Financial Statement 
 
388 
 
5.4 ktons of aluminum, magnesium and other metals, 0.9 ktons of 
paper and cardboard, 0.9 ktons of other raw materials. 
 
The value does not include semi-finished products, the values for 
2020 and 2021 are not published as collected partially and not 
comparable with the data for 2022. 
GRI 306: Effluents 
and waste 2020 
306-1 Water discharge 
by quality 
 and destination  
Leonardo undertakes to adopt measures for the reduction and 
prevention of pollution and waste, thus minimising the production 
of hazardous and non-hazardous waste and promoting recycling.  
In order to reduce the impact related to waste production, 
Leonardo has implemented and is developing circular economy 
programmes and activated collaborations with third-party 
partners. 
 
Natural resources management in industrial processes 
Circular economy  
306-2 Waste by type and 
disposal method 
Natural resources management in industrial processes  
306-3 Significant spills  
Table GRI 306-3  
Climate change, adaptation/mitigation  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics 
Climate-altering emissions related to the Group's activities and 
value chain. Development of solutions for climate change 
mitigation and adaptation by reducing emissions from products, 
services and activities (e.g., low-carbon technologies, 
digitalisation, energy efficiency, renewables, sustainable mobility). 
 
Natural resources management in industrial processes. 
Decarbonisation path 
GRI 
302: 
Energy 
2016 
302-1 
Energy 
consumption within the 
organization 
Natural resources management in industrial processes. 
Decarbonisation path 
Table GRI 302-1 
302-3 Energy intensity  
ESG performance indicators  
Table GRI 302-3  
GRI 305: Emissions 
2016 
305-1 Direct (Scope 1) 
GHG emissions 
Natural resources management in industrial processes. 
Decarbonisation path 
Table GRI 305-1 
 
Source of the emission factor:  
> 
GHG Protocol Global 
> 
UNFCCC - National Inventory Submissions 2021 
> 
Table of national standard parameters (MITE) 
> 
AIMS Energy Article 2018

Methodology note of the Non-Financial Statement 
 
389 
 
> 
IPCC AR6 - Sixth assessment report 
305-2 Energy indirect 
(Scope 2) GHG emissions 
 
 
Natural resources management in industrial processes. 
Decarbonisation path 
Table GRI 305-2 
 
Source of the emission factor:  
> 
Average Grid US, Source: EPA - United States 
Environmental Protection Agency - eGRID2020; 
> 
Average Grid Europe, Source: TERNA - ENERDATA data 
2020;  
> 
Residual Mix United States and Canada, Source: 2022 
Green-e Energy Residual Mix Emissions Rates; 
> 
Residual Mix Europe, Source: AIB - Association of Issuing 
Bodies - European Residual Mixes 2021. 
305-3 
Other 
indirect 
(Scope 3) GHG emissions 
 
Natural resources management in industrial processes. 
Decarbonisation path  
Table GRI 305-3 
 
Scope 3 emissions include the following items: purchase of goods 
and services (raw materials); fuel and energy production activities 
not included in Scope 1 and 2; upstream transport and 
distribution; waste generated in operations; travel; leased assets; 
and production, transport and distribution of electricity. 
 
Source of the emission factor:  
> 
GHG Protocol Global; 
> 
UNFCCC - National Inventory Submissions 2021; 
> 
Boustead Model; 
> 
UK Government GHG Conversion Factors for Company 
Reporting (DEFRA 2022). 
305-4 
GHG 
emissions 
intensity 
ESG performance indicators  
Decarbonisation path  
Table GRI 305-4 
305-5 Reduction of GHG 
emissions 
Natural resources management in industrial processes. 
Decarbonisation path  
 
Tables GRI 305-1,2,3,4 
Solutions’ quality, security and performance  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Quality, reliability, and safety of products and services for end 
users, while ensuring efficient and distinctive performance 
through managing processes and projects in accordance with the 
Group's high /quality standards and reputation. 
 
Quality and safety

Methodology note of the Non-Financial Statement 
 
390 
 
Cyber security and data protection 
Responsible business conduct  
Other indicators - Par. Data protection  
GRI 416: Customer 
Health and Safety 
2016 
416-1 Assessment of the 
health 
and 
safety 
impacts of product and 
service categories 
Quality and safety  
R&D, innovation and advanced technology 
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Investment in research and support for innovativeness in business 
models through continuous innovation of products and services, 
enhancement of intellectual property, and development of 
emerging and advanced technologies. 
 
Technological innovation  
GRI 201: Economic 
Performance 2016 
201-1 Direct economic 
value 
generated 
and 
distributed 
Table of economic value generated, distributed and retained  
 
The following list includes the parent company and the main 
subsidiaries in the 4 domestic markets (fully consolidated) and 
their main countries of operations at 31 December 2022 (these 
companies are incorporated in the main country of operation). 
These companies have been selected based on materiality in 
terms of revenues, number of employees, fixed assets, and tax 
contribution. 
Leonardo SpA - Italy 
Leonardo UK – United Kingdom  
Leonardo DRS INC – United States of America 
PZL-Świdnik SA - Poland 
Leonardo Global Solutions SpA – Italy 
The aforesaid subsidiaries account for a total of: 
94% of revenues generated  
89% of fixed assets  
93% of employees  
GRI 203:  
Indirect 
Economic 
Impacts 2016 
203-1 
Infrastructure 
investments and services 
supported 
Supply chain value 
Value for territories and communities  
Table of generated, distributed and retained economic value  
Citizen security  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Development of integrated solutions, both military and civil, for 
contributing to national and international threats mitigation and 
to country and citizen protection.  
 
Customer 
support, 
quality 
and 
safety  
Technological innovation

Methodology note of the Non-Financial Statement 
 
391 
 
Cyber security and data protection 
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Impacts on cyber security, business resilience, and privacy. 
Monitoring these issues through cyber security, data protection 
and sensitive information technologies. 
 
Cyber security and data protection 
Responsible business conduct 
Other indicators - Par. Data privacy 
GRI 418: Customer 
Privacy 2016 
418-1 
Substantiated 
complaints 
concerning 
breaches of customer 
privacy and losses of 
customer data  
Cyber security and data protection  
Responsible business conduct  
Other indicators - Par. Data privacy 
Customer relations  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Customer satisfaction and trust related to proper management 
between Company and Customer, regarding expectations and 
collaboration on the product/service, following a listening-
centered approach 
 
Customer support, quality and safety  
GRI 416:  
Customer 
Health 
and Safety 2016 
416-1 Assessment of the 
health 
and 
safety 
impacts of product and 
service categories 
Quality and safety  
Natural resources management and conservation of ecosystems  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Efficiency and minimisation of social/environmental damage in 
the management of water, hazardous/non-hazardous waste, 
harmful substances, limiting contamination and pollution and 
protecting biodiversity. 
 
Natural resources management in industrial processes 
Circular economy 
GRI 303: Water and 
effluents 2018 
303-1 Interactions with 
water 
as 
a 
shared 
resource  
Natural resources management in industrial processes 
303-2 Management of 
water discharge-related 
impacts 
Natural resources management in industrial processes 
303-3 Water withdrawal  
Natural resources management in industrial processes 
Table GRI 303-3

Methodology note of the Non-Financial Statement 
 
392 
 
GRI 
304: 
Biodiversity 2016 
304-1 Operational sites 
owned, leased, managed 
in, 
or 
adjacent 
to, 
protected 
areas 
and 
areas of high biodiversity 
value outside protected 
areas 
Natural resources management in industrial processes 
GRI 305: Emissions 
2016 
305-7 Nitrogen oxides 
(NOx), sulphur oxides 
(SOx), 
and 
other 
significant air emissions 
Tables GRI 305-7 
Natural resources management in industrial processes  
Source of the emission factor: GHG Protocol Global  
Digital Transformation  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Greater efficiency and competitiveness through integration, 
development and deployment of digital technologies and 
connectivity 
 
Human capital and skill enhancement  
Technological innovation 
Natural resources management in industrial processes 
Supply chain value 
Customer support, quality and safety 
Value for territories and communities 
Business continuity 
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Preparation of plans, actions, and systems structured and 
integrated with business processes that enable operational and 
production continuity, to minimise risks of various kinds or cope 
with disastrous, critical or unexpected events (e.g., machine 
failure, fire, power failure, disruptive external events, etc.).  
 
Business continuity 
Development of Earth observation technologies  
GRI 
3: 
Material 
Topics 2021 
3-3 
Management 
of 
material topics  
Supporting climate change mitigation and adaptation, citizen 
security, and emergency management (e.g., natural events, health 
emergencies, border control, etc.) through the development of 
satellite and ground technologies. 
 
Leonardo’s contribution for climate change adaptation

Methodology note of the Non-Financial Statement 
 
393 
 
SASB CONTENT INDEX  
DISCLOSURE 
SECTION/NOTES 
RT-AE-000.A 
Production/trend 
by 
reportable 
segment  
Profile 
Sector results and outlook  
RT-AE-000.B 
Number of employees 
People  
RT-AE-
130a.1 
(1) Total energy consumed  
(2) percentage grid electricity  
(3) percentage renewable 
Natural resources management in industrial processes  
Decarbonisation path  
RT-AE-
150a.1 
Amount of hazardous waste generated, 
percentage recycled 
Natural resources management in industrial processes  
RT-AE-
150a.2 
Number and aggregate quantity of 
reportable spills, quantity recovered 
In 2022 the following events were reported:  
- 
1 significant spill caused by the impact of a vehicle 
owned by a Third-Party company passing on a road 
adjacent to a site owned by Leonardo, which proceeded to 
give notice thereof to the Supervisory and Control Bodies 
as the blameless owner, pursuant to Article 245 of 
Legislative Decree 152/2006 and implemented an 
Emergency Securing (MISE) plan to remove the topmost 
layer of soil impacted by the diesel fuel contained in the 
tank of the vehicle (about 120 liters). Of the 5 excavation 
bottom soil samples taken by Leonardo, only 1 showed 
values 
exceeding 
the 
Contamination 
Threshold 
Concentrations. 
The 
Third-party 
company, 
responsible 
for 
the 
contamination, then sent a notice pursuant to Article 242 
of Legislative Decree 152/2006.  
Leonardo notified the Supervisory and Control Bodies and 
the 
Third-party 
company 
responsible 
for 
the 
contamination of the results of the analysis conducted, 
declaring that it had fulfilled the legal obligations placed on 
the blameless owner. 
- 3 insignificant spills, all of which were promptly contained 
and managed and/or eliminated in accordance with 
current regulations. 
RT-AE-
230a.1 
(1) Number of data breaches 
(2) percentage involving confidential 
information  
Responsible business conduct. 
RT-AE-
230a.2 
Description of approach to identifying 
and addressing data security risks in (1) 
company operations and (2) products  
Cyber security and data protection  
Other indicators– par. Data Privacy 
Sustainable supply chain management. 
RT-AE-
250a.1 
Number of recalls issued, total units 
recalled  
Any measure issued to the in-service fleet, should there be 
a safety impact, is covered by the Authority with an 
Emergency Airworthiness Directive (see indicator RT-AE-
250a.3). 
RT-AE-
250a.2 
Number of counterfeit parts detected, 
percentage avoided 
NA 
RT-AE-
250a.3 
Number of Airworthiness Directives 
received, 
resulting 
in 
Emergency 
In the applicable businesses, Leonardo has Airworthiness 
Review processes in place to investigate any events with 
potential impact on the safety of its products and takes

Methodology note of the Non-Financial Statement 
 
394 
 
Airworthiness Directive, total units 
affected  
appropriate precautionary and/or corrective actions. In 
2022, Leonardo agreed with the relevant aviation authority 
three Emergency Airworthiness Directives. Following the 
investigation and in compliance with the current 
regulations, Leonardo issued the relevant applicable Alert 
Service Bulletins (ASBs), providing instructions to manage 
the risk that had been reported. More information is 
available on the website of the European Union Aviation 
Safety Agency.  
RT-AE-
250a.4 
Amount of fines and legal and 
regulatory transactions associated with 
product safety  
No fine/settlement agreement associated with Emergency 
Airworthiness directives referred to in indicator RT-AE-
250a.3. 
RT-AE-
410a.1 
Revenue from 
alternative 
energy-
related products 
Some of the helicopters produced by Leonardo can 
operate with fuels having up to 50% of SAFs without 
operational limitations or performance degradation are 
the following: AW139, AW169, AW189, AW149, A109S, 
AW109SP, AW119MkII, A109A/AII, A109C, A109K2, A109E, 
A119.  
RT-AE-
410a.2 
Description of strategic approach to 
reduce 
fuel consumption 
and 
greenhouse gas (GHG) emissions of 
products  
Decarbonisation path 
RT-AE-
440a.1 
Description 
of 
risk 
management 
associated with the use of critical 
materials  
Risk management  
RT-AE-
510a.1 
Total amount of monetary losses 
resulting 
from 
legal 
proceedings 
associated with incidents of corruption, 
bribery and/or illicit international 
trade. 
There are no convictions or compensation ordered as part 
of criminal proceedings for corruption. 
 
RT-AE-
510a.2 
Revenues from countries classified in 
band “E” and “F” of Transparency 
International’s Government Defence 
Anti-Corruption Index  
20% of revenues in 2022 from countries classified in bands 
E and F of the Government Defence Anti-Corruption Index 
of Transparency International, of which 62% for EFA Kuwait 
and NH90 Qatar contracts under which Leonardo is the 
prime contractor. 
RT-AE-
510a.3 
Description of processes to manage 
ethical risks in conducting business 
throughout the value chain  
Responsible business conduct 
Risk management  
Supply chain value

Methodology note of the Non-Financial Statement 
 
395 
 
TCFD (TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES) 
CONTENT INDEX 
TCFD RECOMMENDATIONS 
Section/Notes 
Pillar 
TCFD Recommended Disclosures 
GOVERNANCE 
a) Describe the board’s oversight of climate 
related risks and opportunities. 
Sustainability governance  
b) Describe management’s role in assessing and 
managing 
climate 
related 
risks 
and 
opportunities. 
STRATEGY 
a) Describe the climate related risks and 
opportunities the company has identified over 
the short, medium, and long term. 
Decarbonisation path 
b) Describe the impact of climate-related risks 
and 
opportunities 
on 
the 
company’s 
businesses, strategy, and financial planning. 
c) Describe the resilience of the company’s 
strategy, taking into consideration different 
climate-related scenarios, including a 2°C or 
lower scenario 
RISK 
MANAGEMENT 
a) Describe the company’s processes for 
identifying 
and  
assessing climate related risks. 
Risk management  
Decarbonisation path 
b) Describe the company’s processes for 
managing climate related risks. 
c) Describe how processes for identifying, 
assessing, and managing climate related risks 
are integrated into the company’s overall risk 
management. 
METRICS 
AND 
TARGETS 
a) Disclose the metrics used by the company to 
assess climate-related risks and opportunities 
in line with its strategy and risk management 
process. 
GRI indicators 
Natural resources management in industrial 
processes  
Decarbonisation path 
b) Disclose Scope 1, Scope 2, and, if 
appropriate, Scope 3 greenhouse gas (GHG) 
emissions, and the related risks. 
c) Describe the targets used by the company to 
manage climate-related risks and opportunities 
and 
performance  
against targets.

Methodology note of the Non-Financial Statement 
 
396 
 
INFORMATION ON EU TAXONOMY FOR SUSTAINABLE ACTIVITIES 
REGULATORY FRAMEWORK 
In 2019, the European Union unveiled the European Green Deal plan with the goal of achieving climate 
neutrality by 2050. In order to attain this goal, the European Union promotes investments in sustainable 
assets and activities. In this perspective, EU Regulation 2020/852 brought in a classification system or 
"taxonomy" of sustainable activities (Taxonomy Regulation), based on the use of the statistical classification 
codes of economic activities in the European Community (NACE codes - Nomenclature statistique des 
Activités économiques dans la Communauté Européenne).  
The Taxonomy Regulation sets out the criteria for establishing whether an economic activity can be 
considered environmentally sustainable based on its substantial contribution to six objectives:  
a) climate change mitigation;  
b) climate change adaptation;  
c) the sustainable use and protection of water and marine resources;  
d) the transition to a circular economy;  
e) pollution prevention and control;  
f) the protection and restoration of biodiversity and ecosystems. 
In 2021, the taxonomy regulatory framework was supplemented by a series of Delegated Acts: the Delegated 
Regulation (EU) 2021/2139 of 4 June 2021 (Climate Delegated Act) and the Commission's EU Delegated 
Regulation 2021/2178 of 6 July 2021, which regulates a mandatory disclosure regime for companies 
(Disclosures Regulation). 
The first Delegated Act to be published, the Climate Delegated Act, focused on activities that have a greater 
capacity to contribute to the first two objectives set out in the Taxonomy Regulation, climate change 
mitigation and climate change adaptation. 
In the 2022 NFS, companies must publish the value of "eligibility" of their economic activities and of 
“alignment” with taxonomy, i.e. those "eligible" activities that simultaneously: contribute substantially to at 
least one of the environmental objectives, do not cause significant harm to any of the other objectives, 
comply with both minimum social and governance safeguard clauses and technical screening criteria. 
It should be emphasised that the scope of the Taxonomy is expected to expand over time in terms of both 
the economic activities that are considered and the sustainability objectives that are analysed. In this regard, 
two documents published in 2022 by the Platform on Sustainable Finance should be highlighted 104: 
1. 
the document “Recommendations on technical screening criteria for the four remaining 
environmental objectives of the EU taxonomy” published on 30 March 2022, which, on the one hand, 
lists environmentally sustainable activities on the four remaining environmental objectives and, on 
the other, analyses the possible contribution given by additional economic activities to the 
achievement of climate objectives; 
2. 
the document “Final Report on Minimum Safeguards” published on 11 October 2022, which identifies 
the minimum social safeguards that must be met. 
                                                           
104 This is a platform established by the European Commission for the purposes of providing advice on taxonomy.

Methodology note of the Non-Financial Statement 
 
397 
 
Thus, not all sustainability goals and not all economic activities are regulated by the legislation that is 
currently in force. 
TAXONOMY AND THE AEROSPACE, DEFENCE & SECURITY SECTOR 
The Climate Delegated Act does not include among sustainable activities the primary reference NACE code 
for the Aerospace, Defence & Security sector, NACE code C30.3 "Manufacture of air and spacecraft and 
related machinery."  
NACE code C30.3 is instead included within the aforementioned Platform on Sustainable Finance document 
of 30 March 2022. Leonardo will follow regulatory developments and will adjust its reporting and related 
disclosure requirements accordingly.621 
LEONARDO REPORTING 
Within the 2022 Report on Operations, Leonardo describes environmental and energy sustainability 
performance, as well as its commitments to reducing impacts and promoting responsible management of 
natural resources in industrial processes.  
The commitments are further strengthened by the application of metrics linked to greenhouse gas reduction 
both in the long-term variable remuneration policy of management and in the latest ESG-linked financing 
transactions, which account for 55% of total sources of financing available to the Group. The efforts put in 
place were also recognized by CDP, which confirmed Leonardo in the "leadership band" with a rating of A-. 
In compliance with the current regulations on taxonomy, Leonardo publishes the required information for 
the year 2022 regarding the percentages of sales (Revenues), capital expenditures (Capex) and operating 
expenses (Opex) relating to sustainable taxonomy eligible and ineligible economic activities, as well as aligned 
and non-aligned activities among those set out in the Delegated Acts.  
The guidelines provided in Annex I attached to the Disclosures Regulation have been considered for the 
definition of the denominators of turnover (Revenues), Capex and Opex. 
For the numerators, the assessments of eligibility have been carried out by taking account of the descriptions 
of the economic activities included in Annex I (climate change mitigation) and Annex II (climate change 
adaptation) of the Climate Delegated Act.  It should be noted that the numerators are affected by the lack of 
coverage of the primary business of Leonardo within the Climate Delegated Act. 
It should be noted that, considering the regulatory developments and the possible inclusion of the NACE code 
C30.3 attributable to the operations in the AD&S sector among “eligible” activities, the percentages of 
taxonomy-eligible/ aligned activities could undergo significant changes in 2023.

398 
 
 
 
 
 
TURNOVER FY 2022
Economic Activities
Code(s)
Absolute value (€mln)
% Proportion on total
Climate Change mititgation (%)
Climate Change adaptation (%)
Water & Marine resources (%)
Circular Economy (%)
Pollution (%)
Biodiversity & ecosystems (%)
Climate Change mititgation (y/n)
Climate Change adaptation (y/n)
Water & Marine resources (y/n)
Circular Economy (y/n)
Pollution (y/n)
Biodiversity & ecosystems (y/n)
Miminum 
safeguards
Taxonomy 
aligned 
proportion 
on total, 
year N
Category 
(enabling 
activity)  
E
Category 
(transitional 
activity)  T
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Total of environmentally sustainable activities (Taxonomy-
aligned) A.1
0
0%
A.2 Taxonomy-eligible but not environmentally sustainable 
activities (not Taxonomy-aligned activities)
Total of Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned activities) (A.2)
0
0%
Total (A.1+A.2)
0
0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Total of Taxonomy-non-eligible activities (B)
14,713 100%
Total (A+B)
14,713
DNSH criteria 
Substantial contribution criteria

399 
 
 
 
 
 
CAPEX FY 2022
Economic Activities
Code(s)
Absolute value (€mln)
% Proportion on total
Climate Change mititgation (%)
Climate Change adaptation (%)
Water & Marine resources (%)
Circular Economy (%)
Pollution (%)
Biodiversity & ecosystems (%)
Climate Change mititgation (y/n)
Climate Change adaptation (y/n)
Water & Marine resources (y/n)
Circular Economy (y/n)
Pollution (y/n)
Biodiversity & ecosystems (y/n)
Miminum 
safeguards
Taxonomy
 aligned 
proportion 
on total, 
year N
Category 
(enabling 
activity)  
E
Category 
(transitional 
activity)  T
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Installation, maintenance and repair of energy efficiency 
equipment
7.3
5.6
1% 100%
n/a
Y
n/a
n/a
Y
n/a
Y
100% E
Installation, maintenance and repair of charging stations for 
electric vehicles in buildings (and parking spaces attached to 
buildings)
7.4
0.1
0.01% 100%
n/a
Y
n/a
n/a
n/a
n/a
Y
100% E
Installation, maintenance and repair of instruments and devices for 
measuring, regulation and controlling energy performance of 
buildings
7.5
0.1
0.02% 100%
n/a
Y
n/a
n/a
n/a
n/a
Y
100% E
Total of environmentally sustainable activities (Taxonomy-aligned) 
A.1
5.8
1%
100%
A.2 Taxonomy-eligible but not environmentally sustainable 
activities (not Taxonomy-aligned activities)
Total of Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned activities) (A.2)
0
0%
Total (A.1+A.2)
5.8
1%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Total of Taxonomy-non-eligible activities (B)
875
99%
Total (A+B)
881
Substantial contribution criteria
DNSH criteria

400 
 
OPEX FY 2022
Economic Activities
Code(s)
Absolute value (€mln)
% Proportion on total
Climate Change mititgation (%)
Climate Change adaptation (%)
Water & Marine resources (%)
Circular Economy (%)
Pollution (%)
Biodiversity & ecosystems (%)
Climate Change mititgation (y/n)
Climate Change adaptation (y/n)
Water & Marine resources (y/n)
Circular Economy (y/n)
Pollution (y/n)
Biodiversity & ecosystems (y/n)
Miminum 
safeguards
Taxonomy
 aligned 
proportion 
on total, 
year N
Category 
(enabling 
activity)  
E
Category 
(transitional 
activity)  T
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Transport by motorbikes, passenger cars and light commercial 
vehicles
6.5
4.8
1.1% 100%
n/a
Y
n/a
Y
Y
n/a
Y
100%
Data processing, hosting and related activities
8.1
2.5
0.6% 100%
n/a
Y
n/a
Y
n/a
n/a
Y
100%
Total of environmentally sustainable activities (Taxonomy-
aligned) A.1
7.3
1.7%
100%
A.2 Taxonomy-eligible but not environmentally sustainable 
activities (not Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial 
vehicles
6.5
6.7
1.6%
Total of Taxonomy-eligible but not environmentally 
sustainable activities (not Taxonomy-aligned activities) (A.2)
6.7
1.6%
Total (A.1+A.2)
14.0
3.3%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Total of Taxonomy-non-eligible activities (B)
418
96.7%
Total (A+B)
432
Substantial contribution criteria
DNSH criteria 
Piazza Monte Grappa, 4 
00195 Roma 
T +39 06324731 
F +39 063208621

Methodology note of the Non-Financial Statement 
 
401 
 
 
Piazza Monte Grappa, 4 
00195 Roma 
T +39 06324731 
F +39 063208621