Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Leonardo First Quarter 2021 Results Conference Call. At this time, I would like to turn the conference over to Ms. Valeria Ricciotti, Head of Investor Relations and Credit Rating Agencies.
Please go ahead, madam. Good evening, everybody, and thank you for joining us today on our Q1 2021 results conference call. I'm Valera Risotsky, Head of Investor Relations and Credit Rating Agencies. Today, our CEO, Alejandro Profumo, will take you through our progress during the Q1 of this year and our CFO, Alessandra Genco will take you through the Q1 financial results and our outlook for the full year. And then we will welcome your questions.
I will now hand you over to our CEO, Alessandro Trujumo.
Many thanks, Valerio. Many thanks to all of you. My mistake is due to the fact that there is as well Valerio Choffe with us today and Giovanni Socodato. So thank you for taking the time to join us today. And we start with the key points about our Q1 results and our recent progress starting the year.
We have made a solid start to the year and in line with expectations. Also, Q1 is a smallest contributor to the year. We have continued to achieve good order intake and our strong backlog has supported growing revenues. Our profitability has remained robust and our cash flow is in line with the plan. We are progressing well with our plans.
We are leveraging on our €36,400,000,000 backlog in a complex global context with a strong order intake level also this quarter at $3,400,000,000 less relying on large scale orders and benefiting from the resilience of the military to our mental business and demand in export markets. Revenues at 2,800,000,000 confirming our growth path with higher profitability across the group besides hydro structure. EBITDA is at €95,000,000 this quarter, recording a total growth rate higher than 130%. Clearly, the last year, we had the first impact of COVID, but I think that this is quite a good number. And we are confirming our strong liquidity and financial flexibility with a free operating cash flow at 9.1.4 percent, reflecting usual seasonality.
Military environmental markets remain robust. We are continuing leveraging on our markets. We are seeing good continued demand in export markets as well even if travel restriction has delayed the winning of some orders or the delivery of some civil products. Meanwhile, we remain cautious on the speed of recovery on the civil side, as we talked about it to you in our recent full year results. The impact of COVID pandemic is certainly not yet over.
We continue to see its effects globally and there is continued uncertainty because by heat around the world. And this will continue for some time at least. But despite this, overall, we have made a solid start to this year. Also to mention on our continuing progress on ESG. ESG targets have been included in our remuneration report to be approved by the AGM and they will now be part of both the short term and long term incentive plan.
And we also continue to make a good strategic process in important areas, as you can see here in the next slide. We continue leveraging existing assets and technologies to support next generation products. For example, the Eurofighter platform has a strong development path for platform upgrades. Also thanks to government support and the extra market and we are actively pursuing new opportunities post COVID. But strategically, we are also doing more than this.
We have talked for some time about our performance. What we have seen from asset in the Q1 of this year is really taking a much more active approach to managing the portfolio to maximize its value. 3rd and most importantly, in addressing the challenges impacting the civil side of our business. With a proactive review of options to accelerate transformation and address structural issues, including rationalizing industrial sites, investing to increase efficiency and flexibility and account reduction. We are in active dialogue with unions on plans to address these challenges.
We want to position our structures and our IT ATR joint venture for the future, both operationally, financially and being set up for the long term and next generation program. We hope to update you later this year in more detail on our progress here on the CV side. As we said in full year 2020 results, we are also evaluating potential disposals, For example, the automation business. We are conducting a critical product portfolio valuation, focusing capital online of business with the strongest capabilities. It will also contribute to maintaining a solid capital structure.
And then, we have also seen our active approach with the IPO process as we began for a minority stake in Eurasia, our important presence in U. S. The rationale in this case is allow the financial market to appreciate better the increasing value in the company, while maintaining our exposure to this key strategic market. And despite the strong interest received during the roadshow, the recent market condition did not support an adequate valuation for us. So we intend to reconsider this move when market conditions are more favorable and allow for an updated valuation of the business.
Then we have seen that we have reached expanded our novel electronics software with acquisition of 30% of German electronics and we have announced acquisition of a 25.1% space in Ansell. This move will establish a strategic hotel presence in the fast growing German defense market and allow a further cooperation between complementary businesses across the others, product and then market. Market. We also have a long held belief in importance of building cooperation across the European Aerospace and Defense Industry, and we are determined to play an active role here. And that's the context relating to the acquisition of the stake in the leading European German Anseld Sensor Solution Business.
Let me give you more color on that. We are acquiring a 25.1% stake and intend to implement a new strategic partnership to take advantage of attractive future opportunities. The closing of transaction is expected for the second half of twenty twenty one, subject to customary closing conditions. Anglo is in a fairly attractive space at Central Tech for defense and security application. It has an expanding portfolio in cybersecurity, data management and robotics.
We see a very strong tangible induction and strategic rationale behind this investment advantage. It will enhance our combined access to the German, Italian and UK markets, leveraging our joint network to accelerate commercial initiatives in international market and leveraging complementary portfolios to offer comprehensive products and solutions to customers. Sharing the practice is to ensure the compatibility of future technologies. It will strengthen our defense electronic activities and strengthen our footprint in a fast growing segment. It will put us an even stronger position behind important military and governmental programs such as EIFA and the Eurodrome.
And even before this, we have already been working together with Enso. They are not stranger to us. And we are very used to these kinds of tie ups and we understand how to make them more valuable.
At the
same time, we can maintain a very solid capital structure also through disposal and the potential IPO of DRS. So all this adds up to important strategic progress and then increasing active approach to managing our portfolio. We are confident in our business trends and strategy and I mentioned the actions we are taking on our structure and the ATR. But let me touch briefly on our other businesses. We continue to make choices in strategy aimed at increasing their long term prospects, building up volumes and improving the quality and longevity of profit streams and cash flow.
Specialty Costas, it has proved its strength in the current condition. As a business, it is well balanced in military, civil plus attractive customer support. We have the right product strategy to our user. The military governmental components has provided great resiliency, flexibility and stability in a tough environment like we have seen during the pandemic. Continues to perform well commercially and we can be confident looking forward longer term.
Here, we have a solid backlog and our product portfolio is leading to a solid stream of revenues coming also from the more profitable customer support activities in the coming decade. We have also been able to catch many good opportunities in the military market and we continue to invest well and build for the future. Look at Copter acquisition to enlarge the total franchise in a specific segment and opening new markets. All the AW609 and the Euro, all the time the helicopters is that the AW169. While across our electronics division in Europe, we saw a very good start to the year commercially as we have seen.
We have a solid order book. We have established long term relationship with customers, built on trust in growth cooperation becoming the partner of choice. Our strategy is to gain long term repeat business and also potentially support business as well. We have one position for attractive long term opportunities and we can leverage our strong incumbent position to produce attractive continuing repeat business. For example, the ESA fleet guaranteeing opportunities until 2040, 20 50 and now 10%.
You can also see example in Lava and IFS North Pipe. It's also enabled to us to expanding our aviation market. For example, with our targeting ladder system, where for 17 years, we have been the sole supplier to log in methane for the F-thirty five. And now for U. S.
Apache platform as well. In U. S, the rest continues to perform strongly with top line growth confirmed. Here, we are very well positioned towards U. S.
Department of Defense key priorities. And we expect margin expansion to be driven by transitioning of programs from development to production. All in all, we see a positive outlook for the future for our defense electronics activity. Net aircraft is a structurally strong business. We are well positioned on key long term programs like AIFA that will bring a constant flow of high value added customer support activities.
It is performing very well commercially and we feel positive looking at the pipeline of new potential opportunities. This has a best in class profitability. It is expected to grow on all metrics in absolute terms and not forecast the key Asia Kuwait bringing growing contribution and the EuroDome contract about to be finalized. We are investing in trainers and attractive and growing business. The export 346, sorry, you saw recent achievements in Greece and other export campaigns, which will bring us a solid bulk of activities.
And the M-three forty five still in the initial phase with significant opportunities in domestic and export countries. And the S-thirty five where we see long term MRO activities. Looking further forward for our group as a whole, as I say, the impact of the global pandemic continues and is not over yet. But we can have confidence. In the short term because of our commercial and operational resilience and our continued commercial momentum driving order intake and so on.
Our top line benefiting from our strong backlog, especially on the military side governmental side. In the medium term, as the civil side will recover and reposition for the future and we take advantage of post COVID opportunities. And in the longer term, as we gain the benefit of our strategy of building sustainable growth and maximizing the value in our portfolio. Thank you for the attention. And now I would like to hand over to Alessandra.
Alessandra?
Thanks, Alessandra, and good afternoon, everybody. It is a month and a half since we spoke to you in the detailed full year 2020 results presentation. As you know, although Q1 is important to us as we look to start the year in the right way, it is always our small contributor to the full year. It is important to bear this in mind. As you can see, we have made a solid start to the year.
Q1 results are in line with our expectations when we recently set out our guidance for the full year. Continued strong demand for our products on the military governmental side has supported both our order intake and growing top line. We're leveraging on our strong backlog of €36,400,000,000 Order intake of €3,400,000,000 flat year over year, well balanced and with no jumbo orders included revenues of EUR 2,800,000,000 up 7.7 percent year over year. Profitability remains robust and is higher across the group, except for Aerostructures. Pre operating cash flow is in line with plan at this stage of the year at negative EUR 1,400,000,000, reflecting usual seasonality.
And we confirm our strong liquidity position with no material refinancing needs due in 2021. Let's look at the key group metrics for Q1. And remember, the prior year comparator, Q1 2020, was the period when we began to see the impact of the pandemic on our results in March 2020. 1st, looking at new order intake. We are pleased with our continued commercial momentum.
EUR 3,400,000,000 of new orders in Q1 at a similar level to last year, nicely distributed across the group, plus looking forward with the prospect of attractive pipeline opportunities. The standout commercial performance in the quarter was from Defense Electronics. In Europe, it was especially strong, with new orders of €1,500,000,000 up almost 80%, including EHA Germany, involving 38 Typhoon aircrafts, including orders to equip the near future submarines for the Italian Navy and in cyber contracts for the Italian governmental and military forces. DRS also continued its strong commercial momentum with additional orders from the mounted family of computer systems for the U. S.
Army as well as orders for vehicle protection equipment won new orders in Q1 for €855,000,000 Noting a high comparator in Q1 'twenty because of the major U. K. Merlin support contract. And we saw the 2nd order in the U. S.
For 36 naval CH-73A helicopters. In aircraft, order intake rose to $595,000,000 thanks to the important trainer export campaign for the M346 as well as EFA supports and others. While Aerostructures recorded a sharp fall in orders, reflecting the current very tough environment and position of major customers. So overall, a good commercial performance. Next, revenues.
With group Q1 revenues at €2,800,000,000 up 7.7%, confirming our growth path as we see good performances in all divisions except Aerostructures. Helicopters delivered revenues of 792,000,000 dollars up 12.5 percent, executing on its backlog, driven by ramp up of military governmental programs such as NH90 for Qatar and the movie trainer. Defence and Travel Europe saw revenues up 10% to EUR 931,000,000 across all business areas. DRS showed strong progress with higher volumes up 18%, excluding FX effects. Aircraft increased top line revenues by 18.3 percent to EUR 510,000,000, in particular, driven by the M34067.
While Aerostructure volumes were down, reflecting the current tough environment. So overall, a good top line performance in Q1, reflecting how we have been delivering well from our solid backlog. Moving on to EBITA and profitability. I'll explain the drivers by business in a moment, but the key points here are Q1 EBITDA was €95,000,000 That's over double the level of last year in the Q1, with higher volumes and improving profitability. With RAS at 3.4% versus 1.6% last year.
But remember that Q1 last year was impacted by the sudden emergency of COVID halfway through the quarter. Our results this year shows the efforts we have made since then, achieving operational recovery from the worst of the pandemic yield factor, with productive hours 8% higher than in Q1 last year, if we exclude the restructures. So reducing the under absorption of costs and achieving higher volumes by achieving higher volumes, profitability across the group is improving, except in Aerostructures. Now let's look at the individual businesses. Helicopters showed an increase to EUR 31,000,000 dollars on the back of higher revenues and improved manufacturing efficiency.
Defense Electronics delivered a good positive performance. In Europe, increased EBITDA to €79,000,000 again driven by higher volumes and reduced other absorptions. DRS in the U. S. Delivered strong growth in line with our margin expansion plan.
EBITDA at $68,000,000 leading to a return on sales higher at 8.5% in the quarter. Aircraft increased its EBITA to €47,000,000 up strongly with a rough of 9.2%, again driven by higher volumes and better manufacturing efficiency compared to the Q1 last year. Losses in Aerostructures increased to $46,000,000 reflecting the expected reduction in volumes leading to production sites running at lower capacity. Similarly, ATR continues to be heavily impacted by the challenges in the civil aerospace market with a negative contribution of €14,000,000 But we are taking actions already beginning to reduce costs against a tough backdrop. Then in our space joint venture, there was a slightly better result in the quarter, confirmed good results in space services and improved manufacturing performance.
So overall, we have maintained robust and solid profitability for the group despite the external environment and continued impact on the previous side. Now moving to below the line items. You can see we have benefited from a higher EBITA. And then in the quarter, there were $11,000,000 of non recurring costs related to COVID and restructuring costs and PB and A in line with last year. Financial charges were lower at EUR 46,000,000 and taxes higher at EUR 31,000,000.
We have recently shown how we have managed cash flow well in these challenging external conditions. Our pre operating cash flow in Q1 progressed in line with plan and showed the impact of our focus and discipline. At negative €1,400,000,000 it reflects our usual seasonality with cash inflows heavily weighted towards the second half. But you can see a year over year positive decline of 173,000,000 Moving to our balance sheet. We confirm and maintain our continued strong liquidity position at €4,200,000,000 We are confident of maintaining the solid financial capital structure post the Hentro's acquisition.
We have the additional options of strengthening this further to potential disposal as well as to the potential strategic move to IPO a minority stake in the U. S. So you have seen Q1 is a solid start to the year and on track with our expectations. Our main businesses on the military governmental side are delivering, and the year has started well, especially in order intake and revenue growth. We are confirming the full year guidance that we recently gave you in March.
And you can see here on the slide continuing commercial momentum and new order intake, top line growing as we leverage off a solid backlog, EBITA improving and remained robust despite the civil softness and continuing COVID effects. While pre operating cash flow slightly with resilience on the defense side, offset by pressures on the civil side and more normal levels of net investments. So now to conclude, we are pleased with the start of the year. We are on track and delivering in an uncertain external context. While remembering that it is early in the year as it's only Q1 and it's our smallest quarter.
But the key points are continued good commercial progress with continuous order intake distributed across the group, confirmed growth path in revenues, operational resilience, robust profitability and cash flow in line with plan. Thank you. And now I'll hand it over to
The next question is from David Gorton with Bank of America. Please go ahead, sir. Good evening, everyone.
Can you hear me okay? There's a bit of feedback on
the line. No, no. We can hear you well.
Fantastic. Thank you. I've got 2 strategic questions. Firstly, on the minority stake in HENSOLD. Obviously, we know that Leonardo is a major industrial partner for the U.
K. Tempus program and Hensoldt expects to be a major supplier for the FCAS. What does your stake in Hensoldt means for Leonardo's participation in FCAS? And do you think that there's going to be some commonality there between the two platforms in terms of technology that you can exploit? That's my first question.
Yes.
Thanks, Florent.
Yes. Thanks, Tom. On Tempest and ECSEL, it's clear that these two aircrafts will operate in an alliance environment, a nice environment. So I think we strongly believe that whatever the developments will be in the future, there will be a strong level of commonality in basic technologies and capabilities which should be delivered. And so we expect that that would allow us working within Bernardo and Hensold in a kind of more cooperative way to improve the development of technology and caravities going forward.
And since this could be even strengthened and partnered developed, thanks to the fact that we are already cooperating on Eurofighter Typhoon. Eurofighter Typhoon will be operational for another 30 years at least as it's been secured in 30 days in Germany and is going to undergo to a long term evolution program, which will involve technology development enhancement. And through that technology development enhancement, we will still be able to develop technologies to be possibly and progressively spiral into new development, SCAS or Tempe. This we think is a great opportunity that we can capture working together in the future, irrelevant to whether the 2 programs will continue to be 2 separate programs or will eventually convert. If they will compare, that will provide even greater opportunities and the strength to our operation with Ensign in the future.
Thank you, Christian.
Fantastic. My second question was just touching on DRS. I think you've been very clear about the reasons why you paused the partial listing. When do you expect the conditions to be more favorable and what's you looking for? And does the €606,000,000 cash outflow in the second half of twenty twenty one for Hensalt increase the urgency for you to revisit this revisit this process?
No. The answer to the second part of your question is no in the sense that we are working on other disposal in order to fund the Enso acquisition. So we are not under pressure. We don't know when the market condition will be the right level. What we are focused on is to maintain the promise that in any case we made to the market during the roadshow management.
You have seen the Q1 numbers, which are really good. So I think that now we have to be focused on that. Then clearly, we hope that on one side, the 2 elements of uncertainty that unfortunately arise the week of the listing on one side, the inflation, the growth of inflation and the expected raise of rates. And on the other side, the approval which just happened of the I don't know how to call support package of trading and buy unless the stimulus package of €1,900,000,000 that was creating the question if there will be a cut to the defense budget in a certain period of time will be over these 2 uncertain year. And I'm not saying that deflation won't be there, but at least will be digested by the market.
So that hello? So when the market condition will be the right plan, we will reconsider the elements. Clearly, we have a clear threshold in terms of evaluation. So it depends on what the market will do. As I said at the beginning of my end, we are not under pressure.
Okay. Thank you very much.
Next question is from Alessandro Potti with Mediobanca. Please go ahead, sir.
Yes, good afternoon. My first question is on disposals. I believe you mentioned that you're hoping to fund the stake in Hanseld with the disposal. Can you give us maybe a bit more color? You mentioned automation.
But is it fair to assume that potentially all disposal could add up to a few €100,000,000 up to maybe €600,000,000
clearly not automation. We are working on the portfolio. Since people are involved, as always is wise, we won't be heading up in the discussion with a potential partner in order to make announcement when we can manage as well our internal stakeholders.
Okay. Thank you. And on that Hensold, could you maybe do you have in mind the level of our synergies or additional order intake that potentially you can win by having a minority stake in the company?
We have a very good exercise in terms of potential synergies. Clearly, this is something that we have not communicated to the market because it's a minority stake. So we have a clear view on what we can do together. I'm sure that you have noticed that Thomas Muller, the CEO of Anselt asked to be part of our press release with a statement just to give a strong signal of the fact that the management is fully supportive of that. And let me say, I do have some experience of working together with other companies when the management that we have the right mindset is always the best base in order to achieve great targets.
Okay. That's very clear.
Do you think that there is another angle to this acquisition of minority stake like a geopolitical one whereby potentially Italy is going to work closely with Germany in defense electronics or in defense in general?
You know perfectly that we are in a sector which if possible is even more regulated than the banking sector than the financial sector from you which you are coming and I do have some experience as well. Defense is an incredibly sensible sector for any nation. We think that Europe is our horizon, but it's a process. The nations are still very important. You can do such kind of deal even a minority.
We have to go through the authorization by as a German government without having an open discussion and engagement with the government of the 2 nations.
Okay. Thank you. And maybe last one, if I can, on the tax rate. It looks like it was a bit higher this quarter. Can you give us an update on the tax rate for the rest of the year?
Thank you.
Yes, Alessandro. This quarter is only a timing effect. So the tax rate for the full year is confirmed around 23%. What we have what you're seeing here is an effect of tax losses in the Italian entity, which will change sign over the course of the year and for which we do not account for deferred tax assets.
All right. Thank you.
The next question is from Martino De Ambroggi with Equita. Please go ahead, sir.
Thank you. Good evening, everybody. The first question is on the net debt. You started an acquisition season, and we already know the covenant threshold. But what's the maximum leverage or in absolute value net debt you consider ideal before touching the threshold taking into account with or without what probably maybe without any divestiture.
The way I will think about it, Matina, is in terms of the financial policy of the group has not changed. The strong commitment that the group has to become investment grade by all the rating agencies is confirmed. So there is no specific target in mind. We do have, as you were pointing out, adequate and abandonment cautions on the covenants and we intend to maintain it going forward.
Okay. The second question is on the well, maybe just a housekeeping question on the Automation
Don't worry, we have the windows open because we are No, no, no, no. We are not close to an hospital. Unfortunately, we are on the Steller River and many connections of the city go through this way. So now is the way.
Yes, yes. The second is, let's say, more difficult question probably without a real answer today. But the Hanselt investment, could it be the 1st step to build anything larger? I don't know, joint venture or what else? Or it remains just a minority stake in a listed entity going forward?
Martino, Hensold is a listed company, so we cannot comment on that.
Okay. But except Hanselt, so the business, the division in which Hanselt is involved is very large. So you are looking for other potential partners, potential in different businesses inside the division or it's just a one shot?
No, we think that with Enzo, we have a very complete range of products. We don't need to enlarge business lines. Maybe on the contrary, we can consider some disposal of some very specific business type. So this is the focus we have clearly is an important step in order via the cooperation to create a strong entity in the European market.
Okay. And the very last is on the Aerostructure. I don't know if you are willing to disclose the free cash flow for the Q1 of the Aerostructure standalone?
No. I think that the numbers we have shown are quite good overall. So we are working heavily on Aerostructure. We expect in total to have a specific presentation on the structure because we are continuously working on redesigning activities. So I have to say that the start, the Aerostructure division is reacting quite well, with all the progress we have because the market is still weak.
But we are seeing some signals from the OEM that they are less pessimistic, I would say, in this way.
Okay. Thank you.
The next question is from Harry Breach with Stifel. Please go ahead, sir.
Yes. Good evening. Good evening, Mr. Silo and Mr. Jenke.
Can I please just ask 3 questions? Maybe if I could start, Alessandra, for you. Maybe understanding or thinking about the goal of achieving an investment grade rating, is it possible to think about what level of financial benefit that could bring Leonardo in terms of its interest cost and the fees it pays for performance bonds on export contracts. Can you give us some sense of the financial benefit to you when you get to investment grade? Maybe secondly, maybe welcome to Profumo.
When I think about the portfolio now, we have a large number of stakes of 50% or less when we bring Hensoldt and the acquisition closes. There'll be the 26%, 25.1% stake in Hensoldt. We have the 50% in ATR, 33% in Thales, Selenia Space, 25% MBDA. What will you think about the portfolio?
Are you
comfortable with the capital that is being consumed by these minority stakes and the access to the cash flows of these JVs? Do you see that as being a satisfactory end state for those overall? And then maybe just finally, when we're thinking about the large defense export contracts, whether it's Typhoon, NH90, elsewhere, in terms of milestone achievement so far this year, Q1, maybe comparing it especially to last year, how happy are you in terms of on time milestone achievement so far?
Yes. Well, the rule of the investment grade, it's definitely an important question. Now I have to recognize that with bank counterparts, for many of them, we are already viewed, considered as an investment grade company. And the pricing that we are awarded both for financing cash lines as well as for bonding lines are reflecting this. So honestly, there would be some benefits, financial strictly financial benefits on the loans where we have a margin grid reflecting credit rating.
For example, the Volvo credit facility has these terms. But broadly speaking, I would say that more than the financial cost, which per se are already pretty competitive, I would say, It's the opportunity to have a lower level of debt on the balance sheet and be able to spring forward after as the opportunity
arises. On our comfort position with the minorities, You are right. We have a bunch of minorities, but we have to go through them. So therefore, hence, it's slightly different from the others Because clearly, we are sure that down the road that there will be a European consolidation and not to be there would be really to hamper our position in the electronic division in the long term. So we can like or not, but it's very important to have you know that there were 4 players and the other are competitors of us.
So to me, the investor is also not where the other investors and this would create weakening of our long term position in electronics. So we are sure that it's important. Talking of the others, we have 3 in reality because you said that you have 33% of that, but we have 67% of Tesco. This is the Space Alliance, which is an important presence for us in the long run for being present in the space domain. The space domain is a very important one.
You know also the multiples that where the space business in other countries. So for us, it is relevant. We are also present as Leonardo in the sector with our electronic division. So it's relevant for us as overall market. Then we have MBDA.
MBDA is the first step for European consolidation. As you know, we have the same government rights of the other 2 players. Is a company which generated a lot of cash and we have a benefit out of that. And on top of that, this is a strong integration with our NAVA business because when we have a contract for combat management system, usually we have to have the armament contract as well as the platform business because we have many MPDA sites on our helicopter and when you go to negotiate in a country as prime, you have named NH90 or your private real estate Qatar or Kuwait where the armament as well is an important component. So there are strong strategic meanings.
You have also to consider and close to that, like I said, Europe is still with nations. So it's not U. S. We have a very clear European view, but this will happen step up step up step. We have to define if Lunard is a player or not.
We are a player. We want to be a player with an incredible attention to our shareholders' value. As you know, our return on invested capital is going up continuously and we have achieved very good numbers. So I think that this is an important element. Milestones, we are we were in 2020 as well.
This is one of the reasons why 2020 at the end has been a good year despite of COVID. We are very satisfied on how we are achieving the important demand on some important programs. So it's something which is relevant for us and this is the reason why also we have the good numbers we are showing.
Thank you.
The next question is from Gabriele Gambarova with Banco Acros. Please go ahead, sir.
Yes. Thank you for taking my question. The first one regards the Eurofighter program. I was wondering what is the, say, the perspective for your assembly line. Now you are working on the Q8 planes.
And I was wondering what are the perspectives of this specific program? And if you can share with us, if you are, let's say, competing as prime in any area. I know you are part of the consortium. In Finland, there are good perspectives and so on. But I was wondering if you have also an involvement as prime somewhere.
And the second one, the second question was about the Q1 results. When I look at the eliminations or other activities item at EBITDA level, I see that there is a €53,000,000 pretty high in comparison to the €57,000,000 last year. So I was wondering if there are is any reason for this increase and if you can provide me a guidance for the full year 2020 Thanks.
Relevant to the Aerofighter question, really we have never had a stop in our assembly line due to weight order. And at the same time last year, at the end of last year, we had also the Germany order of additional aircraft. So really, we are absolutely not planning a stopover the assembly line in Kassel. At the same time, Finland is not one of our prime campaign, but we have strategic campaign because as we said in other occasions, we are planning at least another 200 of orders in the next year on Europfizer that as Giovanni said before, as a long life also considering the long term evolution programs and the bridging needed in order to jump in the tempest of FCAS program. So really, we are working on campaign as prime.
And as you said during the consortium, we have different rules in any campaign. We are supporting obviously Finland and the other potential acquisition, but we have not a real problem in assembly line, absolutely not.
Gabriela, on the other activity lines, what you see reflected in there is the result of what we had discussed in the past, which is the centralization of a number of activity and the strengthening of the corporate structure in order to better coordinate a number of initiatives and projects taken throughout the group. So that increase will be following similar trends throughout the year.
Okay. Many thanks, sir Valerio and Alessandro.
Thank you.
Excuse me. There are no more questions registered at this time. So thank you very much for being with us today. As usual, if there are follow-up questions. The IR team is available.
Many thanks, Brian.