Leonardo DRS Overview and Outlook May 18, 2018

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1 Leonardo DRS Overview and Outlook May 18,

2 Global player in High Tech Aerospace, Defense and Security business DIVISIONS Helicopters Aircraft Aerostructures Airborne & Space Systems Land & Naval Defence Electronics Security & Information Systems Leonardo DRS Defence Systems Revenues bn Revenues bn JOINT VENTURES AND SUBSIDIARIES Revenues bn Telespazio (67% Leonardo) Thales Alenia Space (33% Leonardo) AVIO (26% Leonardo) MBDA (25% Leonardo) ATR (50% Leonardo) Elettronica (31% Leonardo) 2

3 Strategic overview - key messages We are a global player in High Tech Aerospace & Defence business Significant industrial presence worldwide 4 domestic markets We intend to execute an Industrial Plan to go back to long-term sustainable growth Attractive market improvement Taking actions to leverage off a new commercial strategy and a new customer centric approach FY2017 results in line with revised Guidance In 2017 we have reset expectations Key dual-use technologies 3 core business Strong portfolio Selected investments for growth to enhance further core products and technologies We have taken actions to address non-structural issues in our world-class Helicopters business 2018 is a consolidation year Laying the seeds for a new phase of sustainable growth Entering a new phase of solid and sustainable growth in the long term Top-line and profitability improvement Increasing cash-flow generation from 2020 Disciplined financial strategy with the key objective of creating value for all our stakeholders 3

4 DRS Revenue Growth Outpaces DoD Budget Growth in

An Overview of Leonardo DRS A leading technology innovator and supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide A

com Airborne and Intelligence Systems Daylight Solutions Electro-Optical and Infrared Systems Global Communications and Security Land Electronics Land Systems Naval Electronics Naval Power

5 An Overview of Leonardo DRS A leading technology innovator and supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide A wholly owned subsidiary of Leonardo S.p.A. Headquartered in Arlington, Virginia $2B+ Revenue We are organized into eight customerfocused lines of business LeonardoDRS.com Airborne and Intelligence Systems Daylight Solutions Electro-Optical and Infrared Systems Global Communications and Security Land Electronics Land Systems Naval Electronics Naval Power Systems Twitter@drstechnologies Linkedin.com/LeonardoDRS U.S. Commercial 9.9% U.S. Agency/Other 13.3% International 17.6% U.S. Air Force 9.8% U.S. Army 28.3% U.S. Navy and Marine Corps 21.1% Business Mix By Customer 5

6 Overview of Leonardo DRS 2018 New Jersey (14) 5,000+ Employees 19 States Pennsylvania (636) Montana (11) Minnesota (20) Illinois (7) Wisconsin (496) Massachusetts (112) Connecticut (312) Ohio (87) New York (68) California (251) Missouri (743) Maryland (217) North Carolina (115) South Carolina (17) Virginia (212) Texas (431) Alabama (149) Florida (1204) 6

DRS Evolution PRIOR TO FINMECCANICA: GROWTH BY ACQUISITIONS INTEGRATION IN FINMECCANICA DEVERSIFY AND ADAPT GROWTH 2008 2009-2012 2013 2015-2018+ DRS Acquisition $2+B publicly traded (NYSE) mid-tier

7 DRS Evolution PRIOR TO FINMECCANICA: GROWTH BY ACQUISITIONS INTEGRATION IN FINMECCANICA DEVERSIFY AND ADAPT GROWTH DRS Acquisition $2+B publicly traded (NYSE) mid-tier defense electronics company Grew through a decade-long series of acquisitions Won significant Army wartime supplemental business New DRS Management Finmeccanica acquires DRS Sequestration / Troopwidrawl impacts army business streamlined organization to adapt to new markets while increasing deversification TODAY DRS experiences 3 years of above market topline growth and reorganizational efforts enhances operating margins DRS reshapes the portfolio disposing of non-core business, generating ~$100M in proceeds 2017 DRS acquires Daylight Solutions with proceeds generated primarily from dispositions 7

8 Electronics, Defense & Security Systems Remains strong mln 2017 Reported Of which DRS: 1Q 2017 Restated 2018 % Change 2017 Reported FY 2017 Restated Orders 1,039 1, (7.1%) 6,146 6,146 Revenues 1,146 1,156 1,149 (0.6%) 5,506 5,550 EBITA (17.0%) ROS % 7.3% 7.6% 6.4% (1.2 p.p.) 9.8% 9.7% $ mln 2017 Reported 1Q 2017 Restated 2018 % Change 2017 Reported FY 2017 Restated Orders % 2,016 2,016 Revenues % 1,914 1,947 EBITA (16.0%) ROS % 6.3% 6.3% 4.6% (1.7 p.p.) 7.5% 7.5% 2018 OUTLOOK Revenues and profitability almost flat YoY Upward trends in some business areas Efficiency improvement Higher contribution from development programmes DRS benefiting from positive market trend Avg. exchange rate in 1Q2018 Avg. exchange rate in 1Q2017 8

9 Leonardo DRS Where we Are Today In USD Full Year % Change Orders 2,015 1, % Revenues 1,914 1, % EBITA % 9% revenue growth driven by positions secured in Army modernization efforts as well as continued enhancement in market share in various rapidly growing markets. Market Leading Army Positions to Include Aircraft Survivability Mission Command and Battle Management Soldier and Targeting sensing systems Naval Business also driving growth through electronic and combat systems upgrade positions secured on both surface and submarine platforms Positive Book to Bill ratio of 1.05 and franchise positions secured in 2017 solidifying business base, enabling continued above market growth in 2018 EBITA YoY growth of 11.7% driven by revenue performance and improved operational efficiencies, enhancing overall profit margins 9

Army Electronics & Sensors DRS provides leading sensor technology and

hardened Network computing for C4I and integrated situational awareness as

and platforms for military and commercial customers 2017 Revenue Growth +35%

tactical wheeled vehicles (domestic and international) Precision Fires &

combat precision fires & designation Platform Computing Integrated computer &

Assault Bridge (JAB) - uniquely Combines capability, reliability, and

10 Army Electronics & Sensors DRS provides leading sensor technology and integrated solutions for Land, Sea, Air and Space Systems, world class cyber hardened Network computing for C4I and integrated situational awareness as well as world-class integration of complex technologies into legacy systems and platforms for military and commercial customers 2017 Revenue Growth +35% Long Range EO/IR EO/IR surveillance sensors & targeting sights for combat / tactical wheeled vehicles (domestic and international) Precision Fires & Dismounted Targeting Dismounted / mounted location & targeting systems for combat precision fires & designation Platform Computing Integrated computer & display systems for enhanced SA on the battlefield Bridging Systems Joint Assault Bridge (JAB) - uniquely Combines capability, reliability, and affordability Active Protection System (APS) TROPHY The world s first and only fully operational, combatproven APS 10

Naval Systems As a trusted provider of naval systems, we provide power

solutions for the U.S. Navy and our allies.

and data distribution and middleware enterprise services, with an

2017 Revenue Growth +7% Naval Computing Infrastructure & Networks

services, & middleware enterprise solutions Naval Nuclear Instrumented

controls for nuclear submarines & aircraft carriers Ship Communications

voice and data communications for new-built platforms or legacy systems

sensors for navigation guidance, situational awareness and automatic

11 Naval Systems As a trusted provider of naval systems, we provide power and control technology, delivering customer-focused products and support solutions for the U.S. Navy and our allies. In addition, we provide complex naval computing infrastructure, network and data distribution and middleware enterprise services, with an unmatched track record Revenue Growth +7% Naval Computing Infrastructure & Networks Reliable display & processing modernization, C4I Build-To- Print services, & middleware enterprise solutions Naval Nuclear Instrumented Control Systems Trusted provider of critical naval instrumentation and controls for nuclear submarines & aircraft carriers Ship Communications Integrated systems that can control and manage tactical, administrative, voice and data communications for new-built platforms or legacy systems Naval Radars & Sensors C-band radars and Infra-Red Search & Track (IRST) sensors for navigation guidance, situational awareness and automatic threat detection Power Conversion, Control & Distribution Power storage, low & medium voltage power distribution and modular power solutions for ship & 11 submarine platforms

Airborne and Communications Equipping our customers with

DRS delivers world-class, mission-critical communications and

Combat Air Forces with live-virtual-constructive aircrew training

art EW for land, naval & airborne platforms that covers the entire

Providing high-end SIGINT Tuners, Receivers, Recorders &

Services Managed Satellite Operator (MSO) of commercial and

12 Airborne and Communications Equipping our customers with world-class integrated airborne, ground, and naval-based solutions. DRS delivers world-class, mission-critical communications and security solutions with unmatched reliability and support anywhere in the world 24x7x365. Air Combat Maneuver Instrumentation & EW Simulation Equip the Combat Air Forces with live-virtual-constructive aircrew training devices Electronic Warfare (EW) Systems & Training State of the art EW for land, naval & airborne platforms that covers the entire RF spectrum including jamming capabilities Signal Solutions Providing high-end SIGINT Tuners, Receivers, Recorders & Subsystems covering the HF through Microwave Spectrum Satellite Services Managed Satellite Operator (MSO) of commercial and military satellite resources Network Services Monitoring & Control, Broadband Internet Access, Video Conferencing, VoIP Prepaid Calling 12 Platform, etc.

Advanced Pilot Training (T-X) Competition Current jet trainer was introduced

Average age in USAF inventory is more than 44 years old Competition underway

T-X program calls for 350 new aircraft & associated ground based training

& academics) Acquisition strategy deliberately focused on low risk,

13 Advanced Pilot Training (T-X) Competition Current jet trainer was introduced in Average age in USAF inventory is more than 44 years old Competition underway for new trainer aircraft. T-X program calls for 350 new aircraft & associated ground based training systems (GBTS) (simulators, training devices, computer based training systems & academics) Acquisition strategy deliberately focused on low risk, in-production, off-the-shelf solution KEY PROGRAM MILESTONES Draft Requirements Release Draft RFP Release Final RFP Release Proposal Submitted Contract Award August 2015 September 2016 December 2016 March 2017 July

14 The T-100 Team Prime Integrator T-100 Aircraft Provider with ETTS & LVC Propulsion & Power Supply Systems Develops & Designs the World s Most Twin F124 Engines Sophisticated Aviation Training Systems Tuskegee Aerospace Development Center, AL Partners since

External Relations, Communication, Italian Institutional Affairs, Investor Relations and

Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardocompany.

com Company Documentation Sustainability Member since 2010 Partecipation since 2008 Corporate

com Annual Report Sustainability and Innovation Report Member since 2016 We do business in a

15 External Relations, Communication, Italian Institutional Affairs, Investor Relations and Sustainability Contacts Raffaella Luglini EVP External Relations, Communication, Italian Institutional Affairs, Investor Relations and Sustainability Valeria Ricciotti Equity & Fixed Income Analysts & Investors and Relationship with Credit Rating Agencies Manuel Liotta Group Sustainability & ESG Company Documentation Sustainability Member since 2010 Partecipation since 2008 Corporate Governance Report Remuneration Report Annual Report Sustainability and Innovation Report Member since 2016 We do business in a sustainable manner, with a continued commitment to economic and social development and the protection of public health and the environment. Social Hub Leonardo Social Hub Leonardo - Società per azioni 15

16 SAFE HARBOR STATEMENT NOTE: Some of the statements included in this document are not historical facts but rather statements of future expectations, also related to future economic and financial performance, to be considered forward-looking statements. These forward-looking statements are based on Company s views and assumptions as of the date of the statements and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Given these uncertainties, you should not rely on forward-looking statements. The following factors could affect our forward-looking statements: the ability to obtain or the timing of obtaining future government awards; the availability of government funding and customer requirements both domestically and internationally; changes in government or customer priorities due to programme reviews or revisions to strategic objectives (including changes in priorities to respond to terrorist threats or to improve homeland security); difficulties in developing and producing operationally advanced technology systems; the competitive environment; economic business and political conditions domestically and internationally; programme performance and the timing of contract payments; the timing and customer acceptance of product deliveries and launches; our ability to achieve or realise savings for our customers or ourselves through our global cost-cutting programme and other financial management programmes; and the outcome of contingencies (including completion of any acquisitions and divestitures, litigation and environmental remediation efforts). These are only some of the numerous factors that may affect the forward-looking statements contained in this document. The Company undertakes no obligation to revise or update forward-looking statements as a result of new information since these statements may no longer be accurate or timely. Leonardo - Società per azioni 16

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