Leonardo: LEAP2020 program is launched to optimize relations with suppliers

Leonardo has launched the LEAP2020 program (Leonardo Empowering Advanced Partnerships 2020), an initiative envisaged by the 2018-2022 Business Plan and aimed at defining a new relationship between the Company and its suppliers, both Italian and international, in the name of an industrial and supply chain approach . The project intends to contribute to both the dimensional and qualitative growth of the supply chain, starting from the national one, both in the long and short term. The initiative - right from the choice of a name evocative of momentum and progress - is characterized by the change in relations between the company and suppliers who will have to share future challenges and opportunities, allowing Leonardo to improve its performance in terms of deliveries and quality. .

"LEAP2020, one of the initiatives of the 2018-2022 Business Plan, is an innovative supplier management approach - comments Alessandro Profumo, Leonardo's CEO - which will create a virtuous circle capable of strengthening the Company and the industrial structure of the country system , as well as to create new opportunities for consolidation in the sector. The project is developed through an open platform which, starting from a one to one relationship with the supplier, can evolve into forms of partnership ".

In the initial phase LEAP2020 will focus on suppliers belonging to some strategic categories, which generate a purchase volume for Leonardo, totaling approximately 1 billion euro and have a high degree of commonality among the Divisions of the Company. The program defines a model for the selection and definition of "partner for growth" based on an objective evaluation

of suppliers in terms of capacity, performance, competitiveness, transparency, traceability and sustainability of processes. Homogeneous clusters of suppliers (from peers to national and international champions) will be created, to which Leonardo will dedicate specific approaches in order to make them grow dimensionally and qualitatively. Leonardo intends to develop together with the most deserving partners, with significant technical and skills requirements, offering support, greater integration and new business opportunities.

The program will generate benefits already in the short term and will allow the 2020 to obtain improvements, in some cases, of the 20% of the performances in terms of deliveries and quality. The program meets the objectives of the Industrial Plan which, in a solid and credible manner, envisages medium to long-term growth and a strong focus on the execution phase.

Thanks to LEAP2020, more solid and sustainable relationships will be created with the best partners, the supplier base in high-impact categories will be strengthened, a selected pool of companies integrated into Leonardo's production ecosystem will be promoted - also through long-term sustainable partnerships and capacity building initiatives aimed at transferring technical and managerial skills - and business relations with the main international players in the sector will be improved.

In fact, LEAP2020 presents a bilateral win-win approach that offers significant mutual opportunities: on the one hand, Leonardo will increase business sustainability, performance and the ability to respond more effectively to customer requirements, also achieving significant efficiency gains costs and the rationalization of purchases. The country system, on the other hand, will be able to acquire more solid companies, with a stable investment horizon, better able to innovate and compete on international markets.

Leonardo: LEAP2020 program is launched to optimize relations with suppliers

| Economics |