In relation to various media reports concerning the initiation of a blacklisting process by the Indian Government, Leonardo-Finmeccanica acknowledges the statements made by the Indian Defence Minister, Manohar Parrikar, even though to date it has not received any official communication from the delegated government authorities.
However, exposure of Leonardo-Finmeccanica’s business to India is very marginal, since over the past few years no new orders coming from the country have been included in Leonardo-Finmeccanica’s budget forecast.
In particular, the contract for the supply of torpedoes was never formally signed and therefore never included in Leonardo-Finmeccanica's backlog.
In fact, Leonardo-Finmeccanica 2016 Financial Guidance and the objectives already announced in the industrial plan are fully confirmed.
Despite the context of uncertainty, Leonardo-Finmeccanica, in the spirit of cooperation, has over the past few years continued to supply India with the components and services essential to ensuring the operation of platforms and equipment for the country’s armed forces.
India is an interesting market for Leonardo-Finmeccanica, and therefore the Company hopes that an agreed and transparent solution is found as soon as possible, in order to shed light on current initiatives and future business opportunities. Should this not be the case, the Company will not refrain from assessing the situation given the limited size of the ongoing business in the country.
Since the appointment of the current senior management in 2014, Leonardo-Finmeccanica has set off on a new path, undertaking a deep internal restructuring, under which the leadership of the company has been renewed. The new organisation has also introduced more extensive and stringent procedures of corporate governments and compliance, including a detailed anticorruption code and whistleblowing measures. It is not by chance that Leonardo-Finmeccanica has reached the top of the international ranking of defence companies committed to anti corruption, as highlighted in the Anti-Corruption Index 2015 produced by Transparency International, which sees the company moving to the more qualified band B which includes leading international operators in the sector, but not some important suppliers to the Indian Ministry of Defence.