Lorenzo Mariani0:11
Thank you, thank you to Raffaele. So I'll start from a point that was also the starting point of Professor Baldoni, who told us that essentially, the development of cyber security, both in terms of threats and solutions, is a path that has begun and is strongly linked to digital transformation. This statement, in its simplicity, explains many things. One of the reasons is obviously the simplest: the attack surface has expanded. This, in my opinion, transfers very well to this room, which is today's topic, which is 5G, particularly in relation to cyber. As with all broadband communications, it introduces a series of issues that we were previously used to seeing perhaps in the information technology part. Now Leonardo is certainly considered a vital component of the system that Professor Baldoni illustrated perfectly in several aspects, and I will quickly return to the topic of the national strategy, how we as a company, as a large company, can practically contribute to this national strategy, and how this is also linked to the brain drain or brain return, which in my opinion is a point not to be overlooked because it has a transversal impact on the development of the nation.
Obviously, we as a large company, and as a large company operating in defense and security, when we talk about 5G, we are mainly interested in verticals. That is natural. We are talking about public safety, critical infrastructure, emergency management. And all these verticals, which obviously benefit greatly from digital transformation, have particularly stringent requirements, certainly in terms of latency times, difficult areas where communication must be available, access even when networks are down. And all these requirements, which have certainly been discussed quite extensively these days and will be discussed further, bring out two points on which I wanted to focus, also to make the best use of these few minutes: one is integration, and number two is integration once again, but this time of the supply chain. So, regarding integration, an extremely simple consideration: 5G is an ecosystem. It is an ecosystem as we see it. It does not instantly replace all existing networks. We come from a, let's say, thirty-year experience, for example with TETRA. TETRA seems Paleolithic, yet it is still the basis of a large part of the operations of our public safety, of those who protect the country internally. Not stopping at this concept, obviously we understand that there must be an evolution from TETRA through LTE towards 5G. And this is precisely the subject of some experiments whose results, I understand, will be presented in one of the subsequent panels.
Integration of the supply chain: I wanted to focus on this because, in the end, we talk about brains that go away. I would rather talk about brains that do not return, because this was true even 30 years ago. I mean, 30 years ago I graduated, and 30 years ago I had a desire to go and learn something different outside Italy, but to learn something different in order to bring it back to Italy, because in Italy I felt there was an environment that I liked, that gave me a vision for the future. Today, perhaps, we are a little more lacking in this, also due to many other international situations. And we need to work on this. Professor Baldoni, for his part, said it very well, I think. I say what we can do and what we are doing. And essentially it has to do with two fundamental elements. One is technologies. Leonardo invoices about 12 billion euros every year. Of these 12 billion, we invest 11.5 billion in new technologies. When I say technologies, I also mean the propagation and consolidation of legacy technologies, which then perhaps are the basis of nine of those 12 billion in revenue that we make. Now, this is the first element.
The second element is to ensure that there is a supply chain. The supply chain was essentially balanced on three lines. The first: this is a country that does not have a great tradition of venture capital, so many ideas are born and remain on paper and are not industrialized because those who had them do not have the means to do so. They simply do not have the means. Leonardo can certainly and must, in my opinion, develop a system that allows these ideas to enter higher-order systems, to be developed, brought to an industrialized level, and inserted into the products and systems that Professor Baldoni mentioned as those that then guarantee security to the end user, who is him, then he is the whole system. Second point: export. We talk about returning to Italy, but let's remember that Italy is not a country with an internal market like the United States. That is, Italian companies do not survive without exports. We export 80 percent of our revenue. We have a tradition of, I would say, 50 years of exports, a commercial network that is in 100 different countries. And in this sense, we are part of the system, also because despite this commercial network, we will not export anything of what we do without clear support and a clear systemic discourse with our institutions. So this is the second point. The supply chain of small and medium enterprises can have a future in exports only if it is healthily inserted into a large company supply chain. And on this, although it is a strong statement, I have no doubts, and I think we have proof of that.
Last but not least, solidity. We always talk about economic problems. In reality, companies do not fail for economic reasons; companies fail for cash flow. And we return to the previous discussion: a good idea, but while it is being turned into a product, it fails for cash flow. Since Italy, in addition to being a country without many venture capitalists, is also a country where credit is not easy, let's say, it is not simple. The large company, and on this we take charge, has the duty to select, support, and direct small and medium enterprises, especially in topics such as cyber security, so that they can have resilience and endurance. What does this imply? It also implies a certain selection. These three are, in my opinion, key points that allow us to act operationally on that point that I mentioned at the beginning, that point that 30 years ago led me, after a couple of years abroad, 34 years abroad, to return to Italy, because I saw an ecosystem that activated these things. And I must say, from my point of view, I am satisfied. Today, in my opinion, the role of Leonardo, if it wants to win, is precisely to become the engine, not just an actor, but the engine of this transformation. And I am sure that after all this, I am not just talking words, because we have a program called LP 2020, which our purchasing center Leonardo Group Services is implementing, a plan aimed precisely at realizing these three points: solidity, export, and incubator of ideas. Obviously within a contractual framework. And on this, I am convinced that we will respond not to the fact of preventing our young people from going abroad, but to the fact of making them return, if not all, at least a good part. Thank you.