Thales Sa · EURONEXT:HO
Thales Sa — Investor Presentation (March 2004)
28 slides from Thales Sa's investor presentation, March 2004
Slide 1: Strategic Perspectives
Strategic Perspectives March 2004 March 2004 1
Slide 2: Thales: our vision
Thales: our vision Defence Technologies Systems Prime contracting and Services Aerospace Security International electronics & systems group March 2004 leveraging dual technologies to serve defence, aerospace and security markets 2
Slide 3: Addressing security markets
Addressing security markets Homeland & Civil Defence Security 70% Aero 20% 17% Defence 63% IT & S 20% Techno, Services, Images 10% 2003 revenues: €10.6 billion March 2004 Defence & Security = 90% of total 3
Slide 4: 3 major levers of growth
3 major levers of growth Growth 1. Defence: Defence Prime contractor and European leader in systems integration and networking 2. Increasing success of multi-domestic strategy and international potential 3. Good positioning in civil aerospace and security March 2004 4
Slide 5: Customer-oriented approach
Customer-oriented approach Joint Land Air Naval Air Defence Prime Prime Prime Prime Prime contractor / contractor / contractor / contractor / contractor / Systems Systems Systems Systems Systems Integrator Integrator Integrator Integrator Integrator Battlespace Transformation Centre Systems-of-syste
Slide 6: Defence: Key capabilities in all areas
Defence Key capabilities in all areas Air Rafale Naval Mirage 2000-9 (UAE) Sawari II frigates Mirage 2000-5 (Greece) Horizon frigates 23% Meltem (Turkey) Scorpene submarines 2087 & 2076 UK sonars 36% NL-German frigates Australian frigates South Afr. Corvettes 13% Missile Gree
Slide 7: Meeting customer requirements
Meeting customer requirements Information systems integration becoming a critical technology Î New military doctrines, new concepts: Network Enabled Capability, Network Centric Warfare Î Many funded programmes of 'systems of systems': BOA (Bulle Opérationnelle Aéroterrestre), France FCS (Future Co
Slide 8: Leadership in European naval industry
Leadership in European naval industry CVF & PA2: PA2 Landmark decisions confirming key role of Thales in UK and France Prime contracting role confirmed ÎThales-DCN alliance: Armaris Horizon, FREMM, Scorpene/Malaysia, Patrol boats/Norway, numerous export opportunities… Î New systems contracts in 2003
Slide 9: 3 major levers of growth
3 major levers of growth Growth 1. Defence: Prime contractor and European leader in systems integration and networking 2. Increasing success of multi-domestic strategy and international potential 3. Relevant positioning in civil aerospace and security March 2004 9
Slide 10: International breakdown of Group sales
International breakdown of Group sales €10.6bn in Origin 2003 Destination 5% Rest of World 6% 8% 14% N & M East 9% North America 15% Asia Pacific 55% France 26% United 12% 16% Kingdom 12% Other Europe 19% March 2004 10
Slide 11: Strengths of the multi-domestic strategy
Strengths of the multi-domestic strategy Ä More market access Ä More R&D funding Ä More expertise in new areas, Prime, Services Ä More major 'domestic' programmes France: Rafale, SIC 21, FSAF… UK: CVF, FIST, BGTI, Tornado Korea: KSAM, KDX… Australia: Tiger South Africa: Corvettes, Starstre
Slide 12: Continuing success in United Kingdom
Continuing success in United Kingdom CVF, future aircraft carriers Thales retained for design of the two aircraft carriers & key partner in alliance FIST Thales appointed prime contractor for Assessment Phase Watchkeeper Thales downselected to last two FSTA Thales member of AirTanker consort
Slide 13: Korea: an outstanding success story
Korea: an outstanding success story Samsung Thales, only defence industry joint-venture in Asia 2003 order intake: more than €700m 1,250 employees Major wins: Î Frigate programmes: KDX II & III Î Missile Systems (KSAM) Î Tactical communications MSC-500K Î New generation K1A1 tank (R&D contract)
Slide 14: International Potential
International Potential 1999-2003 Growth in order intake… … recurrent business = solid & diversified platform: multi-application, multi-platform, multi-national Tomorrow Growth assured… Î Further business from existing platform and positions Î Capitalise on Prime contracting & services expertise
Slide 15: 3 major levers of growth
3 major levers of growth Growth 1. Defence: Prime contractor and European leader in systems integration and networking 2. Increasing success of multi-domestic strategy and international potential 3. Relevant positioning in aerospace and security March 2004 15
Slide 16: Refocusing of civil businesses
Refocusing of civil businesses Disposal of non-core businesses & minority interests including Alcatel Space -cash portion- and Indra • €1.5bn proceeds from disposals • €800m = revenues of divested consolidated companies Crouzet, Geosolutions, Contact Solutions, Instruments, Microsonics, Seismic…
Slide 17: Thales Shield: capabilities, applications and markets
Thales Shield: capabilities, applications and markets Harbours Border Airports Control Risk Management Asset Industrial Evaluation Intelligence Mass Sites Transportation Surveillance Security Access Continuity & Assessment Contingency Control Planning Police Departments Defence Emergency Sites Physi
Slide 18: Security: Proven expertise and credibility
Security: Proven expertise and credibility Technologies and expertise Î Sensors Î Secure communication systems Î Encryption Î Software and systems integration Î Prime contracting Markets and customers Î Experience on major complex programmes Î Customer base and sales & marketing Î Administrations an
Slide 19: Security: references worldwide
Security: references worldwide Surveillance & security assessment For governments, financial institutions… Infrastructure security Louvre museum, Stade de France, Peugeot/Citroën plants, oil pipelines in Algeria… Military bases in France and other countries Harbours, airports, underground an
Slide 20: Thales Shield: Global revenues €1bn in a growth market
Thales Shield™ Global revenues: €1bn in a growth market March 2004 20
Slide 21: Thales IS: ambitious growth plan
Thales IS: ambitious growth plan Good 2003 performance in a difficult market: Î Book to bill = 1.2 Î Profitability & growth on a par with best performers in sector Large-scale project management (IT systems integration & outsourcing) now = 70% of revenues Î Business capture with major new intern
Slide 22: Thales, a major dual player in aerospace
Thales, a major dual player in aerospace No.2 worldwide Air Traffic Management Top exporter worldwide Civil 70% Avionics No.3 worldwide Top supplier to 30% Airbus Military Training & Simulation No.2 worldwide March 2004 22
Slide 23: Aerospace: civil / military positioning
Aerospace: civil / military positioning 2003 revenues: €1.8bn By business By market Simulation Avionics Military 22% Commercial 31% 55% 47% 22% 22% Air Traffic Management Institutional March 2004 23
Slide 24: Thales, a major dual player in aerospace
Thales, a major dual player in aerospace Thales, partner on major platform programmes: Î Today: A380, Tiger, Rafale, Lynx, NH90… Î Tomorrow: A400M, 7E7, Super Lynx, FSTA and MRTT (UK and Australian air tankers)… Thales preparing control & security systems of the future ÎAir Traffic Alliance (Air
Slide 25: Outlook
March 2004 25 Outlook THALES
Slide 26: Outlook 2004 - excl. foreign exchange effect
Outlook - excl. foreign exchange effect 2004 Aerospace - Stable revenues - Operating income as in 2002 Defence - Stable revenues - Slight improvement in operating income IT & S - 10% revenue growth - Significant increase in operating income (full year) Thales - Revenues: + 2% March 2004 - Operating
Slide 27: Outlook 2005/2006 - excl. foreign exchange effect
Outlook - excl. foreign exchange effect 2005 / 2006 Thales’ businesses - require vision for the long-term - provide good future visibility Impact of major Defence contracts Aerospace recovery + Airbus/Eurocopter successes Strategic positioning in security - Growth in revenues > 5% per year Mar
Slide 28: Strengthen our leading position: Confidence in the future
Strengthen our leading position Confidence in the future With… Business portfolio realigned More competitiveness efforts implemented Debt reduction objectives met …Thales is well-positioned to: Optimise its role as prime contractor & systems integrator Develop exports in Defence & Security, particul