Thales Sa · EURONEXT:HO
Thales Sa — Gemalto — FY2013 Earnings Presentation
20 slides from Thales Sa's earnings presentation, Mar 6, 2014
Slide 1: Full year 2013 results
Listen-only live audio webcast available from www.gemalto.com/investors Full year 2013 results March 6, 2014 Olivier Piou, CEO Jacques Tierny, CFO
Slide 2: Disclaimer
Disclaimer This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Gemalto. This communication contains certain statements that are neither reported financial results nor other historical information and other stat
Slide 3: Basis of preparation
Basis of preparation For a better understanding of the current and future evolution of its business, the Company prepares an adjusted income statement where the key metric used to evaluate the business and take operating decisions is the profit from operations. This adjusted income statement is prov
Slide 4: Overview
Olivier PIOU - CEO Overview 4 Gemalto Full year 2013 results 6 March 2014
Slide 5: Full year 2013 Highlights
Full year 2013 Highlights Double-digit expansion in revenue, up +11% to €2,384 million Platforms & Services revenue up +21% to €462 million Double-digit expansion in profit from operations, up +14% to €348 million, representing 14.6% of revenue Free cash flow generation accelerated over the
Slide 6: Key figures from FY 2013 financial results
Key figures from FY 2013 financial results Revenue +11% €2,384m at historical rates +7% Gross profit +9% €937m 39.3% Gross margin +70bp Operating expenses +6% (€589m) (24.7%) Operating expenses +20bp Profit from operations +14% €348m 14.6% PFO margin +100bp EPS +17% €3.67 Extracts from the adjusted
Slide 7: FY 2013 revenue is already close to long-term expected trends
FY 2013 revenue is already close to long-term expected trends + 5% + 16% High single-digit* Mid teens* Embedded software & Products Mid single-digit* + 8% Platforms & Services Low twenties* + 21% Mobile Payment & Identity Mobile Machine-to- Secure Communication +5% Machine + 7% Transactions +20% Sec
Slide 8: Financial results
Jacques TIERNY - CFO Financial results 8 Gemalto Full year 2013 results 6 March 2014
Slide 9: Adjusted income statement and IFRS
Adjusted income statement and IFRS Adjusted income statement Restructuring Reconciling and € in millions items Amortization Equity acquisitions Ongoing (assets held All of intangible based related operations for sale) operations assets compensation expenses IFRS FY 2013 Revenue 2,384 5 2,389 2,389 P
Slide 10: Mobile – key financial information
Mobile – key financial information Mobile Communication Machine-to-Machine Revenue Revenue +5% €1,091m +7% €200m Gross Profit Gross Margin Gross Profit Gross Margin +5% €497m +230bp 45.5% +13% €72m +280bp 36.0% PFO PFO Margin PFO PFO Margin +6% €205m +110bp 18.8% +57% €22m +370bp 11.0% Annual reve
Slide 11: Payment & Identity – key financial information
Payment & Identity – key financial information Secure Transactions Security Revenue Revenue +20% €660m +11% €416 Gross Profit Gross Margin Gross Profit Gross Margin +13% €206 (100bp) 31.2% +4% €148 (160bp) 35.5% PFO PFO Margin PFO PFO Margin +23% €77 +60bp 11.6% (9%) €41m (190bp) 9.8% Secure Trans
Slide 12: Changes in full year contributions to PFO
Changes in full year contributions to PFO €348m €305m Mobile Machine- Secure Full year Communication to-Machine Transactions Security Total Patents and Full year Platforms non-recurring 2012 Total Embedded software & Products & Services items 2013 Good flow through from product mix improvement in
Slide 13: Key items of the cash flow statement
Key items of the cash flow statement Full year Full year € in millions 2013 2012 Cash generated by operating activities before changes in 330 304 working capital Cash used by working capital increase (76) (18) Cash generated by operating activities 255 285 Capital expenditure and acquisition of inta
Slide 14: Progress report at the end of the 2010-2013 development plan
Progress report at the end of the 2010-2013 development plan Revenue Profit from ongoing operations Profit diversification Others Mobile Communication +49% +105% 2009 18% 82% 2013 41% 59% 2009 2013 2009 2013 Revenue per activity IFRS Net Profit Dividend +52% Platforms & Services E&P +119% 2009 10% 8
Slide 15: Moving forward
Olivier PIOU - CEO Moving forward 15 Gemalto Full year 2013 results 6 March 2014
Slide 16: Outlook for 2014
Outlook for 2014 For the full year 2014, Gemalto anticipates double-digit expansion in both profit from operations and revenue at constant exchange rates. 16 Gemalto Full year 2013 results 6 March 2014
Slide 17: Insights on token-based mobile EMV and HCE
Insights on token-based mobile EMV and HCE Classic and token-based technologies are very similar Already certified Token (under definition) Card number Fixed Personal Account Number (PAN) Temporary number derived from credit card PAN Environment on mobile Running in a secure element Running in a sec
Slide 18: Our mobile payment project portfolio grows and matures
Our mobile payment project portfolio grows and matures 13 In 2013, our project commercial projects pipeline expanded further + net of launches Over 2x #1 market share as many references as the next competitor worldwide for TSMs for both service provider and supervisor TSMs Revenue We are progres
Slide 19: Trends in 2014 across sectors
Trends in 2014 across sectors Mobile Payment & Identity Increasing penetration of LTE drives Deployment of EMV in China expands demand for connectivity management beyond tier 1 issuers - the US gradually platforms and upgrades of SIM cards begins larger EMV card rollouts NFC/Trust ecosystem ma
Slide 20: Gemalto
Gemalto Enabling trust in the digital world World Leader in Digital Security Markets in Strong Development Unique Technology Portfolio Blue Chip Customers Large Free Float and Robust Financials A Business Model with Strong Leverage on Growth