Thales Sa · EURONEXT:HO
Thales Sa — H1 2009 Earnings Presentation
28 slides from Thales Sa's earnings presentation, Jul 27, 2009
Slide 1: 2009 Half-Year Results
2009 Half-Year Results Luc Vigneron Patrice Durand Chairman & CEO CFO 27 July 2009
Slide 2: Luc Vigneron, Chairman & CEO
Luc Vigneron Chairman & CEO 27 July 2009
Slide 3: Foreword: A new shareholding structure
Foreword A new shareholding structure Float French State A recomposed board of 47% 27% directors: 9 new members out of 16 2 new directors proposed by the French State (out of 5) 4 directors proposed by of which employees (3%) Dassault Aviation of which Thales (2%) 26% Dassault Aviation (replacing 4
Slide 4: H1 2009 summary
H1 2009 summary Orders: €5,860m (book-to-bill: 1.02) good resilience of governmental customers weaker performance of commercial businesses Revenues: €5,744m (+2%)(*) continued positive momentum of defence activities EBIT: €68m(**) impact of the general economic cycle on commercial activities difficu
Slide 5: Patrice Durand, CFO
Patrice Durand CFO 27 July 2009
Slide 6: H1 financial overview
H1 09 financial overview in €m organic H1 2009 H1 2008 change Order intake 5,860 6,051 -2% Order book as at 30 June 23,821 22,938 (*) +1% Revenues 5,744 5,668 +2% EBIT (**) 68 375 -82% in % of revenues 1.2% 6.6% Net income (Group share) (**) 12 289 Net debt as at 30 June 886 912 (*) As of 31 Decembe
Slide 7: EBIT margin
EBIT margin in €m organic H1 2009 H1 2008 change Revenues 5,744 5,668 +2% Gross Margin 1,059 1,256 -19% in % of revenues 18.4% 22.2% Indirect costs (949) (870) +7% in % of revenues 16.5% 15.3% o/w R&D expenses (255) (205) +20% in % of revenues 4.4% 3.6% o/w M&S expenses (440) (392) +10% in % of reve
Slide 8: EBIT evolution
EBIT evolution in €m 375 -14 -56 -168 -40 -17 +19 -31 68 H1 2008 EBIT FX Economic Cost variances P&L expensed Sales & Mkg Restructuring Organic H1 2009 EBIT environment on programmes R&D add'l costs grow th and (*) others July 2009 (*) A400M, naval electronic warfare, mission systems, ticketing and
Slide 9: H1 main orders
H1 09 main orders Book to bill Book to bill Book to bill Over €100m unit value: 0.95 in €m 1.07 1.02 North South Railway (Saudi Arabia) Total : €6,051m Total : €5,860m South Yorkshire Digital Region (UK) Total : €5,499m €605m Sentinel 3 satellite (ESA) €168m €1,209m Security of Mexico City (Mexico)
Slide 10: Aerospace & Space: H1 financial overview
Aerospace & Space: H1 09 financial overview in €m organic H1 2009 H1 2008 change Order intake 1,820 2,003 -11% Order book as at 30 June 7,244 7,020 (*) -1% Revenues 1,887 1,791 +1% EBIT (133) 96 ns in % of revenues -7.0% 5.4% (*) As of 31 December 2008 EBIT: A400M + development costs overruns in Aer
Slide 11: Aerospace & Space: Focus on Aerospace
Aerospace & Space: Focus on Aerospace in €m organic H1 2009 H1 2008 change Order intake 916 1,306 -33% Order book at 30 June 4,984 5,039 (*) -6% Revenues 1,258 1,154 +2% EBIT (150) 72 ns in % of revenues -11.9% 6.2% (*) As of 31 December 2008 Combined downside effect: A400M, cost overruns on softwar
Slide 12: Aerospace & Space: Focus on Space
Aerospace & Space: Focus on Space in €m organic H1 2009 H1 2008 change Order intake 905 697 +30% Order book at 30 June 2,260 1,981 (*) +14% Revenues 629 637 +1% EBIT 17 24 +17% (**) in % of revenues 2.7% 3.8% (*) As of 31 December 2008 (**) FX impact: €9m Strong order intake – EBIT impacted by L'Aqu
Slide 13: Defence: H1 financial overview
Defence: H1 09 financial overview in €m organic H1 2009 H1 2008 change Order intake 2,296 2,580 -9% Order book at 30 June 10,968 10,880 (*) -2% Revenues 2,496 2,462 +4% EBIT 241 240 +4% in % of revenues 9.7% 9.7% (*) As of 31 December 2008 Continued robust performance July 2009 13
Slide 14: Security: H1 financial overview
Security: H1 09 financial overview in €m organic H1 2009 H1 2008 change Order intake 1,722 1,416 +24% Order book at 30 June 5,571 4,983 (*) +8% Revenues 1,327 1,353 -1% EBIT (23) 51 ns in % of revenues -1.7% 3.8% (*) As of 31 December 2008 Good growth in order intake Economic cycle impact + difficul
Slide 15: Self-funded R&D
Self-funded R&D in €m H1 2009 H1 2008 P&L expense 255 205 Capitalised R&D 48 64 Total R&D funding 303 269 Impact of capitalisation on the P&L in €m H1 2009 H1 2008 Capitalised R&D 48 64 Amortisation charge (21) (26) Net impact on EBIT 27 38 July 2009 Increased R&D expense booked in P&L, especially i
Slide 16: Net income
Net income in €m H1 2009 H1 2008 EBIT 68 375 Impairment of non-current operating assets (5) (45) Net capital gains 6 57 Income of operating activities 69 387 Cost of net financial debt (33) (20) Other financial results (27) (12) Other components of pension charges (59) (5) Income tax 33 (91) Equity
Slide 17: Free operating cash flow
Free operating cash flow in €m H1 2009 H1 2008 Operating cash flow 197 479 Change in WCR & contigency reserves 42 (509) Payment of pension benefits (35) (30) Income tax paid (46) (47) Net operating cash flow 158 (107) Net operating investments (178) (258) o/w capitalised R&D (48) (64) Free operating
Slide 18: Net cash flow – Net Debt
Net cash flow – Net Debt in €m H1 2009 H1 2008 Free operating cash flow (20) (365) Net (acquisitions) / disposals (149) (*) 76 Scheme settlements and deficit payments on (28) (73) pensions in the UK Dividends (205) (195) Net cash flow (402) (558) (*) o/w €(130)m earn-out payment on Space activities
Slide 19: Luc Vigneron, Chairman & CEO
Luc Vigneron Chairman & CEO 27 July 2009
Slide 20: Strong assets despite a difficult H1
Strong assets despite a difficult H1 A solid customer base Industry 75% of customers are Governments or Civil aerospace public infrastructure operators Infrastructure operators Governments Limited exposure to civil aerospace ~75% A growing order book A rich technology portfolio July 2009 20
Slide 21: Views for 2009
Views for 2009 Organic growth of revenues Order book close to 2 years of revenues Pre-restructuring H2 EBIT margins back in line with performance registered in previous years Strengthening of competitiveness actions July 2009 21
Slide 22: Vigilance remains a must
Vigilance remains a must Priority focus simplify organisation, speed up decision-making reduce costs improve programme execution Timeline thorough strategic reviews over the coming months define strategic plan by late 2009 / early 2010 July 2009 22
Slide 23: Back-up
(3) July 2009 Back-up THALES
Slide 24: A strong balance sheet
A strong balance sheet in €m 3,905 3,949 3,895 Gearing = Net debt / (Net equity+Net debt) = 19% 912 886 456 30.06.08 31.12.08 30.06.09 Net equity Net debt July 2009 Limited indebtedness 24
Slide 25: PPA impact
PPA impact in €m H1 2009 PPA H1 2009 before PPA (*) impact published Order intake 5,860 5,860 Revenues 5,744 5,744 EBIT 68 (49) 19 in % of revenues 1.2% 0.3% Net income (Group share) 12 (37) (25) (*) PPA: Purchase Price Allocation July 2009 25
Slide 26: Orders by destination
Orders by destination organic in €m H1 2009 H1 2008 change France 1,154 1,243 -8% RoW UK 555 1,000 -38% 9% France Rest of Europe 1,754 1,469 +18% Middle East 20% 11% Europe 3,463 3,712 -5% Asia UK 8% North America 566 595 -12% 9% Australia Australia 238 311 -14% 4% Asia 440 680 -35% N Am erica Middl
Slide 27: Revenues by destination
Revenues by destination organic in €m H1 2009 H1 2008 change France 1,399 1,425 -3% UK 661 791 -7% RoW 6% Middle East Rest of Europe 1,556 1,447 +5% 9% France 24% Europe 3,616 3,663 -0% Asia 9% North America 546 528 -4% Australia 4% Australia 241 281 -4% UK N Am erica 12% Asia 493 499 +0% 10% Middle
Slide 28: Main programmes in order book
Main programmes in order book Unit value Unit value between €400m and €600m between €200m and €400m Fremm frigates (France/Italy) Watchkeeper (UK) FSAF (France/Italy) Yahsat satellite system (UAE) Rafale (France) FSTA air tankers (UK) London Underground Syracuse III satellite (France) signalling (UK