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Thales Sa — Gemalto — FY2017 Earnings Presentation

21 slides from Thales Sa's earnings presentation, Mar 2, 2018

  1. Slide 1: Full year 2017 results

    Listen-only live audio webcast available from www.gemalto.com/investors Full year 2017 results March 2, 2018 Philippe VALLEE, CEO Virginie DUPERAT-VERGNE, CFO

  2. 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

  3. Slide 3: Basis of preparation

    Basis of preparation Segment information The Mobile segment reports on businesses associated with mobile cellular technologies including Machine-to-Machine, mobile secure elements (SIM, embedded secure element) and mobile Platforms & Services. The Payment & Identity segment reports on businesses ass

  4. Slide 4: Overview

    Philippe VALLEE - CEO Overview 4

  5. Slide 5: Full year 2017 Highlights

    Full year 2017 Highlights  Revenue at €3 billion with Platforms & Services at €1 billion. Second semester revenue up +1% year-on-year at constant exchange rates  Profit From Operations (PFO) at €310 million  Transition plan savings of €15 million  Gemalto and Thales combination process on track

  6. Slide 6: Financial performance

    Virginie DUPERAT-VERGNE, CFO Financial performance 6

  7. Slide 7: Key figures from full year 2017 financial results

    Key figures from full year 2017 financial results Revenue (4%) €2,972m at historical rates (5%) Gross profit (13%) €1,105m 37% Gross margin (3.3 ppt) Operating expenses (2%) (€795m) (27%) OpEx ratio (0.7 ppt) Profit from operations (32%) €310m 10% PFO margin (4.1 ppt) Earnings per share (35%) €1.96

  8. Slide 8: Payment & Identity – key financial information

    Payment & Identity – key financial information Revenue  Fourth Quarter revenue grew + 2% € 1,889m  Strong performance in Enterprise business (2%) (2016 FY: € 1,948m)  Government Programs grew single digit  Payment revenue erosion soften Gross Profit € 736m (7%) (2016 FY: € 793m)  Full year reve

  9. Slide 9: Mobile – key financial information

    Mobile – key financial information Revenue  Fourth Quarter revenue lower by (7%) € 1,078m  Machine-to-Machine solid double digit revenue growth (7%) (2016 FY: € 1,174m)  SIM and related services down double digits  Full year revenue Gross Profit € 366m  Machine-to-Machine up +10% in 2017 at €34

  10. Slide 10: Transition plan on track

    Transition plan on track Around 2017 On a full year basis Above €15M €50M Positive PFO impact Positive PFO impact Transition plan announcement in H1 2017 1. SIM and related services: 1. SIM and related services:  Refocus on key geographical areas  adapt sales force  Geographical refocus and port

  11. Slide 11: Reconciliation from adjusted financial information to IFRS

    Reconciliation from adjusted financial information to IFRS Restructuring Fair value Amortization and Adjusted adjustment and impairment Equity acquisitions IFRS financial upon of intangible based related financial € in millions information acquisitions assets compensation expenses information FY 201

  12. Slide 12: Healthy cash generation and strong balance sheet

    Healthy cash generation and strong balance sheet Cash used by acquisitions 759 Paid Dividend Others 684 1.5x Net Debt / Adj. Ebitda 45 3 190 Free Cash Flow generation 67 31/12/2016 31/12/2017 Net Debt Net Debt (€ in millions) 12 Gemalto full year 2017 results 2 March 2018

  13. Slide 13: Moving forward

    Philippe VALLEE - CEO Moving forward 13

  14. Slide 14: Key market trends

    Key market trends  Identity, IoT & Cybersecurity  Increased security at country borders  Growing benefits of connected devices expanding across industries  Rising level of cyber incidents and data breaches  Smartcards & Issuance  US EMV payment market normalization should come to an end in 201

  15. Slide 15: Gemalto Next-generation Digital Security

    Gemalto Next-generation Digital Security Digital privacy enabled 15 Gemalto full year 2017 results 2 March 2018

  16. Slide 16: Key priorities

    Key priorities  Reinforce leadership in Biometrics and Civil Identity  #1 in Data Protection for the Cloud  Integrate & strengthen IoT  Lead market in digitalization  Rightsize Operations  Refocus portfolio 16 Gemalto full year 2017 results 2 March 2018

  17. Slide 17: 2018 onwards financial reporting reflecting our strategy

    2018 onwards financial reporting reflecting our strategy 2014 - 2017 2018 and beyond 2017 Revenue Gross Profit PFO €1,278m Government Identity, IoT & Payment Cybersecurity Enterprise €540m €139m & Identity IoT +12% 42% 11% YoY* margin margin €1,694m Payment cards Mobile Smartcards SIM cards €565m &

  18. Slide 18: Outlook for 2018

    Outlook for 2018  Double digit revenue growth expected in the Identity, IoT & Cybersecurity segment  Stable PFO margin expected in the Smartcards & Issuance segment  Mid to High single digit growth in profit from operations expected at Gemalto level 18 Gemalto full year 2017 results 2 March 2018

  19. Slide 19: Thales offer expected calendar

    Thales offer expected calendar Q1/Q2 2018  Launch of the Offer and start Offer Period  After Launch, regulatory clearances will be the key time driver  End of Offer period will in practice be aligned with regulatory process H2 2018  Expected end of Offer Period  Unconditional Date, press releas

  20. Slide 20: Our plan will accelerate with Thales

    Our plan will accelerate with Thales Our mission We grow and complement our technology portfolio Gartner 2016 4.3 4.2 3.2 2.6 2.2 1.8 1.8 In $bn Symantec Gemalto+Thales Idemia IBM Cisco PaloAlto McAffee 20 Gemalto full year 2017 results 2 March 2018

  21. Slide 21: Gemalto

    Gemalto Enabling trust in the digital world 21 Gemalto full year 2017 results 2 March 2018

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