Thales Sa · EURONEXT:HO
Thales Sa — Investor Presentation (December 2009)
24 slides from Thales Sa's investor presentation, Dec 11, 2009
Slide 1: Towards a stronger Thales
Towards a stronger Thales Luc Vigneron Chairman & CEO 11 December 2009
Slide 2: Agenda
Agenda 1. Current situation 2. Objectives 3. Action plan This presentation may contain forward-looking statements. Such forward-looking statements are trends or objectives, as the case may be, and shall not be construed as constituting forecasts regarding the Company’s results or any other performan
Slide 3: 1. Current situation
1. Current situation 2. Objectives 3. Action plan 3
Slide 4: Robust business fundamentals…
Robust business fundamentals… Resilience of government and institutional customers 75% of revenues Book-to-bill ratio > 1 despite current economic environment A balanced portfolio between defence and civil activities Positioned to capture growth with economic upturn A wide array of technologies An e
Slide 5: … not delivering their full potential
… not delivering their full potential 6,1% EADS High cost base, complex organisation 3,9% Safran 6,3% Programme execution issues 6,3% very significant in 2009, after earlier difficulties 6,9% Thales essentially concentrated in Aerospace and 1,2% parts of Security 8,4% Finmec. 7,0% 10,2% BAE 9,8% 2 p
Slide 6: 2. Objectives
1. Current situation 2. Objectives 3. Action plan 6
Slide 7: An integrated Group
An integrated Group Built on current activity portfolio Sharing transverse technologies for defence and commercial customers Closer to its customers, more reactive, more agile – especially on export markets 7
Slide 8: Defence
Defence Address newly-defined operational priorities Interoperability Information dominance, surveillance, comms, C4I capabilities Consolidate position in domestic countries + NATO Short term support through stimulus plans and continued war effort in Afghanistan Prepare for major budgetary constrain
Slide 9: Aerospace - Space
Aerospace - Space Aerospace Deliver on sensitive programmes (A400M, commercial avionics developments) Focus and leverage on Dassault partnership: Rafale prospects, Mirage upgrades, UAVs Address euro/dollar exchange rate pressure Develop services to leverage on increasing installed base Space Increas
Slide 10: Security
Security Turn around programmes in difficulty Develop position in rail signalling Strengthen systems integration capabilities to offer comprehensive urban security solutions Cyber-security: build on key technologies and commonality with defence 10
Slide 11: 3. Action plan
1. Current situation 2. Objectives 3. Action plan 11
Slide 12: Key actions: €1.3bn impact over 5 years
Key actions Launch a group-wide performance plan €1.3bn impact over 5 years Improve bids & programmes control Simplify the organisation Probasis: a 5-year action plan for a stronger Thales 12
Slide 13: Probasis performance plan
Probasis performance plan Bring down non-quality costs, increase customer satisfaction Focus attention on stronger programme management and engineering capability Bring all operational units to Thales "best in class" levels Adapt to market price decreases and US dollar pressure Optimise make/team/bu
Slide 14: Probasis methodology
Probasis methodology Probasis team headed by the CEO, assisted by the SVP Operational Transformation Team work involving the Operational Managers to define the action plans Follow up of action plans through monthly reporting The "principle of subsidiarity" will be systematically taken into account i
Slide 15: Improve bids & programme control
Improve bids & programme control At bid stage: strengthening of go / no-go decision process Independent peer reviews of proposed solution and related risks Increased involvement of Operations, Purchasing, Quality and Legal Appointment of a "Design Authority" Bid-to-programme transition reviews: risk
Slide 16: Simplify the organisation – be more reactive
Simplify the organisation – be more reactive Objectives Bring organisation closer to the customer De-centralise to be more efficient Simplify procedures to be more competitive Foster international growth A proposed revised organisation driven by geographical focus 2 geographical areas + France with
Slide 17: Project of new Executive Committee
Project of new Executive Committee Luc Vigneron Chairman & CEO Alex Dorrian Patrice Durand Executive Vice President, Area A, Senior Vice President, CEO of Thales UK Finance & Administration Marko Erman Yves Barou Senior Vice President, Senior Vice President, Research &Technology Human Resources Blai
Slide 18: Simplify the organisation – adjust the portfolio
Simplify the organisation – adjust the portfolio Comprehensive review of business portfolio Technological and market fit Financial performance vs. peers No radical change Current defence/civil mix provides resilience and growth Adjustments in targeted areas depending on opportunities and market cond
Slide 19: Action plan – Roadmap
Action plan – Roadmap December 09: Announcement of key priorities Launch early actions February 10: Release of FY09 financials Q2 10: Investor Day Action plan deployed group-wide 19
Slide 20: Profitable growth ahead
Profitable growth ahead A focus on improving operational performance A committed management team Strong assets: people, technologies, markets A 5-year action plan: > Lead a progressive recovery > Reduce the profitability gap with our peers > Build a stronger Thales 20
Slide 21: Backup
- - Backup THALES
Slide 22: Project for New Country Organisation
Project for New Country Organisation Area A Area B UK NATO Germany Southern Europe North and Region (inc. EEC) Central UN Spain Australia Europe Region Italy South Asia Region USA North and Austria Middle East Region Canada Central Asia Region Switzerland Central America Netherlands Region Singapore
Slide 23: Project for new organisation of Divisions (1)
Project for new organisation of Divisions (1) Four dual divisions (Defence and Civil) Defence & Security C4I Systems: Network & Infrastructure Systems, Radio Communication Products, Information Technology Security, Protection Systems, Critical Information Systems Air Operations: Defence Air Operatio
Slide 24: Project for new organisation of Divisions (2)
Project for new organisation of Divisions (2) Two divisions 100% Defence Defence Mission Systems: Electronic Combat Systems, Mission Airborne Solutions, Above Water Systems, Under Water Systems Land Defence: Missile Systems, Optronics, Protected Vehicles, Armament & Ammunition One division 100% Civi