Preliminary financial elements and outlook. Luc Vigneron, CEO 14 February 2011

Transcription

1 Preliminary financial elements and outlook Luc Vigneron, CEO 14

2 2010 preliminary financial elements

3 3 / Key figures in m 2010 (*) 2009 change reported organic Order intake 13,100 13,927-6% -9% Order book at 31 December 25,400 24,731 +3% +0% Revenues 13,100 12,881 +2% -1% EBIT (**) (100) 151 ns ns Net cash (Net debt) at 31 December 200 (91) (*) Preliminary, unaudited figures, not closed by the Board of directors (**) Before purchase price allocation impact (PPA)

4 4 / 2010 overview Order intake: better than expected An exceptional year for space activities A progressive upturn of commercial aeronautics Confirmed pressure on European defence markets Order book in excess of 25bn Coming to grips with difficult programmes A400M, Meltem, ticketing: reduction of main operational uncertainties Strengthening of project management capabilities Revised evaluation of the most probable scenarios with a more cautious approach than considered up to now Sound financial situation, positive net cash position Commercial performance, removal of uncertainties on difficult contracts

5 5 / Main orders Book to bill 2007 (restated) ,412m 1,092m 3,513m 2,233m Unit value > 100m: Iridium satellite constellation (US) CSO military observation satellite (France) Secured communication network (NATO) O3b satellite constellation (UK) Yamal satellite payloads (Russia) Göktürk satellite (Turkey) IFE systems (Qatar) Watchkeeper UAV support (UK) 11,932m 11,886m 10,414m 10,767m 2007 (restated) Unit v alue < 100m Unit v alue > 100m Other key orders: New York subway (US) Manchester Metrolink (UK) Air defence radars (Germany) SCCOA 4 (France) Software defined radio (France) Several orders > 100m unit value Growth of the order base below 100m unit value

6 6 / Reduction of main programmes uncertainties Significant provisions on some complex programmes signed before 2009 Meltem, naval electronic warfare A400M Avionics Ticketing (incl. Denmark) and other security (T3S) Lorads III More than 700m of charges on these programmes

7 7 / Cash flow Net debt Free operating cash flow (in m) (*) Net cash position (in m) /12/08 31/12/09 31/12/ FOCF (*) above expectations : 1.4bn of cash generation Positive net cash position at the end of 2010 (*) FOCF = Operating cash flow plus changes in working capital requirement (WCR) and reserves for contingencies, less payment of pension benefits (excluding deficit payments on pensions in the UK), less tax, less net operating investments

8 A necessary reform

9 9 / A reality far away from the apparent image Considerable risks taken to fuel the growth of the past few years More than 1.2bn of cost overruns in 2009/2010 on contracts signed before 2009 An organisation where full advantage of internal synergies could not be taken A decade with a level of profitability below our European peers

10 10 / Although a unique Group in its category 68,000 employees in 50 countries Driven by passion Dedicated to their company An exceptional technological wealth 25,000 engineers at the cutting edge of the innovation A spectrum covering the five environments: Space, Air, Land, Sea, Underwater A coherent set of activities Focused on the security of people, assets and States. Addressing a customer base of Governments and large accounts Using common technologies

11 11 / with worldwide market positions (1) N 1 worldwide Civil Telecommunication satellites N 2 worldwide Air traffic control Sonars Rail signalling On board IFE Military tactical Radiocommunications N 3 worldwide Avionics Surface Radars (1) Thales estimates

12 12 / A Group facing a change of paradigm in its markets Defence : From traditional export to international partnerships Growth is in emerging countries Those countries want their own Defence industry Civil: Accelerated globalisation Race for innovation Race for competitiveness

13 13 / A Group with a great future Back to a rigorous management of bids and projects An organisation focused on growing markets Acceleration of innovation Strengthening accountability Reinforcement of team spirit Performance improvement (Probasis) For a profitable growth

14 Outlook

15 15 / Objectives for 2011 and 2012 A book-to-bill ratio around 1 Supported by export Slightly growing revenues Stable in Defence & Security Confirmed progressive upturn in Aerospace & Transport EBIT (*) 2011 objective: 5% after restructuring charges of about 1.5% 2012 objective: 6% after restructuring charges of about 1% (*) Before purchase price allocation impact (PPA)

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