q1 2016 order intake and sales - zonebourse.com 2016 order intake and sales - 2 closing of vormetric...

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Q1 2016 order intake and sales

4 May 2016

Q1 2016 order intake and sales - 2

Closing of

Vormetric

acquisition

Q1 2016 highlights

Selection by

Singapore

airlines for IFE

and Internet

connectivity

Exomars 2016

spacecraft

launched from

Baikonur

DCNS selected

as preferred

international

partner for the

design of 12

Australian

submarines


Key figures

total organic

Order intake 2,312 2,823 -18% -17%

Sales 2,732 2,576 +6.1% +7.3%

Book-to-bill ratio 0.85 1.10

change

€mQ1 2016 Q1 2015

Order intake in line with expectations Acceleration of organic sales growth


Q1 2016 order intake

▌ Good level of orders: €2.3bn High comparables in 2015, driven by

orders over €100m: Rafale in Egypt,

Hong Kong metro, CERES satellite

Order intake 11% above Q1 2014

▌ One order over €100m Support contract for UK “watchkeeper”

drones

▌ Order intake up 10% in mature

markets

1,359 1,388 1,525

498 387

684 217

1,048 103

Q1 2014 Q1 2015 Q1 2016

Unit value < €10m

€10m <

Unit value

< €100m

Unit value

> €100m

2,823

2,312

-18% €m

2,074


-5.5%

+11.2%

-2.1%

+2.5%

+21.8%

+7.3%

Q1 2016 organic sales growth

Organic(a) sales growth

Q1 2015 Q1 2016

▌ Return to growth in mature markets Driven by Europe and Australia

▌ Further acceleration in emerging

markets

+22%, after +11% in Q1 2015

Driven by Middle East, India, and

Northern Asia

Organic growth driven by both emerging and mature markets

(a) In this presentation, "organic" means "at constant scope and exchange rates"

Mature

markets

Emerging

markets

Total


Aerospace: Q1 2016 key figures

€m Q1 2016 Q1 2015

total organic

Order intake 1,030 783 +31% +32%

Sales 1,067 1,081 -1.3% -0.9%

change

• Strong dynamics in IFE orders, recovery of military avionics orders

• Sales slightly down on the back of high comparables in IFE and slowdown in helicopter avionics


Transport: Q1 2016 key figures

€m Q1 2016 Q1 2015

total organic

Order intake 231 462 -50% -50%

Sales 260 234 +11% +14%

change

• Orders down after a Q1 2015 benefiting from large contract in Hong Kong

• Strong sales growth, on the back of a modest Q1 2015


Defence & Security: Q1 2015 key figures

€m Q1 2016 Q1 2015

total organic

Order intake 1,029 1,564 -34% -34%

Sales 1,384 1,244 +11% +13%

change

• Order intake up excluding Rafale order for Egypt recorded last year

• Broad-based sales growth


2016

Order intake Remaining at a high level, close to 2013-14(a)

Sales Mid-single digit organic growth

EBIT(b) €1,300-1,330m(c)

2017/18

Sales Mid-single digit organic growth(d)

EBIT(b) margin 9.5-10%

Financial objectives

(a) Average 2013-14 order intake: €13.6 billion

(b) Non-GAAP measure: see definition in appendix

(c) Based on foreign exchange rates as of February 2016

(d) Upgraded in February 2016, previous guidance: “moderate top line growth”

Appendix


▌Annual General Meeting 18 May 2016

▌Dividend payment(a) 1st June 2016

▌Farnborough Air Show 12 July 2016

▌H1 2016 results 22 July 2016 (before market)

NB: changed from 21 July after market close

▌Q3 and 9m 2016 sales 19 October 2016

Upcoming events

(a) Subject to the Annual General Meeting approval on 18 May 2016, ex-dividend date: 30 May 2016.


Order intake per quarter

1.8

3.4

2.1

5.6

2.1

3.1

2.3

6.8

2.8

3.4

4.1

8.6

2.3

Q1 Q2 Q3 Q42013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016

Q1 2015:

Hong-kong metro,

Rafale in Egypt

Q3 2015: London metro

signalling


Q1 2016 order intake by destination

total organic

France 471 561 -16% -16%

United Kingdom 290 153 +90% +100%

Other European countries 569 426 +33% +34%

Europe 1,330 1,140 +17% +18%

North America 231 267 -14% -12%

Australia/NZ 125 128 -2% +3%

Asia 250 436 -43% -43%

Middle East 217 819 -74% -74%

Rest of the world 159 32 +397% +406%

Emerging markets 625 1,287 -51% -51%

Total 2,312 2,823 -18% -17%

€m Q1 2016 Q1 2015change

France 20%

United Kingdom

13%

Other European countries

25%

North Am. 10%

Asia 11%

Middle East 9%

RoW 7%


Q1 2016 sales by destination

total organic

France 715 713 +0.2% +0.3%

United kingdom 270 286 -5.7% -1.1%

Other European countries 521 483 +7.8% +8.5%

Europe 1,505 1,482 +1.6% +2.7%

North America 306 326 -6.1% -5.3%

Australia/NZ 149 131 +13.7% +19.9%

Asia 399 337 +18.2% +18.6%

Middle East 280 201 +39.5% +39.8%

Rest of the world 94 100 -5.7% -3.9%

Emerging markets 773 638 +21.2% +21.8%

Total 2,732 2,576 +6.1% +7.3%

in €m Q1 2016 Q1 2015change

France 26%

UK 10%

Other European countries

19%

North America

11%

Australia NZ 5%

Asia 15%

Middle East 10%

RoW 3%


Organic sales growth per quarter

+7%

-1% -6%

+4% +3% +6%

-4%

+1%

-1%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

Aerospace

-2% -3% -7% -3% -3% -7%

+3% +15% +14%

Transport

-2% -8%

+1% +0%

-5%

+19% +2% +7% +13%

Defence

& security


Q1 2016 order intake by segment

Q1 2016 Q1 2015

total organic

Aerospace 1,030 783 +31% +32%

Transport 231 462 -50% -50%

Defence & Security 1,029 1,564 -34% -34%

Other 22 13

Total 2,312 2,823 -18% -17%

€mchange


Q1 2016 sales by segment

Q1 2016 Q1 2015

total organic

Aerospace 1,067 1,081 -1.3% -0.9%

Transport 260 234 +11.3% +13.8%

Defence & Security 1,384 1,244 +11.3% +13.2%

Other 20 18

Total 2,732 2,576 +6.1% +7.3%

€mchange


Rounding of amounts in euros

In the context of this presentation, the amounts expressed in millions of euros are rounded to the nearest million. As a result, the sums of the

rounded amounts may differ very slightly from the reported totals. All ratios and variances are calculated based on underlying amounts,

which feature in the consolidated financial statements.

Definitions

Organic: at constant scope and exchange rates;

Book-to-bill ratio: ratio of orders received to sales;

Mature markets: All countries in Europe excluding Russia and Turkey, North America, Australia and New Zealand;

Emerging markets: All other countries, ie Middle East, Asia, Latin America and Africa.

Non-GAAP measures

This presentation contains non-Generally Accepted Accounting Principles (GAAP) financial measures. Thales regards such non-GAAP

financial measures as relevant operating and financial performance indicators for the Group, as they allow non-operating and non-

recurring items to be excluded. Thales definitions for such measures may differ from similarly titled measures used by other companies or

analysts.

EBIT: income from operations; plus the share of net income or loss of equity affiliates less: amortisation of intangible assets acquired

(PPA). See note 14-a and 2.2 of the consolidated financial statements.

Adjusted net income: net income, less the following elements, net of the corresponding tax effects: (i) amortisation of intangible

assets acquired, (ii) disposal of assets, change in scope of consolidation and other, (iii) change in fair value of derivative foreign

exchange instruments (recorded in "other financial results" in the consolidated accounts), (iv) actuarial gains or losses on long-term

benefits (accounted within the "finance costs on pensions and employee benefits" in the consolidated accounts). See notes 14-a

and 2.2 of the consolidated financial statements.

Adjusted EPS: ratio of adjusted net income (as defined above) to average number of shares outstanding. See notes 14-a and 2.2.

Free operating cash-flow: net cash flow from operating activities, less: capital expenditures, less: deficit payments on pensions in the

United Kingdom. See notes 14-a and 11.1 of the consolidated financial statements.

Definition of non-GAAP measures and other remarks

Thales – Tour Carpe Diem – 31 Place des Corolles – 92098 Paris La Défense – France www.thalesgroup.com

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 performance indicator. These statements are by nature subject to risks and uncertainties as described in the Company’s registration document ("Document de référence") filed with Autorité des Marchés Financiers. These statements do not therefore reflect future performance of the Company, which may be materially different.

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