THALES PRESS RELEASE
23 July 2021
Paris La Défense, France
Thales reports its
2021 half-year results
- Order intake: €8.2 billion, up 35% (+37% on an organic basis1)
- Sales: €8.4 billion, up 8.7% (+9.8% on an organic basis)
- EBIT2: €768 million, up 121% (+119% on an organic basis)
- Adjusted net income, Group share2: €591 million, up 155%
- Consolidated net income, Group share: €433 million, up 565%
- Free operating cash flow2: €420 million
- 2021 sales target upgraded: sales now expected between €17.5 billion and €18.0 billion3
Thales's Board of Directors (Euronext Paris: HO) met on 22 July 2021 to review the financial statements for the first half of 20214.
"Thales's H1 2021 results recorded a sharp rebound, once again demonstrating the resilience of our business model and the relevance of the strategic choices - both technological and industrial - implemented.
Commercial momentum was especially strong in space, defense and cybersecurity.
On a pro forma basis, EBIT was already close to its 2019 level. The robust improvement in Transport and Digital Identity and Security (DIS - formerly Gemalto) almost entirely offset the steep decline in Aerospace, which remained affected by the consequences of the health crisis on the civil aeronautics market.
Free operating cash flow was well ahead of plan.
These results illustrate the commitment and professionalism of Thales teams, whom I want to thank warmly.
Given the robustness of growth over the first months of 2021, we are raising our sales target for the year. We now expect sales of between €17.5 billion and €18 billion.
The world of tomorrow requires digital solutions contributing to a safer, more sustainable, and more inclusive world, which widens the scope of growth opportunities for Thales. All Group teams are mobilized to support our customers in this transformation."
Patrice Caine, Chairman & Chief Executive Officer
- In this press release, "organic" means at constant scope and exchange rates. See note on methodology on page
- and calculation on page 16.
- Non-GAAPfinancial indicators, see definitions in the appendices, page 11.
- Previous target, set on 3 March 2021: €17.1 billion to €17.9 billion.
- At the date of this press release, the limited review of the financial statements has been completed and the statutory auditors' report has been issued following the meeting of the Board of Directors
COMMUNICATIONS DEPARTMENT - Thales - Tour Carpe Diem - 31 Place des Corolles - 92098 Paris La Défense Cedex - France - Tel.: +33 (0)1 57 77 86 26 - www.thalesgroup.com
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PRESS RELEASE
23 July 2021
Paris La Défense, France
Key figures
In € millions, | H1 2021 | H1 2020 | Total | Organic |
change | change | |||
except earnings and dividend per share (in €) | ||||
Order intake | 8,244 | 6,092 | +35% | +37% |
Order book at end of period | 34,629 | 31,662 | +9% | |
Sales | 8,423 | 7,751 | +8.7% | +9.8% |
EBIT5 | 768 | 348 | +121% | +119% |
as a % of sales | 9.1% | 4.5% | +4.6 pts | +4.6 pts |
Adjusted net income, Group share5 | 591 | 232 | +155% | |
Adjusted net income, Group share, per share5 | 2.78 | 1.09 | +155% | |
Consolidated net income, Group share | 433 | 65 | +566% | |
Free operating cash flow5 | 420 | -471 | +891 | |
Net cash (debt) at end of period5 | -2,496 | -3,9286 | +1,432 | |
Order intake in the first half of 2021 totalled €8,244 million, up 35% from H1 2020 (+37% on an organic basis, i.e., at constant scope and exchange rates). The Group continued to benefit from strong commercial momentum during the second quarter, especially in Defense & Security and Space. At 30 June 2021, the consolidated order book stood at €34.6 billion, a new all-time record.
Sales totalled €8,423 million, up 8.7% from H1 2020, and up 9.8% at constant scope and exchange rates. The increase in sales reflects the sharp rebound in most of the businesses that were affected by the health crisis in 2020, with the exception of civil aeronautics and biometrics.
In the first half of 2021, the Group posted EBIT of €768 million (9.1% of sales), compared to €348 million (4.5% of sales) in H1 2020, a rise of 121% (119% on an organic basis).
At €591 million, the adjusted net income, Group share was up by 155%.
Consolidated net income, Group share came to €433 million, up sharply compared to H1 2020, boosted by the strong increase in adjusted net income.
Free operating cash flow7 was €420 million, versus -€471 million in H1 2020, on the back of the recovery in profitability, the internal measures implemented, and a reduced seasonality of WCR. Net debt stood at €2,496 million at 30 June 2021, a decrease of €1,432 million year-on-year.
- Non-GAAPfinancial indicators, see definitions in the appendices, page 11.
- Net debt at 30 June 2020.
- Non-GAAPfinancial indicator; see definition in the appendices, page 11.
COMMUNICATIONS DEPARTMENT - Thales - Tour Carpe Diem - 31 Place des Corolles - 92098 Paris La Défense Cedex - France - Tel.: +33 (0)1 57 77 86 26 - www.thalesgroup.com
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PRESS RELEASE
23 July 2021
Paris La Défense, France
Order intake
H1 2021 | H1 2020 | Total | Organic | |
In € millions | change | change | ||
Aerospace | 2,886 | 1,625 | +78% | +80% |
Transport | 579 | 442 | +31% | +32% |
Defense & Security | 3,374 | 2,425 | +39% | +39% |
Digital Identity & Security | 1,370 | 1,587 | -14% | -9% |
Total - operating segments | 8,209 | 6,078 | +35% | +37% |
Other | 35 | 14 | ||
Total | 8,244 | 6,092 | +35% | +37% |
Of which mature markets8 | 6,736 | 4,566 | +48% | +49% |
Of which emerging markets8 | 1,508 | 1,526 | -1% | +3% |
H1 2021 order intake amounted to €8,244 million, up 35% compared to H1 2020 (+37% at constant scope and exchange rates). The book-to-bill ratio was 0.98 versus 0.78 in H1 2020. Over 12 months, it worked out at a high 1.17.
In H1 2021, Thales booked 7 large orders with a unit value of over €100 million, for a total amount of €1,705 million (€560 million in H1 2020):
- 4 large orders booked in Q1 2021:
- two contracts related to the supply of Rafale aircraft to Greece and France
- the new generation of the Franco-Italian SAMP/T NG ground-based air defense system
- SATRIA, a telecommunications satellite aimed at reducing the digital divide in Indonesia
- 3 large orders booked in Q2 2021:
- the second generation of Europe's Galileo navigation satellites
- two secure telecommunications satellites for Italy (SICRAL 3)
- the modernisation and support of three tactical control radars in Canada
At €6,539 million, orders with a unit value of less than €100 million were up 18% compared to the first half of 2020. This increase reflects a 55% rise in orders with a unit value of between €10 million and €100 million, buoyed by strong commercial momentum in the Space and Defense businesses in mature countries.
Geographically9, order intake in emerging markets amounted to €1,508 million, up 3% at constant scope and exchange rates. At €6,736 million, order intake in mature markets rebounded strongly (+49% at constant scope and exchange rates), driven primarily by four large military contracts and two large space contracts.
- Mature markets: Europe, North America, Australia, New Zealand. Emerging markets: all other countries. See table on page 15.
- See table on page 15.
COMMUNICATIONS DEPARTMENT - Thales - Tour Carpe Diem - 31 Place des Corolles - 92098 Paris La Défense Cedex - France - Tel.: +33 (0)1 57 77 86 26 - www.thalesgroup.com
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PRESS RELEASE
23 July 2021
Paris La Défense, France
Order intake in the Aerospace segment totalled €2,886 million, versus €1,625 million in H1 2020 (+80% at constant scope and exchange rates). This performance reflected mainly Thales Alenia Space's new commercial successes during the first half of the year (including the three large orders with a unit value of over €100 million mentioned above), as well as the gradual recovery of demand in the civil aeronautics market. At 30 June 2021, the segment's order book stood at €7.4 billion, up 13% from 31 December 2020.
At €579 million, order intake in the Transport segment was up 32% from H1 2020 at constant scope and exchange rates. This growth attests to the strong momentum of the mainline rail business.
Order intake in the Defense & Security segment totalled €3,374 million compared to €2,425 million in H1 2020, up 39% at constant scope and exchange rates, including the four large orders with a unit value of over €100 million mentioned above. The segment's order book totalled €22.7 billion, or 2.8 years of sales, further strengthening visibility for the years ahead.
At €1,370 million, order intake in the Digital Identity & Security segment was in line with sales, considering that most businesses in this segment do not book long-term orders.
COMMUNICATIONS DEPARTMENT - Thales - Tour Carpe Diem - 31 Place des Corolles - 92098 Paris La Défense Cedex - France - Tel.: +33 (0)1 57 77 86 26 - www.thalesgroup.com
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PRESS RELEASE
23 July 2021
Paris La Défense, France
Sales
H1 2021 | H1 2020 | Total | Organic | |
In € millions | change | change | ||
Aerospace | 2,112 | 1,946 | +8.6% | +10.2% |
Transport | 756 | 717 | +5.4% | +6.0% |
Defense & Security | 4,152 | 3,588 | +15.7% | +14.9% |
Digital Identity & Security | 1,370 | 1,472 | -7.0% | -2.2% |
Total - operating segments | 8,390 | 7,723 | +8.6% | +9.8% |
Other | 33 | 28 | ||
Total | 8,423 | 7,751 | +8.7% | +9.8% |
Of which mature markets10 | 6,323 | 5,687 | +11.2% | +11.6% |
Of which emerging markets10 | 2,099 | 2,064 | +1.7% | +4.8% |
Sales in the first half of 2021 totalled €8,423 million, compared with €7,751 million in the first half of 2020, up 8.7% despite the civil aeronautics and biometrics businesses still being affected by travel restrictions. At constant scope and exchange rates,11 the organic increase of 9.8% mainly reflects the rebound of most business lines after Q2 2020 was heavily impacted by the onset of the health crisis. In addition to the collapse in demand in civil aeronautics, this crisis resulted in temporary operational disruptions across all Group activities.
Geographically12, this sales growth was driven by mature markets (+11.6% on an organic basis). France and Rest of Europe achieved the strongest performances. The recovery was weaker in emerging markets (+4.8% on an organic basis), which were notably impacted by phasing effects on large Transport contracts.
Sales in the Aerospace segment amounted to €2,112 million, up 8.6% from H1 2020 (+10.2% at constant scope and exchange rates). This increase reflects the strong rebound in the space business resulting from the many commercial successes achieved since mid-2020, as well as the gradual recovery in demand for civil aeronautics, particularly in the aftermarket.
In the Transport segment, sales totalled €756 million, up 5.4% compared to H1 2020 (+6.0% at constant scope and exchange rates). This rise was mainly driven by the strong commercial momentum of mainline rail, which was partially offset by the phasing effects on large urban rail signalling contracts (particularly in Doha (Qatar) and London).
Sales in the Defense & Security segment came to €4,152 million, up 15.7% compared to H1 2020 (+14.9% at constant scope and exchange rates) and 7% higher than in H1 2019. This strong rebound attests to the solid momentum of the Group's solutions: at end-June 2021, the Group had a backlog of close to €23 billion.
- Mature markets: Europe, North America, Australia, New Zealand. Emerging markets: all other countries. See table on page 15.
- The calculation of the organic change in sales is shown on page 16.
- See table on page 15.
COMMUNICATIONS DEPARTMENT - Thales - Tour Carpe Diem - 31 Place des Corolles - 92098 Paris La Défense Cedex - France - Tel.: +33 (0)1 57 77 86 26 - www.thalesgroup.com
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