Thales’s Board of Directors (Euronext Paris: HO) met on 25 February 2019 to examine the 2018 financial statements (1).

Order momentum stepped up in the fourth quarter, enabling order intake to reach €16 billion and exceed the annual objective. For the third year running, organic sales growth exceeded 5%, driven by an exceptional year in Transport and strong growth in the Defence & Security segment. Operating profitability improved across all segments and reached 10.6%, a level never before achieved by the Group.

Our action plan until 2021 is clear: to support profitable growth in the long term, we will continue to roll out our operational performance initiatives and to strengthen our customer-centric culture while also continuing to step up our investments in innovation.

The integration of Gemalto, which we have been actively preparing for over a year, will, in the coming weeks, consolidate our position as a global leader in digital security.

In an increasingly digital world, Thales’s business model, both robust and balanced, delivers value more than ever.”

• All 2018 objectives exceeded
  - Order intake: €16.0 billion, up 7% (1) (+9% on an organic basis (3))
  - Sales: €15.86 billion, up 4.1% (+5.3% on an organic basis)
  - EBIT (4): €1,685 million, up 23% (+25% on an organic basis)
• Adjusted net income, Group share (4): €1,178 million, up 40%
• Consolidated net income, Group share: €982 million, up 44%
• Free operating cash flow (4): €811 million, 69% of adjusted net income
• Dividend (5) up 19% to €2.08
• Finalisation of the acquisition of Gemalto expected in March 2019
• 2019 objectives:     organic sales growth between 3% and 4%
                                            EBIT between €1,780 million and €1,800 million

 

In € millions, except earnings per share and dividend (in €)	2018	2017 restated for IFRS 15	2017 reported	Total change (2)	Organic change
Order intake (6)	16,034	14,931	14,920	+7%	+9%
Order book (6) at end of period	32,329	32,064	31,914	+1%	+1%
Sales	15,855	15,228	15,795	+4.1%	+5.3%
EBIT (4)	1,685	1,365	1,543	+23%	+25%
in % of sales	10.6%	9.0%	9.8%	+1.7 pts	+1.7 pts
Adjusted net income, Group share (4)	1,178	840	982	+40%
Adjusted net income, Group share, per share (4)	5.55	3.97	4.64	+40%
Consolidated net income, Group share	982	680	822	+44%
Free operating cash flow (4)	811	1,365	1,365	-554
Net cash at end of period (4)	3,181	2,971	2,971	+209
Dividend per share	2.08 (5)	1.75	1.75	+19%

 

We are pleased to invite you to participate in our conference call in English:

Tuesday, 26 February 2019 at 8:30 am (CET)

Dial-in the following number from :

Location	Number
UK and International	+44 (0) 2071 928000
France	+33 (0) 176700794
+ Code to communicate to the operator	1 6 6 0 8 6 8

 

It will be also possible to follow the conference call through a webcast by using the
following link and QR code:

• https://edge.media-server.com/m6/p/th8yckqe

If you are unable to listen to the call live through the webcast a replay will be available one hour after the end of the event, and will remain available for 12 months. To access the replay, please use the aforementioned link.

 

Notes

(1) At the date of the press release, the audit procedures have been completed and the Statutory Auditors' report was in the process of being issued.

(2) Since 1 January 2018, the Group has been applying IFRS 15 “Revenue from Contracts with Customers”. All changes in the press release are calculated compared with the figures restated for the application of this standard, which appear in the 2018 consolidated financial statements.

(3) “organic”: on a constant scope and exchange rate basis

(4) Non-GAAP measures, see definitions in the Appendices to the press release, page 13.

(5) Proposed to the Shareholders' Meeting on 15 May 2019.

(6) As of 1 January 2018, the Group has been applying the IFRS 15 standard “Revenue from contracts with customers”, which introduces the concept of accounting order book (“revenue remaining to be recognized”). The definitions of “order book” and “order intake” have been adjusted accordingly, with no material impact at Group level.