2019 Full-Year results

 Investors Group

Thales’s Board of Directors (Euronext Paris: HO) met on 25 February 2020 to review the 2019 financial statements.1

Patrice Caine, Chairman & Chief Executive Officer, stated: “Thanks to the commitment of its 80,000 employees, Thales ended 2019 with a commer¬cially very dynamic fourth quarter. The booking of 12 projects over €100 million in the last quarter drove us significantly above our order intake objective. After recording growth above 5% in the past three years, sales slowed down due to the commercial Space market downturn and an exceptionally high basis of comparison in Transport. EBIT and adjusted net income were up 19%, boosted by the smooth integration of Gemalto.

Our roadmap between now and 2023 remains unchanged. We are focused on generating profitable growth sustainably.

In a global 2020 environment with several uncertainties, Thales’s business model, which is both balanced and resilient, is more than ever creating value.”

  • Order intake: €19.1 billion, up 19% (+4% on an organic basis2)
  • Sales: €18.4 billion, up 16.1% (+0.8% on an organic basis)
  • EBIT3: €2,008 million, up 19% (+4% on an organic basis)
  • Adjusted net income, Group share3: €1,405 million, up 19%
  • Consolidated net income, Group share: €1,122 million, up 14%
  • Free operating cash flow3: €1,372 million, 98% of adjusted net income, Group share
  • Dividend4 of €2.65, up 27%
  • 2020 objectives: 

        —    Book-to-bill5 above 1, supporting sales growth acceleration from 2021

       —    Sales between €19.0 billion and €19.5 billion    

       —    EBIT margin between 10.8% and 11.0%
 

In € millions,
except earnings per share and dividend (in €)

2019

20186

Total change

Organic change

Order intake

19,142

16,034

+19%

+4%

Order book at end of period

33,839

32,329

+5%

+2%

Sales

18,401

15,855

+16.1%

+0.8%

EBIT3

2,008

1,685

+19%

+4%

as a % of sales

10.9%

10.6%

+0.3pts

+0.3pts

Adjusted net income, Group share3

1,405

1,178

+19%

 

Adjusted net income,
Group share, per share3

6.61

5.55

+19%

 

Consolidated net income,
Group share

1,122

982

+14%

 

Free operating cash flow3

1,372

811

+561

 

Net cash (debt) at end of period7

-3,311

1,6737

-4,984

 

Dividend per share

2.654

2.08

+27%

 

 

Notes

 1 As of the date of this press release, the audit procedures have been completed and the Statutory Auditors’ report is in the process of being issued.
2 In this press release, “organic” means “at constant scope and currency”. See note on methodology, page 12, and calculation, page 18.
3 Non-GAAP financial indicators, see definitions on page 12 of the appendix.
4 To be proposed to the Shareholders’ Meeting on 6 May 2020.
5 Ratio of order intake to sales.
6 Since 1 January 2019, the Group has been applying IFRS 16 “Leases”. Since the Group chose to use the modified retrospective method, the 2018 figures in this press release have not been restated, with the exception of net cash at 31 December 2018. The impact of this standard on the 2019 financial statements is detailed in note 1.2 to the consolidated financial statements.
7 At 1 January 2019: net cash at 31 December 2018 (€3,181m) less IFRS 16 leasing debt (€1,507m).

 

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

Wednesday, 26 February 2020 at 8:30 am (CET) 

Dial-in the following number from : 

Location Number    
•    UK and International +44 (0) 2071 928000    
•    France +33 (0) 176700794    
•    + Confirmation code  2693313    

 

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/mmc/p/uprz3c7w 

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.

 

Thales : 2019 Annual Results Press Conference