2016 Half-year results

Thales’s Board of Directors met on 21 July 2016 to review the financial statements for the first half of 2016[1].
 

Patrice Caine, Chairman & Chief Executive Officer, commented, “The H1 2016 results perfectly illustrate the momentum created by Thales over the past 18 months, combining growth in sales and improvement in margins. All segments contributed to growth, and profitability rose in line with our targets for the year and with our medium-term objectives. The order intake is in line with our expectations; it is comparable to last year if we take away the exceptional contracts that were recorded in H1 2015. All the Group’s teams remain focused on the initiatives launched as part of the Ambition 10 plan, which will continue to foster profitable growth.”

 
  • Order intake in line with expectations: €5.4 billion, down 13%
  • Sales: €6.85 billion, up 8.9% at constant scope and currency (+7.9% on a reported basis)
  • EBIT[2]: €551 million, up 17%
  • Adjusted net income, Group share2: €367 million, up 17%
  • Very good level of free operating cash flow2 for a first half year: +€45 million
(H1 2015: -€304 million)
  • Objectives confirmed
 
in millions of euros except income
per share (in euros)
H1 2016 H1 2015 Total change Organic change
Order intake 5,423 6,224 -13% -12%
Order book at end of period 30,374 32,292[3] -6% -4%
Sales 6,846 6,347 +7.9% +8.9%
EBIT2 551 473 +17% +19%
in % of sales 8.1% 7.5% +0.6 pts +0.7 pts
Adjusted net income, Group share2 367 313 +17%  
Adjusted net income, Group share, per share2 1.74 1.51 +15%  
Consolidated net income, Group share 384 266 +44%  
Free operating cash flow2 45 (304) NM  
Net cash at end of period 1,439 1,9781 -27%  
 
 
 
We are pleased to invite you to participate in our conference call in English:
 
Friday, 22 July 2016 at 8:30 am (CET)
Dial-in number from France: + 33 (0) 1 70 77 09 47
International dial-in number: + 44 (0) 203 367 94 62.
 
It will be also possible to follow the conference call through a webcast by using the following link: http://edge.media-server.com/m/p/at3nn4i5.
 
If you are unable to listen to the call live, a digital replay will be available a few hours after the end of the conference call and will remain available for 90 days. To access the replay, please dial +33 (0) 1 72 00 15 00 or +44 (0) 203 367 94 60 (code 302418#).
 
[1] 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.
[2] Non-GAAP measures, see definitions in the appendix to the press release. The definitions of EBIT and adjusted net income were changed from 1 January 2016 to exclude the charges recorded in the income from operations that are directly related to business combinations. In H1 2016, these adjustments accounted for €7 million of EBIT and €5 million of adjusted net income (no impact in H1 2015).
[3] At 31 December 2015