Thales Sa · EURONEXT:HO
Thales Sa — Investor Day (November 2007)
78 slides from Thales Sa's investor day presentation, Nov 15, 2007
Slide 1: Thales – Security Business
Thales – Security Business Cannes – 15th November 2007 Security Solutions & Services
Slide 2: Thales Group Profile
Thales Group Profile World leader for mission-critical information Systems > Three core businesses Aerospace Defence Security } More than €12bn annual revenues Financial Analyst meeting- Nov 2007 > A Worldwide Group 68,000 employees worldwide Presence in 50 countries 2 Pro forma 2006 figures
Slide 3: Three core businesses
Three core businesses Aerospace 25% Defence 50% Air Land Naval Joint Security Financial Analyst meeting- Nov 2007 25% 3 On 2006 pro forma basis
Slide 4: Who Are We?
Who Are We? Security division (excluding Components & Sub-Systems) Services Division Critical components Security Domain Financial Analyst meeting- Nov 2007 Rail Signalling Safety & Security Command & Control 4
Slide 5: Our mission
Our mission Establish Thales as a world leader in Mission Critical Solutions & Services Financial Analyst meeting- Nov 2007 € 3.2bn sales* - 18,000 employees < 5 *actual Thales plus former Alcatel-Lucent 2006 revenues
Slide 6: Strategic framework: vertical markets
Strategic framework What are the vertical markets we want to address? Critical Infrastructure Control & Protection Ground Energy, Government Enterprise(*) Transportation Airports,… Financial Analyst meeting- Nov 2007 (*) Enterprise: aerospace companies (strong safety requirements), advanced 6 techno
Slide 7: Strategic framework: positioning
Strategic framework What is our positioning? Ground Energy, Government Enterprise Transportation Airports,… Mission critical Security & safety solutions Security Safety In the presence of accidental events Financial Analyst meeting- Nov 2007 To protect people, Systems / products ability A solution /
Slide 8: Strategic framework: key differentiators
Strategic framework What are our key differentiators? Ground Energy, Government Enterprise Transportation Airports,… Mission critical Security & safety solutions Financial Analyst meeting- Nov 2007 Key enabling technologies / competences Key differentiators System integration capabilities 8
Slide 9: Strategic framework: key differentiators
Strategic framework What are our key differentiators? Ground Energy, Government Enterprise Transportation Airports,… Mission critical Security & safety solutions Key differentiators Key enabling technologies / competences IT security Digital Identity Financial Analyst meeting- Nov 2007 Electronic Ph
Slide 10: Strategic framework: key differentiators
Strategic framework What are our key differentiators? Ground Energy, Government Enterprise Transportation Airports,… Mission critical Security & safety solutions Key enabling technologies / competences Key differentiators System integration capabilities Defence background Mastering complex and sensi
Slide 11: Thales close to its customers
Strategic framework What are our key differentiators? Europe Austria Norway Belgium Poland North America Bosnia Portugal Canada Finland Romania United States France Russia Germany Spain Hungary Sweden Italy Switzerland Latvia United Kingdom Netherlands Asia Pacific Australia China Hong Kong India Si
Slide 12: Integration centres
Strategic framework Integration centres Russia UK Italy China Portugal Spain Mexico India Financial Analyst meeting- Nov 2007 Saudi Arabia Dubai Australia Brazil Future Integration Centres > Already implemented in 9 countries + more to come 12
Slide 13: Three business models
Strategic framework Three business models Ground Energy, Government Enterprise Transportation Airports,… Mission critical Security & safety solutions Financial Analyst meeting- Nov 2007 Products Services 13
Slide 14: Three business models
Strategic framework Three business Models Sales € 3.2bn (*) Growth engine Profitability engine Slow sales outflow Quick sales outflow Products (***) Systems (**) 30% 45% 50% Services 25% Steady growth Financial Analyst meeting- Nov 2007 Recurrent revenues 20% Cash generation (*) actual Thales plus f
Slide 15: What we sell: Mission Critical Systems
Strategic framework What we sell -> Mission Critical Systems Command & control centre Communications Sensors & Field Equipment Financial Analyst meeting- Nov 2007 > Solutions operators can TRUST to operate their infrastructure 15
Slide 16: What we sell: Cryptographic products
Strategic framework What we sell -> Cryptographic products LINK & BULK Encryptors IP Encryptors High Grade Firewalls and Secured Gateways Portable security High grade, sensitive but unclassified, commercial Financial Analyst meeting- Nov 2007 > The most complete range of crypto products 16
Slide 17: What we sell: Simulation products
Strategic framework What we sell -> Simulation products Simulators & Synthetic Environment CIVIL GOVERNMENT Civil Aircraft Civil Security forces Special forces Defence forces 3D Chrono EC145 Financial Analyst meeting- Nov 2007 Sagitarius > Simulators and synthetic environment are Key Enabling Techno
Slide 18: What we sell: Critical components
Strategic framework What we sell -> Critical components Products Applications (our customers’ equipment) Security Microwave Klystron for High resolution 2D Cargo inspection system Portable X-ray system Linac X-ray generation X-ray Detector Space Linear Amplifier with Microwave Travelling wave tubes,
Slide 19: What we sell: Mission Critical Services
Strategic framework What we sell -> Mission Critical Services Outsourcing > Committed to Business Process Outsourcing guaranteed results Application Management Services Infrastructure Management Services > Highly Secured Data Centre Training > Manageability Financial Analyst meeting- Nov 2007 > Scal
Slide 20: What we sell
Strategic framework What we sell What we sell TRUST Financial Analyst meeting- Nov 2007 20
Slide 21: Ground Transportation
Ground Transportation Ground Energy, Transportation Government Enterprise Airports,… Security & safety Mission critical solutions Financial Analyst meeting- Nov 2007 21
Slide 22: Thales in ground transportation
Thales in ground transportation > More than 100 transport customers worldwide > Over 6,000 employees specialized in transportation activities Financial Analyst meeting- Nov 2007 > Providing mission-critical information systems to main line rail, urban transport and road operators 22
Slide 23: Ground Transportation: markets addressed
Ground Transportation What are the markets we are addressing? > Types of End Customers Mass Transit Operators Mail Lines Railway Operators and Infrastructure owners > Types of projects / infrastructures Financial Analyst meeting- Nov 2007 Conventional metros, Driverless metros, Light Rail Trains, Tr
Slide 24: Ground transportation market size
Ground transportation Market size (Av 2006-2010), Thales target market and drivers Rail/Metro Infrastructure Project Civil Mission-Critical Rolling Power Works Information Systems Stock Supply • Rail Signalling Systems • Integrated Communication & Services (parts, maintenance,…) Supervision Systems
Slide 25: An attractive market for Thales
Ground transportation An attractive market for Thales > Profitable and growing market > High barriers to entry Very specialised skills – transport know how References are essential Complex projects to manage Security & safety requirements > Clear drivers Transport operators challenges Reliability &
Slide 26: Thales is well placed to continue to be successful
Ground transportation Thales is well placed to continue to be successful > Strong differentiators The most complete offer on the market An offer completely independent from Rolling Stock The safety & security know how is a core competence of Thales Technological leadership Financial Analyst meeting-
Slide 27: A worldwide leader
Ground transportation A worldwide leader > Leader in advanced signalling systems Leader in electronic interlocking with relevant references in 20 countries Leader in Main Line ETCS (European Train Control System) No.1 in Urban Rail CBTC (Communications Based Train Control) No.1 in electronic axle co
Slide 28: Our solutions portfolio
Ground transportation Our solutions portfolio Rail Signalling ICSS* IFS** Rail Traffic Management centre Clearing management Command & Control Centre centre Train Control Power system Com Station & field Train supervision & Security equipment Management supervision Mgt Mgt supervision & management M
Slide 29: Our solutions portfolio – Rail Signalling
Ground transportation Our solutions portfolio – Rail Signalling > Thales provides integrated signalling solutions Rail Signalling is mainly a project-driven business. Each system is customized to local / customer requirements: signalling rules, safety standards, operational requirements. > Complete
Slide 30: Integrated Control Supervision System
Ground transportation Our solutions portfolio – Integrated Control Supervision System > Thales designs, supplies, installs, commissions and maintains integrated systems to meet the operational requirements of public transport networks > Supervision Real-time events & equipment supervision Automatic
Slide 31: Integrated Fare System
Ground transportation Our solutions portfolio – Integrated Fare System > Thales designs and provides innovative solutions in view to make public and road transportation more efficient, convenient and secure > Integrated Fare Systems Complete range of equipment for vending, validating and controlling
Slide 32: Our services portfolio
Ground transportation Our services portfolio > Outsourcing > Maintenance & training > Product & Asset Life Cycle management Financial Analyst meeting- Nov 2007 > Back office services & applications (i.e. yield/revenue management,…) New trend: integration of operation system with business system < 32
Slide 33: Secured solutions
Ground transportation Secured solutions > Security (on board & on platform) Video surveillance, recording and intelligent image analysis Access management and control, intrusion detection, fire detection Authentication of contractors working on transportation infrastructure Financial Analyst meeting
Slide 34: Ground Transportation: Zoom on Customers with videos
Ground Transportation: Zoom on Customers with videos Financial Analyst meeting- Nov 2007 34
Slide 35: Critical Infrastructure: energy, airports,…
Critical Infrastructure: energy, airports,… Ground Energy, Transportation Government Enterprise Airports,… Security & safety Mission critical solutions Financial Analyst meeting- Nov 2007 35
Slide 36: Zoom on Oil & Gas: markets addressed
Critical Infrastructure – Zoom on Oil & Gas What are the markets we are addressing? > Types of End Customers • National Oil and Gas Companies • Energy companies > Types of projects / infrastructures • Upstream: Financial Analyst meeting- Nov 2007 • Production facilities (offshore & onshore) • Midstr
Slide 37: What are the needs of our customers?
Critical Infrastructure – Zoom on Oil & Gas Infrastructure What are the needs of our customers? > Control, Awareness & protection > Operations efficiency Supervision Communications Financial Analyst meeting- Nov 2007 > Security & safety Assets People Data 37
Slide 38: Threats / Potential damage
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Threats / Potential damage > Threats • Vandalism • Theft (tapping) • Terrorism / Piracy • Accidental Damage • Natural disaster • Cyber Attack Financial Analyst meeting- Nov 2007 > Potential Damage • Loss of production (loss of revenues) • De
Slide 39: 'Abqaiq Refinery' Terrorist Attack
‘Abqaiq Refinery’ Terrorist Attack Description • Terrorists with two cars loaded with explosives tried to penetrate and explode the worlds second largest oil facility • The two cars were stopped by security barriers and during an exchange of gunfire with security forces, the cars exploded outside th
Slide 40: Pipeline Terrorist Attack
Pipeline Terrorist Attack Description • Terrorists exploded simultaneously • Three Sections of an gas pipeline in July • Six Sections of an Oil and gas pipeline in September • All attacks on Unmanned sites Consequences Financial Analyst meeting- Nov 2007 • Gas supply to private companies interrupted
Slide 41: What is our positioning?
Critical Infrastructure – Zoom on Oil & Gas Infrastructure What is our positioning? Oil & Gas Infrastructure Project Plant / Mission-Critical Power Civil works pipeline design Information Systems Supply & construction • Infrastructure security • Integrated Communication & Supervision Systems Supervi
Slide 42: Oil & Gas market size and targets
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Market size (Av 2006-2010), Thales target market and drivers Oil & Gas Infrastructure Project Plant / Mission-Critical Power Civil works pipeline design Information Systems Supply & construction • Infrastructure security • Integrated Communi
Slide 43: An attractive market for Thales
Critical Infrastructure – Zoom on Oil & Gas Infrastructure An attractive market for Thales > Profitable and growing market • Strong demand from customers in MEA, Mexico, Russia > High barriers to entry • Very specialised skills – oil & gas know how • Complex projects to manage • Safety requirements
Slide 44: Thales is well placed to be successful
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Thales is well placed to be successful > Strong differentiators An offer completely independent from the field instrumentation and process automation equipment Multi-level (National, Regional, Local) integrated solution Security & safety exp
Slide 45: Our solutions portfolio
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio Secure communications Financial Analyst meeting- Nov 2007 •Cameras • Access control equipment • Intrusion detection sensors • RTU • Public adress • PLC > Security Command & Control Centre a complete situation awarenes
Slide 46: Key Enabling Technologies - physical security
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio – Key enabling Technologies - physical security > Electronic Physical Security Subsystems > Intrusion detection/perimeter protection Fences and detection systems (sensors, combination with video motion detection,…) >
Slide 47: Offshore: Security Hub
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio – Key enabling Technologies - physical security > Offshore: Security Hub > Application Oil field level (offshore platform and on-shore sites) Multi-sites monitoring from a single security HUB Central Security Hub > Ob
Slide 48: Key Enabling Technologies: surveillance
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio – Key Enabling Technologies > Offshore (above water) & onshore Surveillance Radars Long range cameras > Offshore Surveillance (under water) Financial Analyst meeting- Nov 2007 Acoustic Sensors Dual use technologies (c
Slide 49: Pipeline SCADA
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio – Key Enabling Technologies - pipeline SCADA > SCADA is a real time process supervisor a centralized view of the pipeline network > SCADA security Strong encryption of communication links between SCADA master control
Slide 50: Pipeline applications
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our solutions portfolio – Key enabling Technologies - pipeline applications > Applications are used for tracking, recording and coordinating all product movements and process variations in pipelines and pumping/compressor stations. > Our Oil
Slide 51: Our services portfolio
Critical Infrastructure – Zoom on Oil & Gas Infrastructure Our services portfolio > Optimise Operations Process SCADA / Applications Maintenance & training > Optimise the Business Process: Enterprise efficiency Outsourcing Financial Analyst meeting- Nov 2007 Product & Asset Lifecycle Management Busi
Slide 52: Energy Market: Zoom on Customers with videos
Energy Market: Zoom on Customers with videos Financial Analyst meeting- Nov 2007 52
Slide 53: Government
Government Ground Energy, Transportation Government Enterprise Airports,… Security & safety Mission critical solutions Financial Analyst meeting- Nov 2007 53
Slide 54: Zoom on Government: markets addressed
Critical Infrastructure – Zoom on Government What are the markets we are addressing? > Types of End Customers Ministry of Interior, Ministry of Defence Civil Administrations (health, finance, justice …) > Types of projects Integrated Systems for Ministry Of Interior, Ministry of Defense > Digital Id
Slide 55: Threats / Potential damage
Critical Infrastructure – Zoom on Government Threats / Potential damage > Threats Urban insecurity Natural and industrial disasters Cyber Attack Terrorism > Potential Damage Identity theft Financial Analyst meeting- Nov 2007 Government service interruption Injury / loss of life (non coordinated or i
Slide 56: An attractive market for Thales
Critical Infrastructure – Zoom on Government An attractive market for Thales > Profitable growing market > High barriers to entry Very specialised skills – Government processes & organisation know how, Police, First responders, Digital Identity documents applications know how Complex projects to man
Slide 57: Thales is well placed to continue to be successful
Critical Infrastructure – Zoom on on Government Thales is well placed to continue to be successful > Strong differentiators > Security expertise IT security Electronic Physical Security Security consulting Intrusion tests, Hazards & Threat analysis, Resilience assessments, Crisis Management training
Slide 58: Integrated public safety systems
Critical Infrastructure – Zoom on Government Our solutions portfolio – integrated public safety systems Mission Provide added-value integrated systems, to coordinate prevention and management of incidents and emergencies between different safety & security forces Command & control centre – Joint for
Slide 59: Integrated public safety systems
Critical Infrastructure – Zoom on Government Our solutions portfolio – integrated public safety systems Intelligence – Lawful interception, data Mining Crisis Management – Forces coordination Incident, Alarm Management – threat qualification Resources Allocation PR4G Communications Line of Sight Fin
Slide 60: Our solutions portfolio – CBRN
Critical Infrastructure – Zoom on Government Our solutions portfolio – CBRN Mission Rely on our CBRN technological expertise developed for Defense markets to provide innovative and turn-key solutions > A comprehensive range of CBRN solutions for Detection, Financial Analyst meeting- Nov 2007 Identif
Slide 61: Our solutions portfolio – e-government
Critical Infrastructure – Zoom on Government Our solutions portfolio – e-government Mission Mission Build & operate secured ICT infrastructures to transform relationship between public administrations and citizens E-gov ICT Integration ICT Security end-to-end solutions Managed Security Services Fina
Slide 62: e-government – e-health
Critical Infrastructure – Zoom on Government Our solutions portfolio – e-government –> e-health Identification Patient Record Admission Nomenclature Relocations Prescription Office automation Appointments Integration Platform Laboratory Management System ERP Financial Analyst meeting- Nov 2007 Image
Slide 63: Secure digital identity solutions
Critical Infrastructure – Zoom on Government Our solutions portfolio – Secure digital identity solutions Mission Mission Masquage 010011101101 OS 010011101101 010011101101 010011101101 010011101101 010011101101 010011101101 010011101101 Design, operation and maintenance of secure ID systems: passpor
Slide 64: Government: Zoom on Customers with videos
Government: Zoom on Customers with videos Financial Analyst meeting- Nov 2007 64
Slide 65: Security domain: 2006 figures
Security domain: 2006 figures* Financial Analyst meeting- Nov 2007 65 *actual Thales plus former Alcatel-Lucent 2006 revenues
Slide 66: Security domain: headcount by country
Security domain: headcount by country > Total Headcount : 18 000 Year on year growth: 6% UK 20% France 39% Germany 11% Financial Analyst meeting- Nov 2007 Spain 9% Rest of the world 5% Australia 3% Rest of Europe 7% North America 6% Note : JV’s at 100% > A wide international base 66
Slide 67: Security domain: sales by destination
Security domain: sales by destination America 8% Asia 9% France 18% Middle East 7% UK 15% Rest of Europe Financial Analyst meeting- Nov 2007 & Africa Germany 26% 17% > A wide international base 67
Slide 68: Security domain: our 2007 priorities
Security domain: our 2007 priorities Positioned Operational 2007 Integration for future Excellence Financials GROWTH Financial Analyst meeting- Nov 2007 68
Slide 69: Our 2007 priorities: integration status
Security domain: our 2007 priorities Integration status A first step has been achieved through our new division organisation An organisation structured by capabilities, simpler and more homogeneous The behaviour of the leaders as a driver in the integration process To build trust in our relationship
Slide 70: Integration centres
Strategic framework Integration centres Russia UK Italy China Portugal Spain Mexico India Financial Analyst meeting- Nov 2007 Saudi Arabia Dubai Australia Brazil Future Integration Centres > Already implemented in 9 countries + more to come 70
Slide 71: Integration centres
Security domain: our 2007 priorities Integration centres Combining system The right way for profitable integration capabilities growth Financial Analyst meeting- Nov 2007 > Already implemented in 9 countries + more to come 71
Slide 72: Integration centres: mission
Security domain: our 2007 priorities Integration centres Mission Mission Manage bids and deliver programmes Manage and optimise local resources (system integration and support functions) Financial Analyst meeting- Nov 2007 Host and coordinate locally-based sales teams 72
Slide 73: Solutions industrialisation: Packaged Modular Solutions
Security domain: our 2007 priorities Solutions industrialisation: Packaged Modular Solutions/Services Mission A generic offer in a specific domain that we promote systematically (examples: signalling solution for people movers, offshore platform protection, integrated public safety solution for Poli
Slide 74: Innovation lab
Security domain: our 2007 priorities Innovation lab Night surveillance Financial Analyst meeting- Nov 2007 Multi-biometrics Palaiseau innovation lab for E-gov and Secured solutions An innovation lab at the forefront of new technologies < 74
Slide 75: Our common goal
Our common goal 2010 > €4bn ic n ro w t h g a G Or u e e n Financial Analyst meeting- Nov 2007 v Re 2006 €3.2bn * 75 *actual Thales plus former Alcatel-Lucent 2006 revenues
Slide 76: Key priorities: 2008-2010
Key priorities: 2008-2010 Manage profitable growth Stay focused (4 vertical market segments) Bid & program management resources Further development of Integration centres (next to come: Russia, Latin America, India) Quality, on time, on budget Continue to increase the added value of our solutions/se
Slide 77: A team of professionals to deliver profitable growth
A team of professionals to deliver profitable growth Olivier Houssin EVP Thales SVP Security Solutions & Services Jean-Pierre Forestier VP, Managing Director Rail Signalling Jean Paul Lepeytre Deputy SVP SVP Security Thales Solutions & Services Jean-Louis Olié VP, Managing Director Transportation Sy
Slide 78: Delivering Security Solutions & Services you can trust
Delivering Security Solutions & Services you can trust Security Solutions & Services