Thales Sa · EURONEXT:HO

Thales Sa — Gemalto — H1 2013 Earnings Presentation

15 slides from Thales Sa's earnings presentation, Aug 29, 2013

  1. Slide 1: First semester 2013 earnings release

    Listen-only live audio webcast available from www.gemalto.com/investors First semester 2013 earnings release Olivier Piou, CEO Jacques Tierny, CFO August 29, 2013

  2. Slide 2: Disclaimer

    Disclaimer This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Gemalto. This communication contains certain statements that are neither reported financial results nor other historical information and other stat

  3. Slide 3: Basis of preparation for 2013 publications

    Basis of preparation for 2013 publications For a better understanding of the current and future year-on-year evolution of its business, the Company prepares an adjusted income statement where the key metric used to evaluate the business and take operating decisions is the profit from operations. Thi

  4. Slide 4: Overview

     Overview Olivier Piou, CEO  Financial Results  Moving Forward 4

  5. Slide 5: First semester 2013 Highlights

    First semester 2013 Highlights  Record first semester with revenue at over € 1.13 billion, up +13%  Platforms & Services revenue up +25%, to € 208 million  Profit from ongoing operations up +14%, with increased investments in operations  Dynamic market momentum in all businesses Extracts from th

  6. Slide 6: Key figures from H1 2013 financial results

    Key figures from H1 2013 financial results Extracts from the adjusted income statement for ongoing operations Revenue +13% €1,129m +11% at historical rates Gross profit Gross margin +11% €428m 37.9% (20bp) Operating expenses Operating expenses +9% (€297m) (26.3%) +40bp Profit from operations PFO mar

  7. Slide 7: Financial Results

    Overview Financial Results Jacques Tierny, CFO Moving Forward 7

  8. Slide 8: Adjusted income statement and IFRS

    Adjusted income statement and IFRS Adjusted income statement Restructuring Reconciling and € in millions items Amortization Equity acquisitions Ongoing (assets held All of intangible based related operations for sale) operations assets compensation expenses IFRS H1 2013 Revenue 1,129 5 1,134 1,134 P

  9. Slide 9: Segments key financial information: Mobile Communication, Machine-to-Machine

    Segments key financial information Mobile Communication Machine-to-Machine Revenue Revenue +8% €505m +7% €97m Gross Gross Gross Gross Margin Margin Profit +9% €217m +100bp 43.0% Profit +11% €33m +150bp 34.2% PFO PFO PFO PFO +2% €71m Margin (60bp) 14.0% +80% €8m Margin +350bp 8.5%  Deployment of nex

  10. Slide 10: Segments key financial information: Secure Transactions, Security

    Segments key financial information Secure Transactions Security Revenue Revenue +18% €311m +12% €202m Gross Gross Gross Gross Profit Margin Margin +6% €93m (280bp) 30.0% Profit +3% €70m (300bp) 34.6% PFO PFO PFO PFO +7% €29 Margin (80bp) 9.2% (10%) €17m Margin (210bp) 8.5%  Revenue up +18% with mom

  11. Slide 11: Changes in first semester contributions to PFO

    Changes in first semester contributions to PFO €131m €115m Mobile Machine- Secure First Communication to-Machine Transactions Security Total Patents and First semester Platforms non-recurring semester & Services items 2012 Total Embedded 2013 Software & Products Charts are not to exact scale 11

  12. Slide 12: Cash flow

    Cash flow Key items from the cash flow statement First semester First semester € in millions 2013 2012 Cash generated by operating activities before WCR variation 127 109 Working Capital requirement (83) (19) Cash generated by operating activities 45 90 Capital expenditure and acquisition of intangi

  13. Slide 13: Moving Forward

    Overview Financial Results Moving Forward Olivier Piou, CEO 13

  14. Slide 14: Outlook for 2013

    Outlook for 2013 For the full year 2013 Gemalto anticipates double-digit expansion in both profit from operations and revenue at constant exchange rates. Increased investment in operations to drive business development beyond 2013 should lead to a more pronounced seasonality in profit from operation

  15. Slide 15: World Leader in Digital Security

    World Leader in Digital Security Markets in Strong Development Unique Technology Portfolio Blue Chip Customers Large Free Float and Robust Financials A Business Model with Strong Leverage on Growth

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