Thales Sa · EURONEXT:HO
Thales Sa — Gemalto — H1 2016 Earnings Presentation
20 slides from Thales Sa's earnings presentation, Aug 26, 2016
Slide 1: First semester 2016 results
Listen-only live audio webcast available from www.gemalto.com/investors First semester 2016 results August 26, 2016 Olivier Piou, CEO Philippe Vallée, COO Jacques Tierny, CFO
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
Slide 3: Basis of preparation
Basis of preparation Segment information The Mobile segment reports on businesses associated with mobile cellular technologies including Machine-to-Machine, mobile secure elements (SIM, embedded secure element) and mobile Platform & Services. The Payment & Identity segment reports on businesses asso
Slide 4: Overview
Olivier PIOU - CEO Overview 4 Gemalto first semester 2016 results 26 August 2016
Slide 5: First semester 2016 Highlights
First semester 2016 Highlights Revenue of €1.5 billion, up +1% at constant exchange rates and stable at historical exchange rates Revenue growth in Government Programs up +25%, Enterprise up +12%, Payment up +11% and Machine-to-Machine up +9%, at constant exchange rates, fully offsets lower sale
Slide 6: Financial results
Jacques TIERNY - CFO Financial results 6 Gemalto first semester 2016 results 26 August 2016
Slide 7: Key figures from H1 2016 financial results
Key figures from H1 2016 financial results Revenue +1% €1,495m at historical rates = Gross profit +2% €586m 39.2% Gross margin +92bp Operating expenses = (€415m) (27.7%) OpEx ratio (9bp) Profit from operations +8% €172m 11.5% PFO margin +84bp Earnings per share = €1.20 Extracts from the adjusted inc
Slide 8: First semester revenue composition
First semester revenue composition Main segment revenues Activity revenues +14% yoy 32% of total revenue (13%) Platforms & yoy Services €484m Embedded software & Products 68% of total revenue €1,010m 63% 37% of total revenue of total revenue 8 Gemalto first semester 2016 results 26 August 2016
Slide 9: Adjusted income statement and IFRS
Adjusted income statement and IFRS Adjusted income statement Restructuring Fair value and adjustment Amortization Equity acquisitions All upon of intangible based related € in millions operations acquisitions assets compensation expenses IFRS H1 2016 Revenue 1,495 1,495 Profit from operations 172 IF
Slide 10: Key items of the cash flow statement
Key items of the cash flow statement First Semester First Semester € in millions 2016 2015 Cash generated by operating activities before changes in working capital 177 199 Net change in working capital (43) (57) Cash used in restructuring actions and acquisition related expenses (16) (19) Time de-co
Slide 11: Segment information
Philippe VALLEE - COO Segment information 11 Gemalto first semester 2016 results 26 August 2016
Slide 12: Payment & Identity – key financial information
Payment & Identity – key financial information Embedded software & Products sales were up by +7% at €576 million. Platforms & Revenue Services sales increased to €361 million, up +27% at constant exchange rates € 937m +14% (2015 H1: € 840m) The Payment business grew by +11% year-on-year in H1 20
Slide 13: Mobile – key financial information
Mobile – key financial information Mobile revenue reduced by (13%) at constant exchange rates Revenue € 557m The SIM business decreased by (26%) in first semester with a (16%) year-on-year (13%) (2015 H1: € 641m) decrease in the second quarter This was mainly due to the first quarter tail-end
Slide 14: Priorities of the Payment business
Priorities of the Payment business Embedded software & Products Platforms & Services Issuers Key management and data preparation Portfolio migration Need for more security Dual interface (Credit, Debit, Private (DDA, Dynamic CVV) User Experience Perso Instant Self-Service Mobile label, Prepaid) Cent
Slide 15: Gemalto's end-to-end offer for the Internet of Things (IoT)
Gemalto’s end-to-end offer for the Internet of Things (IoT) Embedded software & Products Platforms & Services Wireless Modules To bring the connectivity feature Example: On-Demand Connectivity (World first VoLTE, Cat1) Remote subscription management Machine Identification Modules SensorLogic Platfor
Slide 16: While SIM market evolves, the need to authenticate remains
While SIM market evolves, the need to authenticate remains GSMA Specifications Embedded SIM and 2014 2016 Currently being defined Remote subscription management Machine-to-Machine (M2M) Consumer secondary devices Consumer primary devices Embedded software & Products Platforms & Services MNO Embedded
Slide 17: Key trends for H2 2016
Key trends for H2 2016 Growth acceleration in the Internet of Things Soft market environment in Asia and Latin America Continuing expansion for Government Programs with solid win-rate High comparison basis for US EMV with strong deliveries in the previous year Take-up of dual interface car
Slide 18: Outlook
Olivier PIOU - CEO Outlook 18 Gemalto first semester 2016 results 26 August 2016
Slide 19: Outlook for 2016
Outlook for 2016 For 2016, Gemalto expects to generate a +1.5 percentage point gross margin increase, accelerating its profit from operations expansion towards its 2017 objectives. 19 Gemalto first semester 2016 results 26 August 2016
Slide 20: Gemalto
Gemalto Enabling trust in the digital world 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 20 Gemalto first semester 2016 results 26 August 2016