Thales Sa · EURONEXT:HO
Thales Sa — Merger or Acquisition (August 2021)
11 slides from Thales Sa's merger presentation, Aug 4, 2021
Slide 1: Thales enters into agreement in view of selling its rail business to Hitachi
Thales enters into agreement in view of selling its rail business to Hitachi 4 August 2021 www.thalesgroup.com
Slide 2: Transport: solid progress achieved over past 5 years
Transport: solid progress achieved over past 5 years Recovery and transformation Global growth Investing in future products EBIT margin €bn >7% ~+3.5% 5.3% CAGR(a) LIDAR SATELLITE POSITIONING 1.7 1.5 photos autonomy, ARTIFICIAL smart infra RADARS INTELLIGENCE GEO-MAP -2.4% INERTIAL CAMERAS MEASUREME
Slide 3: Rail control market: integrating vertically
Rail control market: integrating vertically Railway digitalization driving tighter Top 5 rail companies outside China integration between rolling stock and signaling €bn, 2020 Growing on board “intelligence” vs trackside equipment 14,0 Operations control centers to cover all aspects of infrastructur
Slide 4: Transaction details
Transaction details Valuation benchmark Scope: entire transport operating EV/Announcement year EBIT(a) segment 13,8 13,9 12,7 Transport segment treated as 10,9 “discontinued operations” in Full Year 2021 financial statements Proposed Transaction Siemens/ Sie/Inv Hitachi/ Hi/Ansaldo Thales/ Th/Alc Ro
Slide 5: Impact on 2021 financial objectives
Impact on 2021 financial objectives Order intake Book-to-bill above 1 Sales €15.8 to 16.3 billion(a) Adjustments for the accounting treatment of the transport segment as EBIT margin(b) 9.8% to 10.3%(a) “discontinued operations” (a) Based on July 2021 scope and foreign exchange rates. Assuming no new
Slide 6: Enhanced investment thesis, unchanged strategy
Enhanced investment thesis, unchanged strategy Strategic focus on 3 best-in-class high tech BtoB/BtoG businesses Simplified exposure to fewer long-term growth markets: aerospace, defense & security, digital identity & security Pure player positioning on intelligent systems and digital solutions, abl
Slide 7: Thales tomorrow
Thales tomorrow Sales mix(a) Self-funded R&D % of sales 6,1% >6.5% 4,9% Aerospace ~28% 2015 2019 (b) Medium- term target post proposed disposal EBIT margin % of sales 12% Defense & Security 10.6% ~53% 8.6% Digital Id. & Security ~19% 2015 2019 (b) Medium- term target post proposed disposal (a) 2022
Slide 8: Appendix
Appendix www.thalesgroup.com
Slide 9: Transport segment: historical sales and EBIT margin trend
Transport segment: historical sales and EBIT margin trend Sales trend EBIT margin trend Organic €bn CAGR 8% Organic -6% to 8.5% CAGR Consensus +12% 2.0 7.1% 1.9 Consensus 1.7 1.7 1.6 1.6 5.3% 1.5 4.4% 3.3% 2.9% 2.3% 0.7% 2.4% Medium- 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2
Slide 10: Definition of non-GAAP measures and other remarks
Definition of non-GAAP measures and other remarks Rounding of amounts in euros In the context of this presentation, the amounts expressed in millions of euros are rounded to the nearest million. As a result, the sums of the rounded amounts may differ very slightly from the reported totals. All ratio
Slide 11: Tour Carpe Diem 31 Place des Corolles 92098 Paris La Défense
Tour Carpe Diem 31 Place des Corolles 92098 Paris La Défense France ir@thalesgroup.com This presentation contains certain forward-looking statements. Although Thales believes that its expectations are based on reasonable assumptions, actual results may differ significantly from these forward-looking