Thales Sa · EURONEXT:HO
Thales Sa — Gemalto — H1 2015 Earnings Presentation
20 slides from Thales Sa's earnings presentation, Aug 27, 2015
Slide 1: First semester 2015 results
Listen-only live audio webcast available from www.gemalto.com/investors First semester 2015 results August 27, 2015 Olivier Piou, CEO 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 2015 results 27 August 2015
Slide 5: First semester 2015 Highlights
First semester 2015 Highlights Revenue of €1.5 billion is up +32% at historical exchange rates and +20% at constant exchange rates Revenue growth in Payment +22%, Machine-to-Machine +23%, and Government Programs +17%, at constant exchange rates, largely exceeds lower SIM products and related ser
Slide 6: Key figures from H1 2015 financial results
Key figures from H1 2015 financial results Revenue +20% €1,499m at historical rates +32% Gross profit +37% €574m 38.3% Gross margin +137bp Operating expenses +39% (€414m) (27.6%) OpEx ratio (134bp) Profit from operations +33% €160m 10.6% PFO margin = Earnings per share +9% €1.21 Extracts from the ad
Slide 7: Key figures from first semester 2015
Charts not to scale Key figures from first semester 2015 Main segment revenues Year-on-year H1 revenue variations details +15% €1499m yoy proforma +11% (2%) (2%) yoy +11% +32% at historical rates +11% €1133m 56% 43% H1 2014 Addition Pro forma Hedge Currency H1 2015 of total revenue of total revenue
Slide 8: Financial results
Jacques TIERNY - CFO Financial results 8 Gemalto first semester 2015 results 27 August 2015
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 2015 Revenue 1,499 1,499 Profit from operations 160 IF
Slide 10: Payment & Identity – key financial information
Payment & Identity – key financial information Embedded software & Products sales were up by +16% at €553 million. Platform & Revenue € 840m Services sales more than doubled, at €287 million. +43% (2014 H1: € 537m) The Payment business grew by +28% in the second quarter of 2015 year-on-year. T
Slide 11: Mobile – key financial information
Mobile – key financial information Revenue € 641m The segment posted a contrasted pattern of revenue growth (2%) (2014 H1: € 586m) The first quarter of 2015 saw a +8% growth while the second quarter saw a (9%) reduction. This evolution was essentially related to the lower contribution to revenue
Slide 12: Key items of the cash flow statement
Key items of the cash flow statement First Semester First Semester € in millions 2015 2014 Cash generated by operating activities before changes in working capital 199 128 Net change in working capital (57) (75) Cash used in restructuring actions and acquisition related expenses (19) (4) Prepaid der
Slide 13: Moving forward
Olivier PIOU - CEO Moving forward 13 Gemalto first semester 2015 results 27 August 2015
Slide 14: Government Programs back to strong growth
Government Programs back to strong growth Sealys Secure Documents Coesys Solutions Travel Identity Traffic Healthcare Enrolment Issuance Verification Border Backlog is at record high from solid win rate in a growing market Penetration of eID, eDL Installed base at the 2013 announcement of Gemalto an
Slide 15: We have revised up our anticipations for the US EMV market
We have revised up our anticipations for the US EMV market Market demand above plans Cumulative number of chip-enabled card issued >1.2bn payment cards in circulation New market forecast / >575m >500m+ Estimated actuals Anticipations in 2014 >250m 2-3 year >150m Commonly observed lifespan for EMV ca
Slide 16: SIM revenue trend over the last years
SIM revenue trend over the last 5 years Quarterly SIM revenue at constant exchange rates, excluding embedded Secure Elements (1%) +2% +2% +1% LTM CAGR since 2010 ~3% Softcard service closing (~3%) Diversification in Gemalto’s SIM at 45% of total Gemalto sales sources of revenue SIM at 20-25% of tota
Slide 17: SIMs and secure subscription management are changing
SIMs and secure subscription management are changing, to protect a broader market Machine to Machine Consumer Devices GSMA embedded SIM and remote subscription GSMA high level architecture endorsed in July 2015 Published in Oct 2014 Detail specifications by the industry targeted end 2015 Product of
Slide 18: Key trends for H2 2015
Key trends for H2 2015 Stronger than expected growth in Payment as EMV continues to ramp up in the US Lower SIM sales due to the closure of US carriers’ mobile payment service while other SIM based services benefiting from the most advanced software are under development Continuing expansion i
Slide 19: Outlook for 2015
Outlook for 2015 For 2015, Gemalto anticipates another year of double digit growth in its profit from operations. In the second semester, the closure of the US For 2015, mobile paymentGemalto anticipates service Softcard will limit the Mobile segment year on year progressexpansion a steady in compar
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