Thales Sa · EURONEXT:HO

Thales Sa — Gemalto — FY2012 Earnings Presentation

20 slides from Thales Sa's earnings presentation, Mar 14, 2013

  1. Slide 1: Full year 2012 earnings release

    Listen-only live audio webcast available from www.gemalto.com/investors Full year 2012 earnings release Olivier Piou, CEO Jacques Tierny, CFO March 14, 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 2012 publications

    Basis of preparation for 2012 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: Full year 2012 highlights

    Full year 2012 highlights  Record revenue of over € 2.2 billion, growing in line with our strategy Revenue € 2,236m + 9% Platforms & Services 40% +26% of total revenue growth  Profit from operations surpassing long-term €300 million objective one year in advance, with strong cash generation Profit

  6. Slide 6: Financial Results

     Overview  Financial Results Jacques Tierny, CFO  Moving Forward 6

  7. Slide 7: From revenue increase to value creation

    From revenue increase to value creation  The year demonstrated our strong operating leverage Revenue +9% € 2,236m +13% at historical rates Gross profit Gross margin +16% € 862m 38.6% +100bp Operating expenses Operating expenses +11% € 557m 24.9% +40bp Profit from operations PFO margin +26% € 305m 1

  8. Slide 8: Adjusted income statement and IFRS

    Adjusted income statement and IFRS Adjusted income statement Restructuring Ongoing Reconciling All and € in millions items Amortization Equity acquisitions IFRS operations (assets held operations of intangible based related for sale) assets compensation expenses Full year 2012 Revenue 2,236 10 2,246

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

    Segment key financial information Mobile Communication Machine-to-Machine Revenue Revenue +10% € 1,090m +6% € 192m Gross Gross Gross Gross Margin Margin Profit +21% € 471m +250bp 43.2% Profit +6% € 64m (150bp) 33.2% PFO PFO PFO PFO +37% € 193m Margin +310bp 17.7% +2% € 14m Margin (60bp) 7.3%  Doubl

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

    Segment key financial information Secure Transactions Security Revenue Revenue +3% € 568m +19% € 384m Gross Gross Gross Gross Profit Margin Margin +9% € 183m +60bp 32.3% Profit +21% € 142m (100bp) 37.1% PFO PFO PFO PFO +8% € 62m Margin +10bp 11.0% +52% € 45m Margin +220bp 11.8%  Revenue up by +3% o

  11. Slide 11: Changes in full year contributions to PFO

    Changes in full year contributions to PFO Year-on-year variations of contributions to total profit from ongoing operations € 305 € 241 Mobile Machine- Secure Security Total Full year Communication to-Machine Transactions Platforms Full year Patents 2011 Total Embedded Services & 2012 Software & Prod

  12. Slide 12: Cash flow

    Cash flow Key items from the cash flow statement € in millions FY 2012 FY 2011 Cash generated from operations 323 263 Income tax paid (38) (51) Cash generated by operating activities 285 211 Capital expenditure and acquisition of intangibles (125) (93) Acquisitions and divestitures (73) (0) Dividend

  13. Slide 13: The ongoing transformation of Gemalto

    The ongoing transformation of Gemalto  We deliver solid growth  Driven by organic expansion, complemented by bolt-on acquisitions in our core and adjacent businesses  Platforms & Services develops rapidly  For Gemalto, it provides access to a much larger market, and enables faster innovation, st

  14. Slide 14: The ongoing transformation of Gemalto

    The ongoing transformation of Gemalto  We create value for our shareholders  We reduce operational risk through improved diversification in growing markets Charts represent: Ongoing operations (PFO) and all operations (Other charts). Return on capital employed (ROCE) is defined as after-tax PFO di

  15. Slide 15: We accelerate our investments in operations

    We accelerate our investments in operations  Our profit margin expansion has accelerated throughout our plan  As we are ahead of schedule, we decided to head start our next development phase, towards further profitable growth  This next development phase will rely largely on organic development a

  16. Slide 16: Moving forward

     Overview  Financial Results  Moving forward Olivier Piou, CEO 16

  17. Slide 17: The increasing need for Platforms & Services

    The increasing need for Platforms & Services Our technology brings trust into smart connected devices and is now used to provide convenient and secure access to multiple services simultaneously 17

  18. Slide 18: Being first is key in software platforms

    Being first is key in software platforms  Example of Trusted Service Management 2008 2012 Time Technology development by Gemalto Pilots Initial infrastructure rollout First services deployment Additional services Revenue Already more than 40 commercial Licenses and contracts won transaction fees Ho

  19. Slide 19: Outlook for 2013

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

  20. Slide 20: Gemalto

    gemalto” security to be free

Gemalto — FY2012 Earnings Presentation on 6ix