Slide 1: H1 2024 results
H1 2024 results 23rd July 2024 www.thalesgroup.com
Slide 2: H1 2024 highlights
H1 2024 highlights > Strong H1 order intake, driven by excellent momentum for large orders, notably in Defence & Security > Robust organic sales growth both in Avionics and in Defence & Security © Damen_Thales > Slight improvement in EBIT margin while increased R&D expenses in Space and unfavourable
Slide 3: H1 2024 key figures
H1 2024 key figures Order intake and book-to-bill (€m) Sales (€m) EBIT and EBIT margin(b) (€m and %) +10.4% +26% +8.9% +4.7%(a) +23%(a) +6.0%(a) 11.5% 0.98 1.13 11.4% Adjusted net income(b) (€m) Free operating cash-flow(b) (€m) Net cash (debt) position(b)(c) (€m) (From continued activities - excl. T
Slide 4: H1 2024 order intake by contract unit value
H1 2024 order intake Order intake by contract unit value > Strong H1order intake, driven by Organic growth: +23% excellent momentum for orders €m above €100m > 3 orders above €500m > 12 large(a) orders booked in H1 2024 Unit value > 9 in Defence & Security (in the Netherlands, > €100m Germany, Asia,
Slide 5: H1 2024 organic sales growth
H1 2024 organic sales growth H1 sales growth drivers > Scope and currency impact > Scope impact resulting from: €m – acquisitions of Cobham (Aero), Imperva and Reported growth: +8.9% Tesserent (DIS): +€342m Organic growth: +6.0% – divestment of Aeronautical Electrical Systems (Aero): -€66m Organic g
Slide 6: Summary adjusted P&L: from sales to EBIT
Summary adjusted P&L: from sales to EBIT H1 2024 H1 2023 Change €m % of sales €m % of sales total organic Sales 9,493 8,716 +8.9% +6.0% Gross margin 2,771 29.2% 2,457 28.2% +12.8% +4.3% Indirect costs (1,710) 18.0% (1,509) 17.3% +13.4% +3.4% o/w R&D expenses (599) 6.3% (513) 5.9% +16.9% +7.6% o/w Ma
Slide 7: Aerospace: H1 2024 key figures
Aerospace: H1 2024 key figures H1 H1 Change €m 2024 2023 Total Organic Order intake 2,688 2,349 +14% +16% Sales 2,582 2,469 +4.6% +4.8% EBIT 167 169 -1.5% -10.2% in % of sales 6.5% 6.9% -0.4 pts -1.0 pts > Order intake above H1 2023, with contrasted dynamics > Double digit growth for Avionics with a
Slide 8: Defence & Security: H1 2024 key figures
Defence & Security: H1 2024 key figures H1 H1 Change €m 2024 2023 Total Organic Order intake 6,120 4,498 +36% +36% Sales 4,938 4,544 +8.7% +8.5% EBIT 639 576 +10.9% +11.0% in % of sales 12.9% 12.7% +0.3 pts +0.3 pts ©Yann Bourdin Photopointcom_Thales > Robust order intake > 9 large contracts in H1 i
Slide 9: Digital Identity & Security (DIS): H1 2024 key figures
Digital Identity & Security (DIS): H1 2024 key figures H1 H1 Change €m 2024 2023 Total Organic Sales 1,934 1,672 +15.6% +0.4% EBIT 272 246 +10.7% -7.4% in % of sales 14.1% 14.7% -0.6 pts -1.2 pts > H1 2023 figures restated to include the cyber civil activities transferred from Defence & Security > S
Slide 10: Summary adjusted P&L: from EBIT to adjusted net income
Summary adjusted P&L: from EBIT to adjusted net income €m H1 2024 H1 2023 EBIT 1,096 993 Cost of net financial debt and other financial results (55) 1 Finance costs on pensions and other employee benefits (28) (38) Income tax (193) (175) Effective tax rate 20.4% 20.0% Adjusted net income – discontin
Slide 11: H1 2024 Free operating cash-flow
H1 2024 Free operating cash-flow €m H1 2024 H1 2023 > Significant negative H1 WCR Operating cash flow before WCR changes, 1,472 1,319 variance due to higher stocks interest and tax > Additional stocks to mitigate Change in WCR and reserves + (995) (686) for contingencies supply chain difficulties Pe
Slide 12: Movement in net debt over H1 2024
Movement in net debt over H1 2024 Free Free operating operating Acquisitions Dividends New leases cash-flow from cash-flow from & disposals paid (IFRS16) Others €m continued discontinued operations operations +23 -108 +528 -534 -95 -218 Out of which: - Acquisitions: -1,152 Out of which - Disposal: +
Slide 13: Strategy and outlook
2024 half-year results Strategy and outlook H1 2024 results 13
Slide 14: Key 2024 priorities
Key 2024 priorities > Continued ramp up to capture market growth > Maintained innovation leadership > Space recovery plan > Integration of acquisitions H1 2024 results 14
Slide 15: Solid progress in H1 2024
Solid progress in H1 2024 1 2 3 4 Capacity Innovation Space recovery Acquisitions' ramp-up leadership plan integration > 3,900 recruitments > Trusted AI > Internal > Imperva integration completed in accelerator redeployment of progressing as H1 2024 the jobs actively planned > 600 experts and > Seve
Slide 16: 2024 Financial objectives refined
2024 Financial objectives refined 1 2 3 Order Intake Sales EBIT Margin(c) Book-to-bill +5% to +6% (a) 11.7% to 11.8% (a) above 1 organic growth, corresponding to €19.9 to 20.1 billion(b) Unchanged Narrowed Range Narrowed Range a. Assuming no new major disruptions of the health situation, of th
Slide 17: Save the date! Capital Markets Day
Capital Markets Day Save the date! 14 November 2024 Paris - 75009 11am to 9.30pm CET Invitations to be sent shortly ©Alexandre LXM - Thales H1 2024 results 17
Slide 18: Appendix
Appendix ©Briot_Thales H1 2024 results 18
Slide 19: Upcoming events
Upcoming events 31 October 2024 (before market opening) Q3 and 9m 2024 sales 14 November 2024 Capital Markets Day ©Alexandre LXM - Thales H1 2024 results 19
Slide 20: H1 2024 order intake by destination
H1 2024 order intake by destination H1 H1 Change 5% In € millions 2024 2023 Total Organic 10% Rest of the world Middle East France 2,099 2,058 +2.0% +2.1% United Kingdom 571 577 -1.0% -4.2% Rest of Europe 2,884 2,771 +4.0% +3.7% 19% France Europe 5,554 5,406 +2.7% +2.2% 17% North America 1,274 1,048
Slide 21: H1 2024 sales by destination
H1 2024 sales by destination H1 H1 Change 5.8% 4.9% In € millions 2024 2023 Total Organic Middle East Rest of the world France 2,940 2,639 +11.4% +11.4% United Kingdom 624 573 +8.9% +4.9% 9.8% Asia 31.0% Rest of Europe 2,250 2,057 +9.4% +8.8% France Europe 5,814 5,268 +10.4% +9.6% North America 1,26
Slide 22: H1 2024 adjusted net result
H1 2024 adjusted net result Consolidated Change in fair Actuarial Adjusted Impact of Disposal of value of gains/losses P&L P&L business assets and derivative FX on other long €m H1 2024 combination others instruments term benefits H1 2024 Sales 9,493 — — — — 9,493 Cost of sales (6,985) 263 — — — (6,
Slide 23: H1 2023 adjusted net result
H1 2023 adjusted net result Consolidated Change in fair Actuarial Adjusted Impact of Disposal of value of gains/losses P&L P&L business assets and derivative FX on other long €m H1 2023 combination others instruments term benefits H1 2023 Sales 8,716 — — — — 8,716 Cost of sales (6,438) 179 — — — (6,
Slide 24: H1 2024 EBIT by operating segment
H1 2024 EBIT by operating segment H1 H1 Change €m / % of sales 2024 2023 Total Organic Aerospace 167 6.5% 169 6.9% -1.5% -10.2% Defence & Security 639 12.9% 576 12.7% +10.9% +11.0% Digital Identity & Security 272 14.1% 246 14.7% +10.7% -7.4% EBIT – operating segments 1,078 11.4% 992 11.4% +8.7% +2.8
Slide 25: Organic sales growth per quarter
Organic sales growth per quarter 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Aerospace Defence & Security Digital Identity & Security Total(a) a. Excluding Transport in all periods (Transport business classified as "discontinued operations" as of 01/01/2021 and disposed as of 31/05
Slide 26: Q2 2024 order intake by operating segment
Q2 2024 order intake by operating segment Q2 Q2 Change €m 2024 2023 Total Organic Aerospace 1,685 1,150 +47% +46% Defence & Security 2,998 3,127 -4% -4% Digital Identity & Security 1,028 848 +21% +4% Other 19 18 Total 5,730 5,142 +11% +8% H1 2024 results 26
Slide 27: Q2 2024 sales by operating segment
Q2 2024 sales by operating segment Q2 Q2 Change €m 2024 2023 Total Organic Aerospace 1,400 1,314 +6.6% +4.6% Defence & Security 2,633 2,506 +5.0% +4.5% Digital Identity & Security 1,017 854 +19.1% +3.1% Other 21 16 Total 5,071 4,690 +8.1% +4.4% H1 2024 results 27
Slide 28: Definition of non-GAAP measures and other remarks
Definition of non-GAAP measures and other remarks > Rounding of amounts in euros > Adjusted net income: net income, less the following elements, net of the corresponding tax effects: (i) amortization of acquired assets In the context of this presentation, the amounts expressed in millions of euros (
Slide 29: Thales contact details
Thales 4 rue de la verrerie 92160 Paris Meudon 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 statements d