Thales Sa · EURONEXT:HO
Thales Sa — Q3 2023 Earnings Presentation
19 slides from Thales Sa's earnings presentation, Oct 31, 2023
Slide 1: 9m 2023 order intake and sales
9m 2023 order intake and sales 31th October 2023 www.thalesgroup.com
Slide 2: Q3 2023 highlights
Q3 2023 highlights French Defense Budget Evolution(b) €bn +7% +5% +6% CAGR CAGR 68.9 CAGR 56.0 43.9 35.8 2019 2023 2027 2030 Ongoing active portfolio Integration into the 2024-30 French Military management CAC SBT 1.5° Index(a) Programming Law Imperva acquisition Demonstrating the Acceleration in Fr
Slide 3: 9m 2023 key figures
9m 2023 key figures €m change change 9m 2023 9m 2022 Q3 2023 Q3 2022 total organic total organic Order intake 12,370 15,449 -20% -18% 3,807 4,240 -10% -6% Sales 12,854 12,298 +4.5% +7.5% 4,138 4,042 +2.4% +7.2% Order intake in line with FY guidance Sales growth momentum pursued in Q3 9m 2023 order i
Slide 4: 9m 2023 order intake
9m 2023 order intake Ongoing strong commercial activity Order intake by contract unit value despite FY 2022 high comps (Rafale UAE) Organic growth -18% and Q3/Q4 phasing: €m • Q3 organic growth: -6% • 9m organic growth: -18% Unit value 3 large(a) orders booked in Q3 2023, > €100m for a total of 12 i
Slide 5: 9m 2023 sales growth
9m 2023 sales growth 9m sales growth drivers Significant negative currency impact €m Reported growth: +4.5% • Q3: -€103m, -2.6% of sales • 9m: -€183m, -1.5% of sales +893 Solid 9m organic sales growth: +7.5% • Aerospace at double-digit, driven by -337 Avionics • D&S and DIS both at mid-single digit+
Slide 6: Aerospace: 9m 2023 key figures
Aerospace: 9m 2023 key figures 9m 9m Change €m 2023 2022 total organic Order intake 3,392 3,646 -7% -7% Sales 3,628 3,270 +10.9% +10.9% Order intake slightly down due to 9m 2022 high comps • Ongoing momentum in civil Avionics orders: civil aero orders up double-digit despite high comps (1 large IFE
Slide 7: Defense & Security: 9m 2023 key figures
Defense & Security: 9m 2023 key figures 9m 9m Change €m 2023 2022 total organic Order intake 6,542 9,177 -29% -29% Sales 6,770 6,387 +6.0% +6.2% Continued strong order intake momentum vs. high comps in 9m 2022 (Rafale UAE order) • 2 large orders in Q3 2023 vs. 1 in Q3 2022 Sales organic growth accel
Slide 8: Digital Identity & Security (DIS): 9m 2023 key figures
Digital Identity & Security (DIS): 9m 2023 key figures 9m 9m Change €m 2023 2022 total organic Sales 2,405 2,584 -6.9% +6.9% Order intake structurally aligned with sales Sales up 6.9% over 9m 2023, after a slightly negative Q3 as anticipated: • Ongoing Digital Solutions (Cybersecurity, Biometrics an
Slide 9: 2023 financial objectives confirmed
2023 financial objectives confirmed Order intake Book-to-bill above 1 Sales +5% to +7% organic growth(a) corresponding to €17.9 to €18.2 billion EBIT margin(b) 11.5% to 11.8%(a) (a) Based on July 2023 scope and foreign exchange rates. Assuming no new major disruptions of the geopolitical and economi
Slide 10: Appendix
Appendix www.thalesgroup.com
Slide 11: Upcoming events
Upcoming events Ex-interim dividend date 5th December 2023 Interim dividend payment 7th December 2023 Full Year 2023 results 5th March 2024 (before market) Q1 2024 order intake and sales 30th April 2024 (before market) Annual General Meeting 15th May 2024 9m 2023 order intake and sales - 11
Slide 12: Organic sales growth per quarter
Organic sales growth per quarter 2020 2021 2018 2022 2019 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Aerospace Defense & Security Digital Identity & Security Total(a) (a) Excluding Transport in all periods (Transport business classified as "discontinued operations" as of 01/01/2021) 9m 2023 order i
Slide 13: 9m 2023 order intake by destination
9m 2023 order intake by destination 9m 9m Change In € million 2023 2022 Total Organic ROW France 3,142 3,143 —% —% ME United Kingdom 752 656 +15% +18% Asia France Rest of Europe 3,739 2,994 +25% +27% Europe(a) 7,632 6,794 +12% +14% North America 1,690 2,147 -21% -19% AU/NZ Australia / NZ 610 709 -14
Slide 14: 9m 2023 sales by destination
9m 2023 sales by destination 9m 9m Change In € million 2023 2022 Total Organic ROW France 3,880 3,576 +8.5% +8.8% ME United Kingdom 841 736 +14.2% +17.4% Rest of Europe 3,099 2,879 +7.6% +10.3% Asia France Europe(a) 7,819 7,191 +8.7% +10.3% North America 1,826 1,678 +8.9% +12.5% AU/NZ Australia / NZ
Slide 15: Q3 2023 order intake by operating segment
Q3 2023 order intake by operating segment Q3 Q3 Change €m 2023 2022 Total Organic Aerospace 1,048 1,252 -16% -15% Defense & Security 1,939 2,027 -4% -4% Digital Identity & Security 809 952 -15% -2% Other 10 9 Total 3,807 4,240 -10% -6% 9m 2023 order intake and sales - 15
Slide 16: Q3 2023 sales by operating segment
Q3 2023 sales by operating segment Q3 Q3 Change €m 2023 2022 Total Organic Aerospace 1,163 1,059 +9.8% +12.7% Defense & Security 2,144 2,007 +6.8% +8.1% Digital Identity & Security 811 952 -14.9% -1.5% Other 21 23 Total 4,138 4,042 +2.4% +7.2% 9m 2023 order intake and sales - 16
Slide 17: Transport: 9m 2023 key figures
Transport: 9m 2023 key figures 9m 9m Change €m 2023 2022 total organic Order intake 1,415 1,132 +25% +27% Sales 1,263 1,186 +6.5% +8.5% Solid order intake momentum • Robust dynamics in mainline signalling and revenue collection systems • 1 large order in urban signalling Sales up organically, mainly
Slide 18: 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 19: Thales SA contact details
Thales SA 4, Rue de la verrerie 92190 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 due