Thales Sa · EURONEXT:HO
Thales Sa — Gemalto — FY2009 Earnings Presentation
18 slides from Thales Sa's earnings presentation, Mar 4, 2010
Slide 1: FY 2009 Earnings Release
IIIII FY 2009 Earnings Release Olivier Piou, CEO Jacques Tierny , CFO March 4, 2010 Listen-only live audio webcast available from www.gemalto.com/investors
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. Forward-Looking Statements This communication contains certain statements that are neither reported financial results nor other historical
Slide 3: Overview
Overview Olivier Piou, CEO Financial Results Moving Forward 3
Slide 4: Full year 2009 results highlights
Full year 2009 results highlights Full year revenue at € 1654 million, with positive signs in Q4 Adjusted operating income increased to € 182 million before special provision of € 11 million Operating margin improvement, with all segments now reporting profits Merger objective of 10% EBIT ma
Slide 5: Financial Results
Overview Financial Results Jacques Tierny, CFO Moving Forward 5
Slide 6: Adjusted and IFRS results reconciliation
Adjusted and IFRS results reconciliation Gemalto presents income statements on an Adjusted basis for a better appreciation of its operating performance over the period, as IFRS 3 “Business Combinations” has several significant impacts on financial statements Minus: Minus: Adjusted before Special Reo
Slide 7: Gemalto further expands profitability
Gemalto further expands profitability Extracts from Gemalto FY 2009 Adjusted Income Statement Revenue € 1,654m (2%)* Gross Profit Gross Margin € 600m +80bp 36.3% + 1% EBIT margin EBIT € 171m +20bp 10.3% + 1% Earnings Per Share (Basic) € 1.75 (3%) EBIT before EBIT margin special provision € 182m +90b
Slide 8: Gross margin improvements in all segments
Gross margin improvements in all segments Mobile Communication Secure Transactions Security before special provision Revenue Revenue Revenue (8%) * € 888m +1% € 441m +14% * € 248m Gross Profit Gross Margin Gross Profit Gross Margin Gross Profit Gross Margin (3%) € 382m +150 bp 43% +1% € 119m +40bp 2
Slide 9: Record operating cash flow
Record operating cash flow Key items from Gemalto FY 2009 Cash flow statement € in millions 2008 2009 Cash generated by operating activities 191 224 before cash outflows related to restructuring actions Cash used in restructuring actions (59) (24) Cash generated by operating activities 132 200 Capit
Slide 10: Sound use of cash to create value
Sound use of cash to create value Investments in operations € 53m Bolt-on Acquisitions Operating cash flows € 74m € 200m Share buy-back € 65m A dividend of € 0.25 per share (i.e. € 21 million) in respect of the fiscal year 2009 will be proposed to shareholders at next AGM 10
Slide 11: Update on currency
Update on currency Breakdown of Currency Exposure 2009 Revenue In 2009, the positive effect of the US Dollar appreciation vs. the Euro was offset by the USD negative effect of the weakening of Others EUR 43% 40% Others 17% We have improved natural hedging, and at Q1 ’10 exchange rates Q1 ’09 2009 Co
Slide 12: Value creation through disciplined earnings expansion
Value creation through disciplined earnings expansion Mobile Secure Communication Transactions Security Resilience in a cautious Return to growth in Q4 Turned to profit market 8% EBIT margin in H2 Further earnings expansion EBIT 10.3% 11.0% excl. special provision 14.3% ROCE 2 15.2% excl. special pr
Slide 13: Profit from operations
Profit from operations For the period 2010-2013 Gemalto will report profit from operations In 2009, profit from operations differs from the adjusted EBIT by keeping out the equity-based compensation charges FY 2009 Adjustment related FY 2009 In € million under adjusted to equity-based under new Pres
Slide 14: Moving Forward
Overview Financial Results Moving Forward Olivier Piou, CEO 14
Slide 15: Outlook
Outlook Our business has strong fundamentals and prospects. We continue our mission to provide trust and convenience to the wireless and digital world. In 2010 we are focused on growth, actively promoting our expanded product portfolio and delivering more software and services to our customers, in o
Slide 16: 2010 priorities: back to growth
We emerged from 2009 on a solid footing, and now advancing onto 2010 with clear priorities 2009: Fortified Competitive Position 2010 Priorities: Back to Growth Demonstrated resilience in adverse Focus on revenue growth, capturing global economic environment digital security opportunities globall
Slide 17: World Leader in Digital Security
[ 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 17
Slide 18: Full year 2009 results - Q&A Session
IIIII Gemalto full year 2009 results - Q&A Session Questions will be taken by way of conference call, by dialing (FR) +33 1 72 00 09 84 (UK) +44 203 367 9456 (US) +1 866 907 5923 Listen-only live audio webcast available from www.gemalto.com/investors