First-half results 2010 September 1, 2010 Eric Blanc-Garin: CEO Hugues Rougier: CFO

Transcription

1 Firsthalf results 2010 September 1, 2010 Eric BlancGarin: CEO Hugues Rougier: CFO 1

2 H highlights Disappointments Booktobill: 0.9 Slow down in revenues (12.4%) & deterioration in operating margin at 5.3% Defense, Space & Security: penalized by French State downsizing program Aeronautics, Energy & Industry: levelling off after a very good year in 2009 Net profitability at 10.9 million Positive points Growth in order intakes amounted 12% versus H & backlog represented 16 months of revenues Transportation: continuing investments & profitability recovery Product: growth in order intakes and good R&D progress Good level of cash: 31.9 million (Gearing: 41%) 2

3 Performance by operating segment 3

4 H Defense, Space & Security in M in M H H H H H OI OI R R OM OM % of R 6.9% 2.2% % of R 10.9% 2.4% 1.5% 3.0% 7.9% Order intakes low in H1 No new programs notified on H Current activity orders: 22.0 million (+14.6% vs H1 2009) Slow down in revenues & operating margin Delay in decisions and endorsement notifications Price reduction of 7 air bases occurred in early 2010 Completion of Security Expertise Center project in the Middle East Backlog: 23.1 months, excluding optional orders Significant project milestones successfully completed 4

5 Issues Business Defense, Space & Security Issues & objectives Space systems & Image Intelligence Scalability of ESA ground segment frame contract (5 year agreement) Positioning on significant programs: CSO, GEODE4D, SEVI IS Logistics: cooperation agreement with SOPRA Group for the delivery of nextgeneration logistics information systems Air defense: SCCOA 4 (H2 1010) & NATO Information and communication systems security: focus on cyber defense & trust service offers 5 Operations Control of selling and R&D costs Objectives H Rebound in order intakes in H Growth in revenues Decrease in operating losses in H2 2010

6 H Aeronautics, Energy & Industry in M in M H H H H H OI OI R R OM OM ,0 0.4 % of R 2.7% 6.3% % of R 1.6% 3.9% 3.8% 8.9% 1.1% 2008 & 2009 figures restated of Virtual Reality Department transfer from Aeronautics, Energy, Industry to Products Activity since January 1, 2010 Levelling off after significant growth in 2008 (+11%) and 2009 (+10%) Slow down in order intakes but expansion of customer portfolio Increase in longterm frame contracts: EDF (6year contract: studies & applications management), GDFSUEZ (4year contract: computing & digital simulation), IRSN (4year contract: operation of nuclear power station PWR heart) Perimeter extension: EADS ASTRIUM, SAFRAN Opening of new accounts: Liebherr Aerospace, Ademe, Carmat, Lectra, Alema Automation Stable revenues & margin down due to granted technical and selling investments Good performance (revenues and margins) in Romanian, German and Canadian subsidiaries, with a clear breakthrough in North America 6

7 Aeronautics, Energy & Industry Issues & objectives Issues Business: take advantage of our investments Embedded systems Continuing expansion of our activities in North America Boosting the development of our activities in Paris area and Germany HPC, digital design and PLM Scalability of HPC center in Pau Market penetration lof arge industrial clients & subcontractors Control and command Focus on nuclear sector Operations Control of resources and selling costs Productivity optimization plan Embedded systems MRO VR ECM PLM HPC Simulation DMU Objectives H Return to booktobill >1 Return to growth in revenues Increase in operating margin versus H

8 H Transportation in M in M H H H H H OI OI R R OM OM % of R 24.0% 14.7% % of R 24.2% 24.5% 12.8% 17.6% 9.3% Significant growth in order intakes in H1 Port Mann Bridge FreeFlow: $ 19M project in Vancouver New projects in Greece and Poland Continuing profitability recovery Maintening investments for future development 8 Addition of many functionnal & technological innovations to product range Freeflow, backoffice, traditional toll collection, safety and emergency callbox Significant business investments in new generating projects French truck road charging system project Chile, United States, Poland, India

9 Transportation Issues & objectives Issues Business: very active market Deployment of freeflow offer Focus on installed base: France, Poland, Canada, Chile Truck road charging system projects in Europe Development of indirect sales of our products range to address global market Operations Maintaining technological leadership Production cost optimization Freeflow single gantry OBU Payment management Back office Security & traffic managament Emergency callbox networks Objectives H Return to growth New improvement in operating margin 9

10 H Products in M in M H H H H H OI OI R R OM OM % of R 0.7% 10.9% % of R 5.3% 7.6% 0% 19.4% 10.5% 2008 & 2009 Virtual Reality Department figures restated (transfer from Aeronautics, Energy, Industry to Products Activity since January 1, 2010) Significant growth in order intakes New Business: overhaul of LION (TDL test center) for the British MoD, Symulzub (training for combat in urban areas) & DirectSim (technicooperational simulation) 8% of growth International breakthrough: 49% of revenues Continuing significant selffinanced R&D expenses Electronic warfare: PIC 2G/3G Stradivarius, horizon surface wave radar Issues: fight against piracy, illegal trafficking, illegal immigration 10

11 Products Issues & objectives Issues Business Tactical data link training ACTI L16 military exercise followup in partnership with French Air Force Tactical Data Link scenario for international community at «International Data Links Symposium» Combat in urban area: Symulzub followup Electronic warfare: sales of PIC 2G/3G in France & abroad Navigation systems: export intensification Innovation Using surface waves in defense systems HF Radar applications, digital communications, radio navigation Objectives H Further growth in revenues Positive operating margin 11

12 Firsthalf results 2010 Hugues Rougier 12

13 H1 2010: revenues of 95.0 million in M Organic evolution: market sectors H109 H110 in M Organic evolution: geographic region 13.6% % Defense, Space & Security Aeronautics, Energy & Industry Transportation Products France International Transportation 14% Aeronautics, Energy & Industry 36% Products 6% % of revenues Defense, Space & Security 44% North & South Americas 9% Europe 14% % of revenues Africa & MiddleEast 5% France 72% 13

14 CS Group consolidated firsthalf results 2010 In M H H H H H Order intakes Revenues Gross margin % % % % % % % Sales & marketing % % % % % % % R&D net expenses % % % % % % % General & Administrative % % % % % % % Operating margin % of revenues % % % % % % % Maintaining of gross margin level despite French State downsizing program; negative impact of revenues volume Intensification of selffinanced R&D expenses General & Administrative: gain of 1.2 million 14

15 Staff progression * 2,096 Layoffs 34 Recruits on S/T contract Recruits on Leavers L/T contract End of 52 temporary contracts Retired ,112 2,500 2,000 1,500 Headcount stability 2,061 Group 2,096 1,727 France 1,760 2,112 1,767 1, International Headcount 12/31/2009 Turnover: 5.0 % Headcount 06/30/ /30/09 12/31/09 12/31/09 Distribution of staff by type / sector Sales & Marketing 3.1% (+3% vs 06/09) Staff & Management 8.4% (8% vs 06/09) Billable employees 88.5 % (+2% vs 06/09) Occupation rate (excluding holidays): 81.4% (vs 81.1% in 2009 ; 80.3% on June 30, 2009) 1, Evolution of billable employees AEI DSS ITS Product 123 June09 Dec09 June10 15 *Excluding toll cashiers in Chile

16 Other operating expenses and income Cash net of financial debt M 2008 H H H Other operating expenses and income of which restructuring costs real estate assets SR 125 project M 2008 H H H Financial income of which ,6 1.8 currency exchange, provisions & other ,8 1.1 net interest expenses ,4 0.7 M 2008 H H H Income taxes of which income taxes CVAE local tax 0.8 change in deferred taxes Deferred taxes, after depreciation, at 13.2 million of potential savings of 63 million 16

17 Consolidated firsthalf results 2010 M H H H H H Revenues Operating margin % of revenues (1.2) 1.1% (3.3) 3.1% (4.5) 2.0% (2.5) 2.3% % (2.0) 1.0% (5.0) 5.3% Other operating expenses & income (0.1) (1.3) (1.4) (1.4) (7.8) (9.2) (2.8) Operating income % of revenues (1.3) 1.1% (4.6) 4.3% (5.9) 2.7% (3.9) 3.6% (7.3) 7.5% (11.2) 5.4% (7.8) 8.2% Financial result (1.7) (0.2) (1.9) (1.2) 0.6 (0.6) (1.8) Pre tax income from continuing operations % of revenues (3.0) 2.6% (4.8) 4.5% (7.8) 3.5% (5.1) 4.7% (6.7) 6.9% (11.8) 4.1% (9.7) 10.2% Taxes 0.5 (0.5) (0.0) (0.3) (8.6) (8.9) (1.2) Net income from discontinued activities (0.2) (0.2) Net income (2.2) (5.2) (7.4) (5.5) (15.4) (20.9) (10.9) 17

18 H1 2010: cash situation Evolution of WCR in M Evolution of cash in M Cash Cash net of financial debts /30/08 12/31/08 06/30/09 12/31/ /30/ June08 Dec08 June09 Dec09 June10 WCR maintained at 23.9 million Good level of cash: 31.9 million Gearing: 41% 18

19 Cash Flow M 2008 H H H Cash flow before net cost of borrowings and taxes (5.3) (0.7) (6.3) (7.0) (5.3) Change in WCR (3.2) Disbursements/proceeds relating to disposals of PP&E and intangible fixed assets (2.8) (1.2) (1.5) (2.7) (1.2) Disbursements/proceeds relating to fixed financial assets (0.4) Other (changes in perimeter, taxes paid) (0.4) (0.4) (0.4) (0.8) (1.2) Free Cash Flow (6.0) (10.9) Proceeds from/reimbursements of borrowings (0.6) (3.3) (0.6) (3.9) Increase in share capital/purchase or resale of treasury stock (1.0) (0.1) (0.1) (0.1) Dividends and interest paid (2.3) (1.2) 0.5 (0.7) (0.9) Net effect of currency conversion and miscellaneous (0.3) 0.2 (0.8) (0.6) (1.4) Net Cash Flow (10.2) (1.4) (0.3) (1.7) (13.2) Cash Opening balance Cash balances Closing balance

20 Evolution in consolidated balance sheet Consolidated figures in M Net fixed assets of which: Goodwill Tangible/intangible fixed assets Fixed financial assets Deferred tax assets WCR 6.5 (3.2) (14.4) (23.6) (23.9) Cash* Capital employed Equity Contingency & loss provisions Borrowings & noncurrent liabilities Resources Gearing 22% 36% 42% 54% 41% * including Dailly Act financing and excluding factoring (23.9 at 06/30/10) 20

21 Consolidated balance sheet Capital employed Resources At 12/31/09 At 06/30/10 At 06/30/10 At 12/31/ Goodwill Deffered taxes Other assets Shareholder equity Provisions Cash Post employment allowances WCR M 99.1 M 99.1 M M 21

22 Change in WCR DSS Products AEI ITS Other 6,5 Total June08 Dec 08 June09 Dec 09 June10 22

23 CS Euronext Paris Exchange Category C Capital August 2010 Market capitalization as of August 30, 2010: 37 M 48.89% Float Company ownedshares: 3.50% SAVA & Cie Group 47.61% 64.04% of voting rights Shares Euroclear 7896 / ISIN FR ; BSAR A ISIN FR BSAR B ISIN FR Liquidity contract: ODDO 6,306,553 shares BSAR A: BSAR B: 164, ,993 23

24 Action plan Secondhalf 2010 Restore operating profitability Corporate management mobilized to achieve goal of a positive operating margin in H2 Finance recovery levers Defense, Space & Security: security products range, Export Aeronautics, Energy & Industry: North America & Germany Intelligent Transportation Systems: indirect sales of products Products: TactX suite and electronic warfare 24