2018 Half year results
Thales鈥檚 Board of Directors (Euronext Paris: HO) met on 19 July 2018 to review the financial statements for the first half of 20181.
鈥淚n the first half of 2018, Thales again posted a very solid performance. Organic sales growth reached almost 7%, ahead of the full year target. Order intake, up by 5%, was in line with our expectations. The operating margin rose sharply, breaking through the 10% barrier in H1 for the first time. As planned, we significantly increased our R&D investments, up 13% for H1 2018, in order to accelerate the development of the most innovative solutions in every one of our markets and plan for the future. These positive dynamics allows us to confirm our 2018 financial objectives.鈥
鈥淎ll Group teams are focused on the implementation of the second phase of our strategic plan Ambition 10, which combines the strengthening of our position as a technology leader in all of our markets with the ramp-up of new operational performance initiatives.鈥 鈥淭he projected acquisition of Gemalto, a booster of this strategy, is proceeding as planned. It should be completed before the end of the year, once we have obtained all the necessary regulatory authorizations.鈥 鈥淥ur ambition is simple: to grow profitably, faster than the market, and in a sustainable way, in order to maximize value creation.鈥
Patrice Caine, Chairman & Chief Executive Officer
鈥淎ll Group teams are focused on the implementation of the second phase of our strategic plan Ambition 10, which combines the strengthening of our position as a technology leader in all of our markets with the ramp-up of new operational performance initiatives.鈥 鈥淭he projected acquisition of Gemalto, a booster of this strategy, is proceeding as planned. It should be completed before the end of the year, once we have obtained all the necessary regulatory authorizations.鈥 鈥淥ur ambition is simple: to grow profitably, faster than the market, and in a sustainable way, in order to maximize value creation.鈥
Patrice Caine, Chairman & Chief Executive Officer
- Solid order intake: 鈧6.3 billion, up 5% (up 8% on an organic basis)
- Sales: 鈧7.45 billion, up 4.7% (up 6.9% on an organic basis)2
- EBIT3 : 鈧762 million, up 30% (up 33% on an organic basis)
- Adjusted net income, Group share3 : 鈧539 million, up 39%
- Consolidated net income, Group share: 鈧457 million, up 53%
- Free operating cash flow3: -鈧272m
- All 2018 financial objectives confirmed
| In 鈧 millions except earnings per share (in 鈧) | H1 2018 | H1 2017 restated for IFRS 15 | H1 2017 reported | Total change | Organic change |
|---|---|---|---|---|---|
| Order intake | 6,331 | 6,009 | 5,972 | +5% | +8% |
| Order book at end of period | 30,987 | 32,064 4 | 31,9147 4 | -3% | -3% |
| Sales | 7,452 | 7,118 | 7,241 | +4.7% | +6.9% |
| EBIT3 | 762 | 587 | 637 | +30% | +33% |
| in % of sales | 10.2% | 8.3% | 8.8% | +2.0 pts | +2.0 pts鈥嬧嬧嬧嬧嬧嬧 |
| Adjusted net income, Group share3 | 539 | 387 鈥嬧嬧嬧嬧嬧嬧 | 424 | +39%鈥嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌 | |
| Adjusted net income, Group share, per share3 | 2.54 | 1.83 | 2.00 鈥嬧嬧嬧嬧嬧嬧嬧嬧嬧嬧嬧嬧嬧 | +39% | |
| Consolidated net income, Group share | 457 | 299 | 336 | +53%鈥嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌 | |
| Free operating cash flow3 | -272 | 216 | 216 | -488鈥嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌嬧赌 | |
| Net cash at end of period | 2,311 | 2,9714 | 2,9714 | -661 |
Notes
1 The limited review of the financial statements has been completed and the statutory auditors鈥 report has been issued following the meeting of the Board of Directors.
2 鈥淥rganic鈥 means at constant scope and currency.
3 Non-GAAP measures, see definitions in the press release.
4 At 31 December 2017