2020 Full-Year results

Thales’s Board of Directors (Euronext Paris: HO) met on 3 March 2021 to review the 2020 financial statements.[1]

Patrice Caine, Chairman & Chief Executive Officer, stated:

“Logically, full-year 2020 results were heavily impacted by the Covid-19 crisis. The efforts of our teams all over the world have demonstrated the Group’s human and economic resilience as well as its agility. We are therefore far exceeding the objectives of our global adaptation plan.
In this unprecedented context of global pandemic, I would like to reiterate my gratitude to all Thales teams for their exemplary commitment and to our customers and partners for their trust.
The second half of 2020 showed a strong recovery in terms of both order intake and profitability. The EBIT margin before restructuring costs returned to the H2 2019 level.
Furthermore, 2020 cash generation was once again very strong. It illustrates both the robustness of our civil-defense business model and our teams’ focus on operational performance.
Our digital strategy, bolstered by our position as a leader in cybersecurity, is bearing fruit across all of the Group’s businesses, with great commercial successes in space, defense, rail signaling and data protection.
In a still uncertain economic and health environment, our unique position combining a world-class technological portfolio and comprehensive expertise in our 5 major markets will enable us to swiftly regain our profitable growth momentum.”

•    Order intake: €18.5 billion, down 3% (-6% on an organic basis [2])
•    Sales: €17.0 billion, down 7.7% (-10.4% on an organic basis)
•    EBIT[3]: €1,352 million, down 33% (-34% on an organic basis)
•    Adjusted net income, Group share [3]: €937 million, down 33%
•    Consolidated net income, Group share: €483 million, down 57%
•    Free operating cash flow[3]: €1,057 million, 113% of adjusted net income, Group share
•    Dividend[4] of €1.76, payout ratio of 40% confirmed
•    2021 objectives:

      —    Book-to-bill[5] above 1, supporting sales growth acceleration from 2022
      —    Sales between €17.1 billion to €17.9 billion    
      —    EBIT margin between 9.5% to 10%

A replay of the conference call is available at the following location:

•   https://edge.media-server.com/mmc/p/63hr6gde

This replay will remain available for 12 months. 

Notes

[1] At the date of this press release, the audit procedures have been completed and the statutory auditors’ report was in the process of being issued.
[2] In this press release, “organic” means at constant scope and exchange rates. See note on methodology on page 12 and calculation on page 17 of the press release.
[3] Non-GAAP financial indicators, see definitions in the appendices, page 12 of the press release.
[4] Proposed to the Shareholders’ Meeting on 6th May 2021.
[5] Ratio of order intake to sales.