Thales reports its 2021 full-year results
- Order intake1: €19.9 billion, up 18% (+18% on an organic basis2)
- Sales: €16.2 billion, up 5.3% (+5.3% on an organic basis)
- EBIT3: €1,649 million, up 32.1% (+31.9% on an organic basis)
- Adjusted net income, Group share3: €1,361 million, up 45%
- Consolidated net income, Group share: €1,089 million, up 125%
- Free operating cash flow3: €2,515 million, 185% of adjusted net income, Group share
- Dividend4 of €2.56, up 45%
- 2022 objectives:
- Book-to-bill5 above 1, supporting sales growth acceleration in 2023
- Sales between €16.6 and €17.2 billion, corresponding to organic growth between +2% and +6%
- EBIT margin between 10.8% and 11.1%
- 2019-2023 cash flow generation target revised upwards:
- Conversion ratio of adjusted net income6 to free operating cash flow: 115%
- Around €5.5 billion of free operating cash flow expected for 2021-2023
Thales’s Board of Directors (Euronext Paris: HO) met on March 2, 2022 to review the 2021 financial statements[7].
Organic growth returned above 5%. The EBIT margin was above 10%, benefiting in particular from a solid margin increase in Digital Identity & Security, which was more than 4 points higher than in 2018, the year prior to its integration into the Group.
Driven by the strength of the space business and the cost adaptation plan in aeronautics, the aerospace segment recorded an initial recovery in revenues and profitability. Nevertheless, with revenues nearly 20% lower than 2019 and an operating margin of 4.5%, it is still very much affected by the impact of the health crisis on air transport.
All Thales teams are committed to implementing our strategic roadmap. The disposal of the “Ground Transportation Systems” business is proceeding in line with the plan. We are continuing to increase our R&D investments to better prepare for the future. We are accelerating our sustainability initiatives, and confirm today all the objectives presented at the 5 October 2021 ESG event.
Thales’s business model, driven by the growing need for security and trust in an increasingly interconnected world, has remarkable potential for sustainable and profitable growth, offering solid future prospects for its employees, customers and shareholders. ”
Patrice Caine, Chairman and Chief Executive Officer
Key figures
|
In € millions except earnings and dividend per share (in €) |
2021 |
2020 |
Total |
Organic |
|
Order intake |
19,909 |
16,824 |
+18% |
+18% |
|
Order book at end of period |
34,744 |
30,512 |
+14% |
+12% |
|
Sales |
16,192 |
15,371 |
+5.3 % |
+5.3 % |
|
EBIT8 |
1,649 |
1,248 |
+32.1 % |
+31.9 % |
|
as a % of sales |
10.2 % |
8.1 % |
+2.1 pts |
+2.0 pts |
|
Adjusted net income, Group share8 |
1,361 |
937 |
+45 % |
|
|
Adjusted net income, Group share, per share8 |
6.39 |
4.40 |
+45 % |
|
|
Consolidated net income, Group share |
1,089 |
483 |
+125% |
|
|
Free operating cash flow8 |
2,515 |
1,057 |
1,459 |
|
|
Net cash (debt) at end of period8 |
-795 |
-2,549 |
1,754 |
|
|
Dividend per share9 |
2.56 |
1.76 |
0.80 |
|
In accordance with standard IFRS5, the financial data for the “transport” operating segment for 2020 and 2021 have been classified under “discontinued operations” following the entry into exclusive negotiations with Hitachi Rail with a view to disposing of this business.
It is possible to see the conference call through a webcast by using the following link:
If you were unable to listen to the call, please find below the “REPLAY” Dial in details:
03/03/2022 14:00 CET - 10/03/2022 14:00 CET
- France: +33 (0)1 70 95 03 48
- Standard International: +44 (0) 3333 009785
- Confirmation Code: 6074577
To view the complete press release, please download the PDF at the bottom.
[1] In accordance with standard IFRS5, the financial data for the operating segment “transport” for 2020 and 2021 have been classified under “discontinued operations” following entry into exclusive negotiations with Hitachi Rail with a view to disposing of this business.
[2] In this press release, “organic” means “at constant scope and exchange rates”. See note on methodology on page 14 and calculation on page 19.
[3] Non-GAAP financial indicators, see definitions in the appendices, page 14.
[4] Proposed to the Annual General Meeting on May 11, 2022.
[5] Ratio of order intake to sales.
[6] Previous target: around 95% on a reported basis.
[7] At the date of this press release, the audit procedures for the financial statements have been completed and the statutory auditors’ report was in the process of being issued.
[8] Non-GAAP financial indicators, see definitions in the appendices, page 14.
[9] Proposed to the Annual General Meeting on May 11, 2022.
