The article was updated on March 3 at 22:00.
2021 has been a successful year for Thales commercially. “The group achieved the best year his business history”Thales CEO Patrice Kane logically rejoiced, quoted in a press release following the results of 2021. taken from orders hit a new high last year in 19,9 billion euros. Why such a record, moreover, without transport activities currently being sold and not included in the results of 2021? The technology group won significantly “commercial dynamics especially high in the fourth quarter of 2021, especially in the avionics, space and identification sectors, anddigital security (CIS)”.
Thus, Thales won twelve contracts worth more than 100 million euros in the fourth quarter of 2021 (up from nine in the first three quarters). I.e 21 big ordersor total amount €6.49 billion (32.6% of total orders). Results, order book consolidated achieved new historical record 34.7 billion euros at the end of 2021.
Protection and space are two keys to the success of Thales
Thales has been particularly driven by commercial success in defense and space through its subsidiary Thales Alenia Space (67%). 11.18 billion orders in the defense and security sector reached a new historical high. The book value ratio exceeded 1.30 (compared to 1.23 in 2020 and 1.20 in 2019). This high level is due to the conclusion of 13 large contracts in six mature countries, including three large ones: almost 1.5 billion euros for a 10-year support for the combat control system of aerospace operations (SCCOA) in France, the sale of 30 Rafale to Egypt (approximately 750 million euros) and 12 Rafales to France (approximately 300 million euros) and finally a maintenance contract for the Mirage 2000 as part of Balzac (500 million euros). The portfolio of defense orders reached a new historical high – 26.1 billion euros. This is more than three years of turnover.
Acceptance of industry orders inaerospace settle in five,6 billion (against 3,8 billion in 2020). An increase that can be explained through commercial success of Thales Alenia Space, which received orders for three billion euros in both the field of surveillance earth, space exploration (development of the lunar module I–VC)navigation (Galileo) and telecommunications with especially the first commercial success of a new generation of digital satellites flexible “Space Inspiration” with the world’s leading operator SES. In addition, taking orders in aviation activities (avionics and on-board multimedia (IFE)) there is a programdecreased by 18% on compared to 2020. At the end of 2021, the sector’s order book was 7.9 Billions of euros up to 20%. Finally, in taken from orders from sector Personality & Security Digital amounted to 2.99 billion euros.
These commercial successes have created Treasury Department 2.5 Billions of euros. “Given this performance in 2021 and forecast for 2022 and 2023, we are reviewing a strong increase in our generation goal cash: the group should thus generate about 5.5 billion euros of free cash.–flow valid throughout 2021–2023″Patrice Kane explained.
Health crisis hits again in 2021
As with most dual groups, the health crisis further impacted Thales’ 2021 results. In particular, in the field of aviation activities, the turnover of which reaches a peak of 4.46 billion dollars. “The aerospace sector is registering an initial recovery in its turnover and profitability.Patrice Kane said. However, with turnover almost 20% lower than in 2019. (5.6 billion euros, ed. note) and an operating margin of 4.5% (compared to 9.3% in 2019, ed. note), it remains very dependent on the impact of the crisis in health care to air transport”.. In-flight multimedia (IFE) activities continue to suffer from a very slow recovery in international traffic (large aircraft), in contrast to domestic traffic, which is picking up again. Thus, Thales has real room for improvement in 2022.
However, the technology group is recovering higher EBIT margins.have to 10% (10.2% compared to 10.9% in 2019), with one,64 billion euros, up to by 32%. in consolidated net income, rose to one,08 billion (+125% compared to 2020). Satisfaction with Thales, which returned to organic growth by more than 5%. The turnover amounted to 16.19 billion dollars, which is 5.3% more than in 2020. This activity was also driven by defense and space activities.
Thales cautious in 2022
Caution is a hallmark of Thales. “Even if heimprovement health context should contribute to the gradual restoration of transport air, global environment from the beginning of 2022 still characterized by a high degree of uncertainty in the short term term, especially in relation to in tensions affecting supply chains and level inflationary pressure on purchasesfound the group. Thereby, the geopolitical context also deteriorated sharply after the invasion of Ukraine Russia. Influence this crisis by revenue 2022 to these two countries is in this Stadium estimated at around 100 million euros. Other possible effects, especially on the circuit supply chains for space activities are currently being evaluated. According to our information, Thales Alenia Space is under threat for transport of its satellites, the manufacturer uses the Antonov and Volga devices. Finally, it still depends on four suppliers in Russia (suppliers of engines, valves and heat exchangers).
Despite this disturbing context, Thales, who can rely on visibility provided by his order book more than 34.7 billion euros, set goals to achieve again after 2020 and 2021 ratio book–to–count over 1 in 2022. The Group strives but turnover in the range 16,6 in 17.2 billion eurosgrowth-appropriate organically between 2% as well as 6% compared to 2021. He craves butWas born EBIT margin between 10.8% as well as 11.1%up to 60-90 basis points from compared to 2021. In the short term, everything is green, especially in defense (in the direction of increasing defense budgets, in particular impressive in Germany).