Price of the day in Paris Thales: Naval group will receive 555 million euros after violating the “agreement of the century” – 06/13/2022 at 10:41 am

(AOF) – 555 million euros. The Naval Group will receive the compensation after Australia violated the “Treaty of the Century” last September. Australia’s new Prime Minister Anthony Albanese made the announcement over the weekend. The deal relates to orders from the Naval Group of 12 conventional submarines and amounts to several billion euros. As of December 2021, Naval Group owned 62.25% of the French state and 35% of Thales. This morning, the latter rose 3.85% per share to 115.95 euros, suggesting itself the biggest gain in CAC 40.

The sudden change in Canberra was justified by the “change as needed”, part of a new strategic security partnership with the United States and the United Kingdom, and aimed at countering China’s influence. This vault-face caused a diplomatic crisis between France and Australia.

In a press release issued on Saturday, French Minister for the Armed Forces Sebastian Lacernu said he noted the conclusion of the agreement between Australia and the Naval Group on the termination of the future Australian submarine program, which was qualified.

He hopes that the agreement and the change of government team will be able to overcome the crisis of confidence with Australia.

AOF – Learn more

Important aspects

– First or second in electronics for civil satellites, sensors for mission systems and defense, air traffic management, data protection and electronics for SIM cards and smart payments, made in 2020;

– ও 17 billion revenue from defense and security 54%, space 28%, digital identity and security 19% and civil aeronautics 7%;

– International presence, 24% for France, 29% for other European countries, 14% in Asia, 12% in North America and 9% in the Middle East;

– Business model based on 4 pillars: the strength of R&D, at 20% of sales, integration of business derived from deep knowledge of the market, a broad base of digital resources and global presence in +50 countries;

– Capital locked by 2 shareholders at the concert, Dassault Aviation (24.63%) and French State (25.68%), Patrice Kane, chairman and CEO of the 16-member board of directors;

– Delicious financial position with A-rated debt, দ্রুত 795m in equity declining faster than € 6.5bn.

Challenge

– Strategies to re-focus on space, defense and security and digital identity and security;

– Innovation strategy supported by approximately 20% R&D: Global ecosystem combines 1/3 workforce with more than 23,000 patents, 6 hubs, 3 digital factories and a portfolio of 50 academic partnerships. And True AI through artificial intelligence, aI @ Centech program and Quantum Approach;

– Low Carbon Environmental Strategy: 25% reduction in direct CO2 emissions in 2023, 50% in 2030 (vs. 2018) and net zero objectives in 2040/100% eco-designed products and services / loans in 2023, green / 4 priority : Environmental management, flight optimization, air traffic management, training and signaling;

– Acceleration of activities, receipt of contracts and investment in defense and security (approximately 2/3 of the benefit) and space (15%);

– Visibility with a record order book of 34.7 billion.

Challenge

– Assessing the impact of supply tensions, especially in space, and inflationary pressures on purchases;

– The impact of advances in avionics and biometrics with the resumption of air traffic and then R&D investment in data processing in quantum sensors, cloud security and IoT;

– 2022 objectives, taking orders in excess of revenue, expected to be 16.6 to € 17.2 billion and operating margin 10.8 to 11.1%;

– Dividends of € 2.56, with dividends and buybacks of shares spread between April 2022 and March 2024.

Integration episode in Aeronautics

The size of the French players is very limited compared to their American competitors. It is therefore necessary to bring these stakeholders together, thus increasing the budget allocated for research and development and increasing the weight of the international call for tenders. The Aéro Partenaires Investment Fund was launched in 2020 to support this movement. It was created by Ass Capital Partners, a subsidiary of Tikehau Capital with French State, Airbus, Safran, Dassault Aviation and Thales. The fund has made several transactions in 2021.

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