2015 Half Year Results


Sharp upturn in orders
Increased revenue and operating margin


The CS Board, which met on 4 September 2015 under the chairmanship of Mr Yazid Sabeg. approved the half-year consolidated accounts for 2015.

2015 Half Year Results

 The group has posted a slight upturn in revenues for H1 (up 0.8% on H1 2014). Revenue from international business is up 11%, in particular thanks to embedded systems in North America.
 
The group’s operating margin stands at €3.7M, i.e 4.5% of revenue compared to 4.2% in H1 2014. To ensure improved profitability, the Group is pushing forward with the optimization and savings measures undertaken as part of its Performance plan. After “other operating revenue and expenses” have been taken into account, operating profit stands at €1.7 M, which represents 2% of revenue (€2.7 M in H1 2014).
 
The financial result stood at €-0.2M compared to €-1.3M in H1 2014; the net profit (group share) stood at €0.4 M compared to €0.3 M on 30 June 2014.
As of end June 2015. overall debt (after factoring of €4.7M)  stood at €37.4M (compared to €40.8M on 30 June 2014). This should be compared with CIR and CICE tax credits of €35.0M recorded on the assets side. Net cash stood at €5.2M compared to €5.9M at end December 2014 and €3.1M at end June 2014.
 
Payroll
As of 30 June 2015 the group employed 1,807 people compared to 1,796 on 31 December 2014 and 1,791 on 30 June 2014; this growth has taken place in the group’s international activities (23% increase in staffing levels). In all, the group recruited 113 new employees in H1 2015.
 
Performance per operating sector

Defense, Space & Security

2015 Half Year Results

In early 2015 the French Defense Ministry’s approval of the multi-year support contract for three major air defense systems (a strategic contract worth €276M + tax over 14 years – firm tranche for €43M) strengthens the group’s visibility in this area. Book-to-bill stood at 154% and there are over 25 months’ worth of orders in the defense sector. In the space sector, the group’s active contribution to the Copernicus earth surveillance program has allowed us to post growth in Europe, especially in Italy.
After a slight downturn in H2 2014, operating profit from this sector stood at over 4%.
 
Aeronautics, Energy & Industry

2015 Half Year Results

Growth in North America has been strong in the aeronautics sector, both in terms of orders and revenue; a subsidiary has been opened in the US to support this growth. In France, the context is more tense, due in particular to continued cuts to engineering services at Airbus.
In this sector and the energy sector, CS is carrying out determined development initiatives and capitalizing on its technological offerings in the PLM, simulation, and mission-critical real-time software with a view to extending its client base.
During H1, the Group maintained profitability at over 6% and intensified initiatives to ensure optimized resource and skills management, both regionally and internationally.
 
Products (Diginext)

2015 Half Year Results

After posting very strong performance in 2014. Diginext revenue grew more than 14% (compared to H1 2014) and profitability was 1.5 points higher than H1 2014. The maturity of its products in the training and tactical data links sectors, along with new development prospects expected from maritime surveillance radar, should allow Diginext to continue this growth trend.
 
Prospects
 CS continues with its transformation, laying emphasis on its technological product offerings  and innovative products and implementing the Performance action plan to continue growth and ensure profitability.
 
For the complete half-year consolidated accounts for 2015 and the presentation that will be made to analysts on Monday 7 September 2015, please refer to our website:  www.c-s.fr (“investors” section).
 
CS is a major actor in the design, integration and operation of mission critical systems. CS is listed on the Euronext Paris stock markets - Compartment C (Shares: Euroclear 7896 / ISIN FR 0007317813). For more information, please go to: www.c-s.fr
 
Press relations
Barbara GOARANT
Tel.: +33 (0)1 41 28 46 94
Investors contact
Frédéric DUMINIL
Tel.: +33 (0)1 41 28 44 44