15.02.2011: 2010 revenue



During Q4 2010, CS Group revenue totaled €54.6 million, up 10.2% compared to Q4 2009. Second-half 2010 revenue went back to growth with €98.2 million versus €95.0 million in H1 2010 and €97.2 million in H2 2009. 

Over the full year 2010, revenue amounted €193.2 million, down 6% compared to 2009. 

Rebound in order intake in Q4 2010 (€82.6 million, compared to €27.9 million in Q3 2010) led to €195.2 million of order intake for 2010, with a book-to-bill ratio above 1. As of December 31, 2010, backlog represented 16.2 months of revenue.

Chiffres d'affaires en M€

 

In € million1

H2 2009

H2 2010

H2 10 / H2 09

2009

2010

2010 / 2009

Defense, Space
& Security

43.3

43.5

+0.5%

92.9

85.2

-8.3%

Aeronautics, Energy
& Industry

33.6

33.6

0

67.7

67.8

+0.1%

Transportation

13.6

15.1

+10.7%

31.9

29.1

-8.9%

Products

6.7

6.6

-1.5%

12.0

12.3

+2.4%

Eliminations
& others

-

-0.6

NA

1.1

-1.2

NA

CS total

97.2

98.2

+1.0%

205.6

193.2

-6.0%

In which France

71.0

75.9

+6.9%

150.1

144.2

-3.9%

In which international

26.2

22.3

-14.9%

55.5

49.0

-11.7%

1 Unaudited figures.
* 2009 figures restated of the transfer of the Department of Virtual Reality from Aeronautics,
Energy & Industry Activity to Products Activity since January 1, 2010.


Defense, Space & Security: rebound
With €43.5 million of revenue in H2 2010, this activity returns to a slight organic growth, after €41.7 million in H1 2010 and €43.3 million in H2 2009, especially through the deployment of its French air defense programs (CLA and SRSA) and ESA projects ramp-up.
Order intake reached €44.8 million during the quarter; €78.9 million for the whole year 2010, leading to a book-to-bill ratio of 0.9. The group focused on segments where it has strong competitive advantages. CS has become the preferred industrial partner of French MOSS, alongside Thales and Cassidian, confirming its involvement in the French air operations command and control system program (SCCOA). In the information systems security sector, CS positions itself as a trusted partner to protect identities, transactions and exchanges, and won the “professional ID card” project for the French Ministry of the Interior (200,000 employees).
In the space sector, CS is developing together with CNES the ISIS mock-up (generic ground segment), leveraging on its innovative technology solutions (Orekit, Vasco and Orfeo Tool Box) and won the first studies enabling it to position itself in 2011 on future Optical Space Component (CSO) and GEODE 4D (defense geography) programs. 

Aeronautics, Energy & Industry: stable activity
This activity has maintained its market position despite stiff competition. With embedded systems, the group has expanded its comprehensive offering, from avionics engineering to real time embedded software certification (DO 178-B), and broadened its expertise to test bench redesign and management. In 2010 CS Canada registered considerable growth, penetrating the US market for the first time through its collaboration with Pratt & Whitney US. In Europe, CS has again been listed in partnership as one of EADS preferred supplier for engineering services (E2S) as well as applications project services (dedicated to technical information systems) and registered a good trend in Romania, nearshore center of the activity.
Moreover, CS confirmed its place as a player involved in the French nuclear industry by strengthening its positions at CEA and EDF, especially with the implementation of the Industrial Information System controlling the Flamanville EPR. 

Transportation: confirmed return to growth
The activity rebound in Q4 helped revenue growth in H2 2010 (+10.7% compared to H2 2009). Over the year, this activity recorded €34.7 million in new order intake (book-to-bill ratio of 1.2), thanks to the signing of the Portmann Bridge free-flow project in Canada and the indirect business line sales, especially in Greece.
In parallel, CS continued its technological investments on its Toll E2E back-office software but also in free-flow gantries and conventional toll collection systems. These investments now offer a full range at the highest level of competitiveness. 

Products: very good level of order intake
Diginext has maintained its international growth (40% of its business): it is now renowned as a worldwide key player in tactical data link design and implementation and navigation system design. In this area, Diginext signed in Q4, two contracts for the supply of MilGPS (first European military GPS receiver dedicated to naval applications) and long-range Loran C receivers intended to equip the ballistic missile nuclear submarines of the Strategic Oceanic Force.

General description of the financial position and results

The total number of employees as of December 31, 2010 was 2,090 versus 2,096 as of December 2009. The average occupation rate for billable employees was 81.6% (81.1% in 2009).

As of December 31, 2010, cash net of debts (medium-term loan of €10.4 million) was €28.4 million, versus €32.7 million as of December 31, 2009. 

CS confirms its guidance of reducing operational losses in H2 2010 versus H1 2010. 

In addition, the corporate management will present to the social partners a restructuring plan project in order to targeting a 4 points improvement of its operating profitability through cuts in G&A expenses, the adjustment of non billable staff and staff of Defense, Space & Security Activity (Total: around 100 people). 

Further to H1 2010 press release of last August 31st, the group will review with its financial partners measures to strengthen its financial structure within the aim of accompanying the group's recovery, notably taking into account the likely breach of a covenant (2) related to its medium-term loan which should be acknowledged when 2010 consolidated financial statements are issued. 


(2) gross financial debt / (operating margin + amortizations & provisions with no impact on cash flow); this covenant could trigger an early refund of this loan.


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Barbara GOARANT
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Investor contact
Hugues ROUGIER
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