2017 annual results


Strong growth in orders, operational profit and net profit
Implementation of Ambition 2021 Plan: target revenues of €300M and operational margin of 8% within 3 years


The CS Board, which met on 30 March 2018 under the chairmanship of Mr Yazid Sabeg. approved the consolidated accounts for 2017.
 
2017 annual results

The group has recorded revenues of €178.1M for 2017, which represents organic growth of 1% compared to the previous year. Revenue from international clients has grown by 7.2% and represents 29% of the group's business. Orders for 2017 stand at €192.6M, up 10% on 2016, and the backlog has progressed to 13.6 months of sales.

The operating margin for the fiscal year stands at €10.9M (up 2 % on 2016), and remains stable at 6.1% of revenue. The group's operating profit has doubled compared to 2016, at €8.3 M (4.7% of 2017 revenue).

The financial result stands at €-3,3M compared to €-2,9M in 2016. Net profit is positive, at €2.7 M up from €-1.3 M in 2016 (1.5% of revenue).

As of end December 2017, shareholders' equity was up 32% to €42.6M compared to €32.8M at end December 2016.
As of 31 December 2017, overall debt stood at €42.1M. After taking into account the deconsolidating factor and deducting receivables from CIR and CICE recognized as assets, economic debt* is almost stable at €0.9M.
Net cash, which stabilized in the second quarter, stood at €11.6M as of 31 December 2017 (€10.9M on 30 June 2017 and €18.9M on 31 December 2016).
 
*As defined in the 2017 reference document – chapter 20 (paragraph on alternative performance indicators)

Performance per operating sector

Orders in the Defense Space & Security sectors have risen to €102.9M (up 11% on 2016), bringing the book-to-bill ratio to 105%.
 
The year has seen a number of successes in the Defense sector: in particular CS won the first significant tender for anti-drone system for the French army.
 
In the air traffic control sector, CS won the CATIA tender for renovating large-approach radiocommunication systems. In partnership with SAAB, CS won the SYSAT tender for renovating the ATM system for 3 control centers in the Paris region.
 
In the space sector, CS continues to make progress in Europe in the field of Earth observation and navigation with the implementation of RUS (Research & User Support) for access to Copernicus data and has won contracts for 2 major subsystems for the EGNOS V3 project (increasing the accuracy of GPS and Galiléo signals).
 
In the field of cybersecurity, CS continues its growth with Operators of Vital Importance, in particular via its Consultancy and Audit services as a provider certified by the Agence Nationale de la Sécurité des Systèmes d’Information (ANSSI).
 
Revenues from this business have grown 1.5% and the operating margin is stable at 7.2%.

Our teams have been highly involved in developing the group's skills in the fields of secure safety systems and digital continuity, in particular to respond to the new challenges of the factory of the future, industrial and embedded cybersecurity, Industrial IoT and predictive maintenance.
 
In 2017, our business in France has experienced a turnaround. After being penalized for several quarters by the falloff in engineering services for Airbus, there has been an upturn in sales and revenue compared to 2016.
 
Business has grown in the field of Aeronautics Information Systems (Data Analytics, aircraft documentation, PLM) and in future avionics.
 
In the Energy sector, in addition to our existing presence in the field of digital simulation, CS is leveraging its expertise in secure supervision of industrial systems and perimetric surveillance.
 
In North America, the Group has intensified its diversification initiatives to broaden its client base, in light of the deceleration of the NGPF (Next Generation Product Family) program at Pratt & Whitney.
 
The operating margin has increased slightly (+0.3 points)

Diginext orders recorded strong growth in 2017 (+40%). Sales have been buoyant in the Defense sector, especially in the field of armed forces training for the French Army. After winning contracts for the L16 army training system and the urban zone training system, Diginext won the contract for the SPARTE system, which is designed to optimize operational preparedness and operational support in the framework of the SCORPION program.

In addition, Diginext continues to develop in the field of Tactical Data Links with new satellite interaction capacities for the French AWACS systems.

Revenue has grown by 6% compared to 2016, with 19% growth in international sales.
With an upturn in Q2 2017, the operating margin stands at 8.3%.
 

Prospects
CS announces the implementation of its Ambition 2021 Plan whose aim is to achieve revenues of 300 M€ within 3 years and an operating margin of 8%, through organic development and targeted external growth. CS is focusing as a priority on external growth initiatives in Europe in growth sectors (defense & public security, space and cybersecurity).

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). 
 
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