H1 2014 Financial Results


Rebound in operating margin
Successful issuance of convertible bonds


The CS Board Meeting, held on August 29, 2014 and chaired by Mr. Yazid Sabeg, approved the Company Financial Statements for the first semester of 2014.

First-half results 2014 1

€M

H1 2013

H2 2013

H1 2014

Order intake

71.3

73.9

54.2

Revenues

84.2

77.8

82.4

Operating margin
% of revenues

4.0

4.7%

2.0

2.6%

3.6

4.4%

Operating income

2.2

-1.7

2.8

Pre-tax income

1.4

0.9

1.5

Net income

0.2

-0.1

0.4

1 The accounts have been submitted to a limited review by the auditors.


In H1 2014, the Group recorded a slight revenue decrease of 2.1% compared to H1 2013 enabling the return to growth expected in H2 2014.
 
As of June 30, 2014, CS revenues rose sharply on international markets (18.8% versus H1 2013) especially in the field of embedded systems in North America and in space systems in Germany and Italy.
 
The operating margin rises to € 3.6 million, i.e 4.4% of revenues compared to 2.6% in the previous six months and 4.7% in H1 20013. Operating income improved to € 2.8 million, i.e 3.4% of turnover
(-2.2% in H2 2013 and 2.6% in H1 2013).
 
Net income was positive at € 0.4 million versus € -0.1 million the previous semester and € 0.2 million at end-June 2013.
 
As of June 30, 2014, net cash amounted to € 3.1 million (€ 4.4 million at end-December 2013). The total debt (including € 4.6 million of deconsolidated factoring) amount to € 28.4 million (including
€ 22.8 million secured by Government Tax credits (CIR and CICE) which are recognized as financial assets for an amount of € 33.8 million).
 
As of June 30, 2014, the Group’s equity capital is stated at € 30.0 million (€ 30.5 million at end-December 2013).
                                                                          
Headcount
As of June 30, 2014, headcount is at 1,791 employees compared to 1,733 employees as of December 31, 2013 and 1,672 employees as of June 30, 2013; staff growth is essentially coming from non-domestic market. The group hired 144 new employees during first half of 2014.
 
Performance by operating sector

Defense, Space & Security

€M

H1 2013

H2 2013

H1 2014

Order intake

27.9

34.8

22.1

Revenues

44.1

40.4

42.6

Operating margin
% of revenues

2.9

6.6%

1.5

3.7%

1.9

4.5%


Over this semester, activities in the field of Defense and Homeland Security were stabilized compared to previous semester; pre-sales and R&D investment, especially in cybersecurity, should lead to growth. As of June 30, 2014, the order book of these activities remains high, at over 22 months of sales.
In the space sector, activities remained well oriented thanks to momentum in the European space applications.

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Aeronautics, Energy & Industry

€M

H1 2013

H2 2013

H1 2014

Order intake

35.7

29.0

27.9

Revenues

32.1

30.0

33.0

Operating margin

% of revenues

1.1

3.5%

0.8

2.7%

2.1

6.4%


In the Aeronautics sector, CS posted further growth in North America where it has an established position with Pratt & Whitney. The group was confirmed by Airbus Group in their panel of Preferred Suppliers for engineering and embedded software, in partnership with Sopra. 
In Aeronautics and Energy sectors, CS is leveraging its technological solutions in the field of Product LifeCycle Management, High performance Computing & simulation and real time critical software to expand its customer portfolio.

Products (Diginext) 

En M€

H1 2013

H2 2013

H1 2014

Order intake

9.2

10.6

4.8

Revenues

8.4

8.3

7.7

Operating margin
% of revenues

0.4

4.8%

-0.2

-2.4%

0.5

6.5%


After having registered a strong growth of its activity in 2013, order book and revenue have slowed down over this semester ; meanwhile its operating margin  remains satisfactory. Diginext opens new opportunities through the development of innovative products in the field of training systems and maritime surveillance.
 
 
Perspectives
 
The group recall having successfully completed, at July end 2014, the issuance of convertible bonds for an amount of € 12 million, subscribed by Sopra at 66.9% in accordance with the agreement concluded in June as part of an industrial and commercial partnership.
 
CS is pursuing its transformation while promoting its Technological offering and innovative products and deploying its “Performance 2016” plan to accelerate its growth and continue to improve its profitability.
 
 
Read the detailed H1 2014 ConsolidatedFinancial Statements and the presentation on the website of the company: www.c-s.fr (on the “Investors” tab).
 
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 contact
Barbara GOARANT
+33 (0)1 41 28 46 94
Investors contact
Frédéric DUMINIL
+33 (0)1 41 28 44 44