Thales (HO) Investor Day 2024 summary

Strategic transformation and portfolio evolution

• Portfolio changes since 2018 strengthened Defence and Aerospace and scaled Cyber & Digital, through acquisitions including Gemalto, Imperva, Tesserent and Cobham AeroComms, and transport divestments.

• Cyber & Digital is a €4Bn core sector; cybersecurity revenues exceeded €2Bn in 2024 and quadrupled since 2016.

Strategic priorities and market positioning

• Priorities include premium offerings, technology differentiation, talent attraction and ESG leadership; 80–90% of revenue is exposed to fast-growing markets.

• R&D is close to €4Bn, with €4.1Bn reported and €5Bn planned by 2028; focus areas include AI, quantum, 6G and trustworthy digital solutions.

• New 2030 ESG objectives are planned for 2025; joined the CAC 40 ESG Index in September 2024.

Financial targets and performance

• 2024–28 targets: 5–7% organic sales CAGR, revenue above €25Bn and 13–14% EBIT margin by 2028.

• Targets include 95–105% average FOCF conversion and 50–60% adjusted EPS growth over 2024–28; assumptions include no major macroeconomic or geopolitical changes.

• Since 2018, backlog rose 40% to €45.3Bn, EBIT margin increased 100 bps to 11.6%, and free operating cash flow rose 150%.