Good morning, ladies and gentlemen, and thank you for standing by. Welcome to today's Thales 2020 full-year results conference call. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, you will need to press star one on your telephone and wait for your name to be announced. I must advise you that this conference is being recorded today. I would now like to hand the conference over to Monsieur Bertrand Delcaire, VP, Head of Investor Relations. Please go ahead, sir. Hello. Good morning, welcome, and thank you for joining us for the presentation of Thales 2020 full-year results. I am Bertrand Delcaire, the Head of Investor Relations. With me today are Patrice Caine, Chairman and CEO, and Pascal Bouchiat, CFO of Thales. As usual, the presentation will be in English and followed by a Q&A session. It is webcast live on our website at thalesgroup.com, where the slides, press release, and consolidated financial statements are also available for download. A replay of the call will be available in an hour. With that, I would like to turn over the call to Patrice Caine. Good morning, everyone. Let's start with slide two on the highlights of 2020. As you will see in a minute, our results were, of course, severely impacted by the COVID-19 crisis. However, thanks to the mobilization of the teams, we delivered a strong performance on many KPIs. First, from a commercial point of view, we booked a record volume of orders with major successes above expectations. Third, very early in the crisis, we launched a comprehensive crisis adaptation plan targeting EUR 750 million of P&L savings and at least EUR 50 million of CapEx reduction. The teams achieved significantly above these two targets, EUR 100 million above for P&L savings and EUR 75 million above for CapEx, representing a 25% cut. On these short-term actions, we also worked hard on our Ambition 10 strategic priorities. As I will explain in the second part of the presentation, we made substantial progress on the capture of Gemalto synergies, on the transformation of transport, and on the repositioning of our space business. First, let me comment on a few figures, and now on slide three. At EUR 18.5 billion, order intake was down 6% on an organic basis. It was actually up 4% in the second half, a very strong performance in Defense and Security offsetting the decline in the other segments, and in particular, in Civil Aeronautics. Therefore, book-to-bill reached 1.09, significantly above 1. The COVID-19 crisis impact on sales was material. They dropped by 10.4% on an organic basis. The impact of the crisis was, however, much less severe in H2 than in Q2, when we faced major operational disruptions across most of our businesses. This unprecedented situation drove a 33% drop in EBIT at EUR 1.352 billion. It is close to the midpoint of our July guidance. Pascal will show in a few minutes how our global adaptation plan allowed us to offset a few headwinds in the second half. Obviously, with the MKS 180 contract for EUR 1.5 billion helping in Defense and Security. As expected, Q4 was a really strong quarter with 13 large orders, including three contracts with institutional space customers. Firstly, Space Rider, which is the future European unmanned spaceplane. Second, an additional work on the ExoMars mission. Thirdly, the ground operations of the existing Galileo constellations. One large order in transport with the development of the first digital signaling node for the Deutsche Bahn. Nine large orders in Defense and Security, including on top of the MKS 180 contract already mentioned before, several orders related to French military communication network and also three contracts with the U.K. MoD. Orders with a unit value of less than EUR 100 million were down by 8% compared to 2019. The bulk of the decline came from the sharp decrease in avionics and IFE order intake of around 40%. Turning briefly to the geographical perspective, the dynamics remain strong in mature markets with an organic increase of 3% thanks to no less than 12 large defense orders in five countries. Overall, a very solid performance 2020 in regard to order intake, considering all the disruptions induced by the COVID-19 crisis. Moving on to slide five, looking at sales. The chart on the right shows the different drivers behind reported and organic growth. The currency effect was a bit more material than usual, a - 1.3% of sales over the full-year. It was concentrated in H2, where it represented more than 2% of sales. It was particularly strong at DIS, which was impacted by the devaluations of several emerging market currencies. The significant scope effect, EUR 698 million, was of course primarily due to Gemalto Q1 2019 sales. Turning to organic growth, the breakdown per quarter shows a major swing. After the 20% decline we faced in Q2, sales achieved a progressive recovery, - 7.8% in H2, driven by two main factors. First, as expected, we were still impacted by the major drop of demand in Civil Aeronautics, still in the range of - 50% in H2, driving a decline by more than 35% for our avionics and IFE sales. Second, delayed tenders in other businesses, in particular transport and DIS, weighed on H2 growth. Moving on now to slide six, looking at the adjusted P&L from sales to EBIT. To facilitate the comparisons, we've decided to present here our adjusted P&L, including Gemalto in Q1 2019. At constant scope, EBIT was down by 33% year-on-year and down by 34.5% organically, with the margin moving down from 10.6% in 2019 to 8% in 2020. We'll have a look at the drivers of this performance in a minute, but looking at the key items of the P&L, let me point out that, of course, you can see the impact of the crisis on our gross margin, down by 180 basis points from 27.6% - 25.8%. However, you can also see that our indirect costs have decreased by 10.4%, which is fully in line with the decrease in sales. As planned, we worked hard to limit as much as possible all discretionary expenses and also decided to carefully reduce R&D on selected projects. As expected, our restructuring costs were up from EUR 104 million - EUR 169 million, notably due to the restructuring plan ongoing in our Civil Aero business. Let me point out here that we expect restructuring costs to remain elevated in 2021, as well with around EUR 150 million, implying overall limited total COVID-19-related restructuring costs, two years with EUR 50 million or so above normalized levels. Finally, Naval Group delivered a much lower contribution to our EBIT, EUR 22 million versus EUR 65 million in 2019. This decline was due to the COVID-19 disruptions that it faced in Q2 2020. Encouragingly, its contribution to EBIT was stable in H2 2020 compared to H2 2019. To further explain what happened during the year, we decided to keep the presentations of the EBIT bridge used in H1 and now on slide seven. In appendix slide 37, you can find the traditional EBIT bridge presentations. On this slide, starting from the 2019 EBIT, including Gemalto's Q1, overall EUR 2 billion and EUR 80 million. We estimate the decline in gross margin before cost-saving actions at approximately EUR 1 billion and EUR 360 million. To the combination of the 11% decline in sales and the drop in gross margin due to the fixed nature of direct costs outside procurement, around 5 points. On the positive side, we estimate that our cost-saving actions have delivered EUR 100 million more than the EUR 750 million target we announced at H1, reaching a total of EUR 850 million. A little more than half of these savings came through our actions to reduce direct costs, and the rest through our actions to cut indirect costs in proportion of our sales decrease. You can see on the slide the details of the strong performance on indirect costs, -12% on R&D and sales marketing, and -9% in G&A. In other words, our cost-saving actions represented about 5% of sales, a strong performance for a company that only buys from the outside around 50% of its cost base. This outperformance and cost savings allowed us to offset the higher-than-planned headwind on the restructuring costs. If you remember, back in July, we built our guidance on EUR 130 million of restructuring expenses. Finally, the equity affiliate headwind was in line with our July expectations. It was not just due to Naval Group, as mentioned previously, but also to the material negative impact of the crisis on our Civil Aero exposed JVs. I'm thinking of Diehl Aerospace in Germany, but also ACSS in the U.S. Moving on to slide eight, looking now at our aerospace segments in more details. Starting with orders. At EUR 3.8 billion, the order intake was down by 20% organically compared to 2019. This change reflects the severe drops in order intake in Civil Aerospace since Q2 2020, combined with the decrease in space orders by 5% versus 2019. We recorded several major institutional wins during 2020, but as you know, many of these large contracts were by tranches. At this stage, we have only booked small orders for studies and design. Overall, this momentum is clearly positive and paving the way to return to growth in the coming years, and Patrice will elaborate further on the topic in a few moments. At EUR 4.2 billion, sales were down 24% organically, mostly due to the sanitary crisis impacting both our original equipments and aftermarket Civil Aero businesses, and also generating some delays in terms of contract signatures in the commercial space business. EBIT is - EUR 76 million, despite a positive H2 EBIT at segment level, which was driven by the recovery of the space business. On top of the obvious impact on gross margin from the severe drop in sales, let me point out that our loss in aeronautics is due to the lower JV contributions and also to the quite significant restructuring costs we booked last year. As you know, Thales will include restructuring costs within our EBIT, which is not always the case of other listed companies. Moving on to slide nine with transport. Order intake first. The 4% organic decrease came from two different dynamics during the year. A solid year for the mainland signaling business, including the Stuttgart digital node contract, which we booked in Q4. A softer year in urban rail signaling business. Mostly due to the financial pressure on subway operators, which, for example, led some of them to delay the signing of additional small contracts of an existing project. Sales were organically down by almost 14%, resulting from the fading down of major contracts. That bit was anticipated and flagged, but also resulting from COVID-19-related disruption, such as travel limitations and the delayed contract awards, as mentioned before. Profitability, on the contrary, was clearly up at EUR 86 million, with EBIT margin progressing from 2.9% - 5.3%, despite the COVID-19 disruptions I just mentioned. This is really a strong achievement for this segment, demonstrating ongoing solid progress in our transformation plan and paving the way to our 8% EBIT margin target. Moving to slide 10, Defense and Security. Order intake amounted to EUR 9.9 billion, up by 1% organically, benefiting again from robust orders in many areas. The book-to-bill was strong at 1.23, and the order book for this segment reached a new record of EUR 23.2 billion. Again, some of these orders, like the MKS 180 or maintenance contracts, these covers up to 10 years. They will not necessarily provide a major boost in the short term, but support long-term goals. Sales amounted to EUR 8.1 billion, down 1.8% organically. The strong H2 recovery, plus 3.2% organic versus quite high comps in 2019, this offset the majority of the Q2 operation disruptions that we faced. Many business units contributed to this momentum. I could mention system and services for ships, military radio communication, secure networks, surface radars, protected vehicles, etc. As expected, EBIT margin remained strong at 12.9%, despite the slight sales decrease and the wide disruption due to the sanitary crisis. This performance is to be compared to the 14% EBIT margin in 2019, which was higher boosted by a + EUR 40 million one-off. Again this year, the segment benefited from solid project execution, strong cost control, and also limited restructuring costs. Last segment, slide 11, is the DIS, Digital Identity and Security. Here as well, to facilitate comparisons, we are showing 2019, including Gemalto's first quarter. In spite of the context, the performance of this segment was really strong, demonstrating the quality of the business and the success of the integration. Sales amounted to EUR 3 billion, down 5.9% organically. The decline resulted from two main factors. The decrease in smart card sales, which were forecast in 2020 because of the high basis of comparison in H2 2019. The impact of the crisis on some of its businesses, like automotive IoT modules, which were affected mostly during Q2 2020, and also passports within biometrics, which have been logically impacted by travel restrictions since Q2 2020. Now, at EUR 324 million, EBIT was up 8.4% organically, with an EBIT margin progressing from 8.6%- 10.8%, thanks to various factors. Cost synergies ahead of plan for around EUR 20 million, good cost control, and also positive product mix effects, and especially more smart cards than expected. Turning now to slide 12, a few comments on items below the EBIT. The cost of net financial debts and the other financial results was up by EUR 39 million. This is mostly due to lower return cash deposits, some interest costs linked to the funding of the Gemalto acquisition, and also to higher currency losses. Our effective tax rate is decreasing from 26.3% - 23.1%, mostly thanks to the lower tax rate in France. Minority interests were down compared to last year on the back of the impact of the crisis on the group results, leading to an adjusted net income group share of EUR 937 million and an adjusted EPS of EUR 4.40, both down by 33%. Moving now to slide number 13. Let's have a look at the conversions of EBIT into free operating cash flow. Usual recurring items moved into different directions versus 2019. Financial interests increasing from EUR 37 million in 2019 to EUR 52 million in 2020, mostly due to the cost of debts over full 12 months. Income tax paid down from EUR 154 million in 2019 to EUR 109 million in 2020. Equity affiliates, which corresponds to the gaps between our share in their net income and the actual dividends we receive from them, balancing themselves in 2020 to a nil impact versus a - EUR 16 million in 2019. We strongly outperformed our global adaptations plan, in particular on the CapEx side. At EUR 287 million, our CapEx are EUR 125 million lower than in 2019 at constant scope. This provided a EUR 109 million tailwind in the EBIT to cash conversion. Our very strong focus on working capital in the crisis paid off as well. The change in working capital only represented a EUR 420 million headwind last year. It included trading and negative factors that I will describe on the next slide. Other cash items not included in the EBITs, such as restructuring and pensions, amounting to EUR 173 million. The improvements against 2019 is mostly due to difference between restructuring expenses and cash outs, and also, to some Gemalto-related items. Now on slide 14, discussing our strong free cash flow performance. As you can see, we significantly over-delivered on our free operating cash flow scenario. This was driven by three main factors. First, our cash focus initiatives that we launched in 2019, combined with our crisis adaptations plan. They delivered over EUR 250 million above targets. You saw how we were EUR 75 million ahead just on CapEx cuts. Second, we benefited from the support of several of our customers who decided to pay us earlier than usual for a total of approximately EUR 150 million. Third, reversal of down payments on large project was lower than expected by approximately EUR 150 million. Let me stress that we estimate that there are roughly EUR 500 million left of exceptional down payments and cut-off effect on our balance sheets at the end of December 2020. They should unwind over the next two to three years. This excellent 2020 cash performance, combined with the additional benefit to expect from a cash focus initiative, enable us to upgrade our midterms guidance on cash conversions. Over the 2019-2023 period, we now expect cash conversions to reach 95% on a reported basis. In other words, we expect to fully offset the headwinds from the unwinding of down payments and cut-off effects. Moving on to slide 15, with a quick look at the evolutions of our net debt position. I guess this slide is quite self-explanatory. On top of the free operating cash flow, we see deficit payment and nuclear pensions consistent with previous years. Dividends paid only amounted to EUR 85 million, corresponding to the interim dividend paid in December 2020. New leases under IFRS 16 were also lower than 2019, hence we significantly deleveraged the balance sheet. With our net debt dropping from EUR 3.3 billion down to EUR 2.5 billion. To finish, a word on the dividend on slide 16. This year, the board has decided return to the pre-COVID-19 distribution ratio. The payout ratio is back at 40%, which represents EUR 1.76 dividend per share, taking into account, of course, the impact of the crisis on our adjusted DPS. That's the end of this financial review. I'm now turning over the call to Patrice, who is going to address our current strategy and guidance. Thank you, Pascal. I'm now on slide 18, turning to our strategy and outlook. This morning, I thought it would be useful to take a step back from the short-term issues and update you on some of the key value creation drivers we are going to leverage over the medium term in the post-crisis period. Let's start with our largest segment, Defense and Security. Over the past year, investors have often asked us whether the defense budget increases we were seeing were sustainable. At least in our key markets, the latest government statements are clearly positive. The French government has fully confirmed the military planning law that runs until 2023 and plans for further growth in the coming three years. This year, the budget will grow by 4.5%, and this figure actually includes a 7% growth for the equipment budget. Australia, our second-largest market, confirmed its plan to increase defense spending by 7% per year until 2026. Last November, the U.K. surprised positively with the announcement of a four-year, GBP 16 billion boost to the defense budget. The simple reality is that geopolitical tensions remain elevated and that they come with a broader variety of threats. On top of the positive outlook for defense budgets, the chart on the right illustrates a key differentiating aspect of our portfolio. Our solutions, whether we talk of sensors, of secured networks, or of command and control solutions, are what we call force multipliers. As armed forces want to be able to sense better their environment or exchange more data to coordinate better, the value of intelligent systems keeps increasing within platforms. These dynamics apply in all milieu and open strong growth prospects for our businesses. Finally, let me remind you how we have managed, over the past few years, to achieve best-in-class margins in this segment. Looking at the 10 largest defense businesses in Europe, the U.S., and the U.K., we are now the one with the second-highest EBIT margin and the only non-U.S. company among the top five. This is a great demonstration of how our investments in differentiated technologies and our strict focus on cost and execution are delivering value. I am now on slide 19, addressing the long-term perspective for our space business. Here as well, our sustained R&D strategy is paying off. Over the past nine months, Thales Alenia Space, our joint venture with Leonardo, has recorded remarkable wins across a broad spectrum of institutional markets. Back in July, I talked about Copernicus, Europe's flagship Earth observation program, and we will play a key role in five out of the six upcoming missions, enabling Europe to track global CO2 emissions, monitor sea surface temperature, collect essential information on forest and land cover, and much more. More recently, we have recorded several competitive wins in space exploration, which will, for example, take us to the Moon as part of the NASA Artemis program or to Mars. Just a few weeks ago, we had a major success on Galileo. The European Commission awarded us the construction of six satellites for the second generation of this crucial navigation infrastructure. Let me point out that each of these projects is worth several hundred million euros. That's in line with standard ESA contractual rules. So far, we have often only booked their first transfers. For example, on Copernicus, we have only booked EUR 200 million of orders last year, while the total value of the acquisition is above EUR 1.5 billion. We also recorded major wins on the telecom side. On the GEO side, the market continued to improve in 2020, but the majority of this improvement came from the so-called C-Band Repurposing Project. Globally, this project triggered 13 orders for conventional satellites, and we were the only non-U.S. manufacturer to win some of them. More encouragingly, over the past few weeks, we've booked the first order for our new generation flexible GEO satellite Space Inspire by an undisclosed customer. In addition, our Indonesian customer, PSN, finalized the financing of its VHTS satellite named SATRIA. Of course, three weeks ago, after a thorough evaluation, Telesat announced that it had selected us to be the prime contractor on their $5 billion telecom constellation. This major success incorporates several key innovations, such as advanced onboard digital processing and optical links. Telesat is making good progress on the funding of its project. A few weeks ago, it announced a CAD 400 million investment from the government of Quebec. These accelerating commercial dynamics are in line with the latest market forecast, which expects significant growth in satellite services over the next 10 years. Now on slide 20 with a strategy update on our avionics and IFE businesses. Well, as Pascal explained earlier, these businesses have been massively impacted by the crisis. With civil sales dropping in the 50% range over the last three quarters of 2020, they have lost around 1/3 of their sales last year. By April 2020, we launched a comprehensive action plan to address this crisis, which will last for several years. This plan builds on three major levels. Number one, we are implementing the necessary structural cost adaptation while making sure that we retain the right competencies and capabilities to support our customers when demand recovers. On the right, you see the cost targets we have set for 2021 versus 2019. Number two, we are refocusing our R&D efforts to seize opportunities, notably to develop a greener and smarter aviation. Already in 2021, around 1/3 of sales under R&D will go to concepts that enable a greener aviation. Third, we are accelerating our performance initiatives in two areas. As of 1st of July, we've set up a dedicated global service business line, and this will allow us to consolidate some sites, improve customer service, and expand our activities in this higher margin market. In addition, we will further deploy lean manufacturing best practices, in particular in the area of inventory management. Moving to market dynamics, there is no doubt that air transport demand will return and continue to grow faster than GDP for many years, if not decades. As you can see on the chart from IATA on the right, the recovery will take at least three years, and the uncertainty on its pace is still very high. Considering the recent extensions of travel restrictions across the world, our base scenario for 2021 will not surprise you. After a strong decline in Q1 2021, comparable to what we saw in Q4 2020, after-market sales should gradually improve from Q2. On the other side, the multi-year downturn on the wide-body markets will naturally weigh on our line fit activities, driving a base scenario of mid-single-digit decline in our overall avionics and IFE sales. Let me now update you on some of the key group-wide strategic initiatives we've been developing as part of Ambition 10. First, our digital strategy, and I am on slide 21. Of course, I won't comment all the examples on this slide, but let me mention two. Just a few weeks ago, after a global competitive tender, NATO selected us to supply its first theater-level defense cloud. This contract not only demonstrates our ability to integrate the best commercial technologies to develop military solutions, it also opens a new market for us. Back at the Capital Markets Day in October 2019, Philippe Vallée talked of this high focus on adapting our data protection offer to enable seamless security across multiple clouds. In December last year, this led us to announce a new partnership with Google Cloud. More broadly, whether you think of Telesat or Galileo in space, or the digital node in Stuttgart for the Deutsche Bahn, or of MKS 180, the frigate program, each of our major recent successes builds on the digital investments we have accelerated over the past five years. Second key priority in continuation of our digital strategy, the capture of synergies with Gemalto. I am now on slide 22. Starting on the left with revenue synergies. They continue to materialize in line with the plan we presented in October 2019. In September, we launched our CipherTrust Data Security Platform. This platform integrates the best technologies from Thales and Gemalto into a compelling cybersecurity offer, which helps organizations discover, protect, and control their sensitive data everywhere. This new product received strong recognitions from industry analysts. Another important lever we are already using is our global sales network. For example, when selling digital identity or passport solutions. This allowed to book several projects, for example, in Australia and in Africa. Last, we are now starting to insert Gemalto technology into Thales solutions. This is, for example, the case with airport security products, where the integration of DIS contactless technologies allow us to build really attractive solutions. Another set of product opportunities lies with physical and digital access to critical sites. For example, in Mexico, we have already been awarded the design of a new generation security system for a hospital combining Thales security platform with Gemalto biometrics solutions. All together, as you understand, we are making good progress on the capture of these revenue synergies in line with the 2023 targets. Turning to cost synergies, as mentioned by Pascal, the teams managed to achieve a solid acceleration in 2020, with EUR 80 million of EBIT contribution compared to EUR 60 million in the October 2019 plan. We were, in particular, ahead on procurement savings and on data protection and SG&A. It's too early to upgrade the 2022 target for cost synergies, but we are already upgrading the amount we expected for 2021. Third Ambition 10 strategic priority, operational performance. I am on slide 23 now. I've already stressed our progress on the structural cost adaptation in Civil Aero and the solid ramp-up of Gemalto cost synergies. Let me remind you that we are also making good progress on the transformation of our transport business. In spite of COVID-19, margin was already above 5% last year, increasing our confidence in the delivery of the 8%-8.5% medium-term target. Finally, we keep enriching our groupwide operational initiatives. For example, our new procurement organization keeps delivering. Over 30% of our spend is now concentrated with what we call global strategic suppliers. On some of these topics, the crisis actually creates opportunities to accelerate transformations. This is, for example, the case with smart working, which we have now integrated in our real estate plan. That will drive additional savings over the coming few years. Last groupwide topic I wanted to address this morning is sustainability. I am now on slide 24. Sustainability is at the heart of our purpose, building a future we can all trust. It drives our focus in two directions. First, through the products and solutions we are developing, which are almost all aligned with key societal needs. Around 55% of the portfolio address the need to be protected against physical and digital threats. Another 25% helps society to become greener through greener air transport, more efficient rail infrastructures, or observation satellites dedicated to environmental applications and services. The rest typically has major social benefits. This is, for example, the case of telecommunication satellites, such as SATRIA, which will help Indonesia bridge the digital divide. Foundational ID systems, which often get funded by the World Bank, since having a legal entity is essential to have access to government programs or social benefits. For many of these product lines, sustainability-related innovation boosts growth opportunities. For example, as the air transport industry prioritize the reduction of CO2 emissions, it increases market opportunities for our avionics and air traffic management businesses. Another example. When companies become more aware of the importance of data security and privacy, they accelerate their investments in data protection and encryption. If we take a step back, over the past 15 or 20 years, we have continuously strengthened our sustainability commitments, which are now completely embedded in our strategy and incentive schemes. For example, we have defined 2023 targets in terms of diversity, in terms of both direct and indirect CO2 emissions, or in terms of workplace health and safety. These targets are now embedded in the variable compensation plan of 2/3 of our employees. To present our actions on all these fronts and answer questions you may have on our sustainability strategy, we have decided to organize a dedicated event on this topic, involving our various internal experts. We have to finalize its date, but our aim is to hold it in the next few months. Moving now to slide 25, discussing our 2021 outlook. Starting with the business assumptions on the left-hand side of the slide. While our base case assumes that the sanitary and macroeconomic context improves this year, uncertainties remain particularly high, especially with respect to the recovery of air traffic and, to a lower extent, corporate investment decisions. Still, we are confident that almost all our end markets will expand over the full-year. For 2021, I set three short-term strategic priorities. First, we will continue to focus on our growth initiatives, in particular the capture of revenue synergies with DIS, and on reinforcing our digital technology leadership. Second, we'll fully implement the structural cost adaptation plan in our Aero businesses. Third, while we intend to sustain a high level of earned investment, it will be particularly important to increase our selectiveness. Which brings me to our financial objective for 2021, considering the business environment that I've just described, and I am now on slide 26. With respect to order intake and taking into account the already announced contracts, we expect another year of strong commercial performance, driving a book-to-bill ratio above one. Based on March 2021 scope and foreign exchange rates, we expect sales to amount to between EUR 17.1 billion and EUR 17.9 billion, which corresponds to an organic growth between around 2% and 6%. The wider than usual range is of course due to the higher than usual uncertainties at the start of the year. Thanks to the initiatives I've presented earlier, I expect a significant improvement in EBIT margin, reaching between 9.5% and 10%. Well, this concludes our presentation. Many thanks for your attention, and together with Pascal, we are now pleased to take your questions. Thank you, gentlemen. Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the hash key. Once again, please press star one if you wish to ask a question. Your first question comes from the line of George Zhao of Bernstein. Please go ahead, your line is open. Hi. Good morning, everyone. You achieved EUR 100 million of additional savings, but your total year EBIT was pretty much right at the midpoint of the guidance. Were there other costs that were higher than what you had expected? Of the EUR 850 total savings from last year, how are you thinking about how much of that was sustainable structural savings versus non-sustainable temporary savings that will likely come back either this year or over the next few years as the demand recovers? Thanks. Okay. Good morning, I explained in my presentation that this, in particular, additional savings of the EUR 100 million allowed us, in particular, to increase the level of restructuring charges. We mentioned back in July that our view would be to have a level of restructuring charges for 2020 that would be around EUR 130 million. We are ending up at a level which is more in line with EUR 170 million. This is basically what we have done. It's also true that Q4 in our Aero business was a bit weaker than expected in terms of level of demand as compared to what we originally planned in July 2020 for the full-year 2020. Overall, pushing more on the cost saving also allowed us to face this situation with a bit less demand in this Aero business in Q4. If I come back on your second question, which is out of the EUR 850, what is structural and what will reverse? Maybe, I mean, to simplify a bit, I'm going to explain the key components of those EUR 850 million and to discuss what we can expect in 2021. EUR 850 million, mainly three key buckets. The first bucket is any, I would say, discretionary expenses and also travel-related costs, overall representing approximately EUR 300 million. Here it was basically dropping any non-essential cut for the short term. Consultant fees, for instance. Some internal projects, in particular, IS/ IT projects, and of course, quite a significant amount coming from travel costs. Overall, we dropped our travel costs by something around 60% in 2020 as compared to 2019. We believe that tomorrow, post-COVID worlds, Thales will be able to operate with a level of overall travel costs that will be 1/3 below what it was in 2019. This representing probably something like EUR 100 million recurring saving just on this topic. The rest of this first bucket is more of the discretionary expenses, and we will adjust this level based on how we see the market in terms of level of demand. Second bucket of costs is, I would say, one, remunerations, and in particular, drops in variable compensations. Overall, representing a level of savings that was around EUR 250 million. This is more of some kind of one-off, of course, as we expect variable compensations in our company to come back as soon as 2021 on a more normalized level. The third component of those EUR 850 million represents all savings relating to hiring freeze, reductions in terms, reductions in procurement from companies that we hire to help us develop our program. Here, it will be quite simple. We will adjust this level of savings depending on our level of business. Basically, if we see the level of growth returning quickly, of course, those savings will progressively fade away. If we see a situation where the level of demands will be a bit more subdued, this time, of course, we will keep pushing quite strong on this type of aspect. Here, I have not talked about more mid-term initiatives that Patrice has started to comment in his presentation, which come on top of the EUR 850 million, but with more mid-term impact. We are working very hard to keep transforming and generating advancements. We keep working o n our support functions, in particular, in new initiatives on marketing and sales functions. We also keep working quite hard on how to improve the overall footprint of Thales, and in particular, in taking advantage of the development of home working, how can home working help us to reduce the overall footprints in terms of real estate at Thales? Of course, it's not for 2021 in terms of savings. We are here developing projects that will allow us in the midterms to keep reducing our overall cost basis. This is basically what I could share with you, both on those EUR 850 million but also on more structural actions that we are working on. Very helpful. Thank you. Thank you. Your next question comes from the line of Tristan Sanson of Exane BNP Paribas. Please go ahead. Yes, good morning, Patrice, Pascal, Bertrand. Thanks for taking my question. I have three, please. The first one is on the book-to-bill for our trajectory for 2021. You said above 1. We have the lower end of the range, but we have a fairly dense pipeline of large orders. I wonder whether you saw that the strong book-to-bill that we had in 2020 was potentially achievable again in 2021. Especially, do you include that Telesat order being firmed up in the construction of your guidance? That's the first question. The second one, I was keen to get some precision on the free cash flow guidance for 2021. You're going for underlying conversion at 95% and an unwinding of the cutoff effect partly in 2021. Are you comfortable with the level of about EUR 1 billion? What we should understand from that guidance? Does it include new jumbo contracts with attached large down payments? That's the second question. The third one, thanks for the update on the sustainability strategy of Thales and the rendezvous for a later event. At first glance, where do you think growth will come from going forward? Will it be from making the world greener, safer or more inclusive? It's a quite interesting way to look at your business split today. Many thanks. I can take the first one on the book-to-bill, and you take the second part, Pascal. Good morning. Yes, on the book-to-bill above one, for sure I am very confident. When we say so, we deliver, you can be confident as well. I see really a strong momentum in almost every business segment, putting aside the Civil Aero, of course. Despite that, all the pipe is extremely active. We have already announced since January 1st this year, Galileo now is in contract. It is signed now, it's a big contract. As you know, Telesat, despite the fact that they need to close their financing, is an important, I would say, potential opportunity, and by the way, the selection is already very good news. Space Inspire, we have mentioned the first customer for Space Inspire as well. When I look in defense, the number of prospects are also very large. I was in IDEX, the defense show in the UAE last week. Believe me, the Middle East is still a very active area in terms of Defense and Security. Yes, you can be really confident on our ability to achieve this book-to-bill above 1, and it will come from all our businesses, defense, security, ground transportation, space, and DIS as well, of course. Yes. Good morning, Tris. Maybe just to complement Patrice's answers. This book-to-bill above 1, this guidance doesn't include a major order intake that would come from the Telesat project. The reason is quite simple. At this point, even though you are still confident, Telesat is working on the structure of its funding. As the overall Telesat project is a $5 billion project, for Thales, it would be around $3 billion in terms of level of stake. You can imagine that putting together a global funding of a project of this kind, of course, it takes a bit of time. Despite the fact that Telesat is a very experienced satellite operator and has put together quite a solid business plan. It's more about time to put together this type of funding. Here, of course, a bit of uncertainty about the time schedule to complete a financial closing. Now, on free cash, thank you very much for your question because it gives me the opportunity to come back on what we said. First, this is really an upgrade on our guidance, I keep saying that cash flow shouldn't be looked at just on a yearly basis, but we need to look at probably a longer period of time. What we say is that over this 2019-2023 period of time, we do believe that we should be able to deliver a global average conversion ratio of 95%. Despite the fact that we know that in this period of time, we will have faced a very significant amount of reversion on done payments, on very large size project that we booked before this period. Which means that overall, our cash optimization program allowed us to compensate in this period of time and in this negative unwinding of down payments. As your question was more on 2021, I can confirm that a 95% conversion ratio, but also factoring that we will still have in 2021 some unwinding of down payments. My view today, when we put all of that together, the EUR 1 billion level of free cash flow in 2021, as you pointed out, Tris, in my view, at this point in time, a good guidance. On the third point on sustainability, this morning, let's consider what I said as a first teaser, in fact. That's why we need to spend a bit more time to explain, I would say, why we see a lot of things and a lot of opportunities arising from this topic. Let's be patient a little bit, and we'll have, I would say, enough time during the year to explain what we see more in depth than this morning, which is more dedicated to our financial results. Looking forward to it. Many thanks, that was extremely helpful answers. Thanks. Thank you. Your next question comes from the line of Ben Heelan of Bank of America. Please go ahead. Yes, morning. Thank you for taking my question. I had some questions on space. You just mentioned there on the Telesat contract, it's about a $3 billion contract. How should we think about CapEx for that contract for you and the phasing of that? Is that something that's going to happen in the short term or just any color around CapEx on that? Also, how should we think about revenues and some of the other LEO satellite deals, agreements that we've seen? There's obviously an ongoing need to continue to produce these satellites medium term because of the orbit that they're on. Is that something that we should be thinking about here for you? You mentioned there also on the financing that Telesat is also still finalizing its financing. Is that something that you're considering supporting? Do you see any value in being involved in kind of owning and running these LEO constellations? Finally, on competition in space. We've obviously seen a huge wave of SPACs in the U.S., these small special purpose acquisition companies, and there are a lot that are very focused on space. It feels as though competition is heating up. Just any thoughts about how you see the competitive environment at the moment? Thank you. Good morning, Ben. A number of question on space in particular and Telesat. This is, as we pointed out, quite a huge project. Of course, we are very vigilant about the overall cash flow profile of such a project. Of course, any investments that Thales Alenia Space will have to do and to support the development of this project will have to be funded by the project. It's not our intentions, I mean, to fund on our own, how say, funding availability any of this project. It has to be, I say, independent and self-funded project from our clients and supported by a global funding that is working on today. You mentioned also Thales being part of this global funding. We were more a satellite provider and this specific project, we are demonstrating, I mean, the overall, I would say, unique value proposal of Thales Alenia Space when it comes to the development of constellations. You probably have in mind that most of the current in-orbit constellations have been developed and produced by Thales Alenia Space. This is, of course, I mean, the Iridium, in particular, the Iridium NEXT constellations with 70 satellites today are running in the space. I could also mention other satellites that Thales Alenia Space has developed and produced. The O3b satellite constellations for our SES clients. I could also mention the Globalstar constellations that we have also put together. Our view is that, it's not just our view as Mr. Goldberg, the CEO of Telesat, has made it clear that he selected Thales Alenia Space also on the basis of our experience in developing such a complex project. This is basically what we are focused on as opposed to funding on our own equity a project of this kind. You also had a question about- The competition in the U.S.? Yes. I can take this one. You may comment. Yes. When I look at the U.S., what we have seen in the recent years is clearly new entrants in the field of launchers, for sure, with a very famous one with SpaceX. Not that many in the field of satellites to be very precise. Furthermore, in the field of satellites, which is our field, we are not in the launcher business. The new entrants are, I would say, limited, quote-unquote, to small satellites, which is a portion of the market, a small portion of the market. In fact, the market, which is still, I would say, composed of large, very complex satellites, be they geostationary or not, by the way, in terms of telecommunication, in terms of scientific application, in terms of observation, are still I would say, the world of big players like Thales. Because in fact, it really needs decades of investment. It really needs a very high-end technological knowledge to be able to deliver these satellites. You see clearly there, I don't see, I would say, new entrants as a threat to us. Furthermore, new entrants is, I would say, small satellite and satellite applications. We have decided a while ago, by the way, to be part of this let's say, emerging market. I can take you a few examples. BlackSky and LeoStella. We are a shareholder of BlackSky in the U.S. We have a joint venture with BlackSky, which is in LeoStella to produce, to manufacture, and deliver this constellation made of small observation satellites that is extremely promising. This is Thales. We can say that we are part of this new space domain. Second example, NorthStar. It's a Canadian company dedicated to what we call SSA, Space Situational Awareness. We are the one on which NorthStar rely on to deliver this constellation of satellites to observe satellites from the space. That's why it is called SSA. Third example, in the domain of IoT. We are the one who will deliver the constellation for Kinéis. Kinéis is a European player that ambition to deliver IoT services from space, and they rely on Thales for this again, small but nice, I would say, satellite and constellation for this kind of service. You see, I'm very confident that we are well-placed, I would say, all across the different segments of solutions and types of applications, notwithstanding the fact that there are some new entrants in this domain. Okay, that's great. Thank you. Thank you. Your next question comes from the line of Christophe Menard of Deutsche Bank. Please go ahead. Yes, good morning. Thank you for taking my question. I had three questions. The first one is on the midterm guidance, the margin guidance that you are mentioning in the presentation. Initially, the target was 2023. Quite obviously, that's changed. In terms of horizon, should we wait until aerospace fully recovers to see such a margin target achieved? Could DIS or space, I would say, partly offset the margin shortfall that we have in aero or Civil Aeronautics activities? The second question is on order intake. Emerging markets, still a bit down. When would you see a bounce? It's probably a question more longer term, but would we see an increase or a bounce in order intake from emerging markets as of 2022? Do you have any view on this actually at the moment? I understand it's a bit difficult t o have a view on this. The cash conversion rate, can you give us a more detailed schedule of the down payment outflows? I understood that 2021 was supposed to be a high number, but given the EUR 1 billion guidance you gave, I understand it may not be the EUR 400 million or the EUR 300 million that I was initially expecting on that down payment outflow. Thank you very much. Good morning, Christophe. Maybe I will take the first one and leave Patrice on the second one and take the third one. First, in terms of horizon, yes, it's a midterm horizon and of course, we need to see the overall Civil Aeronautics market to more or less normalize for us to support this 11.5%-12% guidance. Which is, I remind you, was significantly above our peak level of profitability back in 2019, which was at 10.6%. It's a move from 10.6% to 11.5%, 12%. Of course, takes into account progressions on some of our key businesses, in particular in the DIS and our transport business. You probably also have in mind that back in 2019, our Defense and Security business achieved a peak level in terms of EBIT margin with some positive tailwinds. I mentioned on the call, EUR 40 million of tailwinds on Defense and Security in 2019. We made it clear that this midterm guidance, the 11.5%-12%, does take into account a level of profitability within our Defense and Security business, which is more between 12% and 13%. Probably more of the high part of this range. Below what we delivered in 2019. I'm not saying that to reach this level, the Civil Aeronautics business will have to fully recover. Of course, we need to have, I would say, the Civil Aeronautics business that will have more or less normalized. Now, in terms of the exact coming schedule, let's take a bit of time. We are entering 2021. As you have understood, it's still uncertain. Besides, also follow what other players in the aeronautics business have shared with the investment community. Of course, in a few months, a few quarters, we'll probably have a better view on how we fit with the market overall recovering. On your second question, it's right to say that EM, emerging markets, were less a contributor in the recent years than mature markets. It didn't prevent us to post book-to-bill above one in the recent past. Yes, at the same time, mature markets was, I would say, booming or was enjoying good momentum that clearly benefited to us and to Thales. In fact, it is the beauty of our business model. It's really the beauty of our business model by being, I would say, a key player in, let's say, 50 +. In fact, it's even much more than that, let's say 50 + countries in the world, gives us this ability to have, I would say, so large pipe, if you allow me this expression, in terms of opportunities. That really forge our confidence to, again, be able to achieve a book-to-bill greater than one in 2021. Honestly, looking at this type of opportunities, it comes from everywhere. It comes from emerging markets area, it comes from mature markets area. At the end of the day, this guidance, clearly, we are very confident to achieve it by the end of 2021. Christophe, last question about cash conversion ratio. I understand that you would like me to give you the exact cash conversion ratio in 2021, 2022, 2023. As I keep saying on cash conversions, we might face some cutoff effect. This happen quite regularly. This is why I tend to focus our commitment more on a several years view, and hence this 95% conversion ratios that I mentioned. Now, as I answered Tristan, I guess it was Tristan's question about, okay, good, but what do you tell us with regard 2021? I mentioned a guidance around EUR 1 billion, with an underlying assumption that 2021 should be affected overall by a level of down payments reversal that should look like something around EUR 200 million. This is our view, which means that the EUR 500 million net balance that we have today, end of 2020, it should drop to something around EUR 300 million end of 2021. With the rest, the remaining EUR 300 million being probably unwinded in 2022, 2023. This is probably my best view today in term of down payments reversal. Also considering that we might have some cut-off effect between the next one. Thank you very much. If I could just have clarification on this point, the 95%, it's an average or it's actually some sort of a minimum level that you would expect over the rest of the period? At this point, it's more of a global guidance for this 2019- 2023 guidance. Of course, if in the meantime, we manage to book a large size export contract with a pretty positive signing, they might exceed this level of conversions ratio. Thank you very much, thank you. Thank you. Your next question comes from the line of Celine Fornaro of UBS. Please go ahead. Good morning, gentlemen. If I may, I have two questions. One relates firstly on the transport business, where you basically achieved a margin in the second half that was up or above the 8% level. You guided that you're planning to return to that medium-term margin level. Could you maybe provide a little bit more color on how we should think about 2021, if some of the cost actions or customer mix could affect or accelerate this margin recovery? Also how you think about orders and customers returning in some of the urban businesses. My second question would be regarding DIS, where there was negative organic growth in 2020. Just thinking on how you see that for 2021 as some parts of the business should be exposed to growth when we look at other tech companies. Thank you. Okay. Good morning, Céline. Thank you very much for your two questions. First, on transport. First, in terms of level of order intake, yes, we expect order intake to progress in 2021 versus 2020. We're working today on various opportunities there. Now, where we have probably a bit of uncertainty is how quickly will we see an urban transport operators, I mean, to come back and to award contracts, considering the impacts of the drop in today urban transport traffic on their own accounts. Overall, in particular, in our mainline business, we see today quite a good momentum, which also means from a sales standpoint, we expect an organic growth in our transport business that, in my view, should be probably around the mid-single digits on this business. Allowing together with, I mean, still progress in terms of overall cost structures and project executions, to keep increasing our EBIT margin as compared to what we deliver in 2020. Overall, a continuous progression in terms of margin in this business with a level of sales that should start to rebound as from 2021. DIS, Patrice? DIS, I think I can start and you complement, Pascal. With DIS, to answer more precisely to your question, Céline, we should decompose a little bit the question into sub-questions, in fact, because sub-segments may behave differently. First of all, as you know, smart card should be down next year, in particular because of high comps. This year versus next year, sorry. This year, 2021, sorry. In particular because of high comps, looking at 2020, what we achieved in 2020. You know, I would say the long-term gradual, I would say, tendency of this business, no change compared to what we said, in particular during the Capital Markets Day in October 2019. The second thing is typically ID documents and so on and so forth. You know that we have suffered from a headwind in particular in the passport area, which is linked to the air travel situation, that's a fact. Of course, it will gradually recover in line with the gradual recover of the air transport. It's more or less, I would say, correlated. I would say more or less correlated. Still, in the medium term, this is a good business, of course, and a growing business. All the rest of the portfolio of DIS clearly is growing nicely, and even more than nicely. Looking at cybersecurity, for instance, needs are clearly booming everywhere. We have, I would say, tied very, very encouraging or promising partnership, typically the one we have mentioned with Google, and Google is not a small player in this cloud world, to bring a very complementary solution to what they offer, which is called in this domain, bring your own key or even bring your own security. To de-correlate with the cloud provider from the security provider. This is a long-term trend that is clearly increasing more and more. The fact that large corporation do not want to, I would say, have a single provider that bring both cloud capability and the security. This long-term trend clearly will benefit to Thales as we are, as you know, number one in this domain, data protection and cryptology on this particular type of application. Combined all in all, 2021, probably low single digit growth. It's a combination of, I would say, different segments of business with different dynamics. Thank you very much. Thank you. Your next question comes from the line of Harry Breach of Stifel. Please go ahead. Yes. Hello. Morning, Patrice. Morning, Pascal. Morning, Bertrand. Thank you for taking my question. Guys, can I possibly just maybe look at space a little bit more? Galileo was a very significant win for Thales Alenia Space against the incumbent. Can you help us to understand sort of what the drivers were of that? Particularly, is it a contract that you guys expect to be completely in line with your margin goals for Thales Alenia Space? Whether you think if the win was driven by technical proposition or price or otherwise? Maybe the second question, thinking again about the pace of recovery at space overall. Are you still looking at getting back to sort of low, mid single digit margin this year? I think that was the previous plan, and then high single digit in 2023 for the space business. It would be great just to have a little bit of an update. Maybe just to follow on Céline's question slightly differently, just the transport margin in the second half of last year was very strong. Was there anything particularly unusual in there or any reason to think why that wouldn't be sustainable this year in 2021? Good morning. I will take the fourth question on space. To make it short, clearly, the feedback from the commission is clear. We have been selected, thanks to our technical superiority. It's the feedback we got. Really our technical proposal was very convincing, sorry, and clearly above Airbus and OHB. On top of that, we have been able, I would say, to make no sacrifice on price. We have been selected with a higher price than the number two, than others. Really demonstrating that technical superiority can drive, I would say, pricing power. T here is no reason to sacrifice price just for the sake of winning a big contract. This is very, very positive. We all know in this small domain, the performance of the first generation of Galileo satellites provided by the OHB. They had to turn to some, I would say, players to be able to deliver that. Clearly, it was based on, I would say, the good quality of the proposal we submitted to the EU. Okay. Maybe, first, good morning, Harry. On your question about space margin. Yes, you mentioned that we guided you to a low single digits for 2021 and high single digit 2023. My view is that in 2021, yes, a low to single-digit EBIT margin for our space business is really in mind. Yes, we are expecting our space business EBIT margin to keep growing the next few years and, in particular, 2023. This high single-digit level of margin, which is quite a good level of margin for this business. I do think this is achievable in 2023. One, we have all those new projects that I've mentioned running full speed in 2023. We should take advantage of the levered effect in this horizon of time for our space business, and to achieve this level of high single-digit EBIT margin. Maybe on transport, this is where we all need to be a bit cautious, and we shouldn't just take a semester, and to consider that this is a normal runway. In particular, in transport, we have seen in the past that H2 is always stronger than H1. This is how it is in this business. Please don't consider that the H2 2020, this is what we can extrapolate for the full-year 2021. No. It will not be the same. However, once again, I'm quite confident about our ability to keep increasing progressively the profitability of our transport business. With this 8%, 8%+ EBIT margin being really at stake in a reasonable time framing. I think we are running out of time. We are running late, in fact. We need to close this session. Sorry for those who hadn't the time to raise their questions. Of course, Bertrand, Pascal, myself, we are at your disposal in the days and weeks to come to answer your questions. To conclude, as you understood, our business performed really well under these unprecedented circumstances. I take the occasion to reiterate my thanks to the teams of Thales for their exemplary commitment. Across all our markets, I think our digital strategy positions us very well for continued profitable growth. We have several questions this morning around that, and I hope that you have been, I would say, reassured of being that it is the case and will continue to be the case looking forward. With Pascal, we look forward to speaking with you in the upcoming investor road shows and conference. Until then, take care and stay safe. Thank you. Bye-bye. Thank you very much. Bye-bye. Thank you, ladies and gentlemen. If you didn't have a chance to ask your question on today's call, please do not hesitate to send your questions to Thales Group investor relations at ir@thalesgroup.com. We will get back to you as soon as possible. Thank you for your participation, and you may now disconnect.