Cybersecurity, payment methods and the aerospace industry are the areas in which this French company will focus efforts for Latin Americat his year and in the future.
Wellington Rodrigues is Brazilian, but he visits Chile continuously.
The South American country is the base of operations for the Southern Cone (Argentina, Chile, Uruguay and Paraguay) regional manager, a position he undertook since April last year. Since then, his trips and activities have not stopped.
Whether in a university like La Mayor (where this year he signed a collaboration agreement with Thales for the training of technicians in space and technology), in Calama inaugurating its flagship project at the end of April (the first air traffic control radar station with solar energy in the world), or at the Air and Space Fair (FIDAE, to show its defense and air potential to countries throughout the continent), the business executive is permanently showing his firm's developments throughout the region.
“In Latin America we have around 3,000 people and all our business areas are present. In Brazil and Mexico we have more than 1,000 people, respectively in each country, and we are present in more than 10 countries in the region. Here, in the Southern Cone, we have a little more than 110 people,” Rodrigues details to AméricaEconomía .
The multinational of French origin is present in 68 countries and has almost 80,000 employees worldwide, and likes to define itself as a technology company with a strong emphasis on defense and security.
Although he is constantly moving ---he recently sealed the acquisition of the semiconductor manufacturer Gemalto in Europe-- it is Latin America where he is seeing the biggest possibilities for growth in 2024 and beyond.
His most recent milestone in Chile, for example, is the signing of a memorandum of understanding with SeQure Quantum --a Chilean company with origins in a spin-off of the University of Concepción and the University of Gdansk in Poland-- that works in quantum cybersecurity with a development of random codes that prevents any type of violation of digital systems.
The goal is for Thales and SeQure Quantum to develop joint strategies, technology and knowledge on issues related to space projects in that country. “This alliance will allow us to grow together to be able to deliver advanced technologies that generate more value and support Chile throughout its space program,” says Rodrigues.
DIGITAL PAYMENTS
Like every technology firm, Thales saw its business accelerate with the pandemic, especially in the digitalization vertical and cybersecurity. “Between 2019 and 2022 we grew around nine times in terms of revenue in this segment, driven by e-commerce and digital transactions that continue to grow,” details the executive.
For its area, the Southern Cone, the topic of cybersecurity is particularly interesting. In Chile, the Framework Law on Cybersecurity and Critical Information Infrastructure was recently approved, which contemplates the creation of a national cybersecurity agency.
“All of those functions will be much more in demand by agency clients in the region and we are ready to support them. So it is a topic that is growing more and more and where we are very involved,” emphasizes Rodrigues.
The other area where they plan to grow is payment methods, thinking about making these increasingly simpler and thus allowing more people to participate in this process of digital inclusion. “That is something we are also working a lot on, not only with card solutions like the ones we have today, but also digital solutions for digital payment methods,” he adds.
However, Rodrigues believes that there is still a lack of confidence among the Latin American population to deepen digital payments and the advantages they have. “There we have brought our data protection solutions very strongly to all of Latin America. Digital transformation will always be a constant thanks to new technologies. The challenge is how people have to change their relationship with digital. People are not going to adopt digital if they do not have confidence, because they do not feel safe in this new environment,” he says.
DEFINED INVESTMENT PLANS
The firm ended 2023 with revenues of US$ 19.99 billion and net income of US$ 1.03 billion. The first quarter of 2024 represented both gains and challenges for Thales.
According to the firm's data, Thales had a very good start to the year in the first quarter, with particularly strong sales momentum. Organic sales growth exceeded annual forecasts, driven by the Defense & Security business, which posted especially strong performance in the period.
“The Group continues to accelerate in cutting-edge technology, as demonstrated by the launch of cortAIx, our new organization that brings together our talents and strengthens our capabilities in artificial intelligence. We remain focused on our growth strategy in growing markets and confirm all our financial objectives for 2024,” said Patrice Caine, president and CEO of Thales, while announcing global results.
Sales for the first quarter of 2024 reached US$4.79 billion, compared to US$4.36 billion in the same period in 2023 --an increase of 9.8% as reported, and an increase of 7.9% at constant exchange rates.
From a geographic perspective, growth was driven by mature markets, which recorded organic growth of 8.1%. Emerging markets, such as Latin America, registered organic growth of 7.0% during the period.
Wellington, accordingly, is confident in the continued growth possibilities in Latin America.
“If we look at 2024 and beyond, I think that the projection, speaking of the Southern Cone, is very positive because in all the markets where we are there there are clearly defined investment plans, in addition to established [local] needs,” he emphasizes.
Against this background, investment projects in cybersecurity will be a priority. “In Chile, Argentina and Paraguay we are already involved in discussions to further accelerate this growth into the future,” he points out.
Plans include growth in the firm's five verticals: defense and security; the aerospace market, with satellite solutions, air traffic control and electronic systems on board airplanes; the digital security and identity market, which covers payment methods, cybersecurity solutions, biometric solutions and connectivity solutions; and the transportation segment, which are the solutions made for the Santiago metro.
“There are three key points that we work on every day to achieve our global vision, within five to ten years. The first is to build a world that is increasingly safe, both physically and in the virtual world. More and more investment will be made in this issue because it is an axis of social development and that is why, without a doubt, security is an area of investment to which we are focused," he highlights.
The executive's objectives also include to increase the incorporation of environmental solutions for both female and digital inclusion, transportation or security. Additionally, the company is concerned about the known talent gap currently in technology and that is where they are directing efforts with some governments to implement cyber academies.
The firm also believes in the global reciprocity of talent. “We believe a lot in an ecosystem view. We not only have solutions that we bring from Europe to Latin America, but also solutions that we develop in Latin America,” emphasizes Rodrigues.
The company currently has a design center in Brazil that provides support with innovation activities throughout the region. The center (one of the 14 that Thales has in the world) offers a radar and defense solutions manufacturing unit that also exports to other countries in Latin America, Asia, and Europe.
The firm invests around 20% of its revenue in research and development each year for all its verticals and is now also developing the quantum theme as part of its view into the future.
“At Thales we see technology as a path to reach a goal that is always focused on people. So, any technology we develop will always be focused on an improvement that provides greater security and confidence to people,” concludes Wellington Rodrigues.
