w w w . t h a l e s g r o u p . c o m

For a safer world 2015

Thales is a global organisation focused on helping civil and military customers to perform difficult tasks in critical environments.

We bring them world-class technical expertise, well-established local teams and a commitment to long-term service quality and continuous improvement.

We have a unique value proposition and play a central role in supporting their ability to protect people, property and information.

All our businesses draw on the same key technologies to deliver programmes efficiently. They are driven by the same quest for performance and innovation and guided by a Group-wide corporate responsibility policy that is recognised as one of the most stringent and proactive in the industry.

This is the world we live in. It’s changing constantly and becoming ever more complex. Thales believes that technology can make it a safer place, and we're proud to be part of that process.

Patrice Caine,, Chairman & Chief Executive Officer, Thales,

Chairman’s message

2015 Thales 01

Wherever safety and security are critical,

Thales delivers. Together, we innovate with our customers to build smarter solutions. Everywhere.”

(1) Earnings before interest and taxes, i.e. income from operations plus the share of the net income (loss) of equity-accounted companies, excluding the amortisation of intangible assets acquired (purchase price allocation – PPA).

PRO

FILE Revenues in 2014

E13 bnOrder intake in 2014

E14.3 bnOrder book at 31 December 2014

E27.2 bn

Company-funded research and development

E675 M

EBIT (1) in 2014 (excluding DCNS)

E1.1 bn

Employees

61,000 (under management at 31 December 2014)

Shareholders (at 31 December 2014)Balanced sources of revenues

Float48.3%,of which employees: 2%

French State

26.4%

Dassault Aviation 25.3%

Defence

Civil

Collective intelligence for a safer world

With 61,000 employees in 56 countries, Thales plays a key role in keeping the public safe and secure, guarding vital

infrastructure and protecting national security interests.

Wherever safety and security are critical, Thales delivers. Together, we innovate with our customers to build smarter solutions. Everywhere.

In all its markets — aerospace, space, ground transportation, defence and security —

Thales helps customers to make the right decisions at the right time and operate efficiently.

The leadership team

2015 Thales 03

Pascal Bouchiat , Senior Executive Vice-President,

Chief Finance Officer

Gil Michielin , Executive Vice-President,

Avionics

Marc Darmon , Executive Vice-President, Secure Communication

and Information Systems

Hervé Multon , Executive Vice-President, Strategy,

Research and Technology

Pascale Sourisse , Senior Executive Vice-President,

International Development

Alex Cresswell , Executive Vice-President,

Land and Air Systems

Patrice Caine, Chairman & Chief Executive Officer

Pierre Eric Pommellet, Executive Vice-President, Defence Mission Systems

Jean-Loïc Galle, Executive Vice-President, Space

David Tournadre, Senior Executive Vice-President, Human Resources

Isabelle Simon, Group Secretary and General Counsel

Michel Mathieu, Senior Executive Vice-President, Chief Operating Officer & Chief Performance Officer

Millar Crawford, Executive Vice-President, Ground Transportation Systems

The Thales Executive Committee with Patrice Caine, Chairman & Chief Executive Officer.

A shared vision

Together, Safer, Everywhere: three words that convey a vision shared by Thales employees all over the world:

. Together > Working together is our response to the complexity of our customers’ requirements and the key to our success.

. Safer > Safety and security are the common denominators of all our markets and the ultimate purpose of our technologies.

. Everywhere > Our global approach ensures that customers all over the world have access to the best expertise.

2015 Thales 05

1893

1919

1982

2000

2009

COMPAGNIE FRANÇAISE THOMSON-HOUSTON (CFTH)

founded in France to produce and operate power generation and distribution systems and electric tram networks using technology patented by the

US company Thomson-Houston Electric Corp.

Founding of CSF (Compagnie Générale de la Télégraphie Sans Fil)

NATIONALISATION OF THOMSON SA

Active policy of external growth in the European defence sector

Acquisition of

1989 acquisition of the defence

electronics businesses of PHILIPS

becomes

becomes main industry shareholder

Thales is now a global technology leader in aerospace,

space, transportation, defence and security

Formation of through the merger of CSF and the professional electronics businesses

of Thomson-Brandt, successor to CFTH

REFOCUSING on professional electronics and defence electronics

PRIVATISATION

become shareholders

1987-1996

2007

1998

1983-1987

1968

Controlling interest in

01

In the world's fastest-growing economies, Thales has increased its order intake by 40% in two years.

02

More than 20,000 employees are dedicated to technical activities, 70% of them engineers.

HISTORY OF A GLOBAL LEADER

Creation of

European leader in satellites

Acquisition of the transportation,

security and space businesses of

Thales becomes shareholder and industry

partner of

Operations in 56 countriesFor many years, Thales’s international strategy has revolved around local country operations, making the Group a major industry player in its traditional countries of operation and now helping to expand its business in economies where growth is strong.

This strategy embodies Thales’s focus on customers and long-term customer satisfaction. It brings Thales access to major local programmes and opportunities for partnerships with local industries and research institutes, and is supported by a worldwide network of key account managers, competence centres and integration centres. / 01 /

Inventing tomorrow’s products todayThales defines innovation as anything that breaks with the past and creates value, as perceived by customers, in terms of processes, organisational models, technical solutions or the way a company does business.

Many of Thales’s business activities are technology-intensive, making innovation a strategic priority and the driving force behind the long-term development of the Group. Thales research programmes help operating units to differentiate the Group’s products and solutions and gain a competitive advantage.

Thales is recognised for its expertise in all the key technologies needed to design and develop the mission-critical information systems its customers demand: large-scale software systems, onboard electronics for all types of platforms, secure communications and electronic transactions, sensors (radar, sonar, optical), supervision and satellite technologies.

Open innovation/ Thales teams throughout the world are driven by the same quest for customer-focused innovation. The research facilities of Thales Research & Technology apply a model of open innovation designed to maximise interaction with the academic research community, Thales’s operating units and other technology providers. Concept development and evaluation environments offer new opportunities to work with customers on real-life scenarios and to develop solutions tailored to their current and future operational needs. At the same time, innovative product policies are being implemented at Thales entities to systematically shorten development cycles and limit programme risks.

The effectiveness of Thales’s R&D organisation hinges largely on decentralisation at the operational level. R&D teams based at more than 80 locations in the company’s main countries of operation are closely coordinated and focus their efforts on a few key strategic themes. / 02 /

Innovation

International

01 02 03 04

Between 2007 and 2014, Thales cut its CO2 emissions by 67% and was listed among the top ten companies in France by the Carbon Disclosure Project (CDP) in 2014.

The Thales strategic vision is anchored in the culture of integrity that is one of our most cherished assets and underpins the trust and support of our stakeholders. For the last 15 years, Thales has pursued a policy of corporate responsibility and ethical business conduct based on transparency and constructive dialogue with customers, suppliers, employees, shareholders, financial markets and civil society.

Anticipation and risk prevention/ Strict compliance with applicable laws and regulations is the cornerstone of all of our business processes, but our corruption prevention and export control policies go well beyond compliance. Thales tries to stay a step ahead of regulations, playing an active role in the working groups that set ethical standards for our industry, and adapting our internal processes proactively, in particular through our Code of Ethics and a dedicated Group-wide ethics organisation, to stay aligned with global best practice. Corruption prevention is one of the pillars of our corporate responsibility policy (1), and we believe this policy gives us a competitive advantage that drives the Group’s long-term performance.

Investing in people/ Recognising that business success hinges on the creativity, expertise and teamwork of our employees around the world, Thales is committed to building sustainable, responsible relationships with employees as well as customers. Our human resources policy is designed to ensure that Thales employees everywhere share a distinctive set of values that set us apart from our competitors and enhance our performance as a company.The fundamentals of this strategic commitment to people were laid out in the Thales Code of Ethics in 2001. They include fostering constructive dialogue with employees, supporting professional development, providing a safe and healthy workplace, promoting gender equality and diversity, and fighting all forms of discrimination.

Environment: a long-standing commitment/ For Thales, ethical business conduct includes taking active measures to protect the planet and build a company-wide culture of environmental responsibility. We have adopted a structured approach aimed at reducing our overall environmental footprint, fighting climate change, protecting biodiversity and natural heritage, and anticipating future environmental challenges and emerging risks.Thales also leverages its unique potential for innovation to reduce the environmental impact of the company’s products throughout the life cycle, from design to disposal or recycling. We are actively developing environmentally responsible solutions for customers, in particular to improve the environmental performance of public transport systems and monitor climate data. / 01 / 02 / 03 / 04 /

(1) Transparency International ranked Thales in Band B of the Defence Companies Anti-corruption Index 2015, on a scale ranging from A (highest) to F (lowest), in recognition of the transparency and quality of the Group’s ethics and anti-corruption programmes. companies.defenceindex.org

The Thales Foundation reflects the company’s core mission and culture and promotes community engagement in the fields of science education and humanitarian action.

Active in ten countries, Thales University supports the professional development of the Group’s employees and helps to build a cohesive corporate culture.

Reflecting its commitment to corporate responsibility, Thales signed up to the United Nations Global Compact in 2003 and is one of the 399 compa-nies worldwide to have submitted its annual Communication on Progress at the GC Advanced Level.

06 Thales 2015 / Corporate Responsibility

BUSI

NES

SES

All the civil and military markets that Thales serves — aerospace, space, ground transportation, defence and security —

play a vital role in society. Operating as a single organisation, we draw on the talent and technologies of the entire Group to act as prime contractor,

systems integrator, equipment supplier and value-added service provider on both civil and military programmes.

Being a responsible company

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10

12

14

16

Corporate Responsibility

FIVE MAJOR MARKETS

–

Aerospace

Space

Ground Transportation

Defence

Security

2015 Thales 9

and cabin — and ground equipment (radar, air traffic management systems, etc.). Market leadership in avionics, air traffic management and space systems makes Thales the world’s only company with the capacity to provide a comprehensive end-to-end response to the needs of the air transport sector.

We are contributing to the future prosperity of the civil aerospace industry by providing equipment, systems and services — in the air and on the ground — to support aircraft manufacturers, airlines, air traffic controllers, airports and civil aviation authori-ties in meeting the challenges of growth, safety, economic and environmental performance, security and passenger comfort.

Meeting the needs of the air transport sector

Thales is the only company in the world with leadership positions in both onboard equipment — for both cockpit

Aerospace

01

Two out of three aircraft in the world take off and land using Thales equipment.

02

Thales has equipped over 160 control centres around the world, which together cover more than 40% of global airspace.

03

More than 750,000 passengers use Thales in-flight entertainment systems every day, equivalent to almost 274 million users per year.

04

Thales provides avionics systems for all Airbus airliners as well as aircraft built by ATR, Boeing, Bombardier, Dassault, Gulfstream and Sukhoi.

NO. 1 NO. 2 NO. 3worldwide in air traffic

management.

worldwide in in-flight

entertainment.

worldwide and No. 1 in Europe in commercial

avionics.

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02

04

2015 Thales 0908 Thales 2015 / Aerospace

03

Supporting critical space programmes

01

Thales Alenia Space is a major supplier of telecommunication satellite constellations, including Iridium Next, the world's largest low-earth-orbit constellation to date, with 81 satellites.

02

Thales Alenia Space is contributing to most of Europe’s Earth observation and climate-related space missions.

03

Thales Alenia Space has been the world leader in geostationary meteorology systems since the late 1970s as prime contractor for the three generations of Meteosat satellites.

04

Thales Alenia Space is prime contractor for ExoMars, Europe’s first mission to land on Mars to discover any traces or forms of life.

EUROPEAN LEADER NO. 1

in satellite systems and a major

player in orbital infrastructures.

worldwide in payloads for

telecommunication satellites.

10 Thales 2015 / Space 2015 Thales 11

Space

satellite navigation and deep-space exploration. Thales continues to set the global standard in each of these areas through two joint ventures with Finmeccanica of Italy: Thales Alenia Space and Telespazio. We provide commercial, institutional and military customers with an exceptional combination of expertise spanning the entire value chain: equipment, payloads, satellites, systems and services. Our space businesses complement other Thales activities, and vice versa, giving us a

distinct competitive advantage and enabling us to offer our customers complete end-to-end solutions and play a central role on some of the largest civil and military programmes. In defence, for example, space systems are a key component of C4ISTAR (Command, Control, Communications, Computers, Intelligence, Surveillance, Target Acquisition and Reconnaissance). The space component is also prominent in most of the programmes now defining the future of air traffic management, and in rail and road traffic projects around the world.

Space systems play a vital role in modern societies, particularly for telecommunications, Earth observation (radar and optical),

01

02

04

03

Ground Transportation

tional performance, offering better passenger services and managing the growing complexity of their networks. Thales systems and services make it possible to operate transport infrastruc-tures at higher capacity and allow passengers and goods to get to their destinations more quickly, more safely and at lower cost. We are one of the world’s foremost players in rail signalling systems and control and surveillance systems for urban and mainline rail networks, and also provide advanced fare collection and road tolling solutions. A unique systems approach/ Most of the other players in the transportation sector have a background as rolling stock providers.

In contrast, Thales adopts a systems approach to develop complete, innovative solutions based on all the latest technologies and designed to integrate seamlessly with systems developed by most of the major market players. This approach leaves transport operators and network managers greater freedom and flexibility in the choice of rolling stock suppliers and other project stakeholders. Thales is one of the pioneers of the de facto standards that are structuring the rail transport sector today: CBTC systems (Communications-Based Train Control) for metros, ETCS systems (European Train Control System) for mainline rail, contactless smartcards, nationwide multi-modal, multi-operator fare collection systems, integrated supervision systems, etc.

Thales helps transport operators and infrastructure managers to get the most out of their investments by optimising their opera-

12 Thales 2015 / Ground Transportation

01

Thales’s SelTrac® CBTC system currently operates on 56 lines in 30 of the world’s largest cities, carrying three billion passengers annually.

02

Some 15,700 km of railway lines around the world are equipped with the ETCS solution (European Train Control System) from Thales.

03

Every day, Thales fare collection systems around the world handle more than 50 million transactions.

04

The 75 km Dubai metro system — the longest driverless metro system in the world — is equipped with a complete solution supplied by Thales.

Leading the way in transport solutions

NO. 1worldwide in integrated supervision

and communication systems for rail networks.

NO. 2worldwide

in rail signalling.

2015 Thales 13

01

02

03 04

Defence

more efficiently and working with them to provide the best possible protection in the field. We support the armed forces in accomplishing their missions in the traditional defence environments — land, air, sea and space — as well as the emerging environments of urban operations and cyberspace. Our systems detect and assess threats, manage information, speed command

decisions, control engagements and neutralise threats with maximum reliability. By making it simpler to coordinate joint and coalition operations, Thales systems help deployed forces maintain decision superiority.Optimum operational performance/ From system design to through-life support and personnel training, Thales provides a range of services to ensure that its solutions deliver optimum performance over the long term.

Thales is a long-standing partner of defence forces worldwide, helping them operate more effectively and

14 Thales 2015 / Defence

Serving the armed forces everywhere

01

Thales systems and equipment represent close to 25% of the value of the Rafale combat aircraft.

02

Thales is prime contractor for the United Kingdom’s Watchkeeper programme, the largest battlefield surveillance programme in Europe.

03

A quarter of the world’s territory is protected by radars from ThalesRaytheonSystems.

04

Around the world, Thales equips more than 50 land forces, over 70 types of aircraft and over 40 naval forces.

NO. 1in Europe in defence electronics.

NO. 2worldwide

in military radio communications.

NO. 1in Europe and No. 3 worldwide

in surface radars for land and naval defence forces.

NO. 1worldwide in dipping

sonars.

2015 Thales 15

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02

04

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equipped to contend with the changing risk environment. This convergence between defence and security is driving demand for new solutions and technologies that enable organisations to share existing information and communication systems while protecting their networks and infrastructure from attack.Integrated, resilient solutions/ Drawing on our experience in the defence sector, we work with government agencies, local authorities and civil operators to develop and deploy integrated, resilient solutions to protect citizens, sensitive data

and infrastructure. The main priorities today are cybersecurity, telecom network security, urban security, airport security, border protection and infrastructure security.One of our distinctive strengths is the ability to integrate large-scale, complex systems and leverage the legacy solutions of each customer. In addition, we offer specialised expertise in all the key components and technologies included in those systems: sensors, secure networks and information systems, 4G, secure cloud computing, data processing algorithms, data fusion, Big Data and analysis of large volumes of video, voice, text and data.

With growing threats from terrorism, organised crime, trafficking and cyberattacks, defence organisations alone are not fully

Managing new risks

01

Thales offers a full spectrum of services to counter the growing cyber threat.

02

Thales has been awarded a 30-year contract to operate the secure information and communication systems at the French defence ministry’s new headquarters in Paris.

03

Since 2005, Thales has provided security for millions of Muslims making the Hajj pilgrimage to Mecca.

04

Thales has provided Mexico City (population 20 million) with the world’s most extensive urban security system.

NO. 1worldwide in banking

transaction security.

NO. 1in France in civil biometrics for government agencies

and administrations.

NO. 1in Europe

in cybersecurity.

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Security

02

01

04

03

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Published by Thales corporate communications • Photo credits: cover: Gravity; inside cover: Bloomberg; p. 3: Quentin Reytinas; p. 5: Étienne de Malglaive/Capa Pictures; p. 6: Gravity – Étienne de Malglaive/Capa Pictures – Ronald Tilleman; p. 9: ssuaphoto/iStock – Étienne de Malglaive/Capa Pictures; p. 11: Thales Alenia Space – M. Thiébaut/ESA; p. 13: M. de Pardon/Capa Pictures – Patier/RENFE – David Peart/Capa Pictures; p. 15: Dassault Aviation/K. Tokunaga – Richard Seymour – Thierry Giai Checa – Bernard Rousseau; p. 17: Étienne de Malglaive/Capa Pictures – Laurent Zylberman – iStock.• Designed and produced by 01 55 76 11 11 • 13513 • English by e-files • June 2015.

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