1. Thales corporate presentation
December 2002
Thales corporate presentation
The future is safer where you find the Thales point
I T & S A e r o s p a c e D e f e n c e

2. Our mission
Provide our customers with tailored solutions to their security needs
Be a leading, high-tech Group specialising in electronics and system integration
Be a worldwide group, with a well-established European base

3. A worldwide leader 66,500 people in 50 countries
Europe
220 locations
Middle East
20 locations
North America
30 locations
Korea
3 locations
Asia
40 locations
Latin America
10 locations
Africa
5 locations
Australia
10 locations
66,500 people in 50 countries
2001 sales: 10.3bn euros

4. Dedicated to security Defence 57% Aerospace 18% IT& Services 25%
In the field, at sea, in the air and in space, Thales,
as an architect of systems, possesses all critical capabilities
for 21st century network-enabled warfare,
with a leading position in C4ISR
Aerospace 18%
Present throughout aviation
safety applications: avionics,
air traffic management, simulation
and training
IT& Services 25%
IT solutions for governments, businesses
and consumers: secure operations,
position based solutions, communications components,
services & solutions, information systems
Security = 80%

5. The first of our key values
Serving the customers
We listen
We deliver
We support
Measuring satisfaction level
Innovative solutions, tailored to operational needs
Providing everythinf from technical and financial engineering to logistics and through-life support
« Customer Commitment » programme
In line with budget, timetable performance and delivery requirements
Constantly developing new solutions to drive future improvement
World-wide organisation anticipating and under
standing local needs
Track performance to guanrantee the hightest standards of quality
Ensuring system availability throughout project life
The first of our key values

6. Corporate citizen We comply with security & sovereignty regulations
We apply internationally accepted business practices
We implement an explicit code of ethics
We adhere to environmental laws and regulations
This is the way we show our commitment, as a responsible
international corporation, to our customers, suppliers and partners,
shareholders and markets, employees and environment

7. Our strengths High potential for innovation & technological excellence
 20% of revenue devoted to R & D  a knowledge platform linked to the most prestigious universities
and research institutes all over the world
Dedicated people
 Highly-skilled, multicultural teams
 United by the same values and a modern management system
Leverage of dual-use technology for both commercial and military markets
International development & local partnership
 Established in 30 countries
 World-wide support organisation

8. Organisation Denis Ranque Chairman & CEO Bernard Rétat Vice Chairman
Jean-Paul Perrier
Executive VP
Chief Marketing Officer
Thales International
François Lureau
Executive VP
Chief Operating Officer
Head of Defence
John Hughes
Executive VP
Chief Operating Officer
Head of Aerospace
John Hughes
Executive VP
Chief Operating Officer
Head of IT&Services
Alex Dorrian
Senior VP
Deputy for Defence
CEO Thales UK
Bernard Rocquemont
Senior VP
Deputy for Aerospace and IT&Services

9. Activities Three business areas serving three broad markets Aerospace
Defence
IT & Services

10. Aerospace Dual technologies
European leader and in top 3 world-wide in avionics,
training & simulation, air traffic management
Market segments: commercial 70%, defence 30%
Dual technologies
Unique positioning across the entire air security chain

11. Aerospace
Avionics
Air traffic management
Training & simulation
Revenue
1.1bn euros
400m euros
300m euros
Employees
6,000
2,000
2,000
Main locations
France, UK, USA, Canada,
Germany, Singapore
France, UK, Germany,
USA, Australia, Italy
UK, France, USA,
Australia,
2001 sales: 1.8bn euros - Order book: 3bn euros 10,000 employees

12. Aerospace key references
Avionics
Air traffic management
Training & Simulation
Cockpit avionics, utilities and
services to 200 airlines, 40 armed
forces & aircraft manufacturers
Major partner for Airbus, Dassault,
Eurocopter, Bombardier, Agusta
Westland
Onboard A380
Onboard all major European military
aircraft & helicopters: Rafale, Mirage,
Eurofighter, Tiger, NH 90
The largest installed base of ATM
equipment in the world:
customers in 160 countries
Recent successes: Australia, China,
Brazil, Denmark
Eurocat 2000 centers operational
in 10 countries (plus 12 under contract)
800 devices in operation in 60
countries
Eurofighter simulator
French-German Tiger helicopter
simulator
UK training contracts: Tornado
GR4 pilots (30 years); RAF Lynx
helicopter (12 years)

13. Defence overview Air Land Sea
Complete solutions capability: prime contractor, systems architect, equipment & service provider
International company with substantial European footprint, notably France and United Kingdom
Addressing all critical capabilities; present on all types of platforms
A fully integrated approach to the defence industry

14. Defence key figures 2001 sales: 5.7bn euros - Order book: 15bn euros
Naval
Systems
Optronic
Systems
Communications
Systems
Air Defence
Systems
Airborne
Systems
Revenue
1.3bn euros
630m euros
1.5bn euros
1.1bn euros
1.2bn euros
Employees
6,500
4,000
8,000
6,000
6,700
Main locations
Netherlands, France, UK, Australia, Germany, South Africa, Korea, Canada
UK, France, Singapore, Netherlands, Germany, Canada, USA, Japan, Korea, Hungary, Egypt
France, UK, Germany, Norway,Spain, Netherlands, USA, Belgium, Italy, Brazil, Switzerland, Malaysia, Australia
France, UK, Canada
France, UK, Netherlands, USA, Germany, Belgium, Korea, Saudi Arabia, Australia, South Africa
2001 sales: 5.7bn euros - Order book: 15bn euros
employees

15. Defence key references
Fighters: Mirage (30 countries), Rafale (France),
Tornado (Europe),Typhoon / EFA (Europe)
AEW: Emb145 (Greece), Sea King MK7 (UK)
Optronic systems: RecoNG (France)
Helicopters: Tiger (Europe, Australia), NH90 (Europe),
EH101 (UK)
Air
Land & C4ISR
Air-defence missile systems: Crotale, Shahine
(France, Saudi Arabia, Greece…), Pegasus (Korea),
Starstreak (UK), FSAF (Europe)
Air operations: ACCS LOC1 (NATO), SCCOA (France)
Counter-battery radar: Cobra (Europe)
Army communications systems: RITA (France), PR4G (25
countries)
Light armoured vehicles thermal sight: BGTI (UK)
Next-generation soldier systems: Felin (France)
Prime contracting: Minrem Sigint vessel (France), Sawari II (Saudi Arabia) and Horizon (France-Italy) frigates, Huron-class minehunters (Australia)
Prime contracting for combat systems: LCF and F124 (Netherlands/Germany), Meko A200 (South Africa) frigates
Prime contracting for retrofit and upgrade: FFG7 frigates (Australia)
Systems and equipment for frigates - T45 (UK), KDX11 (Korea) -, submarines - Astute (UK), Triomphant (France), Scorpene (Chile) -, and maritime patrol aircraft - Nimrod (UK), Meltem (Turkey)
Sea

16. IT & Services overview Leveraging dual-use technologies
Services, solutions, products and sub-systems provider
Strong positions on targeted B2B markets
Added-value solutions and services for growth markets

17. IT & Services key figures
Secure
Operations
Position
Based Solutions
USA, UK, Mexico, Brazil, France, Germany, Russia, Netherlands, Singapore
440m euros
3,000
Communications
Components
600m euros
France, China, UK, Germany, India, USA
5,000
Services
& Solutions
800m euros
France, Germany, Netherlands, UK, USA
4,000
Information
Systems
Revenue
500m euros
400m euros
Employees
2,000
5,000
Main locations
France, Germany, UK, Belgium, China, Italy, Mexico, Singapore, Spain, Switzerland
UK, France, USA, Germany, China, Spain, Sweden
2001 sales: 2.7bn euros - Order book: 1.6bn euros 19,000 employees

18. IT & Services key references
Secure
Operations
Positioning
Based Solutions
Communications
Components
Services
& Solutions
Information
Systems
Manufacturing for a
broad range of applications
Electron tubes
& devices for digital broadcasting, satellite
& ground communications, diagnostic imaging, industry
& science
HF micro-wave & GaAs components & modules
A world leader in security
infrastructure solutions for B2B and B2G markets
e-government solutions
Crypto security, IT security
Smart card technology
Biometrics & associated
technologies
Physical security (ID cards for China)
N° 2 world-wide in
professional & consumer satellite navigation
GPS satellite positioning
technology (prestigious
brands like Magellan)
Telematics solutions
Car navigation systems
Galileo programme
Turnkey solutions
for broadcasting, transport and telecoms
Terrestrial radio &
TV transmission -
systems in over 170 countries
NBC detection
High-performance
embedded computers
Transport services
European player in the systems integration market
for Finance, Industry, Services and Public sector
International
references for turnkey systems of control & command for energy and transportation

19. A worldwide customer base
United Kingdom
15%
Rest of the world 4%
Middle East
12%
North America
12%
2001
sales breakdown
by region
Asia-Pacific
13%
Rest of Europe
19%
France
25%

20. Thales in the UK 2001 sales: £1.2bn (15% of total Thales sales)
Mesl
Edinburgh
Geosolutions
Aberdeen, Chessington, Norwich, Bath
2001 sales: £1.2bn (15% of
total Thales sales)
12,000 employees in 70 main locations
90% of sales to the UK are
sourced from the UK
Over £2bn in the UK
invested over last 10 years
2nd largest defence supplier
Acquired well-known names:
Racal, Shorts Missiles, Pilkington Optronics, Rediffusion, Thomson Marconi Sonar, Thorn
Missiles, Avimo, etc.
Optronics
Glasgow, St. Asaph, Staines,
Taunton, Belvedere,
Bury St Edmonds, Plymouth
Sensors
Crawley, Leicester,
Basingstoke, Linlithgow,
Chessington, Hersham
Antennas
Sittingbourne, Southampton
Air Defence
Belfast
Avionics
Raynes Park
Navigation
Romsey, London, Chessington
ATM
Chessington
e-Security
Aylesbury, Brighton
Computers
Northampton
Communications
Wells, Reading, Harrow,
Crawley
Training
& Simulation
Crawley
e-Transactions
Salisbury
Naval
Bristol, Farnham, Fleet,
Templecombe, Stockport
Electron devices
Basingstoke
Citylink
London
Information systems
London, Manchester, Crawley
Telecommunications services
Doncaster, Reading,

21. Provence-Alpes-Côte d'Azur Main areas of locations
Thales in France
Brittany
Paris area
2001 sales: 2.5bn euros
35,000 employees in 70 main locations
First supplier in defence
Rhône-Alpes
Aquitaine
Midi-Pyrénées
Provence-Alpes-Côte d'Azur
Main areas of locations

22. Thales in the Netherlands
2001 sales: 375m euros
(export represents 150m euros)
2,600 employees in 4 locations
The largest defence company in the
Netherlands
The main center of excellence for Thales naval activities
Huizen
Communications
Den Haag
Optronics
Hengelo
Naval
Eindhoven
Munitronics
Cryogenics

23. Thales in North America
2001 sales: $1.2bn (12% of Thales sales)
3,000 employees in 30 main
locations
81% of North American sales
sourced from North America
All three business areas represented:
22 subsidiaries and joint ventures
ThalesRaytheonSystems:
first transatlantic JV
world-leader in air defence systems
Main areas of locations

24. Thales Underwater Systems Thales Training & Simulation
Thales in Australia
2001 sales: 500m euros
3,200 employees in 10 main locations
Major defence & aerospace programmes
FFG frigates
Minehunters
Bushmaster
Simulation
Tiger helicopter avionics
TAATS (ATM)
Export platform for Asia Pacific region,
e.g. ATM for China
Thales Geosolutions
Thales Underwater Systems
Thales Training & Simulation
Thales Pacific
Pty Ltd
Thales ATM
ADI
Australia's biggest defence contractor
JV 50/50 with Transfield

25. Thales shareholding as of 20 December 2002
Publicly traded
47.4%
(incl. employees 4.8%)
Thales
5.6%
Alcatel
9.5%
Dassault Industries
5.7%
French State
31.8%