Thales

www.thalesgroup.com

Our strategic vision

Working together for a safer world

contents O  UR STRATEGIC VISION p01 our mission p03 our STRATEGY p05

about our businesses

thales style

 efence D p07

sharing expertise p38

 ecurity S p15 space p19 c  ivil Aerospace p25 g  round transportation p31

a  chieving excellence p40 Thales around the world p42

OUR STRATEGIC VISION

Vision

Work together for a safer world.

Mission

Enable our customers to decide quickly in critical situations.

Positioning

We serve five key markets: defence, security, space, aerospace and ground transportation. We provide equipment, systems and services that help our customers to master the critical decision chain.

Strategy Growth

Innovation

Performance

Strengths EXPERTISE Shared talents and technologies

EXCELLENCE Strong values and integrity

Our strategic vision_01

02_Our strategic vision

our

Mission With greater mobility, growing complexity and new vulnerabilities, what does it take to make the right decisions at the right time and act accordingly? In a world that is increasingly mobile, interconnected and interdependent, the security of people and goods, infrastructure and nations depends on leaders and organisations and their ability to decide and act in a timely fashion and obtain the best outcomes. In the markets that Thales serves – defence, security, space, aerospace and ground transportation – these decisions are often of critical importance. Navy, army and air force commanders, as well as air traffic controllers, policymakers and infrastructure operators, face these critical decisions and need full, relevant and reliable information to understand the situation and make the right choices.

The critical decision chain Our role is to assist our customers in making these decisions by providing the tools and technologies they need to gather, process and distribute information, helping them to understand complex situations so they can decide and act in a timely fashion and obtain the best outcomes.

This understanding of the critical decision chain underpins our innovation and technological developments in areas such as largescale software-driven systems, secure communications, sensors (radar, sonar, optical), supervision, onboard electronics, satellites and systems integration. These technologies and capabilities, and the central role of human factors in critical decision-making, are common to all our activities. The Group’s employees constantly need to develop their skills to stay ahead in these areas. We have built up an in-depth knowledge of the markets we serve and, with operations in 56 countries, we have developed close relationships with local customers to grasp the intricacies of their operational decision-making processes and propose the best solutions for every situation. Across all our businesses, the company’s 68,000 employees are guided by a proactive policy of corporate responsibility that is key to managing risks and driving performance.

THE CRITICAL DECISION CHAIN Security / Integrity Sensors

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SSecure eecure ddata aata ttransmission ra

DData aata pprocessing rrocessing > IInformation

Decision De ecision Support Su

Action Ac ction

Assessment As ssessment

Our strategic vision_03

Space

Aerospace

Ground transportation Defence

04_Our strategic vision

Security

OUR

STRATEGY Our strategic objective is to generate sales of e20 billion a year by 2020, balanced equally between civil and military markets, and to span the entire value chain from equipment to systems-of-systems, with services accounting for 25% of our business.

Underpinning our vision of the future is a clear strategy based on some key strengths: dual civil/military capabilities, an involvement in several highly complementary markets, and an exceptional international footprint. The three planks of our strategy are as follows:

1- Growth

Most of today’s growth markets are in Asia, Latin America and the Middle East. We intend to further expand our local industrial operations to meet the demands of local customers – most of them national governments – who want their countries to benefit directly from the skills and technologies that a company like Thales can provide. Under this new approach to its markets, Thales has empowered local entities, in their areas of specialisation and in line with their capacities and potential, to develop and grow their businesses. This is one of the key principles behind Thales’s new organisation, which aims first and foremost to keep us in touch with our customers as closely as possible.

Key Account Managers provide a single point of contact for major customers around the world and develop unique, long-term relationships with each account. Europe remains Thales’s historical core market. As a key player in the defence community, with a significant industrial presence in many European countries, we are playing a leading role on some of Europe’s largest programmes, most of them conducted on a cooperative basis, in areas as varied as equipment and systems for land forces, aerospace, naval defence, satellites, missile systems and C4I1 – a role that strengthens our positions in these domestic markets and adds prominence to the part we may play in any further industry consolidation. In civil aviation, space and ground transportation, Thales is a major player on some of today’s largest strategic projects. With the expansion of air traffic, growing use of satellites and plans to upgrade ground transportation infrastructure, this experience is an important asset for the future.

1. Command, Control, Computers, Communications and Intelligence.

Our strategic vision_05

our

STRATEGY

Thales defines innovation as anything that breaks with the past and creates value, as perceived by customers.

2- Innovation To provide customers with high-tech solutions and services that meet their future requirements, Thales needs to innovate constantly. The purpose of all our innovations is to create value for customers, sometimes by using technology but also by finding new ways of doing business or organising ourselves, better ways to manage our processes and combine our talents. The effectiveness of Thales’s R&D effort hinges largely on the decentralised nature of our operations, with centralised coordination around strategic priorities. R&D teams are based in all the company’s main countries of operation. One of the priorities of Thales’s R&D policy is to develop technological synergies across the organisation, particularly by leveraging our dual civil/military capabilities, so that all our markets benefit from the full potential of our expertise and experience. Key projects in areas including command and control, hypervisors, high-grade computer security and active-array radar antennas are being conducted on a multi-divisional basis for this reason. Thales is stepping up its policy of open innovation with the

academic community, research institutes and innovative SMEs. We are also speeding up our investments in the resources needed to create global product lines in areas including tactical software radio, radar, sonar, optronics, maritime surveillance, cybersecurity, air traffic control and rail signalling.

3- Performance Only high-tech businesses that continuously improve their operational performance, simplifying their processes and optimising the way they manage projects and risks, will have the enduring investment capacity they need to develop state-of-the-art solutions for their customers over the long term. Setting best-in-class standards, sharing best practices and learning how to work even more cohesively as a team – these are the objectives of the Probasis performance plan for 2010-14 and our new business process baseline, the Chorus 2.0 reference system. This comprehensive set of measures is steadily enhancing our ability to meet the commitments we make to our customers.

DIVISIONS AND AREAS The Group’s operations are organised by division and by geographical area. Divisions are responsible for defining global market strategies, setting research and development priorities, product policy and industrial policy, to meet long-term profitability targets set at corporate level. Thales has seven divisions: Defence & Security C4I Systems, Defence Mission Systems, Land Defence, Air Operations, Avionics, Transportation Systems, and Space.

06_Our strategic vision

Geographical areas are responsible for implementing these global strategies and policies in line with Thales’s short-term profitability objectives. They also have responsibility for managing commercial relationships with local customers, order intakes, revenues and financial performance.

Our mission

Support the armed forces in accomplishing their missions in the traditional defence environments – air, land, sea and space – and the emerging environments of urban combat and cyber warfare, and meet growing demand from governments for integration of defence and security forces. Our commitment is to provide equipment, systems and services offering the interoperability and scalability needed for deployed forces to gain and maintain decision-making and operational superiority under all circumstances.

about

DEFENCE

Our strategic vision_07

about

DEFENCE

More information and faster decisions are critical as the threat environment evolves.

How we see your world The world is more complex, as are the defence challenges faced by the world’s governments, which must plan for large numbers of potential crisis situations of varying types and degrees of severity. T hreats are less predictable and generally require greater levels of information and more rapid decision-making to deal with them. The nature of threats has blurred the traditional lines between civilian environments and the traditional battlespace, raising the need for new approaches to defence and increasing the importance of precision-strike capability to minimise collateral damage. In the same way, the need to counter the threat of terrorism and cyber attack is blurring the lines between defence and security.

08_Our strategic vision

Battlespace CONOPS have become more complex, not only due to changing threats, but because of the growing need to conduct joint forces operations and/or operate in coalition with the forces of other nations at different levels of technological maturity. Connectivity, interoperability and flexibility have become key to mastering the complexity of command structures. Advances in technology and the transformation of the armed forces have brought new sensors, communication systems and operational capabilities, opening up new opportunities.

European leader in defence electronics

all types of sensors secure communications and combat systems

Lead systems integrator on major air, land and naval platform programmes

Significant growth in services

THE BREADTH OF OUR BUSINESS We provide all branches of the armed forces with a complete range of equipment, systems and services fully integrated into land, air and naval platforms to meet new demand for interoperability and C4ISTAR (Command, Control, Communications, Computers, Intelligence, Surveillance, Target Acquisition and Reconnaissance), secure communications, information systems security, etc. From sensor to effector, our interoperable and scalable solutions cover all elements of the critical decision chain:

By making it simpler to coordinate joint and coalition operations and deliver the right effect at the right time, our solutions help deployed forces maintain decision superiority under all circumstances. From system design to through-life support and personnel training, our service capabilities ensure that the solutions we deliver continue to perform optimally, now and in the future.

Threat detection and identification Secure data management Secure transmission of information Situational awareness Decision support tools Control of engagements Deployment of appropriate responses

Our strategic vision_09

about

DEFENCE

By embedding all of our defence and weapons systems, equipment and solutions within the critical decision chain, we enable members of the armed forces to focus on their core missions.

What makes us different? A  common platform of technologies Thales designs and develops defence systems based on the same technologies for all of the key markets we serve. They all draw on our expertise in critical software architectures to provide the requisite levels of security, real-time operation and complexity management.

Interoperability is part of our genetic code With our multi-environment, multi-platform credentials and a broad offering of complementary equipment, systems and services, we have a rare ability to offer the connectivity, interoperability, versatility and scalability needed to coordinate operations, particularly joint engagements or coalition operations.

Local presence We have industrial operations on five continents. By operating as local partners as closely as possible to our customers – an approach to defence markets that was pioneered by Thales – we can better understand their requirements, tailor our offering to each country and forge partnerships at the local level by leveraging the global strength of the Group in terms of technology, methodology and funding. Our extensive marketing & sales network completes this international organisation and enhances our ability to meet the diverse needs of our customers by offering everything from stand-alone products to the most sophisticated systems solutions.

Innovative services In recent conflicts, we have demonstrated our ability to deliver innovative service solutions. In Afghanistan for example, Thales has been working alongside NATO forces for several years, providing high-security information and communication services.

10_Our strategic vision

The critical decision chain By embedding all of our defence and weapons systems, equipment and solutions within the critical decision chain, we enable members of the armed forces, from front-line military personnel to senior commanders, to focus on their core missions so they can decide and act in a timely fashion and obtain the best outcomes.

about

DEFENCE

CREDENTIALS Air

Thales equipment and systems have made the Rafale omnirole aircraft the best performer in its generation. They include the RBE2 radar with its active phased array antenna, the Spectra electronic warfare suite, the front-sector optronics, the laser targeting pod, real-time datalinks, avionics, communications, IFF and electrical power generation systems. Thales is also contributing to the aircraft’s principal weapon systems as well as providing pilot training solutions and through-life support services for its onboard equipment and systems.

Thales avionics systems equip all types of platforms: combat aircraft (Rafale, Mirage 2000, MiG, etc.), transport aircraft (A400M, FSTA, C-295, C-130, etc.), missiles and launch vehicles (Exocet, Scalp, Ariane, etc.), UAVs (Watchkeeper, Barracuda, Neuron) and helicopters (NH90, Tiger, Agusta A109 LUH, Chinook, etc.).

Thales is prime contractor for the United Kingdom’s Watchkeeper system, Europe’s largest UAV-based battlefield surveillance programme. In Afghanistan, Thales is providing UK forces with a UAV-based surveillance capability under an “ISTAR by the hour” service agreement with guaranteed availability ahead of deployment of the Watchkeeper system. The fleet of UAVs had flown more than 50,000 hours on over 4,000 sorties by autumn 2011 and had provided the lion’s share of airborne ISTAR support (Intelligence, Surveillance, Target Acquisition and Reconnaissance) for UK forces in current operations.

The all-digital Ground Master 400 radar has already been selected by Canada, Estonia, Finland, France, Germany, Malaysia and Slovenia.

Thales is the architect of large integrated air and missile defence systems. Our core competencies span the design, development and integration of very short (MMS, Gun System), short (Crotale, ADES) and medium range (SAMP/T) air defence and precision strike systems and associated missiles (VT1, Starstreak and LMM). The Group is also one of Europe’s leading suppliers of active, semi-active and passive seekers and fuzing systems.

Thales is a member of the Eurosam consortium in charge of Europe’s major cooperative missile programmes: SAMP/T (Sol Air Moyenne Portée Terrestre) and PAAMS (Principal Anti-Air Missile System).

Thales equips UK forces with high-precision VSHORAD systems based on Starstreak missiles and is developing the new LMM (Lightweight Multi-Mission) missile family.

Thales’s Crotale system is now in service with the armed forces of more than 10 countries, including the French Air Force and Navy.

Our strategic vision_11

about

DEFENCE CREDENTIALS

LAND

The Bushmaster armoured patrol and combat support vehicle has consistently demonstrated its performance, in particular its resistance to land mines and IEDs, in Iraq and in Afghanistan, where it equips Australian and other coalition forces. Some 800 Bushmaster vehicles have been built to date.

The Thales Hawkei has been chosen by the Australian government for its new Light Protected Vehicle programme.

Thales also provides route proving and clearance systems for vehicles, including the Talisman system in service with UK forces.

Thales has been selected with Nexter and Sagem to define the architecture for the Scorpion programme, which will upgrade the French Army’s joint tactical capabilities by networking ground troops and weapon systems in real time.

In the Netherlands, Thales has developed and delivered to the Royal Dutch Navy the first integrated mast, a single structure housing virtually all the vessel’s sensors and antennas, including fixed-panel active-array radars optimised for littoral operations and missions in difficult environments.

NAVAL

For future soldier systems, Thales is prime contractor on the FIST programme in the United Kingdom and the Land 125 programme in Australia, and is also providing equipment for the infantry forces of the future. The Group is also developing equipment for several soldier systems programmes in Europe, including France’s Félin, IdZ in Germany and Normans in Norway.

In the United Kingdom, Thales is a co-prime contractor in the Aircraft Carriers Alliance (ACA), the overall prime contractor for the CVF carrier programme. ACA comprises the British MoD, BAE Systems, Babcock and Thales UK. Thales is directly responsible for the design of the platform, the flight deck operations and the supply of the power and propulsion systems.

Thales is making a significant contribution to the European FREMM frigate of the future and its multi-mission capabilities. Thales systems on France’s FREMM frigates include a sonar suite (hull-mounted and towed-array sonars), with exceptional range capabilities on silent targets, the Herakles multifunction radar for continuous long-range surveillance and missile fire control, the Artemis infrared search and track system as well as electronic warfare and internal and external communications.

More than 35 naval forces around the world have selected Thales’s Tacticos combat management system. For all types of naval vessels, from Offshore Patrol Vessels (OPVs) to front-line frigates, Thales offers a unique capacity to integrate sensors and effectors within an open architecture that helps to protect the ship and secure its combat mission.

In France and the United Kingdom, Thales sonar suites enhance the discretion and situational awareness of the nuclear submarines in both countries’ deterrent forces.

Thales provides complete maritime patrol and surveillance solutions. The Amascos integrated onboard mission system includes sensors such as the Ocean Master surveillance radar and an acoustic subsystem (sonar). Thales is working with aircraft manufacturers and other platform specialists on large-scale maritime patrol and surveillance programmes in Turkey (Meltem), the United Arab Emirates and elsewhere.

12_Our strategic vision

C4I (Command, Control, Communications, Computers, Intelligence)

SPACE

Thales Alenia Space is prime contractor for Italy’s SICRAL telecommunications satellite systems (selected by NATO) and the COSMO-SkyMed dual-use radar observation satellites. Other references include the Athena-Fidus and Syracuse programmes, the Helios intelligence systems and the Spirale early-warning system.

Thales is joint prime contractor with Astrium on the French defence procurement agency’s ELISA (Electronic Intelligence by Satellite) programme.

Founded in 2001, ThalesRaytheonSystems (TRS) is the world’s first transatlantic joint venture in the defence industry. TRS is owned equally by Thales and Raytheon. The company is currently prime contractor for numerous programmes, including BCS-F (Battle Control System-Fixed) for the United States Air Force, North America’s first line of defence against external and internal air threats, the French Air Force’s air command and control system (SCCOA/Système de Commandement et de Conduite des Opérations Aériennes) and NATO’s Air Command & Control System (ACCS) programme. ACCS will provide NATO member states with the capability to plan and execute air defences and air operations and is the largest software system ever designed by NATO. ACCS will also be at the heart of the planned ALTBMD system (Active Layered Theatre Ballistic Missile Defence), which will coordinate anti-ballistic missile capabilities in Europe.

Thales is a major player in software defined radio technology, which will support the critical decision chain in the theatre of operations and is one of the keys to battlespace digitisation. The Group is taking part in development programmes for this new generation of equipment in France (Contact), Europe (Essor, SVFuA) and the United States (JTRS). Through its partnership with Rockwell Collins, Thales is already proposing Flexnet, the first international radio to ensure full compliance with software defined radio standards.

Thales designs and manufactures optronic components and systems for day/night surveillance, reconnaissance, protection and target designation by all types of land, naval and airborne platforms. More than 1,000 successful reconnaissance missions have been conducted with the Reco NG system since it entered service with the French armed forces in 2010.

The Group is a trusted partner for the development of cybersecurity solutions. Thales solutions detect, analyse and respond to cyber attacks to ensure the integrity and authentication of data at security levels ranging from sensitive but unclassified to top secret.

Consolidating its position as a vehicle electronics integrator, the Group is responsible for integration of an open electronic architecture (OIC2S) for 257 new 8x8 armoured vehicles ordered by the Malaysian Army.

In 2011, Thales delivered the first 3,000 examples of its Teorem telephone handset, a high-grade security product for senior government officials, military leaders and government ministries handling classified information.

Our strategic vision_13

about

DEFENCE CREDENTIALS

C4i

Thales radio products cover the spectrum from VLF to EHF and draw on solid expertise in secure mobile radio, datalink technology, satellite communications terminals, identification, radionavigation and communications electronic warfare.

Thales has successfully delivered innovative, secure communication and information system services in Afghanistan for almost five years. The Thales solution comprises multiple points of presence throughout the country and serves more than 7,000 NATO users. It is the core infrastructure of the Afghan Mission Network, which ties together all information and communication systems in the theatre of operations

NATO Thales is NATO’s leading supplier of C4ISTAR systems, as illustrated by the contract to supply the LC2IS system (Land Command & Control Information System) for the Alliance’s command structure as well as the ACCS (Air Command and Control System) programme (see C4I).

14_Our strategic vision

Thales has extensive credentials as a provider of resilient networks, both fixed and tactical, for deterrent forces. The Group has deployed nationwide networks – with hundreds of nodes and up to 10,000 subscribers – that offer guaranteed levels of service availability even in the event of a major catastrophe. Thales is also developing its range of services and offers all the capabilities needed to operate these resilient networks after deployment. The company is providing secure communication and information services for NATO forces in Afghanistan, and will operate the networks for France’s new armed forces headquarters under a long-term public-private partnership.

The Group’s cryptography solutions are deployed in 22 NATO countries. Its Echinops product for IP networks, which received NATO top secret certification in 2011, guarantees a high level of system and data security so that French forces can meet their commitments to allied forces within the NATO integrated command structure.

Our mission

Develop integrated, resilient solutions which help governments, local authorities and civil operators to protect citizens, sensitive data and infrastructure. We focus primarily on urban security, airport security, border surveillance and infrastructure security. Our commitment is to provide customers with solutions and value-added services that afford timely protection and bring them access to full, relevant and reliable information so they can make the right choices at the right time and act accordingly. By helping them to focus on their core activities, we improve their operational efficiency.

about

SECURITY

Our strategic vision_15

about

SECURITY

Hypervisor is a supervision platform for infrastructure and urban security.

How we see your world The world we live in is completely open. Personal mobility, the free flow of capital, goods and services, cloud computing and universal access to information are part of our everyday lives.  odern societies are interconnected, and the infrastructure that M allows them to function plays a critical role. As the nervous system of our societies, this infrastructure needs not only to improve quality of life but to guarantee the security that is possibly our most precious asset in ensuring a sustainable future. Whenever governments, local authorities, infrastructure operators and businesses have to deal with complex situations, they must combine the need for security with the quality of the services they provide.

Security threats are inherently difficult to manage because there are so many different types – terrorism, cybercrime, urban crime, trafficking, illegal immigration, natural disasters, industrial accidents, etc. – and because they are constantly evolving. But their economic impact can be enormous. Speed of response is increasingly crucial to ensuring security: responders and decision-makers need to be alerted as early as possible, and they need faster access to reliable, detailed information so they can decide and act effectively in a crisis situation. Information systems themselves are more vulnerable to attack, so it has become crucially important to ensure the security of data and data networks.

What makes us different? O  ur systems integration capabilities for large-scale, complex systems and our ability to leverage our customers’ legacy solutions.

Our international footprint and a proven ability to work with local partners throughout the world.

 ystems offerings built around key technologies that we fully S understand: sensors, networks and information systems security, secure cloud computing, algorithms, data fusion, management of large volumes of video, voice, text and data.

An understanding of our customers’ lines of business based on a direct involvement in emblematic programmes.

16_Our strategic vision

No. 1 worldwide in security for interbank electronic transactions

No. 3 worldwide

hardware-based encryption systems

No. 1 in Europe

information systems security

Strong growth critical infrastructure security and border protection

THE BREADTH OF OUR BUSINESS We provide complete solutions and services with a primary focus on urban security, airport security, border surveillance, infrastructure security and cybersecurity. We provide long-term support to our customers, with a complete catalogue of services ranging from security consultancy to instruction and training, through-life support, maintenance management and technical assistance for system installation and deployment as required.

Our strategic vision_17

about

SECURITY

CREDENTIALS Infrastructure

Critical information systems

Thales solutions protect some of the Middle East’s largest airports. At Dubai International Airport, for example, which handles 50 million passengers a year, we supplied, integrated and commissioned security and communication systems (10,000 access control points, 1,500 IP network cameras, 7,000 km of cabling). At New Doha International Airport, Thales designed and integrated security, safety and communication systems (1,000 IP network cameras). Thales also provided security solutions for King Shaka International Airport, Durban, South Africa, ahead of the 2010 FIFA World Cup.

Thales solutions protect the information systems of 19 of the world’s 20 largest banks, three of the biggest players in the IT sector, four of the biggest oil companies and nine of the top ten high-tech companies.

Large-scale events

Data protection

Thales is a key player in the construction and operation of the French Ministry of Defence’s new Balard headquarters in Paris. The 30-year contract includes installing secure information and communication systems and providing operation and maintenance services for 9,300 users, 1,000 visitors per day, 15,000 desktop computers, 10,000 telephones and numerous fixed and mobile videoconferencing suites. Thales is also responsible for security at the complex and will operate videosurveillance and access control systems.

The Teopad security solution for professional applications on smartphones and tablets is already available for Android devices. Companies can now manage the security of their information assets without requiring employees to use a particular type of handset. The security technique implemented by Teopad is patented by Thales.

Urban security Grands événements

Each year, millions of Muslims make the Hajj pilgrimage to Mecca, the world’s largest religious gathering. Since 2005, the pilgrimage has been made safer by a system supplied by Thales. The system is designed to monitor and optimise crowd movements, and comprises an innovative videosurveillance solution with CCTV cameras and real-time crowd density management at key locations. The data from these field sensors is supervised by an advanced data analysis and decision support system.

18_Our strategic vision

Identity management systems in more than 25 countries, with 200 million identity documents produced to date.

France has selected Thales on the BioNET project to provide the biometric data acquisition system for Schengen visa applicants. Under this contract, Thales is in charge of the secure central system used to store visa applications, the interface with the central Schengen biometrics system, enrolment stations in Algiers, London, Izmir and Istanbul for capturing and recording fingerprints and photographs, as well as secure data transmissions over the Internet incorporating encryption and electronic signature technology.

Thales, in partnership with Mexican telecoms operator Telmex, is providing Mexico City (population: 22 million) with a system designed to prevent and respond to crime, terrorist threats and natural disasters. Based on the Thales Hypervisor solution, the integrated system includes a national C4I command centre, five regional command and control centres, two tactical mobile command and control centres, more than 8,000 CCTV cameras installed in the streets and in the 175 stations on the city’s 11 metro lines, four unmanned reconnaissance aircraft and a city-wide network of emergency call points.

Our mission

Help satellite operators, space agencies, governments and military customers to design, develop and deploy orbital infrastructure, systems, ground segments and related services in the key sectors of telecommunications, Earth observation, navigation and science. Our commitment is to anticipate the needs of our customers and provide the solutions they require, from orbital infrastructure to turnkey services, to accomplish their missions and optimise their investments.

about

space

Our strategic vision_19

about

SPACE

Space systems play a crucial role in meeting the major environmental and security challenges of our times, exploring the universe and deploying new information technologies.

How we see your world Satellites and space systems play a crucial role in modern societies, helping us to meet the major environmental and security challenges of our times, explore the universe and deploy new information and communication technologies. Four segments of the space market are particularly buoyant today: telecommunications, Earth observation (radar and optical), satellite navigation and space exploration. Telecommunications Users require mobility, connectivity and capacity. In other words, they need to be able to connect at any time, from anywhere in the world, and they need access to networks with the capacity to handle ever-increasing volumes of data. It is increasingly important for operators to anticipate this need for greater capacity while optimising their investments, which are particularly costly in the space sector. To keep pace with users’ requirements, boost transmission capacity and be ready to serve new geographical areas, manufacturers are building greater flexibility into the design and operation of satellites, which have an average design life of 15 years, so that they can be reconfigured from the ground.

20_Our strategic vision

Operators also need to optimise their systems, both on the ground and in orbit, and maximise return on investment by achieving lowest cost per transponder. Such is the challenge facing satellite manufacturers in creating value for their customers. Earth observation The quality of Earth imagery needs to be constantly enhanced. Demand for high-resolution data is set to grow in the future as optical and radar imagery becomes more available, and as applications and services offer more breadth, better quality and evolving cost models. Technology readiness and control of the value chain are critical in this complex market as it moves towards full maturity. The ability to offer proven high-resolution optical and radar technologies, which are long, costly and difficult to develop, will be a key discriminator. Another key to success is the ability to provide services to exploit satellite data and deliver it in useful and usable forms. Products that can fuse high-resolution optical and radar data, already vital for military applications, will also be crucial in meeting institutional and commercial demand as it grows and evolves.

No. 1 in Europe and No. 3 worldwide in civil satellites, and a major player in orbital infrastructure

No. 1 worldwide

payloads for telecommunications satellites

No. 1 in Europe military satellite systems navigation systems

THE BREADTH OF OUR BUSINESS We design, manufacture and deliver end-to-end space systems for telecommunications, Earth observation, navigation and science. We span the entire value chain from equipment, payloads and satellites to systems engineering and services.

Our strategic vision_21

about

SPACE

Thales Alenia Space is a leading player in European space exploration programmes.

Navigation With multiple navigation infrastructures, future users will have access to more signals and greater precision than ever before. Today, the whole world relies on GPS technology. In the future, four Global Navigation Satellite Systems (GNSS) will be available: the American GPS system, Russia’s GLONASS, Europe’s Galileo system and the Chinese Beidou system. In this new environment, redundancy of precise navigation signals will create new opportunities to renew or develop orbital infrastructures, especially for rail and road traffic management security. Closer convergence is expected between navigation and telecommunications applications as operators address growing demand for certifiable location-based services (LBS), which are key to the development of secure payments via mobile phones, for example.

22_Our strategic vision

In air navigation, Satellite Based Augmentation Systems (SBAS), which have recently been certified in Europe (EGNOS), the United States (WASS) and India (Gagan), will be an essential component of NextGen and SESAR, the air traffic management programmes of the future. This technology will increase capacity, safety and flexibility in dense air traffic regions and sections of airspace with no surveillance today. Science Governments and space agencies continue to demonstrate a real commitment to expanding our knowledge of the universe and developing robotic exploration of the planets in our solar system.

What makes us different? Our space businesses complement our other activities, and vice versa, meaning we can offer our customers complete end-to-end solutions.

Our expertise in payload technologies is also well established and we have a record of innovation that supports our ability to anticipate future developments such as adaptive payloads.

In defence, for example, space systems are a key component of C4ISTAR (Command, Control, Communications, Computers, Intelligence, Surveillance, Target Acquisition and Reconnaissance). Satellite systems provide a global, 24/7 observation, surveillance, communications and geolocation capability. They are a key link in the critical decision chain, supporting a range of functions from threat detection, risk analysis, assessment and prediction to strategic mission planning and preparation. 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. The complementary nature of our businesses is a distinctive competitive advantage.

Earth observation We are the European experts in high-resolution technology for optical and radar applications, and the industry mainstay of Europe’s spacebased meteorology, oceanography and climate change efforts. Through Telespazio, we offer a range of value-added satellite services.

Telecommunications Thales draws on its systems capabilities to act as prime contractor for constellations of satellites.

Navigation Our systems capabilities have also brought us a pivotal role on the Galileo and EGNOS programmes. Science Our breadth of technologies and engineering credentials are valued assets on complex space exploration programmes. We also have extensive experience of managing large-scale multipartner projects at reasonable cost.

Our strategic vision_23

about

SPACE

CREDENTIALS Telecommunications

Thales Alenia Space is prime contractor for several constellations: Globalstar 2nd generation, O3b and Iridium Next, the world’s largest low-Earth-orbit constellation.

Defence

Navigation

The company is also a major player on Arabsat, Hispasat, Koreasat 6, Loutch 5/6, Nilesat, OverHorizon, Palapa-D1, RascomStarQaf, Thor 6, Turksat 3A, W2A, Yahsat, Yamal and others.

Thales Alenia Space is prime contractor for Italy’s SICRAL telecommunications satellite systems (selected by NATO) and the COSMO-SkyMed dual-use radar observation satellites. Other references include the Athena-Fidus and Syracuse programmes, the Helios intelligence systems and the Spirale early-warning system.

Galileo: Thales Alenia Space is lead company for system design and end-to-end integration, and prime contractor for the ground-based Galileo Mission Segment (GMS). The company is also prime contractor for EGNOS, the lynchpin of the future Galileo system.

Thales Alenia Space is contributing to almost all of Europe’s climate-related space missions and is a preferred partner to space agencies around the world (ESA, Eumetsat, CNES, ASI, NASA, NOAA, JAXA, CSA, KARI, etc.) for Earth observation projects.

The company is the world leader in operational oceanography with its Poseidon radar altimeters and has more than thirty years’ experience as a prime contractor on weather forecasting satellite programmes through Meteosat, MSG and MTG.

Earth observation

Thales Alenia Space is closely involved in the GMES programme (Global Monitoring for Environment and Security) and built the Sentinel-3 satellite for ocean and vegetation monitoring.

Science

Thales Alenia Space is prime contractor for ExoMars, Europe’s first mission to land on Mars, and for the Herschel & Planck programme. The company is also contributing to the largest European space exploration missions: Huygens, Rosetta, Mars and Venus Express.

24_Our strategic vision

Thales Alenia Space has supplied 50% of the pressurised volume of the International Space Station (ISS).

Our mission

Add to the future prosperity of the civil aerospace sector by providing equipment, systems and services – both in the air and on the ground – to support aircraft manufacturers, airlines, air traffic controllers, airports and civil aviation authorities in meeting the challenges of growth, safety, economic and environmental performance, security and passenger comfort. Our commitment is to provide, under extremely tight security constraints, the high-performance electronic systems and IT solutions that crews and controllers need to master any situation and take the right decisions at the right time.

about

Civil aerospace

Our strategic vision_25

about

Civil aerospace

Thales proposes a full range of equipment, systems and services, from instruction and training to through-life logistics support.

How we see your world Challenges The civil aerospace sector, including air traffic management, commercial air transport, business aviation and helicopters, serves the citizens and economies of the world. The growth of this sector mirrors – and is a condition for – economic growth and the expansion of personal freedoms. The principal challenges facing this market are safety, security, environmental protection, passenger comfort and economic performance. For major industrial countries, aircraft manufacturing is of enormous strategic value in both technological and economic terms. Context Although levels of activity in the civil aerospace sector depend on the economic context, strong growth is expected in the coming decades because of a combination of three factors: – Growth in global air traffic. In some regions, the number of flights is expected to triple between now and 2030. – Renewal of transport aircraft fleets. – The progressive opening up of airspace that has been closely restricted until now. This will be favourable to growth in business aviation and the use of helicopters.

26_Our strategic vision

However, faced with fierce competition and the arrival of new market entrants, the civil aerospace sector needs to meet some major challenges in economic terms (fuel costs), environmental terms and operational terms (airspace congestion). Consequences These growth prospects and challenges are driving major investments, in particular: – Aircraft manufacturers are developing new, more efficient aircraft in all segments: commercial airliners, business aircraft and helicopters. – Air navigation agencies are seeking to optimise air traffic management. – Operators, particularly airlines, are seeking to optimise their operations both on the ground and in the air. – Airlines are seeking to enhance passenger comfort. The importance of a comprehensive approach to these issues is becoming increasingly clear. While remaining under the authority of crews and controllers, information technology, communications and automated processes will play a crucial role.

No. 1 worldwide in air traffic management

more than 40% of the world’s airspace managed by Thales air traffic control centres Thales equipment used by two-thirds of the aircraft that take off and land in the world every day

No. 3 worldwide and No. 1 in Europe in flight avionics supplier to all the major aircraft manufacturers – Airbus, ATR, Boeing, Bombardier, Dassault, Eurocopter, Gulfstream, Sikorsky, Sukhoi – with an involvement in all their new programmes

No. 2 worldwide in-flight entertainment and connectivity

THE BREADTH OF OUR BUSINESS We are involved across the entire value chain (ground, air, space). Thales designs, develops and delivers avionics equipment and systems, cabin systems (IFE, etc.), radar systems, air traffic management and navaids solutions and simulation and training solutions. Thales offers its customers a range of services, from optimised equipment and system design to maintenance, user instruction and training, and logistics.

Our strategic vision_27

about

Civil aerospace

Thales equips all types of civil aircraft – commercial airliners, regional, business aircraft and helicopters.

What makes us different? G  round and onboard systems We are the only company in the world with leadership positions in both onboard equipment (cockpit and cabin solutions) 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 challenges of air transport.

Backed by a global product policy, we provide scalable solutions based on a platform of shared, proven technological building blocks. Our potential for innovation is also reflected in new systems that add value for customers (COOPANS). This is also why we have a closer involvement than any other European company in every aspect of the future of air traffic management, in particular through the European SESAR programme.

Innovation With this breadth of complementary expertise and our capabilities in key technologies (sensors, critical information systems, secure information and communication systems), combined with our in-depth knowledge of the civil aerospace market, we are able to design the innovative, high-reliability systems that our customers require. This capacity enables us to develop new solutions and new services (EGNOS, 4D trajectory prediction, ADS-B, MLAT, etc.) and to take a comprehensive and integrated approach to the full spectrum of requirements of our civil aerospace customers.

Geographical reach Our aerospace businesses are located on four continents. This enables us to understand and address the needs of each customer and to form partnerships with local players – in Russia with Sukhoi, in China in air traffic management, in the United States in navigational aids, etc. With the critical decision chain as our focus, we deliver solutions to reduce the workloads of operators, controllers and crews, enabling them to concentrate on their primary missions.

28_Our strategic vision

about

Civil aerospace

CREDENTIALS Air traffic management

More than 160 air traffic control centres around the world are equipped with the Eurocat system. More than 600 radars and 1,000 ADS-B stations have been supplied by Thales worldwide.

Thales is the only company in the world to supply all the components needed for air traffic control (communications, navigation, surveillance, automation).

COOPANS: Established in 2006, COOPANS is a cooperative agreement between Thales, as ATC system supplier, and the civil aviation authorities of five European countries (Austria, Croatia, Denmark, Ireland and Sweden). Its purpose is to anticipate technological evolutions driven by the Single European Sky initiative and meet the financial challenge they represent.

CoFlight/4Flight: The DGAC (Direction Générale de l’Aviation Civile), which controls the majority of flights in Europe (more than 3 million a year), is modernising its ATC centres based on the latest technological developments in the Eurocat system.

Brazil: Thales has installed more than 100 radars for the Brazilian civil aviation authority (DECEA) to provide comprehensive nationwide coverage (almost half the entire airspace of South America).

TAAATS: The Australian Advanced Air Traffic System (TAAATS) supplied by Thales integrates and automates the processing of GPS and radar data, flight plan information and aircraft positions. It has a footprint of 56 million square kilometres, equivalent to 11% of the world’s surface area, and handles 3.2 million air traffic movements each year.

NESACC: The system supplied by Thales covers the busiest section of China’s airspace. It provides China with an integrated air traffic management system which controls more than 80% of the country’s air movements.

SAAATS: This system supplied by Thales covers South Africa’s national airspace and surrounding ocean areas – a footprint of over 32 million square kilometres – and handles more than 500,000 air movements each year.

Thales in-flight entertainment systems have been chosen for all next-generation long-haul aircraft (B787, A380, A350).

With Thales broadband satellite communication systems and onboard wi-fi communication solutions, passengers now have access to in-flight telephone service and Internet connectivity.

In-flight entertainment

After earlier successes in Australia, France and Korea and with Eurocontrol in the ADS-B market (Automatic Dependent SurveillanceBroadcast), Thales was chosen to deploy 1,600 ADS-B ground stations throughout the United States as part of a team led by ITT.

More than 130,000 passengers use Thales in-flight entertainment systems every day, equivalent to almost 50 million users per year. To date, close to 150,000 systems have been sold to 60 airlines around the world for more than 1,000 aircraft.

Our strategic vision_29

about

Civil aerospace CREDENTIALS

Avionics – Navigation

For the A350 XWB, Thales is developing the most innovative and most comprehensive avionics suite ever conceived. The next-generation cockpit for this aircraft incorporates a number of technological advances, including new displays designed to make the pilots’ work easier. The programme is also an opportunity for Thales to introduce its new ADIRU air data inertial reference unit, which will provide high-precision in-flight positioning information and is a key component of the aircraft’s navigation system.

For the Sukhoi SuperJet 100, or SSJ100, Thales is supplying core avionics equipment as well as integrated maintenance systems, standby instrumentation equipment, flight guidance, management and recording systems, communication and navigation systems and flight deck display and control equipment.

Eurocopter’s next-generation helicopter (X4) is expected to feature some major technological breakthroughs. Under an agreement with Eurocopter and Safran, Thales will develop the new helicopter’s avionics suite. The Group will also be involved in its optronics and communication systems.

Smart user interfaces developed by Thales play a crucial role in optimising pilot workload and improving the safety and security of flight operations.

Major programmes of the future

With dozens of software-based systems hosted on a unified hardware platform, integrated modular avionics solutions from Thales deliver substantial savings in terms of weight and maintenance costs.

Thales flight management and precise positioning systems (inertial navigation, GPS) are shaping the future of air navigation and landing procedures in dense traffic conditions.

Thales is a key contributor to future programmes – SESAR in Europe and NextGen in the United States – to improve air traffic safety and efficiency and reduce fuel costs. On the SESAR programme, for example, Thales was actively involved in the definition of the overall system architecture and has since been selected as co-lead contractor for the development of next-generation air traffic management systems, the system-wide information management intranet and new communication, navigation and surveillance technologies.

Thales is also closely involved in the projects coordinated by the French civil aerospace research council (CORAC). These projects aim to improve consistency between aerospace research and innovation efforts in order to protect the environment and promote sustainable development. In particular, the Group is working on demonstrators for extended modular avionics, optimised energy management (GENOME) and the cockpit of the future.

Onboard electrical systems Thales has a strong presence in the market for onboard electrical power generation and conversion systems.

30_Our strategic vision

Thales is also taking part in the Clean Sky joint technology initiative, a European partnership between the public and private sector focused on developing the technologies needed for a clean, innovative and competitive air transport system. Particular areas of focus for Thales under this programme include flight plan optimisation and onboard electrical power management.

Our mission

Enable main line and urban transport operators and network managers to get the most out of their infrastructure by mastering the growing complexity of transport networks, and provide services that improve the passenger experience and make public transport more attractive. Our commitment is to provide our customers with the technological solutions and services they need to operate their infrastructures at higher capacities and greater efficiency, allowing passengers and goods to get to their destinations more quickly, at lower cost and in maximal safety.

about

Ground transportation

Our strategic vision_31

about

Ground transportation Thales has unparalleled signalling experience in over 50 countries and was the first in the industry to introduce computer-based systems in critical railway applications.

How we see your world The ability to run transportation networks smoothly and efficiently is crucial to economic prosperity and social harmony at both national and local levels. The steady increase in passenger volumes around the world makes these networks more and more complex to manage. Several megatrends impact the transportation business: Growing urbanisation. In 2011, for the first time in human history, more than half (51%) of the worldwide population lives in urban areas. That proportion could rise to 61% by 2030. This concentration of people in urban areas makes transportation networks even more vital. Increasing population densities, the need for greater mobility within cities and between cities, and the need to minimise transport-related environmental damage, mean that transport networks (road, rail, tram and bus) must be interconnected to provide passengers with a seamless, efficient means of reaching their destinations. Growing intercity traffic. Rail passenger traffic is growing, with an average annual increase of 5% between 1998 and 2008, and similar growth is projected until 2025.  lobalisation of trade flows. Rail freight traffic is growing even G faster than passenger traffic. At the same time, there is a need to optimise road transport and comply with measures aiming to reduce its environmental impact.

32_Our strategic vision

Ageing rail infrastructure. Many rail networks in Europe, the United States and Russia are more than 40 years old and therefore need to be upgraded to improve safety and increase capacity. This modernisation needs to achieve multiple goals. Network operators are being asked to deliver greater capacity, and at the same time they are also facing demand from users for faster transport at lower cost, whilst maintaining safety standards. The only way to combine increased infrastructure capacities, higher profitability, maximal safety and better service will be to automate critical operations. The impact of new technology. As well as the deployment of electronic systems in critical rail applications – a technological revolution pioneered by Thales – the widespread adoption of new technology by the general public (magnetic cards, contactless smartcards, smartphones, etc.) is shaping the future of ticketing and passenger information systems. For example, dedicated smartphone applications are rapidly gaining momentum for ticket reservations and payments, and for customised passenger information services.

No. 2 worldwide in rail

signalling systems

World leader

ETCS systems (European Train Control System) for main line rail networks CBTC solutions (Communications-Based Train Control) for urban rail networks integrated communication and supervision systems for transportation networks

THE BREADTH OF OUR BUSINESS We design, develop and deliver equipment, systems and services that enhance the safety and operational efficiency of ground transportation infrastructure worldwide: Signalling: electronic interlocking, train control (ETCS, CBTC, etc.), trackside equipment Supervision (traffic management for trains, metros, light rail systems and road traffic, supervision of infrastructure and equipment, etc.) Passenger information & comfort: public announcements, broadband Internet access, etc. Security: onboard and in-station videosurveillance, access control, fire detection, emergency call points Communications: ground-to-train communications, communication backbone, radio communication applications (GSM-R, Tetra), telephony and voice services Fare collection for public transport Country-wide road tolling, urban congestion charging

Parking management Services: from systems design consultancy to throughlife support and maintenance and operator training, our service capabilities ensure optimal, long-term operation of the systems we provide.

Our strategic vision_33

about

Ground transportation

Some 7,000 Thales rail specialists are working close to our customers in more than 20 competence centres and integration centres worldwide.

What makes us different? O  ur capacity to innovate The technological breakthroughs we have introduced are structuring the market. They have gained acceptance among our customers and now form the basis of proven solutions. These new technologies have had a profound effect on the ground transportation sector: CBTC systems (Communications-Based Train Control) for metros, moving-block signalling control, ETCS systems (European Train Control System) for main line rail, contactless smartcards, nationwide multi-modal, multi-operator fare collection systems, integrated supervision systems, etc. In the transportation market, safety requirements and the needs to secure revenue are crucial. We have successfully promoted and introduced computerised systems that have proven their worth in terms of both safety and performance. Thales has succeeded as an innovator in the transportation sector because of its capabilities as an integrator and developer of automation solutions and information systems, backed by expertise in new technologies for telecommunications, avionics, defence

34_Our strategic vision

and security applications. For more than 75 years, the majority of our R&D investment has been focused on developing and optimising critical information management processes. Most of the other players in the transportation sector today have traditionally been rolling stock providers. In contrast, we have a systems approach that enables us to develop innovative solutions based on state-of-the-art technologies, optimising performance and return on investments at the same time as optimising the overall life cycle cost of transportation systems. This systems approach has brought us the experience needed to design the best solutions for any configuration of infrastructure and any type of rolling stock. Being part of the Thales Group and the ability to share best practices with other businesses, particularly aerospace and security, brings us critical skills in areas such as project management and methodology.

about

Ground transportation

CREDENTIALS National transport systems

The rail networks of more than 20 countries are equipped with Thales interlocking systems. Thales is the leading supplier of electronic interlocking systems to Réseau Ferré de France (RFF), which owns and maintains the French national railway network.

Thales is the worldwide leader in deployment of the ERTMS standard (European Rail Traffic Management System), with more references than any other provider (Algeria, Austria, Bulgaria, Germany, Hungary, Mexico, Poland, Romania, Saudi Arabia, South Korea, Spain, Switzerland, Turkey, etc.). Thales is involved in all the major ongoing projects worldwide, including Saudi Arabia’s 2,400 km North South Railway, the world’s longest rail line to be equipped with ETCS Level 2.

Half of Spain’s high-speed network – the largest high-speed line network in the world – is equipped with interlocking signalling and ETCS systems and telecommunications systems supplied by Thales.

Thales provided signalling systems incorporating ETCS technology for the Lötschberg high-speed train tunnel in Switzerland, which manages heavy international freight and passenger traffic with maximum safety. Every day, up to 110 trains use the 37 km tunnel – the longest underground rail tunnel in the world – travelling at speeds of up to 250 km/h. Endorsing Thales’s recognised expertise in this area, the tunnel contractor entrusted Thales with testing overall interoperability between train and trackside ETCS systems installed by different suppliers.

Thanks to SelTrac CBTC technology, the Docklands Light Railway – one of the busiest lines in the London transport system, with 70 million passengers a year – delivers 98% reliability.

Successful projects for the metros in Beijing (1.2 million passengers a day on the two lines equipped by Thales), Shanghai (1.6 million passengers a day on the 5 lines equipped by Thales), Wuhan, Guangzou and Hong Kong have made Thales a market leader for metro signalling systems in mainland China. Thales is currently equipping New York’s Flushing Line.

Urban transport

As a member of the Ecomouv consortium, Thales is deploying an EU-compliant heavy goods vehicle eco-tax collection and control system in France. This project is part of the French government’s environmental protection initiative and is being implemented through a publicprivate partnership.

The CBTC signalling solution (Communications-Based Train Control) was first deployed by Thales on Vancouver’s driverless metro in 1986. Today, CBTC technology has become the de facto standard for urban rail systems. Since then, with more than 30 metros equipped with its SelTrac CBTC solution and over 10 million cumulative hours of operation to its credit, Thales has more experience with this solution than any other provider in the world.

Our strategic vision_35

about

Ground transportation Credentials

Urban transport

In Mecca, Saudi Arabia, Thales delivered, tested and commissioned a turnkey CBTC signalling system for the new metro in just 18 months. The driverless Al Mashaaer Al Mugaddassah metro has changed the lives of the 2 million pilgrims who converge on the holy city each year. It can transport 72,000 passengers an hour between the city’s holy sites, cutting the travel time between Arafat and Muzdalifah from five hours to just 20 minutes! Some 23 million passengers used this system in 2010.

Transport for London, the company in charge of upgrading the main London Underground lines, selected Thales to install its signalling system on the Jubilee Line. The solution increases service frequency by reducing train headways without compromising safety. Combined with new rolling stock, the systems increase line capacity by 20% and improve reliability. A joint team of experts from Transport for London and Thales adapted SelTrac to the difficult conditions in the century-old London Underground.

Ticketing

In the Netherlands, Thales has deployed the first-ever nationwide ticketing system, enabling travellers to use the same contactless travel card on trains, buses, trams and metros anywhere in the country. This multi-modal, multi-operator system has been warmly received by public transport users. A total of 10 million contactless cards have been sold to date and the system records 25 million transactions a week.

36_Our strategic vision

Thales has provided ticketing systems for cities throughout the world, including Auckland, Bangkok, Caracas, Johannesburg, Lisbon, New Delhi, Oslo, Singapore, Taipei and Toronto.

In Paris, Thales is the sole supplier of electronic interlocking systems to the public transport operator, RATP: a total of 15 Locktrac PMI 6721 systems have been installed on the Paris metro.

The second line on the Dubai metro, the Green Line, officially opened on 9 September 2011, exactly two years after the first line, the Red Line, came into service. The 75 km Dubai system is now the longest driverless metro system in the world. It transported 39 million passengers in 2010. Demonstrating world-class systems integration capabilities, Thales provided a complete solution (CBTC, telecommunications, ticketing, car park management) on a turnkey basis.

Thales

style

Our strategic vision_37

sharing

expertise Thales’s development hinges on its expertise in technologies that are common to all of its businesses. The Group’s future success also depends on continuous improvement in project delivery and competitive performance and the ability to leverage the dual military/civil nature of its core technologies.

Thales is committed to continuous improvement in the quality of its systems, products and services throughout the programme life cycle. Underpinning this commitment are three basic principles:

Anticipate and meet customer requirements To propose innovative, long-term solutions that are tailored to the needs of its customers, Thales operates a worldwide network of marketing and sales professionals, key account managers and technology platforms. Thales actively stimulates the spirit of innovation that has always been part of the Group’s history and culture. We define 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. It may change the business, or it may spawn new generations of products, but it always needs to be visible in the marketplace. Technical innovation is clearly important for Thales because the products, solutions and services we provide are technologyintensive.

Whenever appropriate, Thales pursues a global product policy to develop the attractive, competitive offerings that will sustain its future growth. The corresponding R&D effort is optimised by focusing on modular architectures and product families that can be tailored to user requirements.

Thales teams throughout the world are driven by this quest for innovation. The central research labs of Thales Research & Technology, for example, have introduced a system of open innovation built to maximise interaction with both the academic research

38_Our strategic vision

community and Thales’s operational units. Concept development and evaluation environments offer new opportunities to work with customers on real-life scenarios and to develop solutions that meet their current and future operational needs. At the same time, innovative product policies are being implemented to systematically shorten development cycles and limit programme risks. The spirit of innovation brings employees together across borders, uniting them behind two key strengths: the breadth of applications for Thales technologies across all business areas; and an enduring focus on dual technologies.

Thales recognises the crucial importance of maintaining its own high-level capabilities in a number of key technology domains: Complex systems Hardware (or sensor technologies) Software Algorithms and decision aids

Thales conducts its research programmes to support operating units in their efforts to differentiate the Group’s products and solutions and gain a competitive advantage. The effectiveness of Thales’s R&D hinges largely on decentralisation at the operational level, with teams working out of more than 80 locations in the company’s main countries of operation, and close coordination around a few strategic themes.

Advanced pre-product research focuses on new technologies, new system and product concepts, and new engineering tools and methods for critical information systems. Thales Research & Technology, a network of corporate laboratories, makes a key contribution at this level as an interface between the academic research community and technological developments by Group entities. Dual technologies are a central plank of Thales’s strategy. With a balanced mix of military and civil businesses, Thales is recognised for its expertise in all the key technologies behind 21st century defence and security capabilities: large-scale software systems, onboard electronics for all types of platforms, secure communications and transactions, sensors (radar, sonar, optical), supervision, and satellite technologies.

Drawing on this common platform of dual technologies, Thales builds the tailored solutions its customers need, bringing civil markets the benefits of military research and development and leveraging the latest civil technologies into the next generation of defence systems.

From the smallest product to the most complex system, Thales solutions harness the power of innovation for every environment (land, air, space, maritime and underwater).

68,000

One-third of the Thales Group’s employees are directly involved in innovation.

Supporting customers

Thales guarantees the operational availability and reliability of its products, equipment and systems, throughout their life cycle. Thanks to its international footprint, the company has the capability to provide customers with timely, tailored through-life support and innovative services. As a programme prime contractor and high-tech equipment supplier, Thales needs to meet particularly stringent requirements in terms of performance, security and on-time delivery. Long-term risk management is crucial. As a service provider, the requirements are just as demanding, with a growing emphasis on fast and flexible responses and guaranteed availability and quality of service. Thales’s management system plays a crucial role in achieving longterm customer satisfaction, listening to their needs, meeting commitments, being proactive and agile, building trust and staying in touch at the local level.

Each Thales business unit can adapt this management system to its specific activities and the local context to achieve the necessary levels of responsiveness and flexibility. The system helps the company to maximise synergies, capitalise on lessons learned and pool knowledge, know-how and best practice throughout the organisation. Continuous improvement in our performance and the level of satisfaction of our customers relies in particular on a common baseline of processes applied by every Thales employee. The Chorus 2.0 project was launched in 2009 to develop this Group-wide baseline of business processes and disseminate best practices as quickly and as effectively as possible. The key objectives of the Chorus 2.0 project are to improve risk management, simplify our processes and ensure they are applied throughout the organisation, facilitate teamwork and support effective quality assurance.

Measuring quality The quality of our products and services depends on how closely they respond to the customer’s expectations. In every case, the key metrics are on-time delivery and conformity to specifications. Depending on the sector of business, other quality criteria can

include technical performance, reliability and security, or speed of response and compliance with contractual turnaround times. Thales’s service commitment structures the efforts of the entire workforce, as well as those of the company’s partners and suppliers.

Our strategic vision_39

achieving

Excellence Just as our know-how is founded on technologies that are common to the whole Group, our excellence is based on a set of core values and commitments shared by all employees.

Our values Thales encompasses a rich variety of professional backgrounds and national cultures. Wherever we are and whatever our role, we are bound together by our values. They reflect who we are collectively, what we believe in and what we stand for. They are part of a set of demanding standards of ethical conduct and corporate responsibility that we apply to every aspect of our work on a daily basis. The four core values shared by the Group’s 68,000 employees worldwide are as follows: Focus on customers, because customers are the constant priority of all Thales people. Each in our role, and speaking with one voice, we strive to create sustainable satisfaction for our customers. By delivering top-quality service and innovative solutions, we work with our customers as partners and earn their trust. Perform through teaming, because we recognise that a team is

always more effective than the sum of its parts. In all circumstances, teamwork is what enables us to create the best possible solution. Innovate, because innovation is the driving force behind everything we do. There are opportunities for innovation in every aspect of our work, opportunities to create a competitive edge by remaining open-minded to new ideas. We dare to do things differently, to find a better way. Develop our people, because believing in their potential is a basic mark of respect. Our most precious asset is the knowledge and expertise of our employees, so investing in their continuing development is always a priority. These values form the basis of our unifying vision of the Group – a vision that is shared by Thales people everywhere and embraces the diversity of our employees throughout the world.

Attracting and retaining the best talent

Thales is well aware of the importance of a proactive recruitment policy in attracting the best talent to its businesses around the world. As part of this policy, the Group maintains close relations with the universities and graduate schools working in its sectors of activity. For Thales, being an employer of choice means attracting and retaining talent. The Thales human resources management system is therefore designed to empower employees, recognise achievement and provide real potential for professional and geographic mobility within the organisation. The Thales human resource policy places a premium on teamwork and collective achievement as well as individual development to underwrite the overall performance of the Group. Training is a pillar of professional development. The Group’s

40_Our strategic vision

training policy is designed to meet the collective requirements of continuous improvement and change management, while taking employees’ individual aspirations and career objectives fully into consideration. The mainstay of this training policy is Thales University, which has a dual mission to promote the professional development of Thales employees and strengthen cohesion around the core Thales values by developing a common corporate culture. Thales University has campuses in Australia, France, Germany, Italy, the Netherlands, the United States and the United Kingdom, and provides training courses in more than 20 countries. In 2010, more than 200,000 hours of training were provided by Thales University to over 9,300 employees around the world.

A proactive integrity programme As a global player in key markets related to the safety and security of people, goods and information, Thales recognises the need for irreproachable business conduct. The Group has put in place a proactive integrity programme and attaches the utmost importance to ethical business practices with respect to customers, suppliers, employees, shareholders, financial markets, the environment and society at large. Responsible business relationships with customers form the bedrock of this company-wide policy. Sales and transfers of technology and equipment are strictly managed to ensure compliance with national, European and international laws and regulations. At the same time, Thales deploys its own corruption prevention and export control procedures based on the highest international standards. Protecting the environment is also a priority. Thales has been implementing an environmental protection policy since 1997 to help protect natural resources, mitigate health risks and ensure that its environmental performance meets or exceeds all legal requirements. Under this policy, the Group adheres to national and international regulations and plays an active role in setting standards and best practices for the entire industry. Ensuring compliance is part of responsible risk management policy that accommodates the complexity of the Group’s businesses and addresses regulatory pressure and increasing calls for transparency in business operations. The policy is founded upon rigorous processes and a robust system of internal control. At the same time, corporate responsibility is a strategic imperative for the Group in that it opens up opportunities for innovation, creating competitive advantages that contribute directly to the future success of the company.

To maximise employee ownership of its ethical commitments, Thales encourages new approaches hinging on the concepts of collective intelligence and mutual trust supported by a Groupwide Code of Ethics and a dedicated organisation in charge of ensuring compliance with the principles it sets forth. Large-scale awareness and training programmes are organised systematically for all employees. Collective intelligence involves sharing best practices and maintaining responsible, constructive dialogue with all stakeholders. Thales is one of the driving forces behind initiatives such as the International Forum on Business Ethical Conduct, bringing together all the major companies in the aerospace and defence sector that share the Group’s commitment to responsible business practices.

Since 2003, Thales has been a proud member and supporter of the United Nations Global Compact and has adopted its ten principles in the areas of human rights, labour, the environment and corruption prevention. Each year, Thales submits a progress report to the organisation and actively promotes these principles in its sphere of influence.

Our strategic vision_41

Thales around

the world With operations in 56 countries, Thales has invested in forging long-term relationships at the local level and building up a detailed understanding of each customer’s requirements. This policy has been in place for many years. It has made the Group a major industry player in its traditional countries of operation and is now helping to build the Thales brand in emerging economies where growth prospects are strong. Local operations around the world bring Thales access to local programmes, opportunities to form partnerships with local industries and research institutes, and endless sources of technology and talent. A Group-wide network of Key Account Managers, competence centres and integration centres embodies the focus on customers and long-term customer satisfaction that sets Thales apart from its competitors.

68,000 employees worldwide with the same focus on customer satisfaction

42_Our strategic vision

DeFENcE

SeCURITy

SPACE

civil AeROspace

France 3  4,650 people M  ain locations: Meudon, Elancourt, Rungis, Colombes, Sophia Antipolis, Vélizy, Cannes, Brest, Toulouse, Pessac/Le Haillan. R  &D: key role and numerous agreements with the École Polytechnique, Supelec, CNRS, Université Pierre et Marie Curie, and the III-V Lab with Alcatel-Lucent and CEA.

United Kingdom 7  ,820 people Main  locations: London, Crawley, Raynes Park, Belfast, Basingstoke, Wells, Glasgow, Reading, Templecombe, Leicester, Cheadle Heath. R  &D: cooperation agreements with Cranfield, University College London, Queen’s University Belfast.

Germany 2  ,980 people M  ain locations: Stuttgart, Frankfurt, Laupheim, Ulm, Koblenz, Kiel, Pforzheim. C  ompetence centre in mainline rail signalling. C  ompetence centre in tubes and amplifiers for satellites. Joint ventures with Diehl in avionics (Diehl Aerospace) and cabin systems (Diehl AirCabin).

spain 1  ,850 people M  ain location: Madrid.

Portugal 2  20 people M  ain location: Paço de Arcos.

Norway 1  80 people M  ain location: Oslo.

Italy 2  ,800 people M  ain locations: Rome, Turin, Florence, Chieti, Milan, L’Aquila. T hales Alenia Space and Telespazio, joint ventures with Finmeccanica, make up the Space Alliance.

Netherlands  ,030 people 2 Main locations: Hengelo, Huizen, Delft. R&D: cooperation with Delft University of Technology and TNO.

Belgium

ground TRANSPORTation

research CENTRE

Switzerland 2  40 people M  ain location: Zurich.

Austria 3  20 people M  ain location: Vienna.

RomaniA 1  90 people M  ain location: Bucarest.

Saudi Arabia 8  80 people M  ain locations: Riyadh, Jeddah. Joint venture with AEC in simulation. R  &D: framework cooperation agreement with King Saud University.

United Arab Emirates 390 people  ain locations: Abu Dhabi, Dubai. M In Abu Dhabi, Thales has formed the TAS (Thales Advanced Solutions) joint venture with C4 Advanced Solutions (C4AS), a subsidiary of Emirates Advanced Investments (EAI), and signed a cooperation agreement with Khalifa University.

South Africa 280 people Main location: Midrand. Industrial base for exports to the whole of Africa.

Canada 1  ,370 people M  ain locations: Ottawa, Toronto, Montreal. C  ompetence centre in metro signalling solutions. C  ompetence centre in uncooled optronic systems for defence.

United States 3  ,000 people M  ain locations: Arlington (VA), Clarksburg (MD), Edison (NJ), Fullerton (CA), Irvine (CA), Phoenix (AZ), Pittsburgh (PA), Seattle (WA), Shawnee (KS), Totowa (NJ). T hree joint ventures: ThalesRaytheonSystems, world leader in air defence systems, ACSS (with L-3) in aviation communication and surveillance systems, and Advanced Acoustic Solutions with DRS Technologies in sonar systems. C  ompetence centre in in-flight entertainment systems. R  &D: framework agreement with Georgia Tech.

Mexico 1  40 people M  ain location: Mexico City.

Brazil 3  20 people (Omnisys) M  ain location: São Paulo. O  mnisys, a wholly owned subsidiary, is a competence centre in long-range air traffic control radars.

South Korea 1  ,820 people (STC) M  ain locations: Seoul, Gumi, Daejon, Bundang, Yongin. S  amsung Thales Co. (STC) Ltd, a joint venture formed in 2000 with Samsung in the defence sector.

China 6  30 people M  ain locations: Beijing, Shanghai, Nanjing, Kunming, Hong Kong. R  esearch cooperation agreements with Beijing Jiaotong University and Tongji University (Shanghai). S  everal joint ventures in air traffic management (Beijing Easy Sky Technology Ltd, Thales Tianjin Radar Technologies), transportation, optronics and tubes for medical applications (Shanghai Thales Electron Tubes).

Singapore 4  80 people Joint laboratory with CNRS and Nanyang Technological University.

Australia 3  ,330 people M  ain locations: Sydney, Melbourne, Bendigo, Benalla, Rydalmere. C  ompetence centre in air traffic management systems. C  ompetence centre in military vehicles.

India 2  00 people M  ain locations: Delhi, Bombay, Chennai, Cochin, Vishakapathnam, Gwalior. Joint venture with Samtel in avionics.

820 people  ain locations: Charleroi, Tubize, Liege, Brussels. M

Staff numbers valid at 31 December 2011. Details given for countries with 100 employees or more.

Our strategic vision_43

Published by the Thales Corporate Communications Department. Photos: cover: Gravity. – Inside front cover: Jasper James © Getty Images – p. 02 : Tim McConville © Corbis – p. 06 : Peter Allan – p. 07 : Gravity – p. 09 : ECPAD – p. 11 : A. Paringaux, Russell © IMPACT IMAGE, Y. Bourdin/Photopointcom, Ken Best, G. Clair, Photopointcom – p. 12 : Australian Department of Defence, J. Byron, Crown © MOD 2010, Fabrice Gaumont, Rawson, Y. Bourdin/Photopointcom, DCNSH, Franssen, Airbus Militar y – p. 13 : CNES, REGY Michel 2009 PHOTON © CNES, J.-F. Ruiz, Y. Bourdin/Photopointcom – p. 14 : Fabrice Gaumont, Y. Bourdin/ Photopointcom, K. Brustad, OTAN – p. 15 : Gravity – p. 16 : B. Fricaudet – p. 17 : Master Image Programmes, SPLIT IMAGE – p. 18 : I. Galli, SPLIT IMAGE, Artefactory, A Photography © Getty Images, glowImages © Getty Images – p. 19 : ESA – p. 20 : THALES ALENIA SPACE – p. 21 : Briot © THALES ALENIA SPACE, THALES ALENIA SPACE – p. 22 : ESA – p. 23 : Briot © THALES ALENIA SPACE – p. 24 : Briot © THALES ALENIA SPACE, Pierre Jalby © THALES ALENIA SPACE, THALES ALENIA SPACE, J. Huart © ESA, D. Ducros © CNES, J.-L. Bazile © THALES ALENIA SPACE, D. Ducros © ESA – p. 25 : Gravity – p. 26 : Photopointcom – p. 27 : Felix & Associés, Mario Guerra Paris – p. 28 : Y. Bourdin/Photopointcom – p. 29 : A. Filipe, I. Drusany © CROATIA CONTROL, L. Thollon/Femme publique, G. Berry, G. Sortais, Youri Thonon – p. 30 : A. Frespuech, Eurocopter, Ph. CONI, P. Darphin, Mario Guerra Paris, Felix & Associés, EXM Company/S. Ognier © AIRBUS 2005 – p. 31 : Gravity – p. 32 : Patier © RENFE – p. 33 : Fernando Guerra & Sergio Guerra © ARQUITECTURBIS LDA, J. Woitas – p. 34 : Jean-Marc Fabbro © SNCF Médiathèque – p. 35 : Bruno Vignal © SNCF Médiathèque, Jean-Marc Fabbro © SNCF Médiathèque, Patier © RENFE, Comstock © Getty Images, SNC-L – p. 36 : RATP, Agence Complex © Hargreaves – p. 37 : G. Bassignac/Abaca Press – p. 39 : P. Stumpf © Abaca Press – p. 41 : T. Hierl © DIEHL. Design and production :

44_Our strategic vision

01 55 76 11 11 • 11094. February 2012.

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