Thales Sa · EURONEXT:HO
Thales Sa — Investor Presentation (September 2025)
68 slides from Thales Sa's investor presentation, September 2025
Slide 1: Investor meeting
Investor meeting September 2025 www.thalesgroup.com
Slide 2: Table of contents
Table of contents 01 02 03 04 2028 strategy & Introduction to Thales H1 2025 results 2025 priorities & outlook financial trajectory1 05 Sustainability: safer, greener, more inclusive 1Presented at the Capital Markets Day held on November 14, 2024 2
Slide 3: Thales today: a global tech leader in Defence, Aerospace, Cyber & Digital
Thales today: a global tech leader in Defence, Aerospace, Cyber & Digital Sales by segment Adjusted EBIT margin R&D total spend 27% Aerospace 11.6% 11.8% 11.0% 10.2% Avionics 9.0% ~16% 8.1% 53% ~70% ~30% €20.6bn Defence Customer- ~€4.2bn Self-funded funded R&D ~20% of sales R&D 20% Cyber & Digital 2
Slide 4: Portfolio focused on leading and highly synergistic businesses
Portfolio focused on 3 leading and highly synergistic businesses Critical decision chains Sensing and data gathering Data transmission and storage Data processing and decision making Military Flight management Aerospace Observation satellites communications systems Defence Advanced sensors Digital s
Slide 5: Thales builds on 4 key strengths
Thales builds on 4 key strengths Connectivity Big data Mobility analytics Artificial Cyber- intelligence AI security Cutting edge R&D Deep domain knowledge Large digital asset base Global presence ~€4.2bn, ~20% of sales Top 3 globally or Thales portfolio: Presence in 60+ ~70% customer-funded #1 in E
Slide 6: Table of contents
Table of contents 01 02 03 04 2028 strategy & Introduction to Thales H1 2025 results 2025 priorities & outlook financial trajectory1 05 Sustainability: safer, greener, more inclusive 1Presented at the Capital Markets Day held on November 14, 2024 6
Slide 7: H1 2025 highlights
H1 2025 highlights > Sales up high-single digit, driven by Avionics and Defence > Supportive context in Defence offering further mid-term opportunities for Thales > Order of 26 Rafale Marine by the Indian Navy booked in Q2 2025 > £1.16bn Air Defence contract with the UK MoD for the supply of 5,000 L
Slide 8: H1 2025 key figures
H1 2025 key figures Order intake and book-to-bill (€m) Sales (€m) Adjusted EBIT(b) (€m and %) -4% +8.1% -4%(a) +13.9% +8.1%(a) 12.2% 1.13 1.01 +12.7%(a) 11.5% Adjusted net income, Free operating cash-flow(b) (€m) Net cash (debt) position(b) (€m) Group share(b) (€m) +1% a. Organic: at constant scope
Slide 9: H1 2025 order intake
H1 2025 order intake Order intake by contract unit value > Solid H1 order intake €m Reported growth H1 23 vs. H1 25: +21% > Order of 26 Rafale by the Indian Navy with a unit Reported growth: -4% value above €1 billion in H1 2025 Organic growth: -4% > 3 orders with unit value above €500m in H1 2024 >
Slide 10: H1 2025 organic sales growth
H1 2025 organic sales growth H1 sales growth drivers > Scope and currency impact > Positive scope impact, mainly resulting from Cobham €m Reported growth: +8.1% Aerospace Communications acquisition > Negative currency impact, mainly linked to EUR/USD Organic growth: +8.1% and EUR/AUD evolutions Orga
Slide 11: H1 2024 to H1 2025 Adjusted EBIT bridge
H1 2024 to H1 2025 Adjusted EBIT bridge €m Gross margin -13 0 Equity -12 1,248 -23 affiliates R&D Marketing G&A Scope, currency and & sales Restructuring +28 pensions 1,096 +160 +12 Naval Group: -9 Others: +37 Scope: +23 Currency: -9 Pensions: -2 H1 2024 H1 2025 Adjusted EBIT Adjusted EBIT 11
Slide 12: Aerospace: H1 2025 key figures
Aerospace: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Order intake 2,658 2,688 -1% -3% Sales 2,759 2,582 +6.8% +5.8% Adjusted EBIT 252 167 +50.9% +36.4% in % of sales 9.1% 6.5% +2.7 pts +1.9 pts > Order intake broadly stable vs. H1 2024 > Solid underlying demand in Avionics > Space
Slide 13: Defence: H1 2025 key figures
Defence: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Order intake 5,751 6,120 -6% -6% Sales 5,581 4,938 +13.0% +12.7% Adjusted EBIT 720 639 +12.6% +13.5% in % of sales 12.9% 12.9% 0.0 pts +0.1 pts > Order intake facing tough comparison basis, strong underlying momentum remains > 6 la
Slide 14: Cyber & Digital: H1 2025 key figures
Cyber & Digital: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Sales 1,862 1,934 -3.7% -1.9% o/w Cyber 708 746 -5.0% -3.5% o/w Digital Identity 1,153 1,188 -2.9% -0.8% Adjusted EBIT 265 272 -2.5% -0.6% In % of sales 14.2% 14.1% +0.2 pts +0.2 pts o/w Cyber 97 102 -5.6% -3.4% o/w Digital
Slide 15: Summary adjusted P&L: from Adj. EBIT to Adj. net income
Summary adjusted P&L: from Adj. EBIT to Adj. net income €m H1 2025 H1 2024 Adjusted EBIT 1,248 1,096 Cost of net financial debt and other financial results (86) (55) Finance costs on pensions and other employee benefits (26) (28) Income tax (277) (193) 1 Effective tax rate 26.7% 20.4% Adjusted net i
Slide 16: H1 2025 Free operating cash-flow
H1 2025 Free operating cash-flow €m H1 2025 H1 2024 > Improvement in WCR Operating cash flow before WCR changes, 1,526 1,472 variance compared to last interest and tax year + Change in WCR and reserves for contingencies (530) (995) > Continued satisfactory payment profile from customers + Pension ca
Slide 17: Movement in net debt over H1 2025
Movement in net debt over H1 2025 €m Net debt Net debt at 31 Dec 24 at 30 Jun 25 Free operating Acquisitions Dividends cash-flow & disposals paid New leases -64 (IFRS16) Others -3,044 +499 -586 -118 -114 -3,427 17
Slide 18: Table of contents
Table of contents 01 02 03 04 2028 strategy & Introduction to Thales H1 2025 results 2025 priorities & outlook financial trajectory1 05 Sustainability: safer, greener, more inclusive 1Presented at the Capital Markets Day held on November 14, 2024 18
Slide 19: Key 2025 priorities
Key 2025 priorities Continued ramp up to capture market growth Maintained innovation leadership Space recovery plan Integration of acquisitions 19
Slide 20: Solid progress in H1 2025
Solid progress in H1 2025 1 Continued ramp up 2 Restoring Space profitability to capture market growth Adaptation plan: 75% of Further capacity expansions positions redeployed (e.g., Cholet, Hengelo, Recent commercial wins Gdansk) supporting profitability recovery Recruitments: Thales ranked
Slide 21: 2025 financial objectives: sales organic growth guidance upgraded
2025 financial objectives: sales organic growth guidance upgraded 1 2 3 Order intake Sales Adjusted EBIT margin(b) Book-to-bill +6% to +7%(a) 12.2% to 12.4%(a) above 1 organic growth, vs. +5 to +6% previously corresponding to €21.8 to €22.0 billion Upgraded Assuming no new disruptions of the macroec
Slide 22: Table of contents
Table of contents 01 02 03 04 2028 strategy & Introduction to Thales H1 2025 results 2025 priorities & outlook financial trajectory1 05 Sustainability: safer, greener, more inclusive 1Presented at the Capital Markets Day held on November 14, 2024 22
Slide 23: Strategic priorities
Strategic priorities LEVERAGE REINFORCE DIFFERENTIATE REINFORCE STRENGTHEN PREMIUM PORTFOLIO PREMIUM THROUGH EMPLOYER OUR ESG TO DELIVER GROWTH POSITIONING TECHNOLOGY ATTRACTIVENESS LEADERSHIP • Maintained leadership • Combined delivery • Embracing technology • Investment in our • Protecting our soc
Slide 24: 80-90% of revenues exposed to fast growing markets with long-term visibility
1. 80-90% of revenues exposed to fast growing markets with long-term visibility… DEFENCE AEROSPACE CYBER & DIGITAL Defence ~5.5% Avionics ~8% Space ~2% Cybersecurity ~12.5% Digital Identity ~6% • Increased defence budgets and • Civil avionics: growth driven by • Increasing incidence of cyber focus o
Slide 25: …which combined with resilience enables strong development ambitions
1. …which combined with resilience enables to have strong development ambitions RESILIENCE DEVELOPMENT OPPORTUNITIES Wide-range portfolio in all domains > Presence in land, air, naval, joint, cyber, > Accelerate revenue growth through and space DEFENCE faster conversion of backlog into sales Platfor
Slide 26: Reinforcing our premium position to the benefit of our clients
2. Reinforcing our premium position to the benefit of our clients Delivery excellence: industrial capacity ramp-up, supply chain securitization 1 Lead in sustainability to protect our Lead in technical and non-technical societies, people, and the planet 7 2 innovation and co-innovation Constant upgr
Slide 27: Anticipating technological disruptions to win business revolutions
3. Anticipating technological disruptions to win business revolutions and enhance differentiation Sustained technological Scale enabling to work on a wide span of selected technologies leadership Thales as creator of Quantum technology Critical mass in R&D LONG TERM New technologies revolution Thale
Slide 28: Today, Thales is a front runner in trustworthy AI
3. Today, Thales is a front runner in trustworthy AI Tomorrow, AI will be embedded in all solutions to the benefit of our clients THALES CAPABILITIES IN AI NOW AI USE CASES IN THALES PRODUCTS / SYSTEMS Space-based sensors SENSING • Instant access to space observation Radars data • x3 discrimination
Slide 29: Attracting and recruiting the best talent
4. Attracting and recruiting the best talent A purpose-driven company… …Attracting… …And recruiting talent Our purpose 1,000,000 candidates >30,000 recruitments Thales among in 2024,+55% vs. 2020 from 2022 to 2024 the most attractive employers in several countries 60 partnerships with top universiti
Slide 30: Strategic focus on talent development to reach our delivery ambition
4. Strategic focus on talent development to reach our delivery ambition What we’ve done so far What we plan to do Rethink the way we learn to combine new technology potential and on-the-job learning pedagogy Allocate Training as a key investment >50% of learning by doing in time to accelerate delive
Slide 31: A portfolio of businesses delivering attractive growth
A portfolio of businesses delivering attractive growth (€Bn) Organic sales growth Defence Avionics Space Cyber & Digital Thales CAGR CAGR 5-7% 6-7% CAGR CAGR CAGR 5-7% 2% 6-7% • Focus on • Growth in margin cybersecurity • OEM ramp up restoration • Fast growing • IFE demand biometrics M&A • Cobham so
Slide 32: A portfolio of businesses delivering attractive growth (Adjusted EBIT)
A portfolio of businesses delivering attractive growth (€m) Adjusted EBIT growth Further margin increase Higher Costs reduction* R&D* Price*/ Mix Volumes • Operational 13 – 14% efficiency • Premium • Space recovery offering • Cost synergies on • Higher growth acquisitions on high-margin M&A 2,242 bu
Slide 33: Profitability mostly driven by Cyber & Digital expansion and Space recovery
Profitability mostly driven by Cyber & Digital expansion and Space recovery Adjusted EBIT MARGIN % DEFENCE AEROSPACE CYBER & DIGITAL +200-300 bps 16 - 17% +400-500 bps 14% 13% 13% 11 - 12% 13-14% Avionics 7%+ Space 11.6% Avionics 7% 1% Space 2023 2028 2023 2028 2023 2028 Note: 2023 figures are resta
Slide 34: Operating Profit to boost Adjusted EPS
Operating Profit to boost Adjusted EPS (€) Adjusted EPS growth +50 - 60%* • M&A • SBB *** 8.48 -0.3 8.2 Transport Increased +53% disposal operating profit ** 5.55 2018 2023 2023 Adj. EPS 2028 Adj. Adj. EPS Adj. EPS Post Transport EPS * Assuming stable tax regulations vs. 2023 in the countries where
Slide 35: In summary: Thales, a global tech leader in Defence, Aerospace, and Cyber & Digital
In summary: Thales, a global tech leader in Defence, Aerospace, and Cyber & Digital >€25Bn revenues Attractive employer €5Bn annual R&D budget by 2028 for top talent by 2028 100% premium Active portfolio management Sustainability leader and unique portfolio & capital allocation 35
Slide 36: Table of contents
Table of contents 01 02 03 04 2028 strategy & Introduction to Thales H1 2025 results 2025 priorities & outlook financial trajectory1 05 Sustainability: safer, greener, more inclusive 1Presented at the Capital Markets Day held on November 14, 2024 36
Slide 37: Sustainability ambitions anchored in our purpose
Sustainability ambitions anchored in our purpose Our purpose Our ambitions “Building a future we Address major societal issues through our can all trust” unique portfolio of solutions Embed strong ESG commitments in all processes Working to make the world safer, greener and more inclusive 37
Slide 38: Ambition to become an ESG leader
Ambition to become an ESG leader, with a positive contribution to society and the environment Safer GREENER Greener More inclusive Ambition Keep citizens safe in both Reduce the environmental Grant universal and unbiased Address major societal physical and digital worlds impact of our customers acce
Slide 39: Focus on Defence: one of the most regulated global industries
Focus on Defence: one of the most regulated global industries Strict export controls What we stand for Committed and certified to stringent export control regulations Processes integrated in day-to-day business through training, Operating ethically; selling audit, and focus on continuous improvement
Slide 40: Continuous progress in CSR performance in 2024
Continuous progress in CSR performance in 2024 Absolute Scopes 1 & 2 CO2 emissions Absolute Scope 3 CO2 Emissions Thales Climate Passport trainings % of managers completion* 278kt 10 065kt 2030 long term Target -15% 2030 long term 2024 Target CLIMATE Target -50% 50% -57.3% -56.8% -24.4% -24.7% 67.4%
Slide 41: A performance recognised externally with improved ratings
A performance recognised externally with improved ratings 2030 OBJECTIVES Top 1% Inclusion Top ~2% Inclusion of 500,000 in CAC SBTI out of 22,700 #1 CAC 40 in CAC 40 ESG companies 1.5 index assessed index assessed 41
Slide 42: Appendix
Appendix 42
Slide 43: A strong set of focused businesses (1/2)
A strong set of focused businesses (1/2) Segment Sub-segment Civil Military 2024 sales (€bn) Market position Flight avionics(a) #3 worldwide including cockpit avionics, communications, electrical systems, ✓ ✓ ~2.4 (flight avionics) training and simulation Connected in-flight entertainment (IFE)(a) ✓
Slide 44: A strong set of focused businesses (2/2)
A strong set of focused businesses (2/2) Segment Sub-segment Civil Military 2024 sales (€bn) Market position Cyber & Digital including cybersecurity, secure connectivity, payment services Cyber and identity & biometrics ✓ ~4.0 #1 worldwide & Digital 20% of 2024 sales 44
Slide 45: Aerospace segment: identity card
Aerospace segment: Sales by solutions Organic sales growth identity card 10% +12% 44% Connected in-flight +6% Flight avionics entertainment (IFE) +2% +3% and other aircraft 6% equipment Microwave and services 2 Global Business Units tubes -24% Avionics Space 2020 2021 2022 2023 2024 40% Space 21,100
Slide 46: Global leader in flight avionics and connected in-flight entertainment
Global leader in flight avionics and connected in-flight entertainment Sales by solutions Sales by end-market Sales by activity type 31% 11% Military platforms Microwave tubes 73% 48% €3.3bn €2.9bn(a) 52% €2.9bn(a) Flight avionics 50% Aftermarket Original and other (2024) (2024) support (2024) equip
Slide 47: Focus on Space
Focus on Space INFRASTRUCTURES SERVICES ~€2.2Bn 8,600(a) JV STRUCTURE ~€0.9Bn 3,300(a) JV STRUCTURE TAS SALES IN 2024 EMPLOYEES 67% Thales / 33% Leonardo TPZ SALES IN 2024 EMPLOYEES 67% Leonardo / 33% Thales (a) At the time of the CMD in November 2024. 20% 32% France & Italy 34% Telecom Commercial 5
Slide 48: Space: Telecom market moving to a complementary multi-orbit strategy
Space: Telecom market moving to a complementary multi-orbit strategy Average project size END-USER’S SERVICES GEO 36,000 km • Broadcast • TV (video) €150-500m • Adapted to hotspot • Continental coverage • High latency • Exposure to radiation Broadband MEO • Connectivity in • unserved areas 5,000-12,
Slide 49: Focus on Space: path back to profitability
Focus on Space: path back to profitability • Adaptation plan concerning 1,300 Adjusted EBIT MARGIN % jobs • Teams redeployment (Engineering, Industry) • Cost savings (Structure, Supply Chain) Integration of inflation in new Telecom contracts 7%+ Space Inspire R&D completion Business growth 1% 2023 G
Slide 50: Defence segment: identity card
Defence segment: identity Sales by solutions Organic sales growth card 25% +13% Communications +6% +7% +4% 43% ~35,400(a) employees Sensors -2% in 36 countries 23% Mission Systems 2020 2021 2022 2023 2024 Main industrial footprint 9% Australia, Canada, France, Netherlands, UK Effectors €11.0bn 2024
Slide 51: Thales on board the Rafale
Thales on board the Rafale ~25% Share of Thales equipment in Rafale’s value SENSORS COMMUNICATIONS MISSION SYSTEMS EFFECTORS 51
Slide 52: Ensuring Naval superiority
Ensuring Naval superiority ~20% Share of Thales equipment on naval platforms SENSORS COMMUNICATIONS MISSION SYSTEMS EFFECTORS 52
Slide 53: Thales is favorably positioned on the growing markets
Thales is favorably positioned on the growing markets Global tensions have triggered an GROWTH DRIVERS increase in long-term defence spending Expect steady market growth to (re)build long-term capacities Eastern Increasing needs to prepare for a Europe possible high-intensity conflict North Western
Slide 54: Cyber & Digital (CDI) segment: identity card
Cyber & Digital (CDI) Sales by solutions Organic sales growth segment: identity card Cybersecurity c.40% +8% (a) Secure +4% c.16% Connectivity +2% +1% Digital Identity Payment A global leader: c.26% Services c.60% Identity c.18% & Biometrics Global #1 for 73% of revenues -6% 2020 2021 2022 2023 2024
Slide 55: A global cybersecurity leader in a new league since 2024
A global cybersecurity leader in a new league since 2024 CYBER DEFENCE - Reported in Defence PREMIUM SERVICES SOVEREIGN PRODUCTS Solid positions in key • Threat & risk evaluation • High assurance products & technologies products and services • Training & simulation • Trusted by key countries and • D
Slide 56: Cybersecurity Global Products: broad range of capabilities
Cybersecurity Global Products: Thales provides a broad range of capabilities to help achieving a stronger data security posture IDENTITIES DATA SECURITY PLATFORM APPLICATIONS CONTROL + VISIBILITY Customer Identity Data Access Web App. & Access Encryption Monitoring Firewall Management Workforce Data
Slide 57: Cybersecurity Global Products: competitive position in a fragmented landscape
Cybersecurity Global Products: our competitive position in a fragmented landscape DATA SECURITY APPLICATION SECURITY Revenue Market Cap Rev Multiple Revenue Market Cap Rev Multiple Revenue Market Cap Rev Multiple $0.5Bn $7Bn 13X $3.8Bn $18Bn 5X $2.8Bn $13Bn 5X IAM Revenue Market Cap Rev Multiple $1.
Slide 58: Considerations on US tariffs (Q1 2025)
Considerations on US tariffs (Q1 2025) > Global considerations for Thales Thales 2024 sales to the US1 > Multi-local business protective by nature > Defense activities still exempt from tariffs > Favorable incoterms in some export contracts > 3 main areas that could be impacted > Avionics aftermarke
Slide 59: H1 2025 order intake by destination
H1 2025 order intake by destination H1 H1 Change 4% 4% In € millions 2025 2024 Total Organic Middle East Rest of the world France 1,899 2,099 -10% -10% United Kingdom 433 571 -24% -25% Rest of Europe 2,706 2,884 -6% -7% 18% France Europe 5,037 5,554 -9% -10% 24% North America 1,376 1,274 +8% +6% Asi
Slide 60: H1 2025 sales by destination
H1 2025 sales by destination H1 H1 Change 6% 5% In € millions 2025 2024 Total Organic Middle East Rest of the world France 3,002 2,940 +2.1% +1.2% United Kingdom 708 624 +13.5% +11.7% 10% Asia 29% Rest of Europe 2,669 2,250 +18.6% +18.3% France Europe 6,378 5,814 +9.7% +8.9% North America 1,312 1,26
Slide 61: Summary adjusted P&L: from sales to Adjusted EBIT
Summary adjusted P&L: from sales to Adjusted EBIT H1 2025 H1 2024 Change €m % of sales €m % of sales total organic Sales 10,265 9,493 +8.1% +8.1% Gross margin 2,958 28.8% 2,771 29.2% +6.8% +5.8% Indirect costs (1,756) -17.1% (1,710) -18.0% +2.7% +1.5% o/w R&D expenses (627) -6.1% (599) -6.3% +4.7% +
Slide 62: H1 2025 Adjusted EBIT by operating segment
H1 2025 Adjusted EBIT by operating segment H1 H1 Change €m / % of sales 2025 2024 Total Organic Aerospace 252 9.1% 167 6.5% +50.9% +36.4% Defence 720 12.9% 639 12.9% +12.6% +13.5% Cyber & Digital 265 14.2% 272 14.1% -2.5% -0.6% Adj. EBIT – operating segments 1,237 12.1% 1,078 11.4% +14.7% +13.6% Oth
Slide 63: Organic sales growth per quarter
Organic sales growth per quarter 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Aerospace Defence Cyber & Digital Total 63
Slide 64: Q2 2025 order intake by operating segment
Q2 2025 order intake by operating segment Q2 Q2 Change €m 2025 2024 Total Organic Aerospace 1,128 1,685 -33% -32% Defence 4,449 2,998 +48% +50% Cyber & Digital 975 1,028 -5% -1% Other 22 19 Total 6,574 5,730 +15% +17% 64
Slide 65: Q2 2025 sales by operating segment
Q2 2025 sales by operating segment Q2 Q2 Change €m 2025 2024 Total Organic Aerospace 1,417 1,400 +1.2% +3.5% Defence 2,896 2,633 +10.0% +10.6% Cyber & Digital 959 1,017 -5.8% -1.6% dont Cyber 351 394 -11.0% -7.0% dont Digital 608 623 -2.4% +1.8% Other 32 21 Total 5,305 5,071 +4.6% +6.4% 65
Slide 66: Summary of financial targets
Summary of financial targets 2023 – Base Year 2028 / Plan period ORGANIC SALES GROWTH CAGR* +5-7% Defence +6-7% Avionics +5-7% Space +2% Cyber & Digital +6-7% Adjusted EBIT Margin (%) 11.6% 13-14% Defence 13% 13% Aerospace (Avionics/Space) 7% (11.6%/1%) 11-12% (13-14% / 7%+) Cyber & Digital 14% 16-1
Slide 67: Definition of non-GAAP measures and other remarks
Definition of non-GAAP measures and other remarks > Rounding of amounts in euros > Adjusted net income: net income, less the following elements, net of the corresponding tax effects: (i) amortization of acquired assets (PPA), In the context of this presentation, the amounts expressed in millions of
Slide 68: Thales contact details
Thales 4 rue de la Verrerie 92160 Paris Meudon France [email protected] This presentation contains certain forward-looking statements. Although Thales believes that its expectations are based on reasonable assumptions, actual results may differ significantly from these forward- looking statements d