19 - 2020 INTEGRATED REPORT VISION AND STRATEGY INVEST TO SUSTAIN LONG-TERM GROWTH Sustainability at the heart of Thales’s strategy For more than twenty years, Thales has been proactively implementing a policy of corporate responsibility and sustainability based on the highest international standards. Today, whether in defence, security, rail transport, aerospace or digital identity and security, Thales’s solutions help to make the world a safer, more environmentally friendly and inclusive place. 25% Aerospace More inclusive: 15% More environmentally friendly : 25% - Telecom satellites - Digital Identity - e-Government - Medical solutions 48% Defence & Security 18% Digital Identity and Security 10% Transport - Rail signalling - Optimisation of air traffic and operations - Environmental surveillance satellites Safer: 55% - Defence - Digital security - Infrastructure security Building a future we can all trust Progress in 2020 Deployment of Thales purpose adopted in 2019. Implementation of a strategy for a low- carbon future adopted in 2019; significant reduction in direct and indirect CO 2 emissions (scopes 1, 2 and 3). Supporter of the Task-force on Climate- related Financial Disclosures (TCFD) principles and recommendations. Signature of the “Statement from Business Leaders for Renewed Global Cooperation” initiated by the United Nations Global Compact. Priorities for 2021 Inclusion of quantitative CSR objectives in the variable compensation of 54,000 employees. Continuation of action plans to achieve the ambitious targets set in the area of environment and diversity for 2023. Make Thales leader in digital transformation of markets Thales has all the assets to play a key role in the ongoing digital transformation, thanks to: • its position centred around critical decision- making chains, which by nature are increasingly digital; • the integration of Gemalto, supplemented by targeted acquisitions; • reinforcement of numerous partnerships formed within innovation ecosystems — academic, businesses, startups, innovative clusters — to develop together new usages, business models and technologies; • actions taken for more than five years to benefit innovative startups; • increased R&D investments targeting the four key domains of digital expertise. Progress in 2020 Digital investments made by Thales over the last 5 years have greatly contributed to the Group’s major commercial successes in 2020: first major digital rail-signalling contract equipment of the Germany F126 frigates, defence cloud for NATO, partnership with Google Cloud in the field of data security. Priorities for 2021 Continue to capitalise on the digitisation of society to develop new services (eSiM, drone traffic management, digital identity, etc.). Supporting our customers towards a trusted digital transformation based on ever more resilient, explainable and secure technologies. Accelerating synergies between Thales and Gemalto Key lever to accelerate Thales’s digital strategy, the Gemalto acquisition in 2019 further differentiates the Group’s portfolio of activities by incorporating unique expertise in 3 key technological fields linked to digital security: biometrics and digital identity, secure connectivity for the Internet of Things (IoT) and data protection and encryption. With this acquisition, Thales became the leader of the identity, digital security and cybersecurity markets, the only company in the world offering complete solutions to secure the entire critical decision-making chain. Progress in 2020 The cost synergies achieved in 2020 are estimated at €80 million, i.e. nearly €20 million more than expected initially. In 2020, acceleration of synergies through the development within the Group, in all areas of activity, of solutions integrating Gemalto technologies. In September, Thales launched the CipherTrust Data Security platform, which brings together the best of Thales and Gemalto technology to simplify the security of sensitive business data. Similarly, Gemalto’s biometrics solutions are now systematically included in Thales’s security offers for sensitive sites (airports). Priorities for 2021 Continue to develop new offerings to achieve revenue synergies of between €300 million and €500 million by 2023. Generate cost synergies of €110 million in 2021. 4 FIELDS OF DIGITAL EXPERTISE Connectivity Artificial intelligence Big Data Cybersecurity 2019 2020 2021 2022 Cost synergies ahead of plan ~20 m 25 October 2019 plan March 2021 update ~60 80 ~100 110 120 120