- 2020 INTEGRATED REPORT 20 VISION AND STRATEGY ATTRACTION AND RETENTION OF TALENTS RIGOROUS RESPONSIBLE APPROACH OPERATIONAL EXCELLENCE CONTROLLED RISKS Building a future we can all trust. Our purpose A resilient model built on a wide Our resources 4 fundamentals Thales strives to turn leading-edge technologies into solutions that are both imaginative and resilient , human-centred and sustainable . OUR VALUE CREATION PROCESS ADDRESSING KEY SOCIETAL, ENVIRONMENTAL AND TECHNOLOGY TRENDS Exponential growth of data produced Growth and urbanisation of the world population Energy transition and climate emergency INTELLECTUAL CAPITAL €1,025m in self-funded R&D. A portfolio of more than 22,000 patents. The Group’s technical activities, from research to engineering, concern more than 30,000 people . HUMAN CAPITAL 80,500 employees. More than 31,000 employee shareholders. €7,419m in payroll. An average of 7 hours of training per employee per year. 94% full-time contracts, and 98% permanent contracts. ENVIRONMENTAL CAPITAL Deployment of the strategy for a low-carbon future aligned on the 2°C climate target of the Paris Agreement. Signatory of the principles and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). SOCIETAL CAPITAL A strong ethics policy . Purchases accounting for 40% of revenue. Signature of commitments for responsible purchasing by General Management. Sponsorship actions implemented within the Thales Solidarity programme. FINANCIAL CAPITAL Low indebtedness: €2.5bn at 31 December 2020 ( €0.9bn excluding IFRS16 leases). €1,057m in free operating cash-flow in 2020. Solid investment grade credit profile, S&P rating: BBB+. Government agencies Commercial customers Armed forces Operators of critical infrastructures 13% 47% 17% 23% < <