- 2020 INTEGRATED REPORT 40 VALUE CREATION FINANCIAL AND EXTRA-FINANCIAL PERFORMANCES The strategic plan has demonstrated its relevance since 2013 An exceptional 2020 Thanks to the mobilisation of all its employees in the unprecedented situation of a global pandemic, Thales was able to demonstrate its human and economic resilience as well as its agility. Thus, the Group posted a strong recovery in the second half of the year, both in terms of order intake and profitability. The objectives of the global crisis adaptation plan were largely exceeded. Thus, the second half of 2020 saw a strong recovery both in terms of order intake and profitability. The EBIT margin before restructuring costs thus returned to the level of the second half of 2019. In addition, in 2020, cash generation is once again very solid. It illustrates both the robustness of the civil-defence business model and the focus of the teams on operational performance. The Group’s digital strategy, strengthened by its leading position in cybersecurity, is bearing fruit in all of the Group’s activities, with excellent commercial successes in space, defence, rail signalling and data protection. Strategic priorities remain unchanged In what is still an uncertain economic and health environment, Thales is continuing to implement all the levers of its Ambition 10 strategic plan, which is a driver of profitable and sustainable growth. The Group continues to strengthen its positioning in long-term growth markets while investing to support long-term growth. Essential to boosting the Group’s momentum, R&D investments remained at a high level of over 1 billion euros. For 2021, based on a health and economic context with no major new disruptions, and a rapid normalisation of global semiconductor supply chains, Thales set up 3 financial objectives: • a ratio of order intakes to revenue of over 1; • revenue of between €17.1 billion and €17.9 billion; • an EBIT margin of between 9.5% and 10%. Financial objectives 2020 2019 2018 2017 2016 2015 2014 2013 12,698 12,974 14,063 14,885 15,228 15,855 18,401 Revenue 16,989 (in millions of €) 2019 2020 2018 2017 2016 2015 2014 2013 12,928 14,363 18,880 16,514 14,920 16,034 19,142 Order intake 18,476 (in millions of €) 1,011 985 1,216 1,354 1,543 1,685 2,008 2019 2020 2018 2017 2016 2015 2014 2013 8% 10.6% 10.9% 9.8% 8.6% 8% 7.6% 9.1% EBIT and operating margin 1,352 (in millions of €) Adjusted net income 642 562 809 897 982 1,178 1,405 2019 2020 2018 2017 2016 2015 2014 2013 937 (in millions of €) Free opertaing cash-flow 477 501 1,110 954 1,365 811 1,372 2019 2020 2018 2017 2016 2015 2014 2013 1,057 (in millions of €)