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Avionics: a driver of profitable growth


Michel Mathieu
Executive Vice President, Avionics

CAPITAL MARKETS DAY - 10 APRIL 2014


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Scope of Thales’s avionics activities

2013 Revenue: 2300 M€


Flight Avionics
Onboard electronics equipment and systems
IFE used to control and navigate the aircraft, to
400 display and process information, and
communicate with the outside world
T&S
200
Flight
Avionics
1700
In Flight Entertainment and
Connectivity
Entertainment available to aircraft passengers
Civil 70%
during a flight, comprising films, games, in-
flight information and, increasingly,
connectivity services for the passenger
Line fit
70%
Training and Simulation
Support Synthetic-training and motion simulation
30% systems and services to prepare individuals
and crews for their missions on military aircraft
Military 30%
and civil or military helicopters

CAPITAL MARKETS DAY - 10 APRIL 2014


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Our customers
Aircraft manufacturers

Commercial Military Helicopters

Operators
>300 airlines >500 operators

Europe & Middle East: 150 Air Forces


Asia-Pacific: 100 Helicopter operators
Americas: 50 Business jet operators
Maintenance and Repair
Organisations (MROs)

CAPITAL MARKETS DAY - 10 APRIL 2014


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A successful track record in deliveries

SSJ ATR-600-72 ATR 600-42 G650 S76D


Entry into service Entry into service Entry into service Entry into service Entry into service

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014


Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

MRTT B787 A350 XWB A400M


Entry into service Entry into service First Flight Entry into service

All critical avionics systems delivered on time

CAPITAL MARKETS DAY - 10 APRIL 2014


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Thales Onboard A350 XWB
IFE

Cockpit Displays

SATCOM

Thales shipset value


w/o IFE

Electrical
Surveillance Systems

A320 A330 A380 A350


Navigation

Model for “right first time” development

CAPITAL MARKETS DAY - 10 APRIL 2014


6 / Support and repair network

Part numbers Headcount Orders


Global organization
200 000+ 1,500 110 000 POs Single Quality baseline
Single ERP

Basic
Support

Chatellerault
Maintenance
Service Piscataway

Singapore
Integrated
Service

Hub
Field service teams

Seamless worldwide support at the service of global airlines

CAPITAL MARKETS DAY - 10 APRIL 2014


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A growing activity

CAGR over 5 coming years


Double- IFE and Connectivity
digit Increasing airline needs on wide body and single aisle
Short renewal cycle
Growing need for connected passenger

Mid-single Commercial Avionics


digit
Increasing production rates of Airbus, Boeing, ATR…
Growing number of aircraft in service equipped by Thales

Mid-single Training and Simulation


digit
Increasing needs for helicopter training
Trend towards training services

Flat Military Avionics


Not counting any Rafale export opportunity

CAPITAL MARKETS DAY - 10 APRIL 2014


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A profitable growth

High-single digit EBIT in 2013

Profitability improvement drivers

Mastering new developments: processes, tools and skills


Reducing costs through standard architecture and common building blocks
Reaching the highest quality standards
Increasing production rates
Optimizing manufacturing foot print and supply chain on a global scale
Decreasing €/$ exposure
Expanding customer base (Regional Aircraft, Business Jets, Helicopters)
Growing customer support and services activities worldwide

CAPITAL MARKETS DAY - 10 APRIL 2014


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Avionics 2020 : the innovative cockpit

Designed with pilots, ergonomists,


aircraft manufacturers and
operators

Single platform addressing


Transport Aircraft, Regional and
Business Jets

Standard building blocks to reduce


cost and time to market

Creating the event at Paris Air


Show, NBAA, HeliExpo 2013-2014

Providing an open and customizable avionics suite for all aircraft types
entering into service in 2020 and after

CAPITAL MARKETS DAY - 10 APRIL 2014