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www.thalesgroup.com Q1 2025 order intake and sales 24th April 2025
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2 Q1 2025 order intake and sales > Positive momentum for European Defence > Thales uniquely positioned thanks to its wide portfolio of premium products and solutions > Now a generation-long visibility in Defence Q1 2025 highlights > Cyber business to ramp-up throughout the year > On-going merger of Thales and Imperva sales forces to unlock full potential of Cyber Security Products > Robust underlying commercial momentum > Book-to-bill ratio to be above 1 in 2025 > Strong organic sales growth
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3 Q1 2025 order intake and sales Q1 2025 key figures > Order intake down year-on-year on the back of a very high comparison basis > Strong organic sales growth in Q1, driven by Defence and Aerospace Change €m Q1 2025 Q1 2024 total organic Order intake 3,778 5,037 -25% -27% Sales 4,960 4,421 +12.2% +9.9%
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4 Q1 2025 order intake and sales > Solid commercial momentum, notably in Aerospace > Very high comparison basis due to jumbo contracts booked in Q1 2024 in Defence > 5 large orders(a) booked in Q1 2025 for €0.7bn (vs. 4 in Q1 2024 for €1.6bn) > 3 in Space, of which two telecommunications satellites and Argonaut, a first European lunar lander > 1 in Avionics to modernize and support Netherlands Army's tactical simulators > 1 in Defence to develop and produce vetronics equipment for French Army vehicles > Orders below €10m growing LSD(b) Q1 2025 order intake a. With a unit value over €100m b. Low single-digit Order intake by contract unit value Organic growth: -27% Unit value < €10m Unit value > €100m €10m < Unit value < €100m €m Reported growth: -25%
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5 Q1 2025 order intake and sales > Scope and currency impact > Scope impact mainly resulting from Cobham Aerospace Communications and Get SAT acquisitions > Currency impact slightly positive > Strong start to the year with +9.9% organic sales growth in Q1 > Aerospace: strong sales momentum driven by Avionics > Defence recording continued sharp growth > Cyber & Digital slightly down due to Digital Identity > Both mature and emerging markets contributing to strong sales growth > Europe: +9.9% > North America: +9.4% > Emerging markets: +10.5% Q1 2025 sales growth Q1 sales growth drivers Reported growth: +12.2% €m Organic growthCurrency & scope +101 +438 Scope: +84 Currency: +17 Organic growth: +9.9%
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6 Q1 2025 order intake and sales > Strong order intake, driven by 3 large orders in Space > Continued solid demand in Avionics, with 1 large order booked in Training & Simulation > Space: favorable phasing of expected 2025 order intake, with 2 large orders in Telco and 1 in Exploration > High single-digit organic sales growth > Strong double-digit growth in Avionics, with solid performance in all activities and domains > Space sales still impacted by last two years' low demand in Telco business Q1 Q1 Change €m 2025 2024 Total Organic Order intake 1,530 1,003 +53% +45% Sales 1,342 1,182 +13.5% +8.4% Aerospace: Q1 2025 key figures
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7 Q1 2025 order intake and sales Q1 Q1 Change €m 2025 2024 Total Organic Order intake 1,302 3,122 -58% -59% Sales 2,685 2,305 +16.5% +15.0% Defence: Q1 2025 key figures > Order intake facing very high comparison basis > Two contracts with unit value over €500m each booked in Q1 2024 > Underlying momentum remains supportive > Confirmed book-to-bill ratio above 1 in Defence in 2025 > Sharp sales organic growth > Strong performance in all activities and notably in land and air systems with Q1 benefiting from radars' production ramp-up
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8 Q1 2025 order intake and sales > Cyber flat in the first quarter, to accelerate throughout the year > Cyber Products recording growth, leveraging Imperva's complementary offering ◦ On-going merger between Thales & Imperva sales forces to unlock full potential of the activity > Cyber Services down on the back of soft market start of the year ◦ Key focus on margin improvement and profitable growth > Digital Identity down, still reflecting contrasted trends > Payment Services back to growth after 5 quarters down in a row > Identity & Biometrics down, affected by a high comparison basis Q1 Q1 Change €m 2025 2024 Total Organic Sales 903 916 -1.5% -2.1% o/w Cyber 357 351 +1.8% +0.2% o/w Digital Identity 545 565 -3.5% -3.6% Cyber & Digital: Q1 2025 key figures
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9 Q1 2025 order intake and sales > Global considerations for Thales > 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 aftermarket business: mainly imported from France > IFE business importing screens from China > Payment cards sold to US, manufactured in other countries, mainly Mexico and Singapore > Mitigation actions under implementation > Specific customs programs (Duty drawback or Temporary Importation under Bonds) > Redirecting production flows > Supply chain optimization (i.e. alternative sourcing) > Transfer prices > Customer surcharging c.25% Imported or using imported materials c.75% Domestic2 Considerations on US tariffs €2.6bn Thales 2024 sales to the US1 At this stage, contained direct net impact 1 Sales by destination. 2 Sold by a Thales US entity to a US customer. Note: given the volatility of the current context, these estimates are based on the latest available information on announced tariffs increases and exemptions as known on April 24, 2025, and Thales' estimates to date. The potential indirect impacts are not known at this stage.
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10 Q1 2025 order intake and sales 1 2 3 Order intake Book-to-bill above 1 Adjusted EBIT margin(b) 12.2% to 12.4%(a) 2025 financial objectives a. Based on April 2025 scope and year to date average foreign exchange rates as of April 2025. Assuming no new disruptions of th e macroeconomic geopolitical context or evolution of new tariffs. b. Non-GAAP measure: see definition in appendix. Sales +5% to +6%(a) organic growth, corresponding to €21.7 to €21.9 billion Note: The definition of all non-GAAP measures can be found in appendix. The title of "EBIT" has been amended to "Adjusted EBIT" , in accordance with ESMA's recommendation. The definition remains unchanged
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11 Q1 2025 order intake and sales Appendix
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12 Q1 2025 order intake and sales 16th May 2025 Annual General Meeting 20th May 2025 Ex-dividend date 22nd May 2025 Dividend payment date 23rd July 2025 (before market) H1 2025 results Upcoming events 2025
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13 Q1 2025 order intake and sales Organic sales growth per quarter Total Aerospace Defence Cyber & Digital 20242022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 2025
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14 Q1 2025 order intake and sales Q1 2025 order intake by destination 15% North America 35% Rest of Europe 5% Rest of the world 18% France 4% United Kingdom 5% Middle East 5% Australia and New Zealand 13% Asia In € million Q1 Q1 Change 2025 2024 Total Organic France 670 1,010 -34% -36% United Kingdom 160 314 -49% -51% Rest of Europe 1,316 928 +42% +41% Europe 2,146 2,252 -5% -7% North America 579 457 +27% +15% Australia / NZ 190 145 +30% +32% Mature markets 2,914 2,855 +2% -1% Asia 499 1,226 -59% -60% Middle East 173 769 -78% -78% Rest of the world 192 187 +3% +5% Emerging markets 864 2,182 -60% -61% Total 3,778 5,037 -25% -27% Order intake by destination
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15 Q1 2025 order intake and sales Q1 2025 sales by destination 13% North America 24% Rest of Europe 5% Rest of the world 31% France 7% United Kingdom 6% Middle East 4% Australia / NZ 10% Asia In € million Q1 Q1 Change 2025 2024 Total Organic France 1,535 1,439 +6.7% +4.5% United Kingdom 344 290 +18.5% +14.9% Rest of Europe 1,189 1,013 +17.4% +16.3% Europe 3,068 2,742 +11.9% +9.9% North America 662 566 +16.9% +9.4% Australia / NZ 219 206 +6.1% +8.0% Mature markets 3,950 3,515 +12.4% +9.7% Asia 477 433 +10.1% +8.0% Middle East 278 255 +9.0% +7.6% Rest of the world 256 219 +17.0% +18.9% Emerging markets 1,010 907 +11.5% +10.5% Total 4,960 4,421 +12.2% +9.9% Sales by destination
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16 Q1 2025 order intake and sales Q1 2025 order intake by operating segment Q1 Q1 Change €m 2025 2024 Total Organic Aerospace 1,530 1,003 +53% +45% Defence 1,302 3,122 -58% -59% Cyber & Digital 922 903 +2% +1% Other 24 10 Total 3,778 5,037 -25% -27%
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17 Q1 2025 order intake and sales Q1 2025 sales by operating segment Q1 Q1 Change €m 2025 2024 Total Organic Aerospace 1,342 1,182 +13.5% +8.4% Defence 2,685 2,305 +16.5% +15.0% Cyber & Digital 903 916 -1.5% -2.1% Other 31 18 Total 4,960 4,421 +12.2% +9.9%
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18 Q1 2025 order intake and sales Definition of non-GAAP measures and other remarks > Rounding of amounts in euros In the context of this presentation, the amounts expressed in millions of euros are rounded to the nearest million. As a result, the sums of the rounded amounts may differ very slightly from the reported totals. All ratios and variances are calculated based on underlying amounts, which feature in the consolidated financial statements. > Definitions > Organic: at constant scope and exchange rates; > Book-to-bill ratio: ratio of orders received to sales; > Mature markets: All countries in Europe excluding Russia and Turkey, North America, Australia and New Zealand; > Emerging markets: All other countries, i.e. Middle East, Asia, Latin America and Africa. > Non-GAAP measures This presentation contains non-Generally Accepted Accounting Principles (GAAP) financial measures. Thales regards such non-GAAP financial measures as relevant operating and financial performance indicators for the Group, as they allow non-operating and non-recurring items to be excluded. Thales definitions for such measures may differ from similarly titled measures used by other companies or analysts. > Adjusted EBIT: income from operations; plus the share of net income or loss of equity affiliates less: amortization of acquired assets (PPA), expenses recorded in the income from operations that are directly related to business combinations. See also notes 13-a and 2 of the consolidated financial statements at 31 December 2024. > Adjusted net income: net income, less the following elements, net of the corresponding tax effects: (i) amortization of acquired assets (PPA), (ii) expenses recorded in the "income from operations" or in “financial results” which are directly related to business combinations, (iii) gains and losses on disposal of assets, change in scope of consolidation and other, (iv) impairment of assets, (v) changes in the fair value of derivative instruments (recognized under "other financial income and expenses" in the consolidated financial statements), (vi) actuarial gains or losses on long-term benefits (recognized under "finance costs on pensions and employee benefits" in the consolidated financial statements). See note 13-a of the consolidated financial statements at 31 December 2024. This definition implies the definition of several other adjusted financial measures, such as adjusted gross margin, adjusted tax, Adjusted EPS. See page 19 of the 2024 results press release for detailed calculation of these other indicators. > Free operating cash flow: net cash flow from operating activities, less: capital expenditures, less: deficit payments on pensions in the United Kingdom. See notes 13-a and 6.3 of the consolidated financial statements at 31 December 2024. > Net cash (debt): difference between the sum of “cash and cash equivalents” and “current financial assets” items and short and long- term borrowings, after deduction of interest rate derivatives. See note 6.2 of the consolidated financial statements at 31 December 2024.
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Thales SA 4, rue de la verrerie 92190 Meudon France ir@thalesgroup.com 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 due to various risks and uncertainties, as described in the Company's Universal Registration Document, which has been filed with the French financial markets authority (Autorité des marchés financiers – AMF). This document may not be reproduced, modified, adapted, published, translated, in any way, in whole or in part without the prior written consent of Thales - © Thales 2025 All rights reserved. www.thalesgroup.com