mages/ n-Luc Luyssen/Gamma For more information, > go to Corporate website: www.thalesgroup.com > contact Ethics and Corporate Responsibility Department: • Dominique Lamoureux: +33 (0)1 57 77 82 07 [email protected] • Sylvain Masiéro: +33 (0)1 57 77 85 88 [email protected] Thales 45, rue de Villiers (p. 26), Getty Images/Jean-Louis Batt 18), Krahmer (p. 18), Getty Images/Franck Frechette (p. 4), Getty Images/Jeremy 92526 Neuilly-sur-Seine Cedex France Published by Thales Corporate Communications – 2007 • Getty Images/Jim Franco (cover), Getty Images/Sami Sarkis (p. 2), I (cover), – 2007 • Getty Images/Jim Franco Communications Corporate Published by Thales John Lawrence pp. 6, 21), Jea (pp. 4, 7, 10, 11, 12, 26), Daniel Rory/Redlink/Gamma (content, Bassignac/Gamma (p. 8), Gilles IFA/Photononstop (p. 1) • Design and production: Photopointcom Somoza/Gamma (p. 8), Zeng Niam/Gamma 14) • Thales, (p. 6), Gerardo - 7316. Thales and corporate responsibility contents Thales: a global leader and responsible corporate citizen In 2006, various rating agencies and other bodies assessed the Thales Group using criteria related to social and environmental responsibility. 01 Chairman’s message 02 Activities 03 Key figures CM-CIC Securities /////////////// Source: “Business as usual – A financial and extra-financial analysis 04 THE THALES APPROACH of the aerospace & defense industry”, February 2006 TO CORPORATE RESPONSIBILITY 1. National Defence Budget /////////////////////// 00 6. IT & Electronics /////////////////////////////////////// 000 00 000 TOWARDS: 2. State support (Export) ///////////////////////////// 7. Multi Domestic Approach ////////////////// 3. Possible M&A Targets ///////////////////////// 000 8. Low Dependance on Exports AND 08 CUSTOMERS SUPPLIERS 4. Dual Applications /////////////////////////////////// 000 to Risky Countries ////////////////////////////////////// 00 EMPLOYEES 12 5. Systems Providers ///////////////////////////////// 000 Qualitative Scoring /////////////////////////////////// 2.63 SHAREHOLDERS Guide : 1. Share of National Defence Budget // 2. Level of State support and/or prevalence of State to State contracts. // 3. Likely targets for M&A. // 4. Capacity or possibility for reusing defence technologies for civil uses & vice versa. // 5. Share (direct or AND FINANCIAL MARKETS 18 indirect) of turnover. // 6. Share (direct or indirect) of turnover 1=-10%, 2= 10 – 20%, 3=20%+ // 7. Repartition of turnover & sites. // 8.Share of turnover from regions or zones with current or potential high level of political instability. THE ENVIRONMENT 22 Qualitative Scoring: 3= 50%+, 2= 20-50%, 1= below 20%. SOCIETY 26 ////////////////////////////Rating: May 2006 - Market sector : Aerospace (companies in panel sector: 10) This brochure is a summary of the Corporate Vigeo Responsibility report available (in French) on the Thales website: www.thalesgroup.com Criteria (min --/max ++) Rating 2006/05 Score 2006/05 100 Benchmark: company/industry sector 100 --- Min - Max (sector) • Thales Human Resources + 58 75 75 Environment = 35 SINGAPORE Customers & Suppliers = 39 50 50 profile Corporate Governance - 30 25 25 Community Involvement + 50 Human Rights + 65 0 0 Score scaling: 0 to 100. Human Environment Customers & Corporate Community Human Rights hales is a leading international electronics Resources Suppliers Governance Involvement and systems group serving defence, aerospace and civil security markets T worldwide, supported by a comprehensive Other initiatives ///////////////////////////////////////// services offering. The company’s high-technology civil In 2006, Thales won various avionics suite for Sukhoi’s new ment in the Middle East and North tor to Thales’s Air Systems divi- and military businesses develop in parallel to serve awards in recognition of its Russian Regional Jet; Africa region for its investment sion. On the basis of half-yearly performance, particularly Q a single objective: the security of people, property In France, Thales won the with Raytheon in an environment- performance measurements of in export markets: French external trade ministry’s friendly aquafarm that employs its 42 main industrial suppliers. and nations. Leveraging a global network of 25,000 Q in the United Kingdom, the 2005 trophy for best sponsorship women in Saudi Arabia; The DGA also awarded the tro- high-level researchers, Thales offers a capability company won the Deal of the action for its backing of the Q in May 2006, the French phy for best programme team to unmatched in Europe to develop and deploy critical Year 2005 award from Trade Auverland Company; defence procurement agency the consortium formed by Finance for its innovative financ- Q information systems. the company also received the (DGA) awarded its quality trophy Thales and Alcatel Alenia Space ing of the contract to supply the OECD 2006 prize for best invest- for best industrial prime contrac- for the Syracuse III programme. Chairman’s message We operate in an environment that requires full compliance with increasingly stringent standards. “ethical standards, and this already in place. We fully only way to build the long- applies equally to our cus- recognise that a permanent term trust-based relation- tomers, suppliers, share- effort is required to sustain ships” that are central holders, financial markets and this commitment to corpo- to the concept of corporate employees, as well as to civil rate social responsibility. social responsibility, and society and the environment. We are constantly striving that underpin our future to improve our procedures growth and development. At Thales, we have taken and internal control meas- a number of steps to meet ures, and to ensure that Denis Ranque these requirements, and each and every employee a whole range of different fully understands the impli- he complex global measures are now in place cations of this responsibility environment in thanks to the unflagging and assumes ownership which we operate commitment of thousands of the associated risks. T requires companies of company employees. We act on any instances of to comply with increasingly As a result, Thales aims non-compliance to further stringent standards and assume to win the acknowledgement refine our rules and the ways a growing responsibility for of customers and partners we operate. their business practices. alike as a responsible world The entire company is com- I personally attach the utmost market leader. mitted to this process of importance to ethical behav- This report provides a brief continuous improvement. iour and compliance with description of the measures Indeed, we believe it is the < 1 Businesses Thales is a world leader in mission-critical information systems for the aerospace, defence and security markets. With operations in 50 countries and revenues of 12.6 billion euros, the company draws on an extensive palette of civil and military technologies to meet the needs of its customers, working as a programme prime contractor and developing and delivering a full range of equipment, systems and services. AEROSPACE DÉFENSE > Aerospace > Space > Air Systems • Intelligence, command and end-to- > Naval end communications systems (C4ISR) Onboard all major civil and military Provision of end-to-end space-based Complete airspace security and systems for joint and network centric Major naval industry credentials. aerospace programmes. solutions from systems to services surveillance solutions, both civil operations Strengthened partnership with ship- Capabilities through Thales Alenia Space (67% stake) and military. • Communications and optronics builder DCNS at the heart of European and Telespazio (33%). Capabilities • Aeronautical equipment equipment for air, land and naval forces consolidation moves. • Mission electronics for combat aircraft Capabilities • Weapon, surveillance and detection References Capabilities • Airborne surveillance and • European leader for space systems systems Land • Prime contracting and systems mission systems and services in the field of commercial • Radar, command & control and • Cooperative fighting system : integration Some references Telecoms, Navigation, Radar & Optical battlefield radar solutions via JV BOA demonstrator (France) • Above-water systems and equipment • Watchkeeper UAV-based ISTAR Observation, Meteorology and ThalesRaytheonSystems • Soldier modernisation programmes : • Underwater systems and equipment programme Oceanography, Defense Communications • Air traffic management solutions FIST (UK), Normans (Norway), • Services (fleet support and MCO) Some references • A380, A400M and B787 aircraft and Observation, Science IdZ (Germany), D2S2 (Netherlands) Some references • Rafale & Mirage 2000 fighters • Strong positions in Orbital infrastructures • European anti-missile defence • More than 25,000 integrated vehicle • Future aircraft carriers CVF (UK) and • S76d, Lynx, Future Lynx, Tiger, and Transportations programmes FSAF, PAAMS and SAAM systems in service of 150 different PA2 (France) Some references NH90 helicopters • Crotale and Shahine short-range types. • FREMM (Franco-Italian multimission • Meltem maritime patrol programme • Commercial telecommunication missiles • CYTOON program (South Africa) frigates) (Turkey) satellites W2A (Eutelsat, Mobile TV), • Starstreak very short-range missile to deliver land battalion with ISTAR • Horizon and LCF frigates • Regional aircraft (Bombardier, Sukhoi) Globalstar (48 constellation for mobile • ACCS LOC-1, NATO Air Command capabilities • MINREM