THALES (EPA:HO) - Australian future submarines: Thales confirms all its financial targets

Transparency directive : regulatory news

16/09/2021 08:45

PRESS RELEASE
16 September 2021
Paris La Défense

Australian future submarines: Thales confirms all its financial targets

Thales takes note of the decision by the Australian authorities to acquire a
fleet of nuclear-powered submarines in the framework of a new strategic
security partnership with the United States and the United Kingdom. As
described by the Australian government, this decision is motivated by
accelerating changes to regional security that make conventional submarines
unsuited to Australia's future operational needs. It is leading Australia to no
longer proceed with the AFS (Australian Future Submarine) program to build new
generation conventional submarines.

From a financial point of view, Thales is exposed to this program at 2 levels:
as a supplier of subsystems to Lockheed Martin, and as a 35% shareholder of
Naval Group.

At 30 June 2021, the corresponding order book with Lockheed Martin is not
material at the scale of Thales, since it amounts to less than EUR30 million,
ie less than 0.1% of the total order book of EUR34.6 billion.

In addition, Thales does not expect any material impact of this announcement on
the Group's 2021 EBIT through Naval Group's contribution (2019: EUR65m, ie 3%
of Group EBIT, 2020: EUR22m, ie 2% of Group EBIT).

In consequence, Thales confirms all its 2021 financial targets, as announced on
4 August 2021:

* As in 2019 and 2020, a book-to-bill ratio above 1;
* Sales in the range of EUR15.8 billion to EUR16.3 billion;
* An EBIT margin in the range of 9.8% to 10.3%, up 180 to 230 basis points from
2020.

Thales confirms as well its medium-term outlook for the Defense & Security
segment (annual organic sales growth between 4 and 6%, EBIT margin between 12
and 13%) as well as for the entire Group, targeting a 12% EBIT margin in the
medium-term.

About Thales

Thales (Euronext Paris: HO) is a global leader in advanced technologies,
investing in digital and "deep tech" innovations ? connectivity, big data,
artificial intelligence, cybersecurity and quantum computing ? to build a
confident future crucial for the development of our societies. The Group
provides its customers ? businesses, organisations and governments ? in the
defense, aeronautics, space, transport, and digital identity and security
domains with solutions, services and products that help them fulfil their
critical role, consideration for the individual being the driving force behind
all decisions.

Thales has 81,000 employees in 68 countries. In 2020 the Group generated sales
of EUR17 billion.

CONTACTS

Thales, Media Relations
Cédric Leurquin
+33 (0)1 57 77 90 93
cedric.leurquin@thalesgroup.com

Thales, Analysts/Investors
Bertrand Delcaire
+33 1 57 77 89 02
ir@thalesgroup.com

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