Thales — M&A Activity 2016

Jun 30, 2016

Paris La Défense, 30 June 2016

Change in scope of Thales-Raytheon Systems

Thales (Euronext Paris: HO) signed yesterday an agreement with Raytheon to reduce the scope of their joint-venture Thales-Raytheon Systems, that specializes in air operation command and control systems, surveillance radars, and ground-based weapon-locating radars.

As of 1st July 2016, the scope of this joint-venture will be focused on the market for air operation command and control systems and anti-ballistic missiles defence for NATO customers.

In this context, Thales sells to Raytheon the 50% interest that it holds in the US-based operating company of the joint-venture, TRS LLC.

In parallel, Thales acquires the non-controlling 50% interest of Raytheon in TRS SAS, the France-based operating company of the joint-venture. Thales will integrate this company in a new "air operations and weapon systems" business line that will be able to offer a broad range of integrated defence systems.

In the Thales financial statements at 30 June 2016, these transactions will trigger a gain on disposal of around 90 million euros, recorded below the EBIT line, and a cash inflow of approximately 90 million US dollars.

About Thales

Thales is a global technology leader for the Aerospace, Transport, Defence and Security markets. With 62,000 employees in 56 countries, Thales reported sales of €14 billion in 2015. With over 22,000 engineers and researchers, Thales has a unique capability to design and deploy equipment, systems and services to meet the most complex security requirements. Its exceptional international footprint allows it to work closely with its customers all over the world.

www.thalesgroup.com

Contacts

Thales, Media Relations

Cédric Leurquin +33 (0)1 57 77 86 26 pressroom@thalesgroup.com

Thales, Analysts/Investors

Bertrand Delcaire +33 (0)1 57 77 89 02 ir@thalesgroup.com