Thales UK Corporate Brochure 2011

www.thalesgroup.com/uk

THALES UK

Despite some challenging marketconditions, we are fortunate that

our long and respected trackrecord for delivery, places us

in an excellent position.

VICTOR CHAVEZCHIEF EXECUTIVE

Thales is a modern, agile organisation

with a proven history of forming

effective and sustainable partnerships

with customers across all areas of

industry, commerce and government.

We work closely with our customers

in a transparent and open manner to

deliver systems and services that make

a real difference – on time and to budget.

Thales has a broad portfolio oftechnologies, systems and services whichplay a key role in ensuring the nationalsecurity of the UK. In addition to ourtraditional markets of defence andaerospace, we are particularly focused onplaying a leading role in the increasinglyimportant areas of cyber-security andcounter-terrorism.

We continue to develop our position as a leading partner to the UK Ministry of Defence (MoD), shown by our delivery of high-quality urgent operational require-ments (UORs) to protect soldiers, sailorsand airmen in areas of military operations.On our major equipment programmes, weare making significant progress on theQueen Elizabeth (QE)-class aircraft carriersand the Watchkeeper unmanned air system(UAS). The QE-class ships will be the mostcapable and powerful warships everconstructed in the UK and Watchkeeper isthe largest programme of its kind inEurope. All our activities are backed byinnovative and cost-effective serviceprovision and through-life support.

In transportation there are excitingopportunities for us to build on ourrelationship with existing customers,including Transport for London, supportingits modernisation of the LondonUnderground and other urban transportnetworks, and Network Rail with itschallenging signalling and telecomsmodernisation programmes. The M-Pact-Thales consortium is continuing to design,build and maintain Manchester Metrolink’snew light railway, largest single publictransport investment outside London.

Thales UK has a healthy backlog of ordersand we have a strong pedigree ofsuccessful exports to many countries. Our robust performance in internationalmarkets means that exports currentlyaccount for 25% of our revenues, a figurewe are focussed on increasing. In particularwe have a strong track record of exportsin the optronics, sonar, electronic warfare,aerospace and missile sectors.

Thales UK makes the world a safer and more secure placeby combining technological, engineering and operationalexcellence with commercial innovation. We want ourcustomers to prefer to work with us because we act withintegrity, respect the need to develop long-term productiverelationships, and always deliver on our promises

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Thales is a modern, agile organisation that makesa substantial contribution to the UK economy. We have a proven history of forming effective andsustainable partnerships with customers acrossall areas of industry, commerce and government.We enjoy the trust of our customers because ofour expertise in complex systems integration,because we are transparent in our dealings with them, and because we are committed todelivering much-needed capabilities – on time and to budget – backed by service provision and through-life support.

Our focus on the delivery of products andcontinuous service improvement has beenrewarded with exceptional performance, achievingdouble-digit growth in the UK over the past fewyears. We continue to develop our position as a leading partner to the UK Ministry of Defence(MoD), shown by our extraordinary efforts to deliver high-quality Urgent OperationalRequirements (UoRs) to protect soldiers, sailorsand airmen in Iraq and Afghanistan. We’ve also made progress on significant equipmentprogrammes, including the Queen Elizabeth-classaircraft carriers and the Watchkeeper unmannedair system (UAS).

In transportation there are exciting opportunitiesfor us to build our relationship with existingcustomers, including Transport for London,supporting their efforts to modernise the London Underground and other urban transportnetworks. Progress of the M-Pact Thalesconsortium in the design, build and maintenanceof Manchester Metrolink’s new light railway lineshas grown our UK presence in this market.

Thales UK has a healthy backlog of orders and we have a strong pedigree of successful exportsto many countries: our robust performance in international markets means that exportscurrently account for 25% of revenues at ThalesUK. So, for example, in the civil market wecontinue to have a strong presence in the globalfull-flight simulator market; in the military marketour avionics, optronics, sonar and electronicwarfare equipment regularly compete in the global market.

We are grateful for the strong support of theBritish Government and are encouraged that the Government has signalled a desire to boostBritish export success, not least in the UK’s high-tech manufacturing sector.

A global companywith 68,000employees in 50 countries and £11.2 billion in revenues

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A global leader

Thales is a world leader in mission-critical

information systems for defence and

security, aerospace and transportation.

AustraliaAustria

BelgiumBrazil

CanadaChina

FranceGermany

IndiaItaly

MexicoNetherlands

NorwayPortugalRomania

Saudi ArabiaSingapore

SpainSouth AfricaSouth KoreaSwitzerland

United Arab EmiratesUnited Kingdom

United States

Countries listed with 100 employees or more

In 2010 the company generated revenuesof £11.2 billion (€13.1 billion) and had anorder book of £21.8 billion (€25.4 billion).Building on its expertise in the mostsophisticated technologies and large-scalesoftware systems, Thales is stepping upto the security challenges of its customersin an increasingly complex world. With itsglobal network of 22,500 engineers andresearchers, Thales has earned particularrecognition for its ability to develop and deploy dual-use civil and militarytechnologies. Leveraging its internationaloperations and spanning the entire valuechain from equipment to systems andservices, Thales is playing a pivotal role in making the world a safer and moresecure place.

GrowthThales, as part of its growth strategy,intends to further expand local industrialoperations in Asia, Latin America and theMiddle East. This is to meet the demandsof local customers (mainly governments)who want their countries to benefit directlyfrom the skills and technologies that acompany like Thales can provide.

Thales also plays a leading role on someof Europe’s largest programmes, in areasas varied as equipment and systems forland forces, aerospace, naval defence,security, satellites, missile systems andC4I. This strengthens Thales’s positions inthese domestic markets. In civil aviation,space and ground transportation, Thalesis a major player on some of today’s largeststrategic projects, including air trafficmanagement, satellites and transportation.

InnovationTo provide customers with high-techsolutions and services that meet theirfuture requirements, Thales needs toinnovate constantly. The purpose of all ourinnovations is to create value forcustomers, sometimes by using technologybut also by finding new ways of doingbusiness or organising ourselves, betterways to manage our processes andcombine our talents. The effectiveness ofThales’s research and development (R&D)effort hinges largely on the decentralisednature of our operations, with centralisedcoordination around strategic priorities.R&D teams are based in all the company’smain countries of operation.

PerformanceOnly high-tech businesses that continuouslyimprove their operational performance,simplify their processes and optimise theway they manage projects and risks will have the capacity they need to develop state-of-the-art solutions for theircustomers. Setting best-in-class standards,sharing best practices and learning how to work even more cohesively as ateam – these are the objectives of the2010 –2014 performance plan and our new business process baseline. This comprehensive set of measures iscontinuously improving our efficiency andprogramme delivery performance.

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Investing in the UK

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8,000 people across35 locations

with key sites at

Thales has invested heavily

in the UK in the last 10 years –

in people, sites and technology,

showing our commitment

to our UK and overseas

customers, to our staff

and to growth opportunities.

Basingstoke BelfastBristol

CambridgeCrawley

Doncaster

Glasgow LeicesterLondonManchester Reading Templecombe Weybridge

Thales is a significant defence andaerospace company and this sector is aparticularly good example of the UK’sexpertise in high-tech manufacturing as itrepresents more than 10% of the UK’sentire manufacturing industry. We employaround 4,000 engineers and technicians,90% of which are qualified to degree levelor above. These people are employed inhigh-value, high-quality manufacturingactivity, or on R&D work for futurebusiness.

Thales is a key investor in UK IntellectualProperty and at our Reading–basedresearch facility we employ around 80engineers, mathematicians and scientiststhat collaborate with various governmentagencies, universities and privateorganisations. As a global business wedevote almost 20% of our revenue to R&D,and each year we file hundreds of patents.

We deliver our programmes through anextensive supply chain, with 70% of ourturnover passing to our suppliers. In totalThales UK works with over 3,500suppliers, employing an estimated 24,000people in our supply chain.

Our new high-tech facility in Crawley, whichbrings together over 2,500 of our staff, isthe biggest of Thales’s recent investments,part of a wider programme across the UKthat also includes investment at ourBasingstoke and Templecombe sites.

We currently have more than 350graduates on our four-year GraduateDevelopment Programme working acrossThales UK. We see this as an essentialelement in maintaining a professionalworkforce in a competitive world market.We also have around 60 apprentices, thatadd value to all aspects of our businessand are a vital part of the company’splanning for the future.

Responsibility in action We see Corporate Responsibility (CR) as aserious investment in our future and it is deeply embedded in the Thales culture.It is a formal, publicly declared strategywith performance regularly measuredagainst industry standards.

We aim to attract and retain the bestpeople we can and help them to developpersonally and professionally in anenvironment that nurtures their safety andwell being. We aspire to be an employerof choice.

We understand the importance ofcontributing to the local and widercommunities through charitable giving,sponsorship and education. We activelyencourage and support employee fund-raising and volunteering.

We believe in protecting the environmentfor future generations. Supported by theCarbon Trust, we are committed tosustainable development, reducing ourcarbon footprint, energy consumption and waste.

We act with integrity in all of our businessdealings and insist on high ethicalstandards. We follow a strict Group-wide code of ethics that governs our behaviouras a business and as individuals. We deliveron our commitments to our customers,suppliers and partners, and we abide byall export and other regulations.

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Businessareas

We serve four sectors that are right at the

heart of today’s complex, interconnected

world by embedding all our services,

solutions and equipment with sophisticated

technologies that help decision makers

deliver a better outcome.

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DefenceThales UK is a major defence primecontractor and systems integrator, with adeep technological understanding, a strongelectronic systems integration track recordand the capability to support systemsthrough life on a global basis – including inoperational theatres. From electronicwarfare and sensor systems, such as thesonar system on the new Astute-classsubmarine, to precision-guided missilesystems, such as Starstreak – fewcompanies can match our ability to offerproven solutions to protect soldiers, sailorsand airmen in the defence of nationalinterests. Thales UK provides equipmentor sensors to almost every major platformin service or in development for the UKarmed forces. In particular we haveexpertise in intelligence, surveillance,target acquisition and reconnaissance(ISTAR). Our extensive capability providesan excellent portfolio of systems, productsand services for the export market.

SecurityThales UK is an established expert in thedesign and supply of critical systems forpromoting the safety and security of people,places and sensitive information. We areworking closely with our customers todefine the future needs of homelandsecurity and the protection of criticalnational infrastructure using technologiessuch as secure communication systems,encryption technology, command andcontrol systems and chemical, biological,radiological and nuclear solutions. With40 years of expertise and over 400 cyberand security specialists, Thales hasunrivalled experience across the cyber spectrum, working for civil and military customers. For example, ourproven expertise in secure networkcommunications safeguards 3.7 billionBACS transactions – worth around £1 trillion – every year.

AerospaceThales UK provides a wide range of provenequipment and systems for fixed and rotarywing platforms. Leaders in the provision ofsophisticated onboard systems and trainingon our full-flight simulators, our customersinclude some of the latest airlines andaircraft manufactures: the A400M, theA350, the Sukhoi Superjet 100 and theB787. In fact 80% of the world’s pilotshave been trained on Thales’s synthetictraining devices. We are also a worldleader in air traffic management services,with many UK examples. Linked to our USinflight entertainment systems, our UKbusiness provides a range of high-capacitysatellite communications systems thatenable passengers to use mobile phonesand the internet aboard civil aircraft.

TransportTransport networks around the world relyon technology and systems expertise fromThales for safety, reliability and optimisedcapacity. Our main markets in the UK areurban rail, mainline rail and roads, whereour solutions include signalling (traincontrol, axle counters, interlockings, train protection and warning systems),supervision and control, integratedcommunications, security and informationmanagement. Our clients include theHighways Agency, Transport for London,Network Rail, Transport for GreaterManchester and various train operatingcompanies. With a current order bookworth around £800 million and a strongorder pipeline, our portfolio of productsand solutions – backed by a full range ofdesign, installation and support services –is second to none.

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Majorprogrammesand bids

With our proactive and transparent

business culture, Thales UK is

recognised by our customers as a

trusted partner for prime contracting,

systems integration and through-life

service provision.

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Queen Elizabeth-classaircraft carriersThe UK’s new aircraft carriers are beingconstructed by an alliance of industry andthe MoD, of which Thales UK is a foundingpartner. Thales UK is responsible forleading the platform design, power andpropulsion and aviation teams. Thales isalso participating in the delivery of thecarrier’s mission systems, including thedevelopment and manufacture of thecommunications element. Thales will alsoplay a full role in supporting the carriers in service.

Watchkeeper unmannedair system (UAS)Watchkeeper is Europe’s largest UASprogramme, for which Thales UK is primesystems integrator. The programme willcontribute significantly to force protectionby providing the UK armed forces withremote, unmanned intelligence gatheringand processing capabilities and surveillanceduring military operations. Information andimages are provided to a network of mobileground control stations and remote viewingterminals, providing valuable intelligencefor commanders. Thales UK will alsoprovide the support contract forWatchkeeper.

London Underground andurban re-signalling andcommunications projects Thales UK is providing new signallingsystems for London Underground’s Jubileeand Northern tube lines, the biggestimplementation of its kind anywhere in theworld. The system, using Thales’s globallyproven SelTrac technology, will boostreliability and achieve a 33% increase inpassenger capacity. Similar technology hasbeen in service on the Docklands LightRailway since 1995. Thales UK is alsopart of the Connect consortium, a 20-year£1.2 billion PFI, providing communicationsinfrastructure for London Underground.

Overlaying on this network, Thales installedAirwave, a communications system for theemergency services.

MarshallTeam Aquila (formed of Thales UK andNATS) is bidding for Marshall, an MoDproject valued at £1–1.5 billion to provideair traffic management (ATM) systemsand services at all MoD-operated airbasesand flying ranges in the UK and overseas.The MoD’s existing ATM infrastructurefaces serious obsolescence issues,requiring replacement to ensure ongoingmilitary air operations. We expect theprogramme, which will run for 22 years,will be a long-term service-provisionprogramme, of which we have considerableexperience. Thales is a world leader in civiland military ATM, with over 50 yearsexperience and contracts in 150 countries.

CipherWe are currently bidding for Cipher, a£750 million+ programme that meets allof the Cabinet Office criteria for a majorproject. Cipher will address the UK MoD’slong term requirements for SecurityManagement Infrastructure, provide theirfuture cryptographic requirements, enablegreater communications security, improveoperational flexibility and deliver significantsavings. Cipher also has utility across othergovernment departments with the MoD asthe first adopter. Cipher’s encryptioninfrastructure will enable the secure linking of different government communi-cation networks thus creating a NationalInformation System. This will then allowdifferent government departments tocommunicate or pass classified or sensitivedata to each other rapidly and seamlessly.Cipher is an important element of ThalesUK’s broader agenda in the cyber-securitymarket. Our strong encryption pedigree inboth civil and military markets is at theheart of our tender response, along withour ability to provide a complete servicethrough life.

Designed & Produced by Thales UK Corporate Communications 1063/9/11Copyright Thales UK 2011.

Thales UK2 Dashwood Lang Road, The Bourne Business ParkAddlestone, Nr Weybridge, Surrey KT15 2NXTelephone: +44 (0)1932 824800e-mail: [email protected]

Thales UK Corporate Brochure 2011

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