PRESS RELEASE
17 October 2019 – 19:00 CET
Paris La Défense, France




Thales adjusts down its
2019 organic sales growth target and
confirms its other short and medium-term
financial targets



 Q3 2019 sales in line with consensus expectations: €4.2 billion, up 23.4% (+0.9% on an
organic basis1)
 2019 sales growth target adjusted: growth now expected around +1%
 Confirmation of all other 2019 financial objectives (order intake and EBIT2), as well as
medium-term financial objectives presented at the 3 October Capital Markets Day


Thales (Euronext Paris: HO) will disclose its order intake and sales for the period ending
30 September 2019 at 7am CET on Tuesday 22 October.
In accordance with EU regulation No. 596/2014, which provides that issuers shall inform the
public as soon as possible of inside information directly relevant to them, the Group is today
announcing the adjustment of its 2019 organic sales growth target.


Thales now expects its organic sales growth to be around 1% over Full Year 20193. This
adjustment is due to 2 operating segments: Aerospace and Defence & Security.
In the Aerospace segment, operators of commercial telecommunication satellites continued to
adopt a wait-and-see attitude in the 3rd quarter, resulting in a lower than expected order
intake, which will therefore contribute only slightly to Q4 sales. For the Full Year 2019, the
Group now anticipates a decline of around 13% in space sales4.
Nevertheless, the Group is currently participating in the final stage of 4 significant commercial
satellite tenders, whose conclusion is expected in the coming weeks. This level of commercial
activity confirms the gradual recovery of this market.




1
In this press release, “organic” means at constant scope and currency. See definition page 27 of the 2018
registration document, and detailed computation on page 3
2
Non-GAAP financial indicator, see definition page 27 of the 2018 registration document
3
Previous target: “at the lower end of the 3 to 4% range”
4
Previous target: “decline of around 10%”. This business generated sales of €2.45 billion in 2018.

COMMUNICATIONS DEPARTMENT – Thales – Tour Carpe Diem – 31 place des Corolles –
92098 Paris La Défense Cedex – France – Tel.: +33(0)1 57 77 86 26 – www.thalesgroup.com 1
PRESS RELEASE
17 October 2019 – 19:00 CET
Paris La Défense, France

The long-term outlook for space markets remains robust, driven notably by the increase in
space agency budgets, the growing importance of space systems for military applications, and
the strong development of commercial connectivity needs.


In the Defence & Security segment, Full Year 2019 organic sales growth will remain high, around
6 to 7%, but should be lower than previously anticipated. The Group is facing a few delays on a
limited number of projects, including a slower than expected production ramp-up on the
Hawkei Australian military vehicles, and delays in contract awards by a few customers.
The 2019-23 growth outlook in this segment is unchanged.


At €4,220m, Q3 sales are in line with the consensus forecast of analysts who follow Thales
results on a regular basis5. Q3 sales and organic sales growth are detailed in appendix, page 3.


The acceleration of competitiveness initiatives enables the Group to maintain unchanged its Full
Year 2019 EBIT target: Thales should deliver an EBIT of between €1,980 million and €2,000
million, based on September 2019 scope and currency.
The Group also confirms its Full Year 2019 order intake target, expected to be slightly above €18
billion.




****

This press release contains inside information as per the definition of article 7 of EU regulation No. 596/2014


It may contain forward-looking statements. Such forward-looking statements represent trends or objectives, and
cannot be construed as constituting forecasts regarding the Company’s results or any other performance indicator.
Actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as
described in the Company’s Registration Document, which has been filed with the French financial markets
authority (Autorité des marchés financiers – AMF).




5
Q3 2019 consensus sales collected between 10 and 15 October: €4,235m. See
https://www.thalesgroup.com/en/investor/publications/releases-publications/consensus

COMMUNICATIONS DEPARTMENT – Thales – Tour Carpe Diem – 31 place des Corolles –
92098 Paris La Défense Cedex – France – Tel.: +33(0)1 57 77 86 26 – www.thalesgroup.com 2
PRESS RELEASE
17 October 2019 – 19:00 CET
Paris La Défense, France




Sales by operating segment – 9 months and Q3 2019
9m 9m Total Organic
2019 2018 change change
In € millions
Aerospace 3,787 4,010 -5.6% -6.8%
Transport 1,268 1,373 -7.6% -8.9%
Defence & Security 5,670 5,319 +6.6% +7.7%
Digital Identity & Security 1,631 131 n.s. n.s.
Other 54 40 - -
Total 12,410 10,873 +14.1% +0.0%



Q3 Q3 Total Organic
2019 2018 change change
In € millions
Aerospace 1,177 1,242 -5.2% -6.3%
Transport 433 469 -7.6% -8.8%
Defence & Security 1,788 1,650 +8.4% +9.6%
Digital Identity & Security 802 44 n.s. n.s.
Other 19 17 - -
Total 4,220 3,421 +23.4% +0.9%




Organic change in sales by quarter

2018 Currency Impact of 2019 Impact of Total Organic
sales impact disposals sales acquisitions change change
In € millions
Q1 3,412 +37 -25 3,361 +4 -1.5% -2.0%
Q2 4,040 +23 -26 4,829 +759 +19.5% +0.8%
H1 7,452 +60 -51 8,190 +763 +9.9% -0.5%
Q3 3,421 +25 -24 4,220 +766 +23.4% +0.9%
9 months 10,873 +85 -75 12,410 +1,529 +14.1% +0.0%




COMMUNICATIONS DEPARTMENT – Thales – Tour Carpe Diem – 31 place des Corolles –
92098 Paris La Défense Cedex – France – Tel.: +33(0)1 57 77 86 26 – www.thalesgroup.com 3
PRESS RELEASE
17 October 2019 – 19:00 CET
Paris La Défense, France




About Thales
Thales (Euronext Paris: HO) is a global technology leader shaping the world of tomorrow today.
The Group provides solutions, services and products to customers in the aeronautics, space,
transport, digital identity and security, and defence markets. With 80,000 employees in 68
countries, Thales generated sales of €19 billion in 2018 (on a pro forma basis including Gemalto).
Thales is investing in particular in digital innovations — connectivity, Big Data, artificial
intelligence and cybersecurity — technologies that support businesses, organisations and
governments in their decisive moments.



FIND OUT MORE
CONTACTS
Thales Group
Thales, media relations photos
Cédric Leurquin
+33 (0)1 57 77 90 93
cedric.leurquin@thalesgroup.com

Thales, analysts/investors
Bertrand Delcaire
+33 (0)1 57 77 89 02
ir@thalesgroup.com




COMMUNICATIONS DEPARTMENT – Thales – Tour Carpe Diem – 31 place des Corolles –
92098 Paris La Défense Cedex – France – Tel.: +33(0)1 57 77 86 26 – www.thalesgroup.com 4