Thales S.A.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to today's Thales Fully Year 2024 conference call. The presentation will be held by Patrice Kane, Thales CEO, and Pascal Boucher, Thales CFO. It will be followed by a question and answer session, at which time, if you wish to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. I must advise you that this conference is being recorded. I would now like to turn the conference over to Ms. Alexandra Boucheron, VP, Head of Investor Relations. Please go ahead, madam.

Good morning. Welcome and thank you for joining us for the presentation of TELES 2024 full year results. I am Alexandra Boucheron, TELES Head of Investor Relations. With me today are Patrice Kane, Chairman and CEO, and Pascal Boucheron, CFO. The presentation will be followed by a Q&A session. As usual, this presentation is audio webcasted live on our webcast at thalesgroup.com, where the slides and the press release are also available for download. Finally, a replay will be available soon after the end of the event. With that, I would like to turn over the call to Patrice Kane.

Thank you Alexandra and good morning everyone. So as usual let's start with the highlights of 2024 before moving on to the numbers and I'm now on slide number two. So starting with the commercial dynamics which was outstanding across the entire portfolio. In 2024 Thales signed six contracts with a unit value in excess in excess of 500 million euro this solid momentum drove a new record for both order intake and battle our sales growth stands above the top of the guidance range set for set for this year at 8.3 percent on an organic basis This performance was notably driven by strong growth in defense. The adjusted EBIT recorded double-digit growth of 13% versus last year. And last but not least, on the financials, cash generation was excellent once again. So in a nutshell, we were able to deliver a sustained robust growth in revenue, profits, and cash in 2024, exceeding all our financial objectives. Moreover, Thales is rolling out its strategic roadmap to strengthen its global tech leadership in defense, in aerospace, and cyber and digital. And we are currently successfully integrating Imperva and Coban Mirocoms, which delivered an excellent performance in 2024. Finally, we launched an adaptation plan in the space business to recalibrate our cost structure to renew market conditions in civil telecommunication markets and restore profitability. Let's now move to slide number three to look at our financial performance with a few charts. As previously said, we have enjoyed strong commercial momentum in 2024 with our order intake up 6% organically, reaching 25.3 billion euros, a level never seen in the history of the group. The book-to-bill ratio is significantly above 1, reaching 1.23. Sales recorded a sharp plus 8.3% organic growth, crossing the 20 billion mark and reaching a new high at 20.6 billion euros. Adjusted EBIT rose by more than 13% on a reported basis. while EBIT margin improved to 11.8%. Adjusted net income group share grew by 7% at 1.9 billion euros, and this despite higher financial expenses linked to the increased cost of debt following the two acquisitions mentioned previously. Free operating cash flow from continued activities increased by 9% largely outpacing 2 billion euros. And last chart, the dividend. This new year of a strong financial performance is leading our board of directors to propose at the next AGM in May a 9% increase to 3.70 euros per share. It demonstrates Thales' confidence and commitment to regular shareholder returns. Turning to slide number four, looking now at our extra financial performance in 2024. I indeed wanted to come back on the continuous progress we have made in terms of corporate social responsibility. First pillar, our strategy for climate change. Our CO2 emissions from scope one and two decreased by 56.8% in 2024 and Scope 3 emissions decreased by 24.7% compared to 2018. The Group has thus achieved its 2030 targets ahead of schedule for the second consecutive year. The absolute carbon footprint reduction targets remain relevant for 2030 in light of the group's growth prospects. A word also on the Thales Climate Passport, a training deployed in 2024 to raise employees' awareness to climate change and its impact on society. This large-scale campaign was a real success with over 67% of managers close to 35,000 TALIS employees who completed this training in 2024, way above the 50% target set. Our second pillar aims at strengthening gender diversity. where at the end of 2024, we are in line with our mid-term trajectory. First, the percentage of women in senior management positions reached 21.1%. This performance is in line with the group's trajectory to reach the set goal of 22.5% by 2026. Second, The percentage of management committees with at least four women reached 61.5% in 2024 compared to 52.6% at the end of 2023. For 2026, we have set an ambitious target to have 75% of management committees with at least four women. Finally, the anti-corruption pillar, where our priority is to seek for permanent implementation of the best standards. In this area, 100% of concerned employees were trained in corruption prevention in 2024, demonstrating the group's continuous commitment to train all employees potentially exposed to risky situations on an annual basis. Also, in 2024, the ISO 37001 certification for anti-bribery management systems was renewed for three years and extended to Germany, Australia, and New Zealand. Thus, in 2024, the revenue generated by certified entities represents 64% of the group's revenue versus 58% in 2023. Those achievements reflect the continuous progress in CSR performance and put us on track to achieve our mid-term targets. After this short introduction, I now hand over to Pascal, who will comment our financial results in greater detail.