Digital Economy disruption impact on ATM How digital transformation disrupts and reshapes whole sections of the aviation economy and of the ATM extended industry François-Xavier Richard

The aviation industry is under pressure Key trends and disruptions by 2035 Demand 1 Infrastructure providers 3 Air Navigation Service Providers Airports Ground Handler Passenger expectations & intermodal competition The aviation industry is pressured by evolution of demand & aggressive technology disruption Technology disruptions Aviation industry 5 Air service providers Aircraft providers 2 4 Airlines IT/ Distribution Lessor Aircraft OEM / Tier I MRO

ATM evolution scenarii based on regulation & market dynamics ANSP & ATM INDUSTRY ADAPT MARKET DISRUPTION New Competitive environment leading to business and partnership models adaptations COMPETITIVE SERVICE PROVISION NATIONAL BASED SERVICE PROVISION ANSP & ATM INDUSTRY RESIST CHANGE IN THE FACE OF MARKET DISRUPTION

ANSPs digital priorities as perceived by Thales Agile Solutions 2 safety grade solutions capable of regular and seamless upgrades Reliable Platfom 1 secure and scalable capacity for growth Productivity boost 3 controllers productivity with increased automation best user experience Connecting all Stakeholders 4 More dynamic coordination (ATFM,UTM – Civil/Military) Operational Optimization with AI & ML Digital Business Models 5 Data Enabled, Service based, performance oriented Thales wants to be ANSP’s prefered partner ensuring their long term success

Digital Transformation Thales investment in Digital Transformation

Thales Group Digital Vision Objective INVEST IN DIGITAL TECHNOLOGIES Mobilizing the power of digital technologies to transform not only our businesses but the business of our customers supports our ambition of being a global leader in all our markets. Already largely digital by nature, Thales decided however to accelerate its investments in the 5 core digital technologies that are at the heart of the digital transformation: Connectivity and IoT (Internet Of Things), Cloud platform, Big Data, analytics: data gathering, processing and analysing Artificial Intelligence (AI), leading to more and more sensors and platforms Cyber security and in particular data protection. This implies a complete change in the way we see Thales: we must become a digital platform company able to provide most of its solutions through digital services and their upgrades, leveraging the vast amount of data that our products, systems and solutions generate. This allows us to 5 priority axes Transform our businesses, alongside our customers’ Support our ambition of being a global leader in all our markets Leverage our global and disruptive innovation capability Big Data, analytics Artificial Intelligence (AI) Safety cloud platform Cyber security & data protection Connectivity and IoT Digital tranformation

Thales Digital investments DIGITAL FACTORY Connectivity and IoT in aeronautics, transport and on the battlefield are key challenges to establish the root of trust required for Internet-connected devices Big Data, data processing and analysis may inspire new business models and bring unprecedented opportunities to improve our operations efficiency. Artificial Intelligence has become the next big things since the world will be an ever more demanding struggle against the limitations of our own intelligence Cyber security and data protection has become critical for a successful digital transformation STATION F Largest start-up accelerator in the world, where Thales is managing its cybersecurity program.

Artificial Intelligence & Big Data 2010 Thales Research & Technology (TRT) Dedicated Thales R&D arm includes labs focusing on AI & Big Data Significantly, CeNTAI R&D centre (2010) 20 data scientists researching Big Data & Visual analytics algorithms Vormetric: leading provider of data protection solutions in physical, virtual and cloud infrastructures. The combination of Vormetric and Thales e-Security’s activities enables organisations to protect and control their data from the data centre to the cloud, while strengthening their security posture and meeting data privacy compliance. Guavus: The company has built a recognised industrial “big data” platform particularly adapted to real-time analytics and designed to be easily implemented across any number of new markets. CortAIx: Centre of Research and Technology in Artificial Intelligence eXpertise Gemalto: leading international specialist in trusted identities and data security. This acquisition project would mark a key milestone in the implementation of Thales's strategy, and reinforce the Group's digital offering across its five vertical markets - Aeronautics, Space, Ground Transportation, Defence and Security. 2016 March Data protection 2017 May Real-time Big Data analytics 2017 Sept Thales Digital Business Unit Culmination of € 1 billion in Digital Technologies over the last 3 years 2017 Déc Internet of Things, Digital Security > € 4,8 billion bid accepted, 40 countries, 15 000 employees

Our Future Together

Thales ATM Digital acceleration Support growing regulatory complexity (Safety, cyber, Air & Ground) Data-driven optimization (ATFM, Analytics) Thales is ready to become The Digital Partner to support ANSPs success in their Digital Transformation Digitize customer community access (Digital front office) New business models (Saas, Managed Services, Data-based, partners & 3rd party) Flexibility and agility to support growth (Cloud, SOA) Innovate to address emerging needs (UTM,AI) Improve speed, cost & quality (Agile, DevOps)

Zoom on key features addressed by Thales today Seamless Military ATM Digital Training Automation UTM Flexible Use of Airspace Data Thales your Digital Partner to cover these challenges Artificial Intelligence ATFM E-Services Agregation Interoperability analytics Digital Training Interoperability Safety Integration ATFM Coordination Seamless Agility Agility E-Services Flexible Use of Airspace Integration Automation Military ATM UTM You need an actor able to undergo these accelerations with no compromise on Safety Artificial Intelligence Coordination Safety

Our future together, reinventing ATM and beyond… CUSTOMER SUCCESS DATA CENTRIC APPLICATIONS DIGITAL TRANSFORMATION DIGITAL ATM INNOVATION OPENNESS & PARTNERSHIP

Thank you for your attention francois-xavier.richard@thalesgroup.com