- 2020 INTEGRATED REPORT 36 VALUE CREATION 19% ELECTRONICS 37% GENERAL PURCHASES & IS/IT 21% SYSTEMS AND EQUIPMENT 12% ENGINEERING 11% MECHANICS 38% FRANCE 30% EUROPE (EXCL. FRANCE) 32% REST OF THE WORLD COMMITMENTS FOR RESPONSIBLE PURCHASING In 2020, commitments for responsible purchasing were clearly stated and supported by the Group’s corporate management. This Responsible Purchasing policy aims to provide Thales with a sustainable competitive advantage at the global level, focused on value creation, innovation, commercial partnerships and operational excellence. This policy addresses six main areas: • the compliance of suppliers with laws and regulations in force; • the establishment of quality relationships based on mutual loyalty; • sharing expertise to stimulate innovation; • the involvement of suppliers alongside Thales in the fight against climate change; • specific support for local SMEs; • supporting suppliers in connection with international development opportunities; • expanding the use of Social and Solidarity Economy players. A STRENGTHENED CORPORATE RESPONSIBILITY Thales asks its suppliers and subcontractors around the world to adhere to its corporate responsibility approach by signing an Integrity and Corporate Responsibility Charter that commits them to respecting essential principles such as human rights, employment practices, combating corruption and influence peddling, managing conflicts of interest, protecting information, protecting the environment, complying with health and safety rules, and ethics. The Group’s objective is to ensure that 100% of new partners sign this Charter (or commit to equivalent principles) by 2023, in order to develop an even more responsible supply chain. By the end of 2020, 91% of new suppliers were committed to the principles of the new Thales Integrity and Corporate Responsibility Charter. Purchases account for almost half of Thales’s revenue. The Purchasing function is thus at the heart of the Group’s strategic challenges. It aims to give Thales, at global level, a sustainable competitive advantage based on value creation, innovation, commercial partnerships and operational excellence. This strategic vision, driven by 1,200 buyers in 35 countries, is entirely focused on the satisfaction of Thales’s customers. Thales’s Purchasing is also at the core of the Group’s corporate responsibility policy and forms part of its purpose: “Building a future we can all trust” . A RESPONSIBLE SUPPLY CHAIN Roque Carmona, Chief Procurement Officer THALES CAN ONLY ACHIEVE EXCELLENT PERFORMANCE IF ITS SUPPLIERS ALSO DO SO! Ethics - Integrity - Compliance Code of Ethics thalesgroup.com Key events in 2020 of new suppliers are committed to the principles of the new integrity and corporate responsibility charter 91% GROUP PURCHASING €7.1bn BREAKDOWN OF PURCHASES BY SEGMENT of purchases entrusted More than €1.6bn SMEs and MSBs in France to over 2,500