Transcript Title 1 Title 2

THE 2008 EMPLOYEE SHARE PLAN
3,500,000 shares available for the offer
through 2 formulas which can be combined
« Classic Share »
« Share Plus »

20% discount on reference price

15% discount on reference price

100% of potential capital gains or
losses

Personal contribution protected
against loss

Dividends re-invested


Allocated in priority
+ 100% of potential capital gain on
personal contribution (1 share)

+ 69% additional average gain on
3 shares

No dividend

Scaled back in priority
Interest free payment over 12 months (when local regulation allows)
Human Resources
‹#›
PLANNING
Reservation
period
Prices set
Cancellation
period
Shares
delivery
Payment
7 - 26 March 2008
24 April 2008
24-28 April 2008
7 May 2008
~ 5 June 2008 *
* Payment of total amount or 1st instalment
Human Resources
‹#›
THE « CORPORATE » PROJECT TEAM
OFFER 2008 - PROJECT MANAGEMENT TEAM
Ken McSWEENEY
René VEROT
Sylvie LELIEVRE
Dominique DESBRUGERES
General coordination
Regulatory & admin. Compliance
Communication Coordination
Patrice Gilardoni
Fanny Achard (Logistic assist)
Mike Seabrook
Nicola Martin
France
Germany
United Kingdom
Australia
Canada
South Africa
USA
Corporate
Human Resources
Country
Ambassadors
Dominique DESBRUGERES
Netherlands
Belgium
Spain
Italy
Norway
Switzerland
Austria
Portugal
Singapore
Argentina
Company
Messengers
‹#›
Site Relays
THALES SHARE SUBSCRIPTION PRICE
Reference price
=
Average of opening share price
for the 20 trading days:
27 March  23 April
Acquisition price
=
Reference price
–
Discount (20 % or 15 %)

Human Resources
For countries in non Euro zone : exchange
rates will be fixed for the whole subscription
period until payment is made.
‹#›
“SHARE PLUS” FORMULA
>>
How is the average protected rise calculated ?
• An average share price is calculated : recording the closing Thales share
price every 15 days over 5 years, making a total of 120 recorded prices
• It is protected : any fall in the Thales share price below the reference price
will not affect the calculation, the selected price will be equal to the reference
price.
• Protected average rise = Protected average share price – reference price
Human Resources
‹#›
SIMULATION
Personal contribution = €500
Reference price : €40
Discount price (-15%) = €34
Personal contribution = €500
Reference price: €40
Discount price (-20%) = €32
CLASSIC SHARE
SHARE PLUS
Share
price
variation
Share
price at
maturity
Value of
your
assets
Variation
of your
assets
Share
price
variation
Protected
average
rise
Share
price at
maturity
Value of
your
assets
Variation
of your
assets
30%
52 €
812,50
62,5%
30%
6€
52 €
947,40
89,5%
20%
48 €
750,00
50,0%
20%
4€
48 €
827,70
65,5%
0%
40 €
625,00
25,0%
0%
2€
40 €
649,1
29,8%
-20%
32 €
500,00
0,0%
-20%
1€
32 €
530,4
6,1%
-30%
28 €
437,50
-12,5%
-30%
0€
28 €
500,00
0,0%
In this table the multiple used for the calculation is 2.07
A simulator is available to help you make your choice and allocate
your investment over the 2 formulas.
Human Resources
‹#›
SIMULATOR

To simulate your investment (French or English)


Combine your personal contribution in both formulas
Simulate your assets in 5 years
Your personal
contribution in 1
or 2 formulas
Your
gains/losses in
5 years
The simulator helps you to make sure that you do not exceed the contribution
limit of 25% on your gross annual remuneration
Human Resources
‹#›
THE FRAME: THE GROUP SAVINGS PLAN
A Group Savings Plan is a collective savings system, at the
group level, that allows each subscriber to build, under
preferred conditions, a Thales shares portfolio

FCPE or Fonds Commun de Placement
d’Entreprise is a a co-ownership of
securities (including shares)

It can be made up of compartments that
correspond to different investment
formulas
 Each participant owns FCPE units that
represent his/her assets
 The FCPE is governed by a Supervisory
Board
 The voting rights attached to the shares
are exercised by the Supervisory Board
Human Resources
‹#›
FCPE & COMPARTMENTS FOR 2008
SHARE PLUS
CLASSIC SHARE
Thales Actionnariat Salarié
R
Via
bridge
funds
R
R
R
Actions Thales
FR
Action Plus
2008
World Classic
INTL
Thales Netherlands
(special supervisory board)
R
Netherlands
Classic
Netherlands
Action Plus 2008
Thales Italy
(individual voting rights & dividend directly paid)
Italy
Classic
Funds
Human Resources
Italy
Action Plus 2008
Compartments
‹#›
TAX & LEGAL
Taxation may happen at 3 steps
UP FRONT
DURING 5 YEARS
AT MATURITY *
Discount
Dividends
Free interest
loan
* Or selling
Human Resources
‹#›
Gain
SUBSCRIPTION LIMIT
Payments in the Group Savings Plan
cannot exceed 25% of your gross
annual remuneration
These include:
• your personal contribution under the
Classic Share formula
• + your personal contribution multiplied
by 4 under the Share Plus formula
• + (for France only) other contribution in
other savings plans
Human Resources
‹#›
CASES OF EARLY REDEMPTION
In case of important events in the
employee’s life, his/her assets can be
totally or partly released during the
lock-in period.

9 cases
 Marriage
 Birth or adoption of a 3rd(and subsequent) child
 Divorce with at least part time custody of one child
 Disability of employee, spouse or child
 Death of the employee or spouse
 Establishment or acquisition by employee or spouse of a
business
 Acquisition, building or extension of main home
 Termination of employment contract
 Over indebtedness of employee
Human Resources
‹#›
IF DEMAND EXCEEDS SUPPLY ?
CLASSIC SHARE :
Allocated in priority
NB : 3.5M shares available for the total offer
SHARE PLUS: max 2 M
Scaled-back in priority
1 / Classic Share oversubscription

Classic Share is reduced to 3.5 M &
served in priority

So no Share Plus available
2a / Share Plus oversubscription &
Classic Share subscription < 1.5 M

Classic Share served in priority

Share Plus reduced & served down to
2M
1.3M
2M
2.5M
1M
2b / Share Plus oversubscribed
(2.1m) & Classic Share subscription
> 1.5 M

Classic Share served in priority (2.5M
subscribed in this ex.)

Share Plus “over-reduced” & served
on the remaining shares available (1M)
NB : Scale-back begins with the highest applications progressively until
the maximum number of shares allotted to each formula is reached
Human Resources
‹#›
INFORMATION KIT
The Subscription pack sent to each
employee includes:

1 brochure on Thales Group

1 brochure on the 2008 offer

1 reservation form

1 cancellation form

1 country addendum
The following are available on request:

Human Resources
Information notices for the FCPEs
‹#›
CHRONOLOGY
How to subscribe ?
How to cancel ?
Help, I need
somebody’s help…
How to pay ?
How to be informed ?
Human Resources
‹#›
HOW TO SUBSCRIBE ?

1
2
2
3
Human Resources
‹#›
Complete the reservation
form with the help of the
brochure

The amounts you want to
subscribe 1

The payment method chosen
for each formula 2

Do not forget to date and sign
the form
3

Attach the documents
required for subscription

Submit all of the above, in
the return envelope included
in the subscription pack.
HOW TO CANCEL MY SUBSCRIPTION ?

After the acquisition price is announced on
the 24 April, you can cancel your reservation
from 24 to 28 April 2008

Cancellation for the whole of one or other
formula, or for both

Fill in & FAX your cancellation form included
in your subscription pack


Human Resources
Possible online cancellation in France and
Germany
If no cancellation, the subscription becomes
final and irrevocable
‹#›
HOW TO PAY AND GET THE SHARES ?


In each of the 2 formulas, you can finance your
personal investment:

Either by a single payment in June 2008

Or in 12 monthly instalments, without fees,
starting in June 2008
The exchange rate


Human Resources
In the countries outside the Euro zone, the
Euro/local currency exchange rate will be fixed
on payments and guaranteed from the date the
subscription price is set up until the subscriber
has paid his/her contribution in full
Shares delivery & first payment

7th of May 2008 (share delivery)

June 2008 payroll
‹#›
HOW TO BE INFORMED ?
During the offer…
After the offer…

Information staff meetings


Information kit sent directly or
through HR

Subscription statement sent early
May


informing you on the number of
FCPE units allocated to you, their
ability date, the amounts and the
payment dates
Human Resources
Yearly reporting from Creelia +
Creelia internet website and call
centre
‹#›
overview of your assets (number
and value of units)

Contact Creelia for any
movement on your assets

A support of Thales Employee
Share Team is also available
MY QUESTIONS BEFORE SUBSCRIPTION…
Can I afford to invest ?
What sort of performance can I expect ?
?
Human Resources
What level of risk am I willing to accept ?
‹#›
2008 Employee
Share Plan
Thank you for your attention…
Human Resources