FUNDAMENTALS JUNE 2015

Transcription

1 FUNDAMENTALS JUNE 2015

2 AEROSPACE DEFENSE SECURITY SAFRAN IS A LEADING INTERNATIONAL HIGH-TECHNOLOGY GROUP and Tier-1 supplier of systems and equipment for aerospace, defense and security. Operating worldwide, Safran has 69,000 employees and generated sales of 15.4 billion euros in Through its global presence, Safran not only enhances competitiveness, but also builds industrial and commercial relations with the world s leading prime contractors and operators, while providing fast, local service to customers around the world. Working alone or in partnership, Safran holds world or European leadership positions in its core markets.

3 BENCHMARKS AS OF DECEMBER 31, 2014 (unless otherwise specified) 15,355 14,363 (1) +6.9% 13, SALES (adjusted data, millions of euros) Safran posted adjusted sales of 15,355 million euros in 2014, a year-to-year increase of 6.9%. This strong growth reflects sustained performance in the aerospace business (original equipment and services), a resilient performance by the defense business (avionics), and a dynamic security business (identification). 62.8% Public Dec. 31, % French State 14.7% Employees 0.1% Treasury shares March 31, % Treasury shares 67.8% Public 18% French State 14.1% Employees (1) Restated to reflect impact of IFRS 11. 8% Defense 10% Security 29% Aircraft equipment 53% Aerospace propulsion SALES BY BUSINESS SECTOR The aviation and space businesses logged strong growth in 2014, including a 7.4% increase for propulsion and 8.7% for aircraft equipment. The defense and security businesses returned to the growth path last year, after a slight decrease in 2013, rising 2% and 3.2%, respectively. CAPITAL SHAREHOLDING STRUCTURE The increase in the float (publically-hold shares) improves the liquidity of the Safran share. Safran s large number of employee shareholders, which boosts employee motivation and loyalty, is a factor in ensuring our stability bn SALES IN nd AMONG CAC 40 COMPANIES IN EMPLOYEE SHAREHOLDING RATE 1, (1) , % NET INCOME (GROUP SHARE) (adjusted data, millions of euros) The Group share of adjusted net income amounted to 1,248 million euros in 2014, or 3.00 euros per share, an increase of 4.6% compared with In addition to the growth in recurring operating income, this total also includes net financial fees of 165 million euros and a tax charge of 522 million euros. 55 (1) % ORDER BOOK (billions of euros) Safran booked 23 billion euros worth of orders in 2014, 2.2 billion euros more than in 2013, reflecting the market s dynamic performance. The Group s consolidated order book stood at 64 billion euros at December 31, 2014, versus 55 billion euros the previous year, an increase exceeding 16%. (1) Restated to reflect impact of revised IAS 19 standard. (1) Restated to reflect the impact of IFRS 11.

4 BENCHMARKS AS OF DECEMBER 31, ,000 EMPLOYEES WORLDWIDE Safran operates in global markets: aviation, space, defense and security. With operations in nearly 60 countries, we guarantee fast, local service for all customers. 70% of total workforce 48,300 EUROPE 14,000 AMERICAS 20% of total workforce 2,900 4% of total workforce 3,800 6% of total workforce TOTAL EMPLOYEES 66, , ,000 +4% EMPLOYEES BY JOB TYPE 50% Production 21% R&D AFRICA & MIDDLE EAST ASIA-PACIFIC 29% Other

5 AEROSPACE A WORLD LEADER IN AIRCRAFT PROPULSION AND LAUNCH VEHICLES engines for mainline commercial aircraft with more than 100 seats (1) helicopter turbine engines launch vehicles (2) No. 4 worldwide military aircraft engines Safran covers the entire life cycle of engines powering fixed and rotary-wing civil and military aircraft: design, production, testing, sales and support. Through Airbus Safran Launchers, a 50/50 joint company between Safran and Airbus Group, we are also a leader in the global space industry: we produce the Ariane 5 launcher and are developing its successor, Ariane 6. Safran also offers a wide range of systems and equipment for launchers and satellites. (1) Through CFM International, the 50/50 joint company between Snecma (Safran) and GE. (2) Through Airbus Safran Launchers, the 50/50 joint company between Safran and Airbus Group. AIRCRAFT ENGINES After the best-selling CFM56, Safran and GE, through CFM International, the 50/50 joint company between Snecma (Safran) and GE, are launching the LEAP, which will power the Airbus A320neo, Boeing 737 MAX and Comac C919. Our SaM146 regional jet engine (1) powers the Sukhoi Superjet 100 and we are developing the Silvercrest for business jets. In the military sector, Safran makes the M88 engine for the Rafale fighter and the TP400 (2) turboprop for the Airbus A400M military transport. Safran also offers complete maintenance, repair and overhaul (MRO) services for its engines. (1) Through PowerJet, a 50/50 joint company between Snecma (Safran) and NPO Saturn. (2) Through the Europrop International GmbH consortium. HELICOPTER TURBINE ENGINES Safran makes the Arrius and Arriel turboshaft engines for light to medium helicopters and is developing the Arrano for helicopters in the 4- to 6-ton class (H160). Our engines power the Tiger and the Dhruv, and we have designed the Ardiden 3 for new helicopters in the 6- to 8-ton class (Ka-62 and AC352). We also make the Makila and RTM322 engines for heavy helicopters (Super Puma and NH90). In short, Safran makes turbine engines for all major helicopter manufacturers (Airbus Helicopters, Bell Helicopter, Sikorsky, AgustaWestland, HAL, Kamov, Avic, etc.), and provides associated MRO services. SPACE Safran makes the European launcher Ariane 5 (1) and is developing its successor, Ariane 6 (1). We are prime contractor, along with Avio, for the rocket motors on the first stage of Vega (1). Safran also makes satellite equipment, including plasma thrusters, liquid propellants, pyrotechnic devices, etc. (1) Through Airbus Safran Launchers, the 50/50 joint company between Safran and Airbus Group. LEAP: 15% REDUCTION IN FUEL CONSUMPTION The new LEAP turbofan engine will power the upcoming generation of single-aisle commercial jets, the Airbus A320neo, Boeing 737 MAX and Comac C919. Incorporating a number of innovative technologies, it offers a significant improvement in economic and environmental performance compared with today s engines. Its proven architecture also guarantees high reliability and reduced maintenance costs.

6 AEROSPACE A MAJOR PLAYER IN AIRCRAFT EQUIPMENT landing gear wheels and carbon brakes (1) power transmissions (1) aircraft electrical interconnection systems A world leader aircraft engine nacelles LANDING AND BRAKING SYSTEMS Safran designs, produces and supports landing gear, wheels, carbon brakes and related systems for civil and military fixed and rotary-wing aircraft. These systems are used on aircraft including the Airbus A320, A350 XWB, A380 and A400M, the Boeing Next-Generation 737, 737 MAX, 767, 777 and 787 Dreamliner, the Rafale, Eurofighter Typhoon, F-18, etc. (1) Mainline commercial jets with more than 100 seats. Safran provides systems and equipment for civil and military fixed and rotary-wing aircraft. Our products are used on most current and upcoming regional and business aircraft, single-aisle and widebody mainline jets. We draw on our broad-based technological expertise to offer complete packages to aircraft manufacturers and operators, including integrated propulsion systems (engine and nacelle), complete aircraft electrical systems and landing systems. ENGINE SYSTEMS AND EQUIPMENT Safran provides the nacelles for the Airbus A380. Working alone or in partnership with GE, Safran is developing nacelles for LEAP engines (Airbus A320neo and Comac C919), the Airbus A330neo s engines, and the Silvercrest and GE Passport business jet engines. We also offer mechanical power transmission systems for civil and military airplanes, as well as helicopters. ELECTRICAL SYSTEMS AND ENGINEERING Safran has developed expertise in all aircraft electrical systems, including power generation, distribution and conversion, wiring, load management and ventilation. We provide wiring harnesses and electrical cabinets for many different Airbus and Boeing models, and the electrical distribution system for Embraer s KC-390 transport. We also offer engineering services, covering aerostructures, mechanical systems and onboard software. EGTS TM : FOR ECOLOGICAL, ECONOMICAL TAXIING The EGTS electric taxiing system, developed by Safran and Honeywell, allows aircraft to taxi independently, without using their jet engines, by calling on electric motors in the wheels of the main landing gear. A number of leading airlines Air France, easyjet, GoAir, Interjet, etc. are taking part in the evaluation and testing of this system, also covered by a cooperation agreement with Airbus.

7 DEFENSE THE EUROPEAN LEADER IN OPTRONICS helicopter flight controls (1) For commercial aircraft, in partnership with BAE Systems. engine control units (1) No.1 in Europe tactical drones optronic systems inertial navigation systems OPTRONICS Safran is in charge of the FELIN infantry soldier modernization system, which enhances observation, communications, mobility and other capabilities. We design portable observation systems and optronic (electro-optical) systems for land vehicles, aircraft and submarines. We make the Sperwer tactical drone, we re developing the Patroller long-endurance drone, and we offer high-performance space optics (for Helios, Meteosat, Spot and other satellites). Safran offers a complete range of systems and equipment for both civil and military applications in the key areas of optronics, avionics, navigation, electronics and safety-critical software. Our solutions facilitate the work of homeland security and police forces, customs, and maritime or mountain rescue teams. They enhance the efficiency of armed forces air, land and sea in many countries around the world. AVIONICS Safran offers inertial or hybrid navigation systems, along with sensors. We are the prime contractor for the AASM Hammer guided missile, deployed by Rafale fighters. We also supply the seekers for the Mistral and Mica IR missiles, and we are developing the seeker and sight for the upcoming MMP medium-range missile system. Safran is developing flight control systems for Airbus Helicopters new H160. Our Cassiopée solution groups a wide range of flight data analysis services. ELECTRONICS AND SAFETY-CRITICAL SOFTWARE Safran provides processing units and printed circuit boards for the Airbus A380 and A400M, Boeing 787, Rafale, the NH90 and Caracal helicopters, and other aircraft, which handle engine control, flight control, landing and braking functions and more. We are developing sophisticated new safety-critical software for different onboard systems. JIM LR BINOCULARS, THE MARKET STANDARD JIM LR (Long Range) multifunction infrared binoculars have amply proven their effectiveness in a number of theaters of operation. This portable optronic system is available in several versions to meet different requirements. More than 7,000 JIM LR binoculars are now in service or on order in over 30 countries, including France and NATO armed forces.

8 SECURITY THE WORLD LEADER IN BIOMETRIC IDENTIFICATION biometric ID solutions (based on fingerprint, iris and facial recognition) automated fingerprint identification systems (AFIS) in computedtomography (CT) explosive detection systems (EDS) for checked luggage No. 4 worldwide smart cards Safran s security business spans a number of applications and technologies, including detection of explosives and illicit substances, multibiometric identification, secure ID documents and online transactions, and much more. Our solutions help ensure the safety and security of people, businesses and countries. They guarantee the security of transport, high-risk infrastructures and transactions, and enhance the protection of people and goods. CIVIL IDENTIFICATION Safran helps governments protect citizens unique identity through complete identity management solutions and secure ID documents. We are also developing authentication platforms to provide secure online services. DIGITAL ID AND SMART TRANSACTIONS Safran is a world leader in digital identity solutions and secure online transactions, thanks to our strong authentication software platforms, smart cards and secure elements. These technologies are mainly intended for the banking and telecom sectors. PUBLIC SAFETY Because of our unrivaled expertise in multibiometric identification technologies, explosive and narcotics detection systems and road safety solutions, Safran helps police forces and other law enforcement organizations protect people. CRITICAL INFRASTRUCTURES Safran helps protect high-risk facilities by offering advanced detection and biometric access control systems. TRANSPORT AND BORDER CONTROL Safran ensures the security of airports and other transportation sites through our biometric detection and border control solutions. DETECTION SYSTEMS: ENHANCED AIRPORT SECURITY Safran deploys all technologies needed to ensure airport security: explosive detection, biometric identification, secure travel documents, border controls, etc. Nearly 2,000 Safran explosive detection system (EDS) are now in service worldwide, and more than 5,000 explosive trace detectors have been delivered.

9 TECHNOLOGICAL AND OPERATIONAL EXCELLENCE Safran maintains a razor-sharp focus on excellence to consolidate our leadership positions and spur growth. We continuously focus on R&D, new partnership arrangements and continuous improvement across all functions, along with significant capital investments in France and around the world to make sure we deliver local support to all our customers. 13% OF REVENUES INVESTED IN R&D NEARLY 900 PATENTS FILED IN 2014 SIGNIFICANT CAPITAL INVESTMENTS Safran invests heavily worldwide to support our rise in production rates, consolidate our technological leadership and move even closer to our customers. We are solidly anchored in France, which counts nearly 60% of our global workforce and is the strategic hub of our R&D and production activities. AN AMBITIOUS RESEARCH & DEVELOPMENT POLICY Innovation, an integral part of Safran s DNA, is a key to our success. In fact, our business success has always been the fruit of technological developments that kicked off decades earlier. We now invest some 13% of our revenues in Research & Development. Our R&D strategy is also built on targeted acquisitions and longterm partnerships with a number of leading universities, engineering schools and research labs. We file for hundreds of patents every year and since 2011 we have been ranked among the Top 100 Global Innovators by Thomson Reuters. A STRUCTURED APPROACH TO PERFORMANCE IMPROVEMENT Safran is focused on the continuous improvement at all levels to improve our competitiveness, performance and the service quality delivered to customers. We aim for cost-effective industrial and technological excellence across the entire design and production cycle. For example, we apply the Lean-Sigma method to optimize processes in our plants, design offices and support functions. We also deploy an employee-driven innovation initiative, allowing all employees across the Group to become recognized change agents.

10 OUR COMMITMENTS Safran s corporate social responsibility (CSR) approach is based on long-term commitments and corporate values shared by all employees and supported at the highest level of corporate management. To meet the expectations of all stakeholders, Safran has developed a CSR strategy based on six strategic objectives and a dedicated governance structure. ETHICS Safran is committed to honesty and integrity, and upholds all laws governing our international activities. Our principles underlying the fight against corruption are formally expressed in our Ethical Guidelines, a responsible Lobbying Charter and a trade compliance program. We have also set up an effective export control structure. 6 STRATEGIC OBJECTIVES Develop innovative products and processes with minimal environmental impact. Aim for excellence in the safety and protection of people and property. Develop people s potential. Foster the involvement of suppliers and partners in this initiative. Sustain a culture of integrity. Guarantee optimum communications with all stakeholders. Safran s corporate social responsibility is applied by all Group entities and concerns all stakeholders: business partners (customers, suppliers, shareholders, etc.), internal stakeholders (employees, employee representatives), civil society (surrounding communities, associations, NGOs, media), observers (financial analysts, ratings agencies) and public partners (local, federal and regional governments, schools, universities, laboratories). SUPPLIERS Safran establishes sustainable, responsible and balanced relations with our suppliers. With purchases equal to 60% of our sales, we naturally support our suppliers growth, their rise up the skills chain and the development of their ability to innovate. HEALTH, SAFETY AND ENVIRONMENT (HSE) Reflecting our core values, we apply a responsible health, safety and environment (HSE) policy based on strong commitments: protect everybody s health and safety, ensure the safe operation of our facilities, protect the environment, and integrate HSE requirements throughout product life cycles. We have gone even further, in fact, by setting up a demanding set of internal guidelines, along with management systems that focus on close local support and share of best practices. UNITED NATIONS GLOBAL COMPACT By signing the United Nations Global Compact, Safran confirms the international scope of our CSR commitments, especially in terms of environmental protection and responsible trade practices.

11 OUR TALENT OVER 8,200 NEW HIRES IN 2014 OVER 1.6 MILLION HOURS OF TRAINING IN 2014 In high-tech businesses like ours, today s innovations and the talent behind them ensure tomorrow s successes. We therefore apply a diversified recruiting policy, dynamic training and mobility programs, a constantly strengthened core of social advantages, etc. In short, developing people s potential is one of our top priorities. ATTRACTING TOP TALENT By attracting top talent in all fields and offering motivating career opportunities, Safran builds solid foundations for the future. We also invest heavily to ensure the successful integration of our new hires. At the same time, we continue our strong commitment to helping young people integrate the workforce, by welcoming a large number of interns, apprentices and students in work-study programs. ENCOMPASSING A WEALTH OF DIVERSITY Safran has long been committed to diversity and equal opportunity, which we see as performance drivers. Our initiatives concern in particular the employment of young people and seniors, the social and professional inclusion of people from underserved neighborhoods, gender equality and the continued employment of persons with disabilities. AFFIRMING OUR SOCIAL MODEL Safran s culture is based on the firm conviction that people are our primary asset. Through measures such as an effective labor-management dialog, an employee shareholding policy featuring employer matching contributions, profit-sharing and incentive payments, employee savings plans and more, our employees have a real stake in our strategy and in our performance. A UNIVERSITY FOR ALL EMPLOYEES Safran applies an ambitious training policy. The programs offered by Safran University, for instance, are designed to develop skills and expertise, boost employability, and promote our shared values to meet motivating objectives. The Safran Campus, located in Massy, near Paris, welcomes not only training sessions, but also seminars and special events such as Safran Discovery Day to effectively integrate new employees. The university has two international locations as well, in Dallas and Beijing, and is deploying new online learning methods, to offer training possibilities worldwide. RECRUITMENT 2.0 Check out Safran on social networks All of our job offers can be consulted at

12 PHILANTHROPY AND FOUNDATIONS: SUPPORTING SOCIAL INCLUSION, ENCOURAGING YOUNG TALENT Safran has supported nearly 480 philanthropy projects since 2005, either directly or via one of its corporate foundations, spanning social and professional inclusion, equal opportunity, support for creativity and artistic talent, etc. Based on long-term partnerships, these actions reflect Safran s corporate citizenship and values. SPONSORSHIP: AN OCEAN RACING TEAM TO EMBODY OUR VALUES AND TECHNOLOGIES Safran started its ocean racing sponsorship in 2005, and has now reenergized this unifying project, which has always incorporated our technologies, processes and methods. In late 2014, long-time skipper Marc Guillemot passed the helm to Morgan Lagravière, and will help him prepare for the 2016 Vendée Globe solo round-the-world race on a new Imoca Open 60 class racing yacht. The Safran Sailing Team has also expanded, with the addition of the skipper Gwénolé Gahinet, sponsored by Safran and the clothing company Guy Cotten on the Figaro Bénéteau circuit. SAFRAN COMPANIES Aircelle Complete nacelle systems for aircraft engines, associated support services, composite materials for aerostructures. Herakles Solid rocket motors for launchers and missiles, as well as energetic materials, pyrotechnic equipment, thermostructural and organic composite materials for the aerospace, defense, automobile and manufacturing industries. Hispano-Suiza Mechanical power transmissions for commercial and military airplane engines and helicopters. Maintenance, Repair, Overhaul (MRO) and associated services. Mechanical components for airplane and helicopter propulsion systems. Labinal Power Systems Electrical power systems for the aerospace market, covering all onboard electrical functions (power generation, distribution and conversion, wiring, load management, ventilation). Engineering solutions for the aerospace, automobile and rail industries. Messier-Bugatti-Dowty Aircraft landing and braking systems. Control and monitoring systems. Capabilities covering the entire product cycle, from design and production to maintenance, repair and overhaul (MRO). Morpho Multibiometric identification technologies (fingerprint, iris and facial recognition) and identity management solutions. Secure smart cards, documents and transactions. Explosive and narcotics detection solutions. Solutions for road safety. Gaming and betting terminals. Sagem (1) Optronics, avionics and navigation systems and equipment, electronics and critical software for both civil and defense markets, covering land, sea, air and space applications. A full range of product support services. Snecma Engines for commercial and military aircraft, maintenance, repair and overhaul (MRO) services. Liquid-propellant rocket propulsion systems for launch vehicles and plasma propulsion systems for satellites and space vehicles. Techspace Aero Low-pressure compressors for aircraft engines. Equipment for aircraft and spacecraft. Test cells and equipment for engine testing. Turbomeca Turboshaft engines for civil and military helicopters, auxiliary power units (APU), starting and propulsion systems for missiles, target drones and unmanned aerial vehicles (UAV). Maintenance, repair and overhaul (MRO) and associated services. (1) Sagem is the commercial name of the company Sagem Défense Sécurité. Safran Corporate Communications. Document printed by Imprimerie PDI in Saint-Ouen-l Aumône (France) on Oxygen Pure Silk FSC 250 g and 150 g paper. Photos: Front cover Philippe Stroppa/Snecma/Safran - Adrien Deneu/Morpho/Safran - Eric Drouin/Safran - Inside front cover Alain Ernoult/Snecma/Safran - Jean-Christophe Moreau/Creative Center/Safran - Piotr Redlinski/CAPA Pictures/ Safran - p. 6 CFM - p.8 bnpix/safran - p. 10 Alexandre Paringaux/Safran - p. 12 Piotr Redlinski/CAPA Pictures/Safran - p Thierry Mamberti/Safran - Philippe Stroppa/Safran - Daniel Linares/Sagem/Safran - p. 16 Pierre Soissons/Labinal/ Safran - p. 17 Philippe Stroppa/Microturbo/Safran - Stewart Cohen/CAPA Pictures/Safran - p. 18 Antoine Kienlen/Safran - Philippe Stroppa/Safran - p. 19 Philippe Stroppa/Aircelle/Safran - David Peart/CAPA Pictures/Safran - p. 20 Nielsen photography - Jean-Marie Liot/DPPI/Safran.

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