DOSSIER DE PRESSE PRESS KIT

Transcription

1 DOSSIER DE PRESSE PRESS KIT

2 Press kit SAFRAN GROUP PROFILE Safran is an international high-technology group and Tier-1 equipment manufacturer in its core businesses of Aerospace, Defense and Security. Working alone or in partnership, Safran holds world or European leadership positions in all of these markets. Safran has three core businesses: Aerospace, Defense and Security. All three industries are characterized by high financial and technological entry barriers, profitable and resilient service businesses, and long-term customer relations and partnerships. Security Defense Aerospace 3 core businesses Safran s differentiation strategy is based on technological expertise in all areas of excellence. Operating across a broad range of businesses, Safran is highly integrated and unified. For example, its space business defines research objectives and consolidates a number of advanced technologies that will subsequently be applied to the civil aviation sector. Safran has a solid business model in aviation, based in particular on its long-term partnership with GE. Its fleet of engines both delivered and on order harbors considerable growth potential because of the associated maintenance, repair and overhaul (MRO) services. Safran s systems and equipment are used on many aircraft, and new, more highly integrated work packages are being offered to aircraft manufacturers. In the defense market, Safran s expertise in inertial navigation, avionics and optronics is widely recognized, and contributes to the enhanced capabilities of armies, air forces and navies in a number of countries around the world. In the fast-growing security market, Safran has bolstered its positions through targeted acquisitions. Through these major acquisitions, pivotal partnerships and impressive business wins, Safran has built up leadership positions in all of its markets, giving it a proven business model for the long haul. Safran is a true global enterprise, operating in 57 countries, with a broadbased network of local facilities to ensure quick service for all customers. This global presence allows Safran to enhance its competitiveness, and build industrial and commercial relations with leading prime contractors and operators from around the world. Safran continues to invest in its industrial facilities and open major new production plants in Europe, thus sustaining employment and skills in its host regions. Safran also boasts very robust fundamentals: sustained R&D investments and a dynamic innovation policy, enabling it to develop high-performance products that meet its customers economic imperatives and increasingly stringent environmental requirements. Safran also enjoys good financial health and cash flow, which means that the Group is well placed to seize new growth opportunities in all of its markets.

3 No. 1 worldwide in engines for mainline commercial jets (over 100 seats), in partnership with GE No. 1 worldwide in helicopter turbine engines No. 4 worldwide in military aircraft engines No. 2 worldwide in cryogenic and solid rocket propulsion No. 1 worldwide in electrical interconnection systems for aircraft No. 1 worldwide in landing gear No. 1 worldwide in wheels and carbon brakes for mainline commercial jets (over 100 seats) A world Leader in aircraft engine nacelles No. 1 worldwide in helicopter flight controls No. 3 worldwide in inertial navigation systems A world Leader in onboard power electronics Bernard Lachaud / Safran, adimas / Fotolia.com. No. 1 worldwide No. 1 worldwide No. 1 worldwide in automated fingerprint, iris and facial identification systems in biometric ID documents in explosive detection systems (EDS) for checked luggage

4 Press kit KEY FIGURES (1) SAFRAN In 2012 Safran s sales grew 15.5% in 2012, driven in particular by its aerospace and security businesses. Recurring operating income jumped 23.7%, reaching 10.8% of adjusted sales. SALES e13,560 million RECURRING OPERATING INCOME e1,471 million NET PROFIT (GROUP SHARE) e999 million R&D EXPENDITURES 12% of sales EMPLOYEES 62,500 Sales by business sector Shareholding structure (2) Aerospace Propulsion 52% Aircraft Equipment 27% Defense 10% Security 11% Public 57.5% French State 27.1% Employees 15.2 % Treasury shares 0.2% Sales Recurring operating income Net profit (Group share) 2012 e13,560 million 2011 e11,736 million 2010 e10,760 million 2012 e1,471 million 2011 e1,189 million 2010 e878 million 2012 e999 million 2011 e644 million 2010 e508 million (1) adjusted data at December 31, 2013 (2) at April 5,

5 Landing gear Nearly 25,000 CFM56 engines delivered worldwide OVER 2,000 CTX explosive detection systems installed worldwide 70,000 helicopter turbine engines produced to date 22,600 FELIN soldier modernization systems ordered OVER 23,000 aircraft fitted with Safran landing gear OVER 800 MILLION smart cards produced yearly 15,000 engines in service with Safran nacelles Nearly 140 Ariane nozzles delivered 320 MILLION Indian residents have received secure ID numbers thanks to Safran s biometric technology Arthur Nobre / CAPA Pictures / Safran, Pascal Le Doaré / MBD / Safran. Smart cards Figures at April 2013

6 Press kit history SAFRAN, A DYNAMIC GROUP Safran, from 1905 to today Safran human logo On June 6, 1905, Louis and Laurent Seguin founded the Société des Moteurs Gnome. This company merged with Le Rhône in 1912, creating the Société des Moteurs Gnome & Rhône. At the end of the First World War, Gnome & Rhône was one of the world s leading manufacturers of aircraft engines. In 1925, Marcel Môme created the Société d Applications Générales d Electricité et de Mécanique (SAGEM), specialized in power supplies for telephone switching centers. Gnome & Rhône was nationalized in 1945, consolidating French aero-engine manufacturers whose history often reached back to the beginning of the century, and renamed Snecma. In 1960 Sagem designed the world s first infrared guidance system for an air-to-air missile. At the end of the decade Hispano-Suiza, a specialist in power transmissions for military and civil airplanes and helicopters, joined Snecma. A few years later, the company Messier-Hispano-Bugatti consolidated all landing gear activities. Today, an aircraft lands on Safran systems somewhere in the world every 1.5 seconds. CFM International, a 50/50 joint company of Snecma and GE, was created in 1974 and is now the world s leading manufacturer of engines for mainline commercial jets (over 100 seats). In 2008, this partnership was renewed until Today, a Safran-powered aircraft takes off somewhere in the world every 2.5 seconds. Sagem acquired Morpho in Today, Safran is the world leader in biometric identity systems. Snecma took full control of its subsidiary SEP (Société Européenne de Propulsion) in 1997, entering the space propulsion market for both launchers (Ariane) and ballistic missiles. In 2000, Labinal, Turbomeca, Microturbo and Hurel-Dubois joined Snecma. The addition of Turbomeca continued a technology success story that started in 1938 when the company was founded by Joseph Szydlowski. Today, Safran is the world s leading producer of turbine engines for helicopters. The aerostructures businesses of Hurel-Dubois and Hispano-Suiza were consolidated in 2002 to create Hurel-Hispano, renamed Aircelle three years later. Today, Safran is one of the world s leading manufacturers of aircraft engine nacelles. In 2005, Snecma merged with Sagem to create Safran. The Group divested its communications operations in 2008 to refocus on its core businesses. Safran is continuing its development in the security sector, with several major acquisitions, especially in the United States (Printrak, GE Homeland Protection, L-1 Identity Solutions). In 2011 Safran acquired SNPE Matériaux Energétiques (SME) and its subsidiaries from the SNPE group. The merger of SME and Snecma Propulsion Solide (SPS) on May 1, 2012 created Herakles, one of the world s two leading solid propulsion companies. Safran is continuing its strategy to support the development of more electric aircraft. In early 2013 it finalized the acquisition of Goodrich Electrical Power Systems (GEPS), a top-tier supplier of electrical systems for aircraft, giving birth to a world leader in this market.

7 L Oiseau Blanc 2005 Safran is founded. Richard DeRosset, Antoine Denoix / Safran. 1974/2008 Creation of CFM International, equally owned by Snecma and GE, a partnership that was extended to 2040 in Gnome & Rhône is nationalized and renamed Snecma Joseph Szydlowski founds Turbomeca Marcel Môme creates the Société d Applications Générales d Electricité et de Mécanique (SAGEM) Louis and Laurent Seguin create the Société des Moteurs Gnome. At the end of 2011, Safran signed a two-year partnership with the association La recherche de l Oiseau Blanc ( In Search of the White Bird ), to participate in the search for any wreckage from the legendary aircraft that two French pilots, Charles Nungesser and François Coli, may have flown across the Atlantic 12 days before Charles Lindbergh in With the help of Safran, the association is trying to find the Lorraine-Dietrich engine that powered the airplane, an exceptional engine offering unrivaled performance for the time, and one of the cornerstones of Safran s heritage. The association is directing a team of divers and engineers, who are carrying out a series of searches off the coast of Saint-Pierre-et-Miquelon. *The company Lorraine-Dietrich, created in 1871, built automobiles and rolling stock, then later heavy machinery and aircraft engines. It was taken over by Gnome & Rhône in 1941.

8 Press kit MARKET AEROSPACE Safran designs and builds engines and equipment for many of the world s leading aircraft and spacecraft. World-class equipment manufacturer 4,500 LEAP engines ordered 25,000 CFM56 engines delivered Safran makes propulsion systems for civil and military airplanes and helicopters, missiles and launch vehicles. It covers the entire life cycle, from design, development and testing, to production, sales and support. The Group is involved in today s leading air and space programs, working with airplane manufacturers (Airbus, Boeing, Comac, Dassault, etc.), helicopter manufacturers (Eurocopter, Sikorsky, AgustaWestland, Russian Helicopters, Avicopter, etc.), operators (airlines and leasing firms), governments and other leading players (Astrium, Arianespace, etc.). Safran, as an equal partner to GE within CFM International, manufactures the CFM56, the best-selling engine in the history of aviation, with nearly 25,000 delivered to date. In 2008, Safran and GE signed an agreement extending this partnership until CFM International is now developing the newgeneration LEAP engine, which will replace the CFM56 starting in LEAP will reduce fuel consumption by 15% over current-generation engines, lower NOx (oxides of nitrogen) emissions by 50% versus the current CAEP/6 standard and decrease the noise footprint in line with the upcoming Chapter 14 standard. At the beginning of 2013, CFM International had recorded more than 4,500 orders and commitments for this engine, which will power the Airbus A320neo, Boeing 737 MAX and Comac C919. At the same time, Safran is continuing its work on innovative, ultra-highbypass engine concepts, such as the open rotor. These advanced technology engines should reduce fuel consumption by 25% compared with today s CFM56 engines. In 2010 Safran also launched its first engine program for business jets, the Silvercrest. Certification by EASA (European Aviation Safety Agency) and the U.S. FAA (Federal Aviation Administration) is expected in 2015, with service entry planned in 2017, on the Cessna Citation Longitude. Safran is also a top-tier aircraft equipment supplier, contributing to most of today s major programs. Safran supplies a wide range of equipment and services for aircraft, including nacelles, thrust reversers, landing and braking systems, wheels and brakes, wiring and all equipment needed for the generation, management and transmission of electrical power on aircraft. Safran has also extended its partnership with GE to encompass nacelles on future-generation single-aisle jets, by creating a new joint venture, Nexcelle. Safran is also a major supplier of avionics, including onboard information systems and flight controls. Today, Safran has all the capabilities needed to support the development of more electric aircraft, in which the current systems using mechanical, hydraulic and pneumatic power are replaced by electrically-driven systems. Safran has the required expertise and comprehensive vision of onboard energy needs, as an acknowledged specialist in propulsion systems, power transmissions and wiring and now also power generation, thanks to a recent acquisition, and as a supplier of equipment directly concerned by electrification.

9 C919 A320neo 737 MAX The LEAP engine was selected in December 2009 by Chinese aircraft manufacturer Comac as the only Western propulsion system for the new C919 jetliner. Safran is also supplying the nacelle and thrust reverser along with this engine. The first test flight is expected in 2014, and deliveries will start in In December 2010, the LEAP was also selected by Airbus as one of the engines to be offered on the A320neo, scheduled for service entry in mid Safran is also supplying the integrated nacelle for this engine, along with the landing gear, braking and steering systems, and wheels and carbon brakes. On August 30, 2011, Boeing announced the launch of its new 737 MAX, powered exclusively by LEAP engines. Deliveries of the 737 MAX should start in Twin M88 engines power the Rafale fighter built by Dassault Aviation. The M88 is the lightest and most compact engine in its thrust class and makes the Rafale particularly well suited to both low-altitude penetration and high-altitude interception missions. The engine has shown outstanding dispatch reliability under all operating conditions, with more than 250,000 flight-hours logged since entry into service, and it is combat proven in Afghanistan, Libya and Mali. Safran supplies a number of other systems and equipment for the Rafale: the full authority digital engine control (FADEC), landing gear, wiring, wheels and carbon brakes, ejection seats, navigation systems and avionics equipment, and the mission planning system. To date, French armed forces have ordered a total of 180 Rafales. Rafale Boeing, Airbus, Comac, Alexandre Paringaux / Safran, Eric Drouin / Safran, Vince Streano / Creative center / Safran. A400M Created in 2002, Europrop International GmbH (EPI) supplies the TP400 turboprop engine to Airbus Military for the A400M military transport. EPI is a consortium formed by Safran, Rolls-Royce, MTU Aero Engines and Industria de Turbo Propulsores (ITP). More than 700 TP400 engines will be built to power the A400M fleets deployed by France, U.K., Turkey, Germany, Belgium, Luxembourg and Spain, as well as extra engines for the export market (Malaysia, etc.). In May 2011, EPI received the engine type certificate from the European Aviation Safety Agency (EASA). EPI has delivered the engines that will power the first A400M for the French air force, slated for service entry in mid Safran also supplies the landing system for this aircraft, along with the wheels and carbon brakes, navigation system and wiring.

10 Airbus A350 Airbus chose a single supplier, Safran, to provide all landing systems on its future A350 XWB, including the main landing gear, landing gear extension/retraction system, braking, steering and monitoring systems, wheels and brakes. Safran also makes avionics equipment for the A350. This wide range of equipment clearly illustrates Safran s ability to offer complete solutions to aircraft manufacturers. Boeing 787 Eight Safran companies contribute to the Boeing 787 Dreamliner, supplying electrical wiring, landing gear, wheels and carbon brakes. The 787 entered in service in October 2011 and has recorded nearly 900 others to date. NH90 The NH90 military helicopter has won more than 500 firm orders to date from 14 countries, with more than 100 already delivered to nine armed forces, including France. It is designed for both tactical transport missions in an army version, and for antisubmarine warfare and search and rescue (SAR) missions in a naval version. Safran provides the RTM322 turboshaft engines for this helicopter for 12 of the 14 countries. It also provides the inertial navigation and fly-by-wire flight control systems, part of the wiring, the day/night observation system and many other equipment items, all representing more than half of the total equipment value on the helicopter.

11 Ariane 5 Safran is a major supplier of both liquid and solid propulsion systems for Europe s Ariane launchers. On the Ariane 5 launch vehicle, Safran provides the Vulcain 2 main-stage and HM7B upper-stage cryogenic engines, as well as the solid booster motors through Europropulsion, an equal joint venture with Avio of Italy. On February 7, 2013, Arianespace carried out the 68th Ariane 5 launch, which was also the 54th successful launch in a row. Safran is developing a new cryogenic engine, Vinci, intended for the upper stages of the upgraded Ariane 5 ME (Midlife Evolution), expected to start operation in 2017, and Ariane 6, slated to enter service towards X4 Eurocopter has selected Safran s new Arrano turboshaft engine and electric brake for its new-generation X4 helicopter. Safran will also provide the flight controls and part of the onboard information system for this helicopter in the 5 to 6-ton class. Cessna Citation Longitude Safran s new generation Silvercrest engine was chosen by Cessna Aircraft Company in May 2012 to power its latest business jet, the Citation Longitude, after a first selection by another manufacturer. Developing 11,000 pounds of thrust and featuring highly innovative technologies, the Silvercrest will offer unrivaled performance, based on ambitious goals for fuel consumption, dispatch reliability and environmental friendliness. A super midsize business jet, the Citation Longitude is expected to enter service in Cessna, Eurocopter, Eric Drouin / Snecma / Safran, ESA / CNES / Arianespace. Sukhoi Superjet 100 Safran is a major partner in the Sukhoi Superjet 100 regional jet, building the SaM146 engine in partnership with NPO Saturn of Russia, through their joint company PowerJet, as well as supplying other major systems. The SaM146 is purpose-designed to meet the requirements of the regional aviation market, offering a 10% reduction in direct operating costs versus its competitors, a reduction of up to 20% in direct maintenance costs, and low cost of ownership in general. Safran also makes the nacelles, engine control and filtration systems, the lubrication system and landing gear. As of April 2013, nearly a dozen SSJ100s were in service with four airlines, and the Mexican airline Interjet will shortly take delivery of the first out of 20 SSJ100s ordered.

12 Press kit MARKET DEFENSE Safran has developed proven expertise in a number of key defense technologies, including inertial navigation, optronics and data transmission. Building on these skills, Safran offers a broad variety of systems and equipment that call on its multidisciplinary expertise: navigation and optronics systems, drones, guided weapons, soldier modernization systems, mission planning systems and more. Key technologies for today s armed forces Safran has developed a large family of optronics equipment for surveillance, tracking, warning and fire control. Its gyrostabilized observation pods are used on combat helicopters, including the Tiger, Panther and Cougar, the Rafale fighter, armored vehicles, drones, aircraft and helicopter carriers, submarines (Scorpène and the future-generation Barracuda class submarines, starting with the Suffren). In July 2012, Safran and Thales created Optrolead, a joint venture to market new optronics systems that combines the world-class skills of the parent companies for the greater benefit of all customers. Data transmission Optronics Proven expertise in 3 key technologies Inertial navigation Safran is the only company to offer complete expertise in all inertial navigation technologies for air, land and naval applications, including a family of high-performance navigation systems. Its Sigma laser gyro navigation units are used on Rafale, MiG-29 and Sukhoi 30 combat aircraft, EC725 and NH90 helicopters, Europe s FREMM multimission frigates, the latest submarines and state-of-the-art artillery systems, such as the Caesar and Archer. Safran is prime contractor for the navigation system on Europe s new A400M military transport. Safran is also bolstering its expertise in vibrating inertial sensors. In January 2013 it acquired the Swiss company Colibrys SA, the world leader in MEMS (micro electro mechanical systems). Taking advantage of the features of vibrating gyros, Safran is developing and producing a new family of attitude and heading reference systems (AHRS). It recently won a research contract from the French Ministry of Defense for navigation systems on tomorrow s tactical missiles. A specialist in avionics and safety-critical electronics, Safran supplies mission computers, flight control systems and equipment, glass cockpits, optronics surveillance and sighting systems for combat aircraft and helicopters. Safran is also a specialist in infrared seekers (for the MICA and Mistral missiles), and is prime contractor for the AASM Hammer smart guided air-to-ground weapon. Safran also supplies a number of systems used in today s digital battlefield: mission planning systems for aircraft, tactical coordination systems for armies, and modernization systems for infantry soldiers and combat vehicles. In addition the Group is offering new families of communicating optronics devices, such as the JIM multifunction binoculars, used for day/night observation, target designation and transmission of images and coordinates.

13 FELIN FELIN (Fantassin à Equipements et Liaisons INtégrés) is an integrated equipment suite for soldier modernization programs, designed to enhance the capabilities of today s warfighter in the field, spanning self-protection, intelligence, communications, coordination, weapon use and autonomy. FELIN is already in service with the French army, which will take delivery of all 22,600 systems on order by At the end of 2012, ten French army regiments were fully equipped with FELIN systems, and the system was deployed in Afghanistan in Safran s optronics have also been chosen for several other soldier modernization programs, including IMESS in Switzerland and FIST in the United Kingdom. Thousands of optronics devices by Safran, based on technologies developed for FELIN, are in service or on order for various armed forces, including several members of NATO. Patroller TM Patroller TM is a medium-altitude, long-endurance (MALE) surveillance drone in the 1-ton class, designed for both defense and security missions, and offering pilot control on option. Based on an EASA-certified aircraft, Patroller capitalizes on technologies already developed by Safran for the Sperwer Mk.II drone, and its field experience in Afghanistan over a period of nine years of NATO operations with Canada, the Netherlands and France. Tests carried out in 2012 and 2013 clearly showed how Patroller can fuse data from different sensors, and transmit this information to a command center for coastal surveillance missions. With an operating system meeting both civil and military standards, Patroller can be operated not only by armed forces, but also by homeland security administrations. Daniel Linares / Sagem / Safran, Alexandre Paringaux / Safran, Pieter Bastiaans / Safran, Jean-François Damois / Creative Cener / Safran. JIM LR (Long Range) designates a family of multifunction infrared binoculars. It incorporates a number of advanced features in a single portable optronics package, including day/night (infrared) vision, rangefinding, laser pointer, North seeker, GPS and data transmission. Used for surveillance, target acquisition and reconnaissance, JIM LR binoculars bring new capabilities to armed forces, including infantry units, forward observers, homeland protection and special forces. Some 5,000 JIM LR units are now in service or on order worldwide, including 2,000 with the French armed forces. AASM JIM LR The AASM Hammer (AASM) is a modular family of high-precision, smart guided air-to-ground weapons. Highly maneuverable, the AASM Hammer has a range of over 60 kilometers and very high-precision terminal guidance. It is available in three versions with different guidance modes: inertial/gps, inertial/gps/infrared and inertial/gps/laser, enabling it to hit moving targets. The AASM has been deployed in combat since 2008 by French air force and navy Rafale multirole fighters.

14 Press kit MARKET SECURITY Safran is a world leader in identification solutions and a major player in detection systems and e-documents, providing innovative security solutions that meet the requirements of both private and government customers. A leader in biometric ID solutions Safran develops identification solutions that meet constantly changing threats, as well as the growing security needs of people, businesses and countries. Focusing on identity management, personal rights and physical or logical access control, Safran s solutions stand out because of the Group s ability to manage large-scale security projects, and develop protection solutions tailored to local requirements. Safran has developed proven expertise in the three key technologies needed to supply secure ID documents: biometric algorithms, secure embedded software (smart cards, terminals) and physical security through secure printing technologies for ID documents. For example, Safran offers government agencies complete identity management solutions, highly integrated and featuring endto-end security. Police forces from many countries count on Safran s biometric solutions, and Safran has also built up close relationships with government agencies from around the world. A leader in detection systems World leader in multibiometric technologies Safran s detection systems for dangerous or illicit substances have made it a major player in the global market for airport security, border control and access control systems for high-value sites. To keep pace with evolving terrorist threats, Safran is developing even more innovative technologies to detect improvised explosives and liquid explosives, and inspect air cargo. Safran is now the only manufacturer capable of meeting all airport security requirements: explosive detection, ID checks, secure travel documents, border control and access control to security zones. The Checkpoint of the Future is now under development at Safran. This integrated system will handle both explosive detection and biometric ID checks, enabling airports to speed up border controls, improve passenger comfort and reduce waiting time, and reduce security operating costs. A pivotal player in digital identification Safran continues to expand its array of technologies to meet the growing requirements generated by new digital ID applications, as e-services are increasingly offered in banking, telecommunications, retail and government. The Group s commitment to this booming market is reflected by its acquisition in 2012 of Cassis International, a firm specialized in Trusted Service Management (TSM) services.

15 In November 2012 Safran announced that it had won a five-year contract worth up to $528 million from the Transportation Security Administration of the United States, to supply CTX 9800 DSi explosive detection systems. Installation of these systems started in early Using state-of-the-art computed-tomography technology, the CTX 9800 allows faster luggage inspection coupled with a minimum false alarm rate, to improve the operational efficiency of TSA agents. Explosives detection system Liquid explosives detection Safran s XDi solution, based on X-ray diffraction (XRD) technology, enables passengers to carry liquids in their hand luggage, without having to remove them for inspection, thus reducing waiting time in airports. Already successfully used to detect explosives and other threats in checked luggage, XRD technology speeds up luggage inspection and reduces false alarm rates. The XDi system will be evaluated in Europe this year, and should be available for commercial demonstrations in 2014, with installation starting in Cascade Technologies, Morpho Detection, Adrien Deneu / Morpho / Safran, Gérard Vouillon / Morpho / Safran, Amit Dey / Morpho / Safran. Safran supplies latest-generation travel documents offering unrivaled quality, reliability and security, based on its expertise in identity management, biometrics, smart cards and secure printing. INTERPOL, one of Safran s long-standing partners, chose the company to supply the secure identity management and travel document production system for its agents. These passports, issued by the agency itself, enable its agents to travel internationally without needing a visa, when they are participating in cross-border cases, or have to travel urgently. Aadhaar INTERPOL travel documents Safran s technologies are at the core of the Aadhaar project, a revolutionary model for economic and social development, which aims to supply a unique ID number to each resident of India. Ensuring secure access (via fingerprint and iris identification), this system will open access to a wide range of services. The project was launched in 2010 and will eventually issue 1.2 billion unique ID numbers. To date, the Aadhaar system has already supplied secure ID numbers to about 320 million Indians.

16 Press kit SAFRAN WORLDWIDE French roots, global footprint 62,500 employees The aerospace, defense and security markets are global and Safran deploys a global industrial organization to provide real local support to all customers, extend its international influence and enhance its competitiveness. Safran s international development strategy is a key to its future, especially in the booming economies of Russia, Asia and Latin America, where the Group is expanding industrial operations and partnerships (via subsidiaries or joint ventures). The Group s largest presence outside of Europe is in North America, accounting for nearly 20% of its workforce. It is also a focus of the Group s strategic development, especially in the United States. At the same time, Safran is investing to make sure that its European industrial base retains its world-class competitiveness. 57 countries Paris - France Denton, TX - USA Casablanca - Morocco Queretaro - Mexico São Paulo - Brazil Suzhou China

17 NORTH AMERICA United States 5,800 Mexico 4,100 Canada 1,100 EUROPE France 38,000 United Kingdom 2,100 Belgium 1,500 Germany 1,100 Russia 300 Other 1,600 Stewart Cohen / CAPA pictures / Safran, Zhou Junxiang / Imaginechina / Safran, Driss Ben Malek / Morpho / Safran, Adam Wiseman / CAPA Pictures / Safran, Arthur Nobre / CAPA Pictures / Safran, Philippe Antoine, Safran. SOUTH AMERICA Brazil 850 Other 350 Total employees AFRICA & MIDDLE EAST Morocco 2,100 South Africa 250 United Arab Emirates 100 Other , , ,300 ASIA-PACIFIC +4,6% Between 2011 and 2012 India 1,500 China 900 Singapore 500 Australia 200 Other 100 Data at December 31, 2012

18 Press kit HUMAN RESOURCES People are a top priority at Safran. In the Group s high-intensity technology sectors, characterized by product life cycles that may stretch over decades, the innovations developed today and the talented people behind these innovations will guarantee success in the future. Attracting, training and integrating top talents Safran recruits a wide variety of candidates, including recent graduates, seasoned engineers and managers, technicians and line workers. In 2012 Safran hired over 7,500 new employees, half in France, and the figures will be similar in To address these needs, Safran has bolstered its already strong relationships with engineering schools and universities offering post-graduate degrees in its fields, which will provide the pool of talents needed to ensure the Group s growth. In France, 75% of new hires are engineers and management staff Safran applies a proactive policy of developing its employer brand and fostering relations with schools and universities. Safran is now the third most preferred employer among engineering students in France*, and received 50% more job applications in 2012 than in For Safran, enriching everybody s skills and fostering a shared corporate culture are vital factors in building solid foundations for the future. That s why Safran invests 4% of total payroll in training and continued the active development of Safran Corporate University in Besides a new French campus opening later this year near Paris, Safran Corporate University already has faculties in Beijing and Dallas, Texas, both of which integrate local requirements in their training courses. A diversified workforce and positive social model Reflecting its values as a responsible corporate citizen, Safran is committed to diversity and equal opportunity, which are also considered factors driving performance and innovation. For example, Safran is a partner in the association Elles bougent ( Women on the Move ), which promotes engineering and technical careers for female students, and once again participated in a number of awareness-raising actions organized by this association. Another top priority for Safran is to maintain the employment of seniors, in a context enabling them to have confidence in their future and capitalize on their long experience. In 2005 Safran launched a program designed to help senior employees transfer their expertise in the design and engineering of complex products to younger employees, and help the new generation build up their own skills. Safran is also continuing actions in partnership with Frateli, an association that supports high-potential students from modest backgrounds through mentoring by top young professionals from Group companies. In April 2012, Safran also signed a Group-wide agreement favoring the employment of disabled persons in France. This three-year accord provides for the recruitment of over 70 disabled employees, plus reinforced integration and training measures *According to the Trendence 2013 poll

19 The new Safran Corporate University campus 62,500 employees worldwide 7,500 3,200 new hires planned in 2013, including nearly half in France work-study contracts in France in ,000 interns welcomed in France in % of new hires are recent graduates in France Vilgénis / SLA Architecture, Bernard Lachaud / Safran, Getty images : Karin Dreyer / Datacraft Co ltd / Max Oppenheim / Ron Levine - Corbis : Ocean / Corbis. 70% 25% Safran Discovery Day 2012 of employees take a training course at least once a year in France of Safran employees are women

20 Press kit RESEARCH AND INNOVATION Faced with today's daunting economic, societal and environmental challenges, the world needs increasingly innovative solutions. Safran is teaming up with suppliers and partners to deliver integrated responses to these multiple challenges, through constant efforts to improve innovation and competitiveness. Innovating today to meet tomorrow's challenges Research & Development at Safran seeks to improve the energy efficiency and environmental performance of aircraft, based on more fuel-efficient propulsion systems, the growing use of composites and other innovative materials, etc. This constant focus on innovation is part of Safran's DNA, and recent business wins are the fruit of R&D undertaken over the last few decades. Faced with rising oil prices, Safran and GE are developing a new engine through their joint company CFM International, LEAP, that will significantly decrease fuel consumption. Three versions of this engine have already been chosen for new-generation single-aisle commercial jets, and the LEAP engine had recorded some 4,500 orders and commitments at the beginning of A growing role for electricity on aircraft The development of "more electric" aircraft is a top priority for all aircraft manufacturers. What this means is that the traditional hydraulic and pneumatic systems will be replaced by electrically-driven systems. The widespread use of electrical system on aircraft will improve safety, while reducing fuel consumption and greenhouse gas emissions. At the same time, it will decrease the cost of aircraft assembly and maintenance, and improve dispatch reliability. Reflecting this strategy, on October 16, 2012 Safran signed the final agreement to acquire Goodrich Electrical Power Systems (GEPS), giving rise to a world leader in electrical systems for aircraft. GEPS brings to Safran critical expertise and experience in power generation. Safran can now offer world-class electrical systems, based on the combination of this new area of expertise with its own skills in data and power transmission, power electronics, and electric brakes and thrust reverser actuation systems. The widening use of innovative materials Safran is one of today's most advanced aerospace companies in the use of composite materials, which are lighter and stronger than the metals and alloys they replace. Safran will continue to increase the use of composites to meet the dual challenge of satisfying economic and ecological requirements in air transport. For example, it developed the patented 3D woven RTM (resin transfer molding) technology for fan blades and casings on new turbofan engines, a unique way of reducing engine weight and enabling the use of higher bypass ratios, which further reduce fuel consumption. The Safran Composites Research Center, up and running later this year, is designed to validate innovative composite technologies, explore new research paths within a network of partners, and help seed these technologies at all Safran companies.

21 3 rd leading company in France for the number of patents published in 2012 (556) e1.6 billion in R&D expenditures in % of the workforce work in R&D 35,000 improvement ideas from across the Group, generated by the participative innovation initiative, were applied in 2012 Electric green taxiing system Green taxiing, a revolution on the tarmac The electric green taxiing system (egts) developed by Safran and Honeywell allows airplanes to taxi independently at airports, without having to use their jet engines, thanks to electric motors located on the main landing gear wheels. Not only does this cut down on airport pollution, it also reduces operating costs, to improve airlines' operational and environmental performance. Safran and Honeywell plan to introduce egts in 2016 on new single-aisle jets, then offer retrofit options for aircraft already in service. Arrano Daniel Linares / Sagem / Safran, Céline Sadonnet / Safran, Thomas Garza / Safran, L œil Du Chat / Morpho / Safran. Checkpoint of the future Safran is a major player in airport security, providing automated border control solutions for 23 international airports, and having delivered more than 2,000 explosive detection systems (EDS) worldwide. Fully aware of the constantly evolving threats against civil aviation, plus changing regulations and increasing restrictions on travelers, Safran is now working on an integrated "all in one" solution that will combine state-of-the-art technologies for explosive detection and biometric identification of passengers. Arrano, an efficient new engine for the X4 helicopter Safran's new Arrano turboshaft engine will power Eurocopter's new-generation X4 helicopter, slated to enter service in It will significantly reduce fuel consumption compared to current engines, while improving the rotorcraft's range and payload capacity, and decreasing its environmental footprint. Enhanced maintainability will also lower the engine's total cost of ownership. Checkpoint of the future

22 Press kit SOCIAL RESPONSABILITY Safran acts as a responsible corporate citizen by limiting its ecological footprint. Its efforts focus on the entire life cycle of products, right from the initial design stage. Given the environmental challenges we now face (climate change, increasingly scarce natural resources, etc.). Safran has made a full-fledged commitment to sustainable development in all of its businesses. Designing more environmentally-friendly products Safran s continuous improvement approach applied to environmental protection means treating environmental risks as a whole, encompassing both manufacturing processes and the operation of the resulting products. These issues are addressed throughout the product life cycle, from design to end of life and/or dismantling. Safran applies its continuous improvement strategy to the environment, enhancing its protection and efficiently managing environmental risks. Rules for the selection and use of chemical substances are defined in a Group-wide procedure, which is distributed to all suppliers. Based on work to harmonize its processes, started in 2009, and in line with rules for choosing chemical substances, Safran has defined a list of processes applicable to all new programs. Safran has also set up a committee on the introduction of chemical substances, to validate and coordinate its Group-wide policy on the use of these substances. Working with its customers, Safran is involved in large-scale programs in France and across Europe to develop products that significantly reduce their environmental footprint. The Arrano engine being developed by Turbomeca is a good example of this approach. Designed for new-generation rotorcraft, it is the culmination of major R&D efforts, resulting in a more efficient architecture, new materials that are friendlier to our health and the environment, a significant decrease in fuel consumption and lower noise. Other products reflecting this approach include the LEAP engine, which will replace the CFM56 on tomorrow s single-aisle jets, thrust reversers and nacelles and SIMply Green, a new SIM card. Safran also focuses on managing aircraft at end of life, including dismantling and recycling. The Group is a partner in Tarmac Aerosave, in conjunction with Airbus and Sita (specialized in waste management), and a member of the Aircraft Fleet Recycling Association (AFRA), created by Boeing. Safran is also involved in several significant external initiatives, such as the creation of the International Aerospace Environmental Group (IAEG). The main objective of the IAEG is to issue common environmental standards for the international aviation industry, also applicable to all suppliers. Safran also plays a lead role in the European research program Clean Sky, a Joint Technology Initiative (JTI) launched in 2008, which aims to meet environmental objectives set by ACARE (Advisory Council for Aeronautics research in Europe). In 2012, Safran and 13 other companies from the aerospace industry signed a Letter of Intent to extend this initiative as Clean Sky 2, running from 2014 until

23 Integrating the ISO and OHSAS standards Protecting employee health and safety Safran is committed to developing a prevention-based culture to efficiently manage all health, safety and environmental (HSE) risks, for the benefit of all (employees, customers, suppliers, partners ) anywhere in the world. Every year, it sets precise HSE objectives and improvement goals, integrating them in performance dashboards and management indicators. These figures are tracked during HSE management reviews in each company, as well as at corporate level. Occupational safety is another main concern for Safran and a major aspect of its performance. While the certification of its facilities to HSE standards (ISO and OHSAS 18001) has been applied for over a decade, Safran wanted to reenergize progress and more tightly target its improvement actions, in particular to reach its goal of cutting in half the number of lost-time accidents over the five-year period Safran therefore set up its own custom-tailored HSE reference system, which reiterates all requirements in international standards, and also sets specific internal standards in about 30 areas (ergonomics, eco-design, chemical risks, etc.). These standards are used by managers to evaluate their own degree of operational expertise and to develop improvement plans. An internal certification committee issues HSE certificates to Group facilities, indicating the level of maturity achieved and compliance with international standards. The management and replacement of dangerous substances is a top priority at Safran, which pays particular attention to the protection of people working in its production units handling these substances. Safran is actively involved in applying the REACH regulation on the Registration, Evaluation and Authorization of Chemicals. Catherine Bainier-Girard / Safran, Adam Wiseman / CAPA Pictures / Safran. 40 % decrease in lost-time accidents, versus 2009 Studies on the prevention of occupational stress have been carried out at all Safran facilities in France. They were used by each company to define targeted action plans, which are now being implemented. Safran also deploys awarenessraising measures for all employees across the Group, along with training programs for senior management, HR managers, employee representatives and occupational health departments. A study is currently underway to deploy a similar approach internationally, while integrating specific local conditions.

24 Press kit PHILANTHROPY AND sponsorship Social solidarity 400 actions Through its two foundations and commitment to various solidarity actions, Safran has built its corporate philanthropy efforts on sustained partnerships. Since 2005, the Group has launched nearly 400 different actions, both in France and around the world. The Safran Foundation for Integration supports the social and professional integration of young adults with disabilities, whether physical, mental or social. The Safran Foundation for Music supports exceptional young musicians both at school and as they start their careers. Another specific characteristic of Safran s corporate responsibility policy is to create links between these social and cultural commitments whenever possible. Since 2007, for instance, Safran has supported the Orchestre de l Alliance and their Seasons of Solidarity concert series. Eight concerts have already been organized to support major humanitarian causes. Through its partnership with this orchestra and the French Ministry of Education, Safran has already organized five classical music concerts in Paris, inviting hundreds of students from disadvantaged neighborhoods in the greater Paris area. Safran has also renewed its partnership with Talents des Cités ( Inner City Talents ). Initiated and supported by the French Senate and Urban Ministry, this competition, for the 11 th year in a row, recognized men and women who have created an enterprise and contributed to economic development and the creation of jobs in underserved neighborhoods. An initiative of this type perfectly reflects Safran s commitment to diversity and equal opportunity. Sponsoring an ocean racing team Safran signed a sponsorship agreement for an ocean racing team in 2005, alongside skipper Marc Guillemot, reflecting the values of innovation, commitment and teamwork that are so important in this sport. In addition to these values, shared by Safran, it was also the cultural and technical similarities between the aerospace and maritime sectors that inspired this investment in boat sponsorship. Over and above its role as sponsor, Safran has taken a practical role in the design, development and construction of the Safran Open 60 class monohull racing yacht. More than 100 engineers from the Group have contributed their expertise in composite materials, computer modeling, hydraulics, computation, resistance testing and electronics an approach which is unprecedented in the world of ocean racing. The boat sponsorship project has long contributed to spreading Safran s reputation and influence. It recently added a new dimension, becoming one of the channels for the Group s recruitment efforts. At the end of 2012, Safran launched a «serious game», associated with the Vendée Globe round-the-world race, to encourage future graduates in its sectors to learn more about the Group. This effort was also supported by Safran s partnership with the EDHEC Sailing Cup, the largest student sports event in Europe. For the 2013 Cup, it sponsored the Safran all-student Trophy and the Safran all-women Trophy. Safran skipper Marc Guillemot is now targeting the Transat Jacques Vabre, a twinhand transatlantic race that will leave from Le Havre on November 3, 2013 for Itajai in Brazil. Marc s co-skipper will be Pascal Bidégorry, who holds the record for an Atlantic crossing.

25 Guillaume Vincent, the young pianist who won the 2012 Safran Foundation for Music Award Award ceremony for the Talents des Cités competition in the French Senate Juliette Diemer / Safran, Julien Mignot / naïve /Safran, François Van Malleghem / DPPI / Safran, Eric Lefeuvre. In training for the 2013 Transat Jacques Vabre

26 KEY MISSIONS, KEY TECHNOLOGIES, KEY TALENTS Réalisation : Free-Lance s l Agence - Images for business / Morpho / Safran, Philippe Wodka-Gallien / Sagem / Safran, Pascal le doaré / Safran, Eric Drouin / Snecma. Direction de la communication / Communications department 2, boulevard du général Martial-Valin Paris Cedex 15 - France Contact : Catherine Malek - Mob. : +33 (0) Tél. : +33 (0) Mail : catherine.malek@safran.fr -