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Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
0 / INVESTOR ROADSHOWS / MARCH 2014 /Q3 REVENUE 2011 / OCTOBER 21, 2011 /
/ March 2014 /
Tier 1 supplier inAerospace, Defence & Security
Investor roadshows
1 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
2013 revenue by activities
�Revenue €14,695M�Recurring op. income €1,788M (12.2% of revenue)
�Net income - Group share €1,193M (€2.87/share)
�Free Cash Flow €712M�Net debt position (Dec. 31) €1,089M (16% gearing)
28%
9%
53%
10%
Aircraft Equipment
DefenceAerospacePropulsion
Security
Tier 1 supplier in Aerospace - Defence - Security
FY 2013 (adjusted)
€14.7Bn
2 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Leading market positions
#1 ww� Single aisle engines� Helicopter turbines� Landing gear� Wiring� Power transmission
#2 ww� Space Propulsion� Engine nacelles� Wheels & brakes
#4 ww� Military engines
Aerospace SecurityDefence
#1 Europe� Optronics
#3 ww� Inertial navigation systems
#1 ww� Biometric and ID solutions
A leader in aviation markets� Detection
~80% of revenue coming from civil activities
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
3 / INVESTOR ROADSHOWS / MARCH 2014 /
/ 5 key themes /2013 highlights & key events
Summary of FY 2013 results announcement
Positive trends in civil aftermarket
More electric aircraft (MEA)
Outlook: 2014 guidance
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
4 / INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 financial highlights
Growing adjusted revenue with strongperformance in Aerospace
FY 12 FY 13
13,56014,695+8.4%
Adjusted recurring operating income at 12.2% of revenue
FY 13
1,444
1,788+23.8%
Higher adjusted net profit (group share) at €2.87 per share
FY 12* FY 13
9791,193+21.9%
(€M) (€M)
(€M)
FY 12*
Proposed 2013 dividend up 16.7% vs. 2012
FY 12 FY 13
0.961.12
(€)
+16.7%
Low net debt level (16% gearing)
Dec. 31, 2012 Dec. 31, 2013
(932)(1,089)
(€M)
€(157)M
FCF was 40% of adjusted recurring operating income
FY 12 FY 13
564712
+26.2%
(€M)
* Restated IAS19R
5 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Resolutely pursuing our development strategy
� Executing on key engine development programmes: LEA P, Silvercrest� Major programmes on track, on time and on budget
� Turbomeca : a dynamic product portfolio� Arrius 2R, Arrano, Ardiden 3C/3G
� Extension to 100% of Turbomeca’s ownership RTM322 programme
� Regrouping of electrical power technologies into La binal Power Systems (LPS)
� a world leader in on-board electrical power systems
� reinforcement of LPS with the acquisition of complementary distribution assets from Eaton
� Self-funded R&D of € 1,299 M, in line with guidance� Increase in Propulsion as planned due to ramp-up in LEAP development and 2nd
Silvercrest application
� Increasing industrial capacity and bringing new tec hnologies into production
� Industrial capex : € 492 million in 2013
� 8,400 hires, 3,600 net job creations in 2013
6 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Executing on key engine development programmes
� LEAP has 70% market share for future medium-rangecommercial airliners
� More than 5,700 orders at end 2013, nearly 6,000 to date� LEAP 1A: testing on track
� September – November 2013: FETT test cycle� 300 hours, >400 cycles
� LEAP 1B: preparation for FETT� Ground testing to start June 2014
LEAP programme on track commercially, on time and o n budget. So far, zero technical surprises
� Silvercrest� Complete propulsion system for Dassault 5X� Equips Cessna Citation Longitude� Ground testing and preparing for in-flight testing
on dedicated flying test bed
� Target 25-30% market share� 2,000+ aircraft (4,000+ Silvercrest engines)
The most advanced business jet engine for the highe st potential market segment, already on 2 platforms
7 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Turbomeca : a dynamic product roadmap
� Arrius 2R� Bell Helicopter and Turbomeca team up on new Small Light Short
helicopter
� First ever collaboration between Turbomeca and Bell
� Arrano launched at Heli-Expo 2013� For 4-6 ton helicopters
� Ardiden 3G and Ardiden 3C� International collaborations with Kamov, AVIC Engines
� RTM322 : extension to 100% of Turbomeca’s ownership� Heavy helicopters are a high-value, growing market segment driven
by developing countries (oil & gas, mining) and military
� Target growth for military applications and accelerated time to market for heavy commercial engines)
� Annual demand up to 2,500 helicopters (2012-31)
8 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Investing in our future
� 2013 total R&D effort of €1.8bn
� Self-financed R&D increased as planned to €1.3bn (8.8% of sales)
� Ramp up of LEAP development and testing in line with the business plan
� Development for 2nd Silvercrest application
� Split of programs reflects upcoming opportunities� c.40%: LEAP (3 applications) and Silvercrest
(2 applications)� c.30%: A350, helicopter next gen turbines, flight control,
infrared matrix, biometric ID engines…� c.30%: R&T in preparation of the future (mostly next gen
engines and electrical technologies)
� Self-financed R&D to stabilise in 2014 with a lower level of capitalisation
� Increases in R&T, LEAP (2 engines in test & certification)� Decrease in Silvercrest
Long term amortization of capitalized R&D remains sustainable at less than 1% of sales
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
In €M
Total self-funded R&D
Capitalized R&D
€1,103M
€694M
Total R&D effort
€1,299M
€504M
€1,800M
1 500
2 000
1 000
0
500
9 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Defence
� Optrolead*: signing of an upstream study program (P EA) for the development of a 4 th generation of airborne electro-optical gyrostabilize d systems
*Equally-owned joint venture between Sagem and Thales
� MBDA: selection for the development and production of the firing post and infrared seeker on the Medium-Range Missile (MMP)
� Replacement of France’s Milan antitank missiles
� BELL Helicopter: Sagem’s actuators chosen for the fu ture B525
� DCNS: 5 submarines have been equipped with 10 optro nic masts and periscopes for the Brazilian, Indian and French navi es
� Acquisition of the Swiss company Colibrys SA and of the Integrated Cockpit Solutions activities of Eaton
10 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Scoring commercial successes in Security
� MorphoDetection: Medium -range explosives detection system� New 5-year IDIQ contract for CTX 5800™ EDS from the TSA (US) for up to
$130M� 5-year exclusive contract with CATSA (Canada) for up to $100M� Nice Côte d’Azur International Airport in Nice, France purchased four high-
speed CTX 9800 DSi™ explosives detection systems
� MorphoTrust: maintained market leadership in the U. S.� Driver license issuance solutions to 42 of 50 states (80% of U.S. driver
licences, 60M IDs issued per year); maintained leadership since 2011 Safran acquisition
� Prime contractor of Universal Enrolment Service (UES)
� Morpho: maintained leadership in ID� Chile program start with first million ID documents issued (10 years
contract for provision of passports and ID cards)� Renewal of Albania concession for 10 years with extension to
e-services
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
11 / INVESTOR ROADSHOWS / MARCH 2014 /
/ 5 key themes /2013 highlights & key events
Summary of FY 2013 results announcement
Positive trends in civil aftermarket
More electric aircraft (MEA)
Outlook: 2014 guidance
12 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 profit from operations
12.2% recurring operating income
(In €M)FY 2012
(restated) FY 2013
Revenue 13,560 14,695
Recurring operating income% of revenue
1,44410.6%
1,78812.2%
Total one-off items (50) (31)
Capital gain (loss) on disposals 1 39
Impairment reversal (charge) (1) (17)
Other infrequent & material & non operational items (50) (53)
Profit from operations% of revenue
1,39410.3%
1,75712.0%
Includes:• Capital gains on sale of
Paris office building €16M, Globe Motors €23M;
• Impairment on a legacy engine programme €(15)M;
• Charge related to past service costs on a new DBP plan €(40)M, acquisition & integration charges €(10)M
13 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 income statement
Of which cost of debt of €(42)M
* Based on 415,280,826 shares** Based on 416,292,736 shares
Effective tax rate of 33.4%� Corporate tax surcharge in
France: tax rate of 38%� 2012 tax expense included the
favourable impact of the absorption by Safran of subsidiaries which had been involved in loss making activities divested several years ago.
Net profit growth of 21.9%
(In M€)FY 2012 restated
FY 2013
Revenue 13,560 14,695
Recurring operating income% of revenue
1,44410.6%
1,78812.2%
Profit from operations% of revenue
1,39410.3%
1,75712.0%
Net finance (cost) income (154) (138)
Income tax expense (254) (540)
Income from associates 19 15
Gain on disposal of Ingenico shares - 131
Minority interests (26) (32)
Profit – group shareBasic EPS (in €)
9792.36*
1,1932.87**
14 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 revenue
� Record OEM production rates in aerospace coupled with continued positive trends in civil aerospace aftermarket
� Strength in avionics and double-digit growth at MorphoTrust
� Unfavourable currency impact
� Negative translation effect (incl. $, GBP, BRL, CAD), particularly affecting Security activities
� Changes in the scope of consolidation include:
� Acquisitions: GEPS, RTM322 programme, AB notes, Cassis
� Divestment: Globe Motors Inc
FY 2013Currency
impactFY 2013
at constant
FY 2012
structure
Acquisitions &
activities
newly
consolidated,
disposals
FY 2012
(In €M)
14,678 14,512
+8.2%organic
Organic
variationFY 2013
at constant
FY 2012 structure
and exchange
rates
1,118 166 183
+8.4%
14,695
13,560
15 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 recurring operating income
� Main organic profitability drivers
� Propulsion: increased OE volumes and favourable pricing in civil engines, strongly positive trend in civil aftermarket
� Positive impact of higher OE production rates on nacelles, thrust reversers, wiring, landing and braking systems
� Avionics
� Currency hedging
� Production and overhead costs savings (notably in Equipment and Defence)
� Changes in the scope of consolidation include:
� Acquisitions: GEPS, RTM322 programme, AB notes, Cassis
� Divestment: Globe Motors Inc
FY 2013Currency
impact
FY 2013
at constant
FY 2012
structure
Acquisitions &
activities newly
consolidated,
disposals
FY 2012
restated
(IAS 19A)
(In €M)
1,444
1,6781,781
+16.2%organic
Organic
variationFY 2013
at constant
FY 2012 structure
and exchange
rates
1,788234
103 7
10.6%
RoS
12.2%
RoS
+23.8%
16 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Research & Development
� Self-funded cash R&D effort at peak level of 8.8% of sales
� Ramp up of LEAP development and testing in line with the business plan,2nd Silvercrest application
� Increase of capitalized costs: €190M
(In €M) FY 2012 FY 2013 Variation
Total R&D (1,594) (1,821) (227)
External funding 491 522 31
Total self-funded cash R&D (1,103) (1,299) (196)
as a % of revenue 8.1% 8.8% 0.7 pt
Tax credit 124 140 16
Total self-funded cash R&D after tax credit (979) (1,159) (180)
Gross capitalized R&D 504 694 190
Amortised R&D (68) (76) (8)
P&L R&D in recurring EBIT (543) (541) 2
as a % of revenue 4.0% 3.7% (0.3) pt
17 /
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INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013 results by activity
(In €M) FY 2013 Propulsion Equipment Defence SecurityHolding & others
Revenue 14,695 7,791 4,121 1,278 1,502 3
Year-over-year growth in % 8.4% 11.2% 11.6% (2.8)% (2.8)% na
Recurring operating income 1,788 1,359 380 87 120 (158)
as a % of revenue 12.2% 17.4% 9.2% 6.8% 8.0% na
18 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Aerospace Propulsion
� Growing revenue� Robust rise in civil OEM deliveries (CFM, high thrust engines)
� Strong growth in civil aftermarket
� EBIT: Excellent profitability� Positive impact of better OE volume and unit revenue for civil engines
� Favourable trend in civil aftermarket (recent CFM56 and GE90)
� Increased contribution of helicopter turbine support contracts
� Productivity improvements
� Positive currency effects
(In €M)FY 2012 (restated)
FY 2013 ChangeOrganic Change
Revenue 7,005 7,791 +11.2% +11.3%
Recurring operating income 1,076 1,359 +26.3%
% of revenue 15.4% 17.4% +2.0 pts
One-off items 1 (14)
Profit (loss) from operations 1,077 1,345
% of revenue 15.4% 17.3%
19 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Aircraft Equipment
� OE driven revenue growth
� Increases in OEM production rates (B787, B737; A400M, A330 and A320 programmes; regional jets) favourably impact landing gears, harnessing, nacelle and thrust reversers activities
� Increasing activity related to the A350 programme
� Continued momentum for the carbon brakes activity
� Significant improvement in profitability
� Favourable volume impact and productivity gains
� Supportive mix/volume effect of services on auxiliary power gearboxes, nacelles and wheels and brakes. High returns of carbon brakes as a result of a larger installed base and continued air traffic growth
� Positive currency effect
(In €M)FY 2012 (restated)
FY 2013 ChangeOrganic Change
Revenue 3,691 4,121 +11.6% +9.8%
Recurring operating income 286 380 +32.9%
% of revenue 7.7% 9.2% +1.5 pt
One-off items (16) (2)
Profit (loss) from operations 270 378
% of revenue 7.3% 9.2%
20 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Defence
� Growth in Avionics with improved level of profitability
� Higher deliveries of seeker kit modules. Solid activity in flight control systems
� Favourable mix/volume effect on profitability
� Softer revenue in Optronics, slightly impacting profits
� Delivery of the Felin infantry combat system to 4 regiments of the French Army (same as in 2012)
� First maintenance and upgrade activity on Felin equipment
� Long-range infrared goggles down compared to 2012
� Cost-savings measures mitigated margin pressure
(In €M)FY 2012 (restated)
FY 2013 ChangeOrganic Change
Revenue 1,315 1,278 (2.8)% (2.2)%
Recurring operating income 79 87 +10.1%
% of revenue 6.0% 6.8% +0.8 pt
One-off items - 7
Profit (loss) from operations 79 94
% of revenue 6.0% 7.4%
21 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Security
(In €M)FY 2012(restated)
FY 2013 ChangeOrganic Change
Revenue 1,546 1,502 (2.8)% (0.5)%
Recurring operating income 145 120 (17.2)%
% of revenue 9.4% 8.0% (1.4) pt
One-off items (25) (3)
Profit (loss) from operations 120 117
% of revenue 7.8% 7.8%
� MorphoTrust continues robust growth driven by US Federal activities (Universal Enrollment, FBI, weapons permits); margins under pressure from budgetary restrictions
� Persistent softness in Morpho’s traditional biometric activities due to run-off of export contracts; competitive pressure impacts profitability of new contracts
� e-Documents: regaining traction in Q4 as NFC and LTE technology deliveries commenced; volume declines impacted margins, exacerbated by R&D effort, somewhat compensated by cost reductions
� Slow growth in detection: strong momentum at year-end with US, Canada and other export deliveries of CTX systems; higher volumes and better mix boosting profits
� New management taking measures to take full advantage of the outstanding potential
22 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Free Cash Flow
(in €M)FY 2012*Restated
FY 2013
Adjusted net profit 979 1,193
Depreciation, amortization and provisions 700 678
Others 23 113
Cash from operating activities before change in WC 1,702 1,984
Change in WC (85) 155
Capex (tangible assets) (419) (492)
Capex (intangible assets)** (634) (935)
Free cash flow 564 712
Increased R&D spending and Capex investments; includes €42M proceeds
from sale of an office building in Paris
Good control over WC requirements in a context of
strong increases in production in aerospace
markets
* 2012 is presented in a comparable format to 2013 ** Of which €694M capitalised R&D in 2013 vs €504M capitalised in 2012
Of which amortization of tangibles and intangibles for €512M and provisions
(net) for €67M
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
23 / INVESTOR ROADSHOWS / MARCH 2014 /
/ 5 key themes /2013 highlights & key events
Summary of FY 2013 results announcement
Positive trends in civil aftermarket
More electric aircraft (MEA)
Outlook: 2014 guidance
24 /
Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
INVESTOR ROADSHOWS / MARCH 2014 /
Positive trends in Civil aftermarket
� Civil aftermarket up 19.2%* - above expectations� Recent CFM56 and GE90 engines both contributed strongly� Civil aftermarket momentum to continue in 2014
� Growth drivers� More, higher value shop visits on recent CFM56� Strong increase in GE90 aftermarket after no growth in 2012� Catch-up of deferred maintenance as airlines’ financial health improves
� Aftermarket recoupling to airline activity� Confirms CFM56 fleet potential for spares revenue to double over 2010-20� Positive global outlook for the airline industry in 2014 according to IATA
Civil aftermarket growth in the low to mid-teens expected in 2014
*In USD
25 /
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INVESTOR ROADSHOWS / MARCH 2014 /
� Dedicated project decided in 2011� Analysis concluded that
maintenance behaviour could differ from one airline to another, impacting new spare parts sales
� Segment behaviour also varies according to economic context and air traffic
� New model based on airlines segmentation� Differentiate segments according to
maintenance behaviour� Simulate airlines’ reaction to
changing macro-economic environment
Forecasting spare parts business opportunity:the new “ behaviour ” model
CustomerEconomics
Engine constraints
Air traffic forecast
Airlines maintenance behaviour
Maintenance contracts
Theoretical aging
26 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Forecasting spare partsOutcome of the new model (CFM56 spare parts forecast)
Expected CFM56 spare parts revenue profile
� CFM56 spare parts revenue to increase consistently and to peak by around 2025E
� Revenue should double from 2010 dip before 2020E
� 1st generation CFM56 spare parts potential to fade out within 5 years from now
The new model confirms 2025 horizon“Behaviour” model adds increased visibility on the sh ort term
2x3x
2010 dip
x
27 /
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INVESTOR ROADSHOWS / MARCH 2014 /
CFM56: strong prospects until 2025 and beyond
CFM56 active installed fleet to peak by 2017E at ~26,400 engines (~31,000 deliveries)
CFM56 spare parts revenue to peak by around 2025E
28 /
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INVESTOR ROADSHOWS / MARCH 2014 /
� T&M: Time & Material� CFM is paid at the time of the actual shop visit on the basis
of an agreed-upon scope of material and labour⇒ income, expenses and cash impact coincide
� MSA: Material Service Agreement� CFM guarantees commercial conditions of parts supply
to airline/MRO providers
� RPFH: Rate Per Flight Hour � CFM receives a fixed sum per flight hour based on estimated cost to
perform engine maintenance to meet performance and availability guarantees⇒ decoupling of revenue & cash-in with costs & cash-out
� ESPO (Engine Service Per Overhaul): fraction of revenue booked progressively and remainder booked at the time of SV
� ESPH (Engine Service Per Hour): revenue booked progressively
Service agreementsA variety of aftermarket options tailored to needs
Service programmes aiming to support airlines on a predictable cost per engine flight hour basis, to enable accurate forecasting of operating costs, reduced cost of ownership, and improved asset utilisation
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29 / INVESTOR ROADSHOWS / MARCH 2014 /
/ 5 key themes /2013 highlights & key events
Summary of FY 2013 results announcement
Positive trends in civil aftermarket
More electric aircraft (MEA)
Outlook: 2014 guidance
30 /
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INVESTOR ROADSHOWS / MARCH 2014 /
The More Electric Aircraft – an irreversible trend
A key strategic long term market
� Wing anti-icing� Engine start and controls� Brakes� Thrust reverser� Flight controls
Boeing 737
1967
Airbus A380
2007
Boeing 787
2009
Next gen aircraft
2025
Pneumatic
Hydraulic
Mechanical
Electric
Electrical equipment
� Cabin equipment� Lighting� IFE� Avionics
� Wing anti-icing� Engine start and controls� Brakes� Thrust reverser� Flight controls
� Fuel pump� Landing gear� Nacelle
� Cabin equipment� Lighting� IFE� Avionics
� E-Flight controls� E-Landing gear� E-Nacelle� EGTS� Wing anti-icing� Engine start and
controls� Brakes� Thrust reverser
� Cabin equipment� Lighting� IFE� Avionics
� Fuel pump� Landing gear� Nacelle
� Fuel pump
EGTS*
* The Electric Green Taxiing System allows aircraft to taxi autonomously without use of the main engines
2016-17
31 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Affirming our strategy over the electrical energy c hain
� Competitive positioning in aerospace electrical systems
� Capture benefits of closer integration of electrical systems and wiring, with aircraft engines and gearboxes
� Lead innovation in the electrification of aircraft equipment
� Broader offering : higher shipset value
Long-term outlook
� A world leader in electrical power systems with combined revenues c. € 1.4 billion in 2014
� 12,000 people in 12 countries
� Strong installed base & recurring aftermarke t revenues
� Complete offering in power systems
Consolidation of all electrical power activities wi thin Labinal Power Systems
Acquisition closed in March 2013
Acquisition expected to close in H1 2014
+
+
+
Electrical Power systems
+
+
+
Power generation
Electricalequipment
Primary & secondarydistribution
Systemsintegration
Support & Services
Wiring
PDMS
32 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Basic concept of the EGTS
� EGTS uses electrical power to enable the aircraft to pus h-back and taxi without the main engines running
� Electric motors integrated into main landing gear f or maximized performance, traction and agility
� EGTS provides significant savings and “green” benefits, reducing:
� Fuel use� Emissions� Noise� Need for ground tug� Other Direct Operation Costs
Target savings: ~4% block fuel reduction depending on mission
33 /
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INVESTOR ROADSHOWS / MARCH 2014 /
EGTS: innovation bringing substantial benefits
���� fuel use
���� emissions and noise
���� operational efficiency
���� other Direct Operating Costs
• Net ~3% block fuel savings per average flight cycle (750NM) when using EGTS
Increasing aircraft efficiency with a reduced environmental impact
EGTS can deliverUp to 4% savings total block fuelconsumption
Foreign Object Damage
34 /
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INVESTOR ROADSHOWS / MARCH 2014 /
� Potential market for single aisle and large regiona l aircraft (2016-31E)
� Forward fit: ~12,000 aircraft� 80% are eligible (potential savings at least $ 150 k annually)
� Shipset value determined from projected savings on a case-by-case basis� Most revenue is OE supply for upfront payment; initially small service
& aftermarket opportunity� Airlines expect a payback from operational savings in 3-5 years
� Programme R&D included in our 2015 view
� IRR in line with global Group targets� Plus Retrofit on current fleet
EGTS outline business model
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35 / INVESTOR ROADSHOWS / MARCH 2014 /
/ 5 key themes /2013 highlights & key events
Summary of FY 2013 results announcement
Positive trends in civil aftermarket
More electric aircraft (MEA)
Outlook: 2014 guidance
36 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Estimated impacts of IFRS11 on 2013 accounts
�IFRS 11 Joint Arrangements is applied starting January 1, 2014• 2014 performance will be measured against restated figures for 2013• Reclassification of some jointly held activities previously proportionally integrated,
henceforth equity associates�Estimated impacts are the following:
Summary estimated impacts 2013 restatements
Orders
Order book Approx (800) M€
Income statement
Revenue Slightly more than (300) M€
Adjusted recurring operating income Slightly less than (10) M€
Net income No impact
Balance sheet
Net debt Approx 130 M€ higher
Working capital Approx 20 M€ lower
37 /
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INVESTOR ROADSHOWS / MARCH 2014 /
2014 key assumptions
� Estimated IFRS 11 impacts of around €(300)M to 2013 revenue and less than €(10)M to 2013 adjusted recurring operating income
� Healthy increase in aerospace OE deliveries� Boeing 737, A330, regional jets...
� Civil aftermarket growth in the low to mid-teens percentage� Mainly driven by recent CFM56 engines
� Stable self-funded R&D level with less capitalisation� R&T; helicopter turbines higher; LEAP peaking; Silvercrest lower as peak is passed
� Stable tangible capex
� Profitable growth for the security business
� On-going Safran+ plan to enhance the cost structure and reduce overhead
Increased focus on Competitiveness, Expertise and I nnovation
38 /
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INVESTOR ROADSHOWS / MARCH 2014 /
FY 2014 outlook
� Adjusted revenue expected to increase by a percenta ge in mid single digits* at an estimated average rate of USD 1.30 to the Eur o
� Adjusted recurring operating income expected to inc rease by a percentage in low double digits* at a hedge rate of USD 1.26 to the Euro
� Free cash flow expected to represent close to 40% of the adjusted recurring operating income subject to usual uncerta inties on the timing of advance payments
Strong confidence for the long term� CFM franchise is assured for the next decades (aftermarket revenue
and successful LEAP transition)� Acquisitions reinforce Safran for the long term in helicopters and MEA� €/$ hedged book provides positive impact on profits
*2014 performance will be measured relative to the 2013 accounts restated for the effects of IFRS 11
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39 / INVESTOR ROADSHOWS / MARCH 2014 /
/Annexe /Additional information
40 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Net debt position
� Cash flow from operationsequals 1.11x recurring EBIT
� Decreased WC requirements
� 2012 final dividend (€0.65/share) and 2013 interim dividend (€0.48/share)
� “Disposals” include
� 12.57% of Ingenico: €287M
� Globe Motors: €68M
� “Acquisitions & Others” include:
� GEPS: €(301)M
� Extension to full ownership in the RTM322 programme: €(293)M
� Safran-Albany JV for LEAP composites €(33)M
(in M€)
(932) 353
Dividends*
Disposals
155
1,984
(1,427)
Net debt at Dec 31, 2012
Cash flowfrom ops
Acquisitions & others
Net debt atDec. 31, 2013
Changein WC
R&Dand
Capex
€712M Free Cash Flow
(481) (1,089)(741)
* Includes €(10)M of dividends to minority interests
41 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Cash allocation in line with Group strategy
� Research & Development� Create a distinctive difference through technological innovation (long term)� Spending reflects winning some attractive new business (medium term)
� Capital expenditure� Modernize existing sites and strengthen the international scope
� Acquisitions� Accelerate or establish positions in critical areas at justified price
� Dividend payments� Grow cash returns to shareholders� 40% payout of adjusted net income since 2007
Bus
ines
sS
hare
hold
ers
42 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Acquisitions: objectives & criteria
HLP Electrical Power Systems
RTM322 programme
Buy “installed base” & “customer access”
Buy “technology assets”
M&A financial criteria
� Cover cost of capital within 3 years (RoCE)
� A deal should be EPS accretive in year 1 ideally. I f not, in year 2
� ROI in the range of 10 to 12%Per
form
ance
Bal
ance
sh
eet � Net debt/EBITDA around 2.0x. 2.5x max at peak for a limited period of time
� Interest cover ratio at 6x (= EBIT / Interest expen se)
Colombia/Peru
Post-tax cost of capital of 8% (aerospace & defence) and 9.5% (security)
43 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Fx hedging: improved rate for 2014
Hedge portfolio, Feb. 4, 2014
Achieved
Target
1.37 1.32 1.28 1.27
1.26
1.26
1.26
1.25
1.25
1.25
1.25
Estimated exposure needsIn US$ bn
€/$ hedge rate
4.04.3
5.8 6.0
4.9
5.65.0
4.3
0
1
2
3
4
5
6
2011 2012 2013 2014 2015 2016 2017
~6.0
Approx. 50% of Safran US$ revenue naturally hedged by US$ procurement
Total: $19bn � Higher expected level of net USD exposure for 2014-17 due to strong growth of businesses with exposed USD revenue
� 2014 and 2015 are fully hedged
� Further increase in 2016 hedging
� $4.3bn achieved at $1.25 to rise to $4.9bn at $1.25 as long as €/$<1.42 up to end of 2014
� 2017 hedging initiated
� $4.0bn achieved at $1.25 as long as €/$<1.42 up to end of 2014 for half and €/$<1.40 for the other half
~6.0
44 /
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INVESTOR ROADSHOWS / MARCH 2014 /
155
135 130
70
38
1.37
1.32
1.281.26 1.26 1.25 1.25
0
20
40
60
80
100
120
140
160
180
200
1
1,05
1,1
1,15
1,2
1,25
1,3
1,35
1,4
2011 2012 2013 2014E 2015E 2016E 2017E
Fx hedging: benefiting margins over 2014-17
Estimated impact on recurring operating incomeof targeted €/$ hedge rates
EBIT impactvs. previousyear (in €M)
€/$hedge
rate
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45 / INVESTOR ROADSHOWS / MARCH 2014 /
FY 2012: R&D by activity
(In €M) FY 2012 Propulsion Equipment Defence Security
Total self-funded cash R&D (1,103) (649) (213) (117) (124)
as a % of revenue 8.1% 9.3% 5.8% 8.9% 8.0%
Tax credit 124 47 29 36 12
Total self-funded cash R&D after tax credit (979) (602) (184) (81) (112)
Gross capitalized R&D 504 342 126 22 14
Amortised R&D (68) (25) (32) (8) (3)
P&L R&D in recurring EBIT (543) (285) (90) (67) (101)
as a % of revenue 4.0% 4.1% 2.4% 5.1% 6.5%
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46 / INVESTOR ROADSHOWS / MARCH 2014 /
FY 2013: R&D by activity
(In €M) FY 2013 Propulsion Equipment Defence Security
Total self-funded cash R&D (1,299) (790) (254) (126) (129)
as a % of revenue 8.8% 10.1% 6.2% 9.9% 8.6%
Tax credit 140 51 38 39 12
Total self-funded cash R&D after tax credit (1,159) (739) (216) (87) (117)
Gross capitalized R&D 694 517 129 31 17
Amortised R&D (76) (24) (36) (10) (6)
P&L R&D in recurring EBIT (541) (246) (123) (66) (106)
as a % of revenue 3.7% 3.2% 3.0% 5.2% 7.1%
47 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Aerospace OE* / Services revenue split
Revenue
Adjusted data(in Euro million)
FY 2012 FY 2013 % change
OE Services OE Services OE Services
Propulsion
% of revenue
3,718
53.1%
3,287
46.9%
4,045
51.9%
3,746
48.1%
8.8% 14.0%
Equipment
% of revenue
2,637
71.4%
1,054
28.6%
2,907
70.5%
1,214
29.5%
10.2% 15.2%
* All revenue except services
48 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Quantities of major aerospace programmes
Number of units deliveredFY 2012 FY 2013 %
CFM56 engines 1,406 1,502 7%
High thrust engines 567 619 9%
Helicopter engines 924 934 1%
M88 engines 26 20 (23)%
TP400 - 36 na
A380 nacelles 108 108 -
A330 thrust reversers 146 166 14%
A320 thrust reversers 489 513 5%
Small nacelles (biz & regional jets) 534 605 13%
49 /
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INVESTOR ROADSHOWS / MARCH 2014 /
Definition
� Civil aftermarket (expressed in USD)� This non-accounting indicator (non audited) comprises spares and MRO
(Maintenance, Repair & Overhaul) revenue for all civil aircraft engines for Snecmaand its subsidiaries and reflects the Group’s performance in civil aircraft engines aftermarket compared to the market.
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50 / INVESTOR ROADSHOWS / MARCH 2014 /