inventing new horizons
TRANSCRIPT
INVENTING NEW HORIZONS
May 2016
In just over ten years , Saf ran has consol idated i t s fundamenta ls
to become a leader in a l l of i t s markets : aerospace , defense and
secur ity. Saf ran owes i t s current success to i t s abi l i ty to suppor t
growth in i t s markets through continuous innovation as wel l as to i t s
pol icy of contro l l ing costs , deadl ines and qual i ty. I t i s a lso thanks
to the commitment of i t s 70,000 employees that our Group has
successfu l ly establ ished long-term trust-based re lat ionships with
par tners wor ldwide . Today, Saf ran is enter ing a new era in i t s h is tory
with the gradual introduction of i t s future f lagship product ,
the LEAP ® engine , and with the technologica l and industr ia l ef for ts
required by the considerable growth in a i r traf f ic . A new era that
wi l l a lso see the name of Saf ran become the s ingle brand for a l l i t s
companies , un ited in the same commitment to the h ighest standards .
Together we wi l l continue to work t i re less ly to honor
the trust our par tners p lace in us and to contr ibute
with them to a safer and more access ib le wor ld .
Phi l ippe PETITCOLINChief Executive Of f icer of Saf ran
SAFRAN, “POWERED BY TRUST”!
—LEARN MORE ABOUT SAFRAN’S EXECUTIVE COMMITTEE ON WWW.SAFRAN-GROUP.COM
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6
BOOSTING AIR TR ANSPORT
PERFORMANCE
12
MAKING OUR LIVESSAFER AND EASIER
16
ENHANCING PROTECTION
FOR CITIZENS
20
FACILITATING ACCESS
TO SPACE
24
DELIVERING
EXCELLENCE TO SUPPORT OUR CUSTOMERS
28
CREATING
VALUE WITH OUR STAKEHOLDERS
37
BENCHMARKS
Safran Corporate CommunicationsDesign & Production: Free-Lance’s l’AgencePrinted by Imprimerie Vincent
Photo credits: Front cover Cyril Abad/CAPA Pictures/Safran - p. 3 Franck Juery/CAPA Pictures/Safran - p. 6 Getty Images - p. 7 Thierry Dosogne/Safran - p. 8 Cyril Abad/ CAPA Pictures/Safran - Philippe Stroppa/Safran - p. 9 Antonio Gomez/Safran - Anthony Pecchi/Airbus Helicopters - Adrien Daste/Safran - p. 10 Adrien Daste/Safran - Cyril Abad/CAPA Pictures/Safran - p. 11 Philippe Stroppa/Safran - Ricardo Funari/CAPA Pictures/Safran - p. 12 Michael Nager - p. 13 Éric Vernazobres/Safran - p. 14 Éric Vernazobres/Safran - p. 15 Éric Vernazobres/Safran - David Copithorne/Safran - p. 16 Anthony Pecchi/Airbus Helicopters - p. 17 Alexandre Paringaux/Safran - p. 18 Philippe Wodka-Gallien/Safran - Éric Drouin/Safran - p. 19 Jean-Michel Turpin/CAPA Pictures/Safran – HeliRy/iStockphoto - p. 20 Yvan Dube/Getty Images - p. 21 ESA-David Ducros, 2015 - p. 22 cristimatei/ iStockphoto - Y.Beletsky/ESO - p. 23 ESA/CNES/Arianespace - ESO/L. Calçada - Éric Forterre/Safran - p. 24 Safran - p. 25 Cyril Abad/CAPA Pictures/Safran - p. 26 Pierre Olivier/CAPA Pictures/Safran - Philippe Stroppa/Safran - p. 27 shironosov/iStockphoto - Thierry Mamberti/Safran - Safran - p. 28 Adrien Daste/Safran - p. 29 Guillaume Ramon/CAPA Pictures/Safran - p. 32 Éric Vernazobres/Safran - p. 33 Adrien Daste/Safran - p. 34 Adrien Daste/Safran - p. 35 Adrien Daste/Safran - p. 36 Thierry Mesnard/Safran – Jean-Marie Liot/DPPI/Safran. CFM, CFM56, LEAP and the CFM logo are trademarks of CFM International, a 50/50 joint company between Safran Aircraft Engines and GE.
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SAFRANIS A LEADING INTERNATIONAL
HIGH -TECHNOLOGY GROUP,
WITH THREE CORE BUSINESSES: AEROSPACE , DEFENSE
AND SECU RIT Y. OPER ATING WORLDWIDE , THE G ROU P HAS
OVER 70,000 EMPLOYEES AND G ENER ATED SALES
OF 17.4 B ILLION EU ROS IN 2015 . THROUG H ITS G LOBAL
PRESENCE SAFR AN NOT ONLY ENHANCES COMPETITIVENESS ,
IT AL SO BUILDS INDUSTRIAL AND COMMERCIAL REL ATIONS
WITH THE WORLD’ S LE ADING PRIME CONTR AC TORS
AND OPER ATORS , WHILE PROVIDING FAST, LOCAL SERVICE
TO CUSTOMERS AROU ND THE WORLD. WORKING ALONE
OR IN PARTNERSHIP, SAFR AN HOLDS WORLD OR EU ROPE AN
LE ADERSHIP POSITIONS IN ITS CORE MARKETS .
SAFRAN AT A GLANCE
(1) In parternship with GE, through CFM International.(2) In partnership with Airbus Group, through Airbus Safran Launchers.
MORE THAN 70 SUCCESSFUL ARIANE 5 LAUNCHES
in a row(2)
1 SINGLE-AISLE COMMERCIAL JET TAKES OFF EVERY 2 SECONDS
powered by our engines(1)
3,000 MILITARY AIRCRAFT fitted with our inertial
navigation systems
ABOUT 500 KILOMETERS OF ELECTRICAL WIRING
on an Airbus A380
MORE THAN 40,000 LANDINGS a day using our equipment
1 OUT OF EVERY 3 HELICOPTER TURBINE
ENGINES sold worldwide
2.8 BILLION ID DOCUMENTS
delivered worldwide
17,300 NACELLE COMPONENTS
in service
OVER 35,000 POWER TRANSMISSIONS
totaling over 850 million flight-hours
MORE CONTENT
A WORLD
LEADERin aircraft engine nacelles
No. 1WORLDWIDE
—Single-aisle commercial
jet engines (in partnership with GE)
—Helicopter turbine engines
—Landing gear
—Wheels and carbon brakes(1)
—Helicopter flight controls
—Engine control units(2)
—Aircraft electrical
interconnection systems
No. 4WORLDWIDE
in military aircraft engines
BOOSTING AIR TRANSPORT
PERFORMANCE
SAFRAN’S AVIATION BUSINESS COVERS THE ENTIRE LIFE CYCLE OF ENGINES AND EQUIPMENT FOR CIVIL AND MILITARY FIXED AND ROTARY-WING AIRCRAFT.
As a long-standing partner to the world’s leading aircraft manufacturers, we anticipate our customers’ requirements,
support the development of new mobility modes and help reduce the air transport industry’s
environmental footprint. We are a partner in the vast European research program Clean Sky,
and take part in ambitious research initiatives that will develop greener, more economical and quieter aircraft.
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(1) Mainline commercial jets (over 100 seats). (2) Commercial airplanes, in partnership with BAE Systems.
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BOOSTING AIR TR ANSPORT PERFORMANCE
98
ENGINE EQUIPMENTSafran makes a wide range of systems and equipment for civil and military fixed and rotary-wing aircraft: mechanical power transmissions, engine control units, cooling, lubrication and filtration components and more. Our innovative solutions are used on a number of different engines, including the CFM56 and LEAP from CFM International (our 50/50 joint company with GE), the Rolls-Royce Trent 500, 700, 800 and XWB, and the Safran Aircraf Engines M88 fighter engine.
RAFALE EXPORTS TAKE OFF
As a long standing partner of Dassault Aviation for its combat aircraft, Safran contributed to the initial export sales of the Rafale as Egypt and Qatar each acquired 24 Rafales in 2015. Safran provides the Rafale’s twin M88 engines, along with the landing systems, inertial navigation system and ejection seat.
The new LEAP engine incorporates a number of innovative technologies, giving it a significant improvement over the current CFM56 in economic and environmental performance. The LEAP’s design guarantees dispatch reliability and reduced maintenance costs. Intended for the new generation of single-aisle commercial jets, the LEAP has already won more than 10,000 orders and commitments from a large number of airlines. The LEAP-1A version for the Airbus A320neo will enter service in 2016, followed in 2017 by the -1B version for the Boeing 737 MAX.
(1) By SEMMB, a joint venture between Safran and Martin-Baker.
ARRANOTHE EXCLUSIVE H160 ENGINE
Safran’s Arrano is the most innovative powerplant available for helicopters in the 4- to 6-ton class. It features 10 to 15% lower fuel consumption, optimized maintenance and lower total cost of ownership. Following a first flight on the Airbus Helicopters H160 in February 2016, the Arrano is slated to enter service in 2018.
MORE THAN
10,000ORDERS and commitments for the LEAP at the end of February 2016.
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INTEGRATED PROPULSION SYSTEMSSafran offers integrated propulsion systems, combining the engine and nacelle, to aircraft manufacturers and operators alike. In particular, through CFM International, a 50/50 joint company between Safran Aircraft Engines and GE, we are supplying a complete propulsion system for the Comac C919, comprising the LEAP-1C engine and its nacelle.
NACELLESSafran offers a wide range of engine nacelles for all types of aircraft. Building on our expertise in composite materials and acoustic treatments, we make nacelles that are light, streamlined and help reduce engine noise. We supply the nacelles for the Airbus A380 super-jumbo jet, and we are developing, alone or in partnership with GE, nacelles for the LEAP-powered Airbus A320neo and Comac C919, as well as the Airbus A330neo and the Silvercrest® and GE Passport™ engines.
3 MILLION
PASSENGERS use Safran-powered aircraft
every day.
ENGINESSafran has long offered propulsion solutions combining innovative technologies and reliability. Safran and GE, through the 50/50 joint company CFM International, are now launching a new-generation turbofan called LEAP. The successor to the best- selling CFM56®, the LEAP has already been chosen to power the Airbus A320neo, Boeing 737 MAX and Comac C919. We also make the SaM146 for the Sukhoi Superjet 100 regional jet, through PowerJet, a 50/50 partnership between Safran Aircraf Engines and NPO Saturn, and we are developing the Silvercrest® business jet engine. In addition, we are a major partner in large turbofan programs with the GE90, GEnx and GE9X. Our latest-generation engines feature not only reduced operating costs, but also unrivaled performance in terms of lower fuel consumption and a smaller environmental footprint.In the military sector, we make the M88 engine for the Rafale multirole fighter and contribute to production of the TP400 turboprop (through the Europrop International GmbH consortium) for the Airbus A400M military transport. Safran turbine engines power helicopters from the world’s leading manufacturers, including Airbus Helicopters, Bell Helicopter, Sikorsky, Finmeccanica Helicopters, HAL, Russian Helicopters and AVIC. The Arrius and Arriel power light and medium machines, while the Makila and RTM 322 are used on the heavy helicopters Super Puma, H225, AW101 and NH90. We are developing several new models, the Arrano for helicopters in the 4- to 6-ton class (H160) and the Ardiden 3 for the 6- to 8-ton class (Ka-62 and AC352).
FOCUS
MORE THAN
250 EJECTION
SEATS have been produced
for the Rafale(1).
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LEAP 15% REDUCTION IN FUEL CONSUMPTION
MORE THAN
10,000AIRCRAFT
ARE EQUIPPED with Full Authority Digital
Engine Controls developed by Safran(1).
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BOOSTING AIR TR ANSPORT PERFORMANCE
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LANDING AND BRAKING SYSTEMSSafran designs, produces and supports landing gear, wheels, carbon brakes and complete landing systems for civil and military fixed and rotary-wing aircraft, including the Airbus A320, A320neo, A330, A350 XWB, A380 and A400M, the Boeing 737 Next-Generation, 737 MAX, 767, 777 and 787 commercial airplanes, the Rafale, Eurofighter Typhoon and F-18 fighters, etc.
AVIONICS AND ELECTRONICSSafran offers a range of advanced avionics solutions, including naviga-tion, flight control and onboard infor-mation systems. We’re the world leader in helicopter flight controls and in full-authority digital engine controls (via FADEC International, a 50/50 joint company between Safran Electronic & Defense and BAE Systems).Our engine control units are used on a number of different airplanes and helicopters, from Airbus, Boeing, Dassault Aviation, Bombardier, Embraer, Airbus Helicopters, Finmeccanica Helicopters and other manufacturers.
ENGINEERINGWe offer a complete array of engine-ering services centered on five areas of expertise: integrated propulsion systems, aerostructures and mecha-nical equipment, electrical systems and power management, integrated systems, production en gineering and in-service support.
ELECTRICAL SYSTEMSSafran covers all aspects of aircraft electrical systems, including power generation, distribution and conversion, wiring, load management, systems integration and ventilation. We supply wiring harnesses and electrical cabinets for many different Airbus and Boeing airplanes, and the primary and secondary electrical distribution systems on the Embraer KC-390 transport.
(1) Through FADEC International, a 50/50 joint venture between Safran Electronics & Defense and BAE Systems.
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CUSTOMER SUPPORT We offer our customers comprehensive service packages that drive down operating costs.
TAILORED SERVICES
At Safran we offer a number of services tailored to customer needs, such as “by the hour” support packages, to deliver maximum reliability, minimum costs, more efficient maintenance scheduling and spare parts management.
Safran’s “by the hour” support package for its helicopter engines is chalking up strong sales growth, including to the U.S. Army, Bristow, DRF Luftrettung, Aiut Alpin Dolomites and Norwegian Air Ambulance.
FLIGHT DATA ANALYSIS
Connected systems on today’s aircraft generate a treasure trove of data, analyzed by Safran to develop services that greatly enhance operating efficiency for our customers. These services include real-time condition monitoring, troubleshooting and preventive maintenance. One of the latest examples is BOOST™ (Bank of Online Services and Technologies), a service that enables helicopter operators to optimize maintenance operations and more efficiently manage their fleets.
CLOSER TO OUR CUSTOMERS
Safran deploys a global maintenance, repair and overhaul (MRO) network, which is constantly expanding to ensure that all customers worldwide get close local support at any given moment, for guaranteed dispatch reliability.
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160AIRLINES HAVE ALREADY OPTED FOR SAFRAN’S CASSIOPÉE FLIGHT DATA ANALYSIS SERVICES.
24 /7Availability of
Safran Aircraft Engines spare parts for airlines.
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FOCUS
EVERY 2 SECONDS AN AIRCRAFT LANDS
ON SAFRAN EQUIPMENT SOMEWHERE
IN THE WORLD.
WORLD
LEADERin biometric identity solutions
(based on fingerprint, iris and facial recognition)
No. 3WORLDWIDE
in smart cards
No. 1WORLDWIDE
in explosive detection systems (EDS) for checked luggage
MORE CONTENT
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FROM ID DOCUMENTS TO MULTIBIOMETRIC IDENTIFICATION, AND FROM ONLINE
AUTHENTICATION TO MOBILE PAYMENTS AND MORE…
Safran offers identity and security solutions that address the emerging needs of people, businesses
and nations. Our innovative solutions help protect people and goods, make sure transactions are secure
and protect public safety.
MAKING OUR LIVES SAFER AND EASIER
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LAUNCH OF A NEW DIGITAL IDENTITY PLATFORM Safran has developed SecureIdentity, a new platform designed to verify the identity of citizens and residents of the United Kingdom. Based on a mobile app, and in operation since February 2016, SecureIdentity gives British citizens immediate and secure access to a range of government online services, such as renewing driver’s licenses, or submitting tax returns.
WORLD’S FIRST E-DRIVER’S LICENSE
Safran offers a wide range of innovative solutions for driver’s licenses, based on biometric recognition and secure elements, to support government road safety policy and the fight against ID fraud. We are also launching the world’s first electronic driver’s license. It can be quickly authenticated using a mobile app, which means it offers the best possible protection against counterfeiting, plus immediate updating of information such as address and driver restrictions.
OVER
70 MILLION
DRIVER’S LICENSES
delivered yearly by Safran to 41 U.S.
states at the end of 2015.
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CONTACTLESS ID IN LESS THAN A SECOND
Calling on advanced imaging technologies, MorphoWave, the world’s fastest contactless fingerprint terminal, scans the fingerprints on four fingers at the same time. Its high-speed operation makes it an ideal security solution for areas with heavy traffic.
IDENTIFICATION AND DETECTION SOLUTIONSSafran helps governments and police forces protect the public. We offer biometric ID and automated border control solutions that combine security, simplicity and efficiency. Our explosives and narcotics detection systems are capable of identifying a wide range of threats and warding off potential attacks. We offer innovative biometric identification systems that make life easier for police forces, most recently through a cloud-based service for our MorphoBIS biometric ID solution.
ID DOCUMENTS Safran produces unfalsifiable ID documents that meet today’s strictest security standards. We contribute to more than 55 go ver nment programs through a wide range of solutions: identity management, registration, secure documents including driver’s licen ses, passports and visas, and much more.
DIGITAL IDENTITYSafran’s digital ID solutions guarantee secure access to a number of online services, including via smartphones and tablets. These solutions prove a user’s ID to counter fraud due to the misuse of personal information on the Net. We have now added an additional layer of security as well, via biometric authentication.
SECURE TRANSACTIONS One of Safran’s specialties is ensuring the security and confidentiality of transactions. Leveraging our expertise in secure documents (SIM cards, payment cards), we apply a wide range of technologies to ensure iron-clad security at all stages of a mobile payment: identification, e-signature and multi-factor au then -tication, including biometric authen-tication.
BIOMETRIC TERMINALS The world leader in multibiometric solutions based on fingerprint, iris and facial recognition, Safran offers innovative, reliable solutions tailored for today’s mobile world. We make a range of biometric terminals for many different uses: population enrollment, private or public infrastructure access control, secure payments, etc.
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MAKING OUR LIVES SAFER AND EASIER
MORE THAN
126 MILLION
ID DOCUMENTS delivered by Safran worldwide in 2015.
FOCUS
No. 3WORDLWIDE
Inertial navigation systems
No. 1IN EUROPE
—Tactical drones
—Optronic systems
ENHANCING PROTECTION
FOR CITIZENSSAFRAN OFFERS A COMPLETE RANGE OF
OPTRONICS, AVIONICS, INERTIAL NAVIGATION, ELECTRONICS AND CRITICAL SOFTWARE SYSTEMS
that contribute to the efficiency of armies, navies and air forces in many different countries.
Our innovative solutions also facilitate the missions performed by homeland security and police forces,
customs services and mountain or maritime rescue squads.
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AVIONICS Safran produces guidance and positioning solutions to meet the needs of today’s armies, navies and air forces. We are the prime contractor for the AASM Hammer guided missile, deployed by Rafale fighters, we supply the seekers on the Mistral and MICA IR missiles, and we are developing the seeker and sight for the upcoming MMP medium-range missile. We also offer inertial or hybrid navigation solutions for all combat platforms (transport aircraft, helicopters, surface vessels and submarines), and we have developed innova-tive laser-gyro technologies to meet the needs of artillery units in some 20 countries.
OPTRONICSSafran offers a complete range of op-tronic (electro-optical) systems and equipment for defense applications (submarines and surface vessels, combat vehicles, airborne platforms, etc.). We also design and build portable optronic devices such as the JIM LR binoculars. Fully day/night com-patible, these infrared binoculars are in service or on order in over 40 countries. Safran is also the prime contractor for FELIN, the French infantry soldier modernization pro-gram. The FELIN system has been used in operations outside France since 2012. It addresses all operatio-nal requirements: protection, mobi-lity, observation, communications, command, etc.
DRONESSafran understands and applies all technologies needed for tactical drone systems, from launch stations and flight control to mission planning and data/image transmission. We also design and build the payloads needed to carry out different missions, including monitoring, intelligence, protection of armed forces, threat de-tection, etc. Drawing on a dozen years of operational experience with the Sperwer drone, Safran is now developing the Patroller™, a multi-sensor tactical drone designed for land forces, operational support and maritime surveillance.
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ENHANCING PROTECTION FOR CITIZENS
1918
BLUENAUTE® MARITIME NAVIGATION SYSTEM
Safran’s new BlueNaute® inertial navigation system, based on the breakthrough hemispherical resonator gyro (HRG) technology, provides highly accurate navigation data even in the harshest environments. Through this new system, Safran addresses emerging requirements in the maritime navigation market, including scientific missions, at-sea rescue, offshore support and maritime police units. In 2014 and 2015, BlueNaute® has already been chosen by Canada and the U.S. Coast Guard for their offshore patrol boats, as well as by the Norwegian coast guard.
PATROLLER™ THE FRENCH ARMY’S NEW TACTICAL DRONE SYSTEM
Equipped with a new-generation optronic (electro-optical) system, the Patroller™ surveillance drone offers unrivaled long-distance observation capabilities, along with the simultaneous, real-time operation of several sensors (optical and radar imagery). Its long endurance, deployment capability, scalability and ease of operation from any type of terrain make it perfectly adapted to the demanding requirements of today’s armed forces. The Patroller™ was recently chosen by the French government. Starting in 2018, 14 Patroller™ systems will gradually replace the Sperwer tactical drone systems now deployed by the French army.
14 PATROLLERTM
SYSTEMS will be deployed
by the French army starting in 2018.
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NEARLY
20,000 FELIN
soldier modernization systems are deployed or on order.
FOCUS
No. 1WORLDWIDE
in launch vehicles (in partnership with Airbus Group)
No. 1IN EUROPEfor plasma propulsion
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SAFRAN FACILITATES ACCESS TO SPACE, A KEY TECHNOLOGY IN TODAY’S WORLD
SINCE IT ENSURES NATIONAL SOVEREIGNTY AND INDEPENDENCE AND SUPPORTS
TELECOMMUNICATIONS, SCIENTIFIC PROGRESS (VIA EARTH OBSERVATION, SPACE EXPLORATION, ETC.) AND A HOST
OF OTHER INDISPENSABLE APPLICATIONS.
FACILITATING ACCESS TO
SPACE
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No. 1WORLDWIDE
in high-performance optics
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FACILITATING ACCESS TO SPACE
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ELECTRIC PROPULSION FOR LIGHTER SATELLITES Safran offers the PPS® 1350 and PPS® 5000 plasma (electric) thrusters for satellites, which provide considerable weight savings compared with conventional chemical propulsion. We signed two new contracts in 2015, clearly illustrating their advantages for satellite manufacturers and operators alike. Space Systems Loral (SSL), the world’s leading maker of telecom satellites, chose PPS® 1350 thrusters, while Airbus Defence and Space opted for PPS® 5000 thrusters for its Eurostar E3000 EOR (Electric Orbit Raising) platform. This thruster was also chosen for the new-generation Neosat satellite platform.
ARIANE 5 OVER 70 SUCCESSFUL LAUNCHES IN A ROW
Through Airbus Safran Launchers, Safran and Airbus Group are prime contractors for the Ariane 5 launcher. The operational flexibility of Ariane 5 means that it can send one or two satellites into geostationary transfer orbit (GTO), clusters of satellites into medium Earth orbit (MEO), etc. Ariane 6, scheduled to make its first flight in 2020, will replace Ariane 5 towards 2023 and will offer a broader flight envelope and mission capability for a significant reduction in costs.
6 OUT OF 6 for Ariane 5
in 2015.
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HIGH- PERFORMANCE OPTICS FOR THE E-ELT GIANT TELESCOPE
Safran was chosen by the European Southern Observatory (ESO) to make all segments for the M4 mirror on the European Extremely Large Telescope (E-ELT) being built in Chile. Safran is drawing on the full sum of its experience to develop and produce these high-performance optical components. Safran has already produced single-piece 8-meter mirrors for ESO’s Very Large Telescope (VLT) and the international telescope Gemini, as well as the 11-meter mirror for the Gran Telescopio de Canarias, and mirrors for the GAIA astronomy satellite. “First light” for the E-ELT, the most powerful telescope in the world, is expected in 2024. LAUNCH VEHICLE PROPULSION
AND EQUIPMENTThe 50/50 joint company between Safran and Airbus Group, Airbus Safran Launchers is prime contractor for the current Ariane 5 launcher and its successor Ariane 6. ALS is responsible for both development and production, and is in charge of research and design studies for all future European launchers. Reflecting the joint ambition of Airbus Group and Safran to boost the European space industry to unscaled heights, this new joint venture will develop a family of Ariane 6 launchers that will be more competitive and versatile, while increasing performance and maintaining the exceptional quality and reliability that characterize the current workhorse, Ariane 5.
HIGH- PERFORMANCE OPTICSSafran designs, develops, manu-factures and integrates a complete range of high-performance optics and high-precision opto-mechanical equipment. In particular, we make advanced mirrors for leading astronomy programs such as the European Extremely Large Telescope (E-ELT) being built in Chile.
SATELLITE PROPULSION AND EQUIPMENT Safran designs and produces a complete range of electric thrusters and systems handling all propulsion duties on satellites. The PPS® 5000 thruster will handle propulsion on the latest all-electric telecom satellite platforms soon to be introduced by Thales Alenia Space France and Airbus Defence and Space.
ARIANE 5 GENERATESNEARLY
3 MILLION
POUNDS OF THRUST AT LIFTOFF.
2 MILLIMETERS THE THICKNESS OF
THE GLASS "PETALS" developed by Safran for
the M4 mirror on the giant E-ELT telescope.
FOCUS
UN LEADER
MONDIALdes solutions
d’identité biométriques (utilisant les empreintes digitales,
l’iris et le visage)
N° 3MONDIALdes cartes à puce
N° 1MONDIAL
des systèmes de détection d’explosifs destinés aux bagages
enregistrés (EDS - Explosives Detection
Systems)
MORE CONTENT
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CONTRIBUER À LA SÛRETÉ DES ÉTATS, DES FRONTIÈRES, DES INFRASTRUCTURES
ET DU TRANSPORT AÉRIEN, FACILITER LES MISSIONS DES FORCES DE POLICE
ET DES FORCES ARMÉES… GRÂCE À SES SOLUTIONS INNOVANTES, SAFRAN SÉCURISE
ET FACILITE LA VIE QUOTIDIENNE.
SÉCURISER ET FACILITER
LA VIE QUOTIDIENNE
€2.1 BILLIONin R&D investments in 2015, equal to nearly 12% of sales.
TOP 100Since 2011 Safran has been
named one of the Top 100 Global Innovators every year by Thomson Reuters.
DELIVERING
EXCELLENCE TO SUPPORT OUR CUSTOMERS
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MORE CONTENT
SAFRAN HAS ALWAYS AIMED TO DELIVER EXCELLENCE TO CONSOLIDATE OUR POSITIONS AND DRIVE GROWTH, BASED ON A STRATEGY
OF STANDING OUT THROUGH INNOVATION.
We focus on R&D, backed by the continuous improvement of all functions and the development of new ways
of working together. We also apply a sustained policy of capital expenditures, in France and worldwide, to build
our network and ensure responsive customer support.910INITIAL PATENTS
FILED IN 2015.
INNOVATIVE SOLUTIONS TO ANTICIPATE MARKET NEEDSAt Safran, research is fundamental. It allows us to anticipate customers’ needs and develop tomorrow’s technologies, products and services. We invest € 2.1 billion a year in R&D, operating through major research programs, our own centers of expertise and partnerships, as well as targeted acquisitions enabling us to add basic technology building blocks. More than 21% of our employees are involved in R&D, to help us stay at the cutting edge of excellence.
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SAFRAN TECH A CUTTING-EDGE RESEARCH CENTER
Safran Tech is located in Saclay, near Paris, and was founded to pool the Group’s different areas of expertise and foster breakthrough technologies. It houses nearly 300 researchers from different countries, working on key disciplines such as advanced aerospace systems, materials, processes and sensors. Safran Tech also calls on four corporate centers of excellence: Safran Composites, Safran Ceramics(4), an experimental foundry and an additive manufacturing center.
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DELIVERING EXCELLENCE TO SUPPORT OUR CUSTOMERS
SAFRAN GOES
BIG DATA!Firmly convinced that data analysis generates both value and growth, Safran created a new unit called Safran Analytics to develop its expertise in Big Data. The specialists in this new unit help improve our own processes, and develop innovative services to reduce our customers’ operating costs.
ADDITIVE MANUFACTURING: THE KEY TO TOMORROW’S FACTORIES
As part of Safran’s proactive strategy to develop “tomorrow’s factory”, we are investing in research & development for innovative processes, especially based on digital technology. One of the best examples of this strategy is additive manufacturing, more popularly known as 3D printing, to make certain parts more efficiently and cost-effectively than ever. Its application at Safran continues to grow, including the production of prototypes for complex parts used in the hot sections of gas turbines, production and experimental parts for the Silvercrest® bizjet and Vinci® rocket engines, fuel injectors for the new Arrano helicopter engine, and more.
A WORLD FIRST FOR CERAMIC MATRIX COMPOSITESBuilding on our expertise in light yet strong ceramic matrix composites (CMC), Safran offers a strategic technology that harbors a host of applications in aircraft and rocket engines. The CMC exhaust cone, designed and built by Safran, made its commercial flight debut on June 16, 2015, on an Air France Airbus A320 powered by twin CFM56-5B engines.
CONTINUOUS PERFORMANCE IMPROVEMENTSafran focuses on the continuous improvement of our competitiveness, performance and customer service. We aim for cost-effective technological and industrial excellence across the entire life cycle, from design and production to in-service support. For example, we are deploying an approach known as QRQC(3) in all companies, as well as suppliers, to facilitate daily, on-site performance management. Any problem that pops up is also an opportunity for improvement. At the same time, we have long deployed Lean-Sigma methodologies, along with Shared Services Centers, to optimize our processes across the board, whether in our plants, design departments or support functions.
INVESTING TO PROVIDE LOCAL SUPPORT FOR CUSTOMERSAt Safran we continually invest to expand our production facilities and sales presence throughout the world, thus supporting higher production rates and local contacts with our customers. While we are of course solidly established in France, which accounts for nearly 60% of our workforce and the strategic core of our R&D and production activities, we are focusing on international development to enhance local responsiveness and customer support.
ADDITIVE MANUFACTURING
REDUCES DEVELOPMENT TIME BY UP TO
60%.
NEARLY
300SCIENTIFIC EXPERTS
to drive Safran’s innovation strategy.
FOSTERING CROSS- DISCIPLINARY EXPERTISESafran has always teamed up with top-tier partners from around the world, reflecting our commitment to open innovation. We work with leading government and academic research centers, including the CEA(1), Onera(2), engineering schools and universities. We also form partnerships with our suppliers and with companies from other sectors, such as the auto parts giant Valeo. We recently founded our own corporate capital venture fund, Safran Corporate Ventures, to support the growth of innovative startups in our disciplines. In-house, we encourage the cross-fertilization of expertise, especially through an employee-driven innovation initiative that allows each employee to become a recognized change agent.
FOCUS
(1) French Atomic Energy and Alternative Energies Commission. (2) French aerospace & defense research agency.
(3) Quick Response Quality Control.
(4) Following the integration of the launch vehicles businesses of Airbus Group and Safran.
6 OBJECTIVES TO GUIDE SAFRAN’S CORPORATE SOCIAL
RESPONSIBILITY (CSR) STRATEGY
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.—
Sustain a culture of integrity.—
Guarantee optimum communications with all stakeholders.
A GLOBAL COMMITMENT
Having signed the United Nations Global Compact, Safran clearly confirms the extent
of its commitment to environmental protection and fair trade practices. Safran achieved an
advanced ranking in this system (3 out of 4) in 2015.
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CREATING
VALUE WITH OUR STAKEHOLDERS
2ndRANKED COMPANY
in CAC 40 stock market index for percentage
of employee shareholders
OVER
70,000EMPLOYEES
IN MORE THAN 60 COUNTRIES
3130
SAFRAN CREATES VALUE WITH ITS STAKEHOLDERS (Figures at December 31 , 2015, unless otherwise specif ied)
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CREATING VALUE WITH OUR STAKEHOLDERS
CUSTOMERS
€17.4 billion in sales, including more than 80% in export markets.
We offer high-tech solutions to meet the needs of a wide variety of customers, including: civil and military airplane and helicopter manufacturers;
airlines; space agencies(1); armed forces (land, sea, air) and police forces; telecommunications operators; airports, public transport; banks.
Customer satisfaction is Safran’s primary goal. So we listen to our customers, anticipate and address their needs.
An extensive global presence enables Safran to give our customers fast, local service wherever they are, with best-in-class expertise.
SHAREHOLDERS (institutional, individual and employee shareholders)
Capital shareholding at December 31, 2015: Public (70.9%), French State (15.4%), Employees (13.6%), Treasury shares (0.1%).
Regular contacts with portfolio managers and financial analysts in France and around the world.
In addition to the Annual General Meeting, a number of meetings and plant visits for individual shareholders.
Safran ranks 2nd among CAC 40 companies for the percentage of employee shareholders.
SUPPLIERS , SUBCONTRACTORS AND PARTNERS
Purchasing volume: €10.1 billion in 2015.
Development of long-term partnerships with reciprocal requirements to support a joint drive for higher performance.
PLUS: insurance firms, trade associations (Gifas, UIMM, OACI), professional counterparts.
FINANCIAL ANALYSTS
More than 20 financial analyst firms track the Safran share on a regular basis.
NON-FINANCIAL RATINGS AGENCIES
Safran sends concrete data and the results of its CSR actions to non-financial ratings agencies.
(1) In partnership with Airbus Group.
EMPLOYEES
Over 70,000 employees in more than 60 countries.
More than 7,700 employees hired in 2015, including over 1,000 net jobs created.
Nearly 26% of the global workforce are women.
More than 1.6 million hours of training provided in 2015.
In Europe, 1 out of every 6 employees takes responsibility for a young person being trained (intern, student-researcher or student in work-study program).
60% of employees are Safran shareholders.
SOCIAL PARTNERS
Safran signed five new Group-wide agreements in 2015, concerning the savings plan for group retirement, skills and career development, supplementary insurance, employment and skills planning and in-service training.
SCHOOLS, UNIVERSITIES , LABORATORIES
Safran has solid Research & Technology partnerships with the CNRS, CEA and Onera research organizations in France, and works with several technology research institutes and a number of university labs worldwide.
More than 300 Safran employees act as “ambassadors” to their alma maters (23 schools and universities).
LOCAL , FEDERAL , REGIONAL GOVERNMENTS
€758 million capital expenditures in 2015.
Safran helps energize the regions where it operates, in conjunction with local training and placement organizations.
PLUS: local communities.
ASSOCIATIONS
Over the last 10 years, Safran has provided support for more than 550 philanthropy projects, either directly or through our corporate foundations.
MEDIA
Safran fosters relations with an increasingly international spectrum of journalists.
Starting a few years ago, Safran and its companies communicate directly with their communities via social networks (Twitter, Facebook, LinkedIn, Viadeo, YouTube, etc.).
PLUS: surrounding communities, non-governmental organizations (NGO).
INTERNAL STAKEHOLDERS
PUBLIC PARTNERS
CIVIL SOCIETYOBSERVERS
BUSINESS PARTNERS
EXPORT CONTROL IN COMPLIANCE WITH REGULATIONSWith more than 80% of our sales generated in international markets, Safran is subject to a wide range of regulations concerning our import and export activities, as well as strictly complying with all sanctions and embargos. Since 2005 Safran has deployed a highly effective Group-wide over sight organization to ensure compliance, through a network of more than 490 specialized staff. Regular audits ensure that all procedures are followed to the letter, and that the commitments made by Safran’s corporate ma na -gement are met.
Safran’s demanding oversight stan-dards are a solid advantage for our companies in earning certification from the French defense procurement agency DGA (Direction générale de l’armement), following the transposition into French law of the European directive concerning defense equipment trade within the European Union, and exports outside the EU. We also take an active role in Gifas and ASD working groups, which involve all entities concerned by these questions.
Honesty and integrity are an integral part of Safran’s corporate strategy, and are shared by all employees. In fact, we consider them as prerequisites for both performance and sustainable, balanced growth. By embodying these values we continue to earn the trust placed in Safran by our customers, employees, shareholders, suppliers and partners.
TRADE COMPLIANCE, A TOP-LEVEL IMPERATIVE! Safran is fully committed to con-ducting business in compliance with the highest ethical and profes sional standards. The guidelines for our fight against corruption are set down in an Ethics Charter, a Responsible Lobbying Charter and a trade com-pliance program that integrates a wide range of relevant laws and organizations, products and markets. By deploying a Group-wide network of Trade Compliance Officers and training programs, we make sure that everybody in the Group strictly adheres to all these requirements. We also have an ongoing program of reviews and audits, both internal and external, to make sure that procedures are correctly applied.
We are also involved with a number of both sector-specific and general initiatives in the fight against corruption. Safran is a member of the steering committee of the International Forum on Business Ethical Conduct (IFBEC) for the Aerospace and Defence Industry, vice-chair of the ethics/anti-corruption
working group in the Business and Industry Advisory Committee to the OECD, a partner in the Safeguarding Aviation & Travel Value Chains, a project implemented by the World Economic Forum’s Partnering Against Corruption Initiative (PACI). We chair the international ethics committee at Medef (the French employers’ association) and we take part in various working groups for the French aerospace industry association Gifas, the AeroSpace and Defence Industries Association of Europe (ASD), the International Chamber of Commerce, the circle of business ethics, etc. All Safran companies have signed the Common Industry Standards for Anti-Corruption, under the auspices of the ASD.
A RESPONSIBLE CORPORATE GROUPETHICS AND INTEGRITY: A CONSTANT COMMITMENT
1stCOMPANY IN THE FRENCH STOCK
MARKET INDEX CAC 40 TO BE CERTIFIED
TO ANTI-CORRUPTION STANDARDS
BY FRENCH AGENCY ADIT
(AGENCE POUR LA DIFFUSION DE
L'INFORMATION TECHNOLOGIQUE).
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18,000EMPLOYEES TRAINED IN EXPORT CONTROL
SINCE 2010.
MORE THAN
80%OF SALES
are generated in international markets.
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CREATING VALUE WITH OUR STAKEHOLDERS
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MORE THAN 6,000 YOUNG PEOPLE RECEIVED TRAINING
at company facilities in Europe in 2015.
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SAFRAN, AN ENGAGED GROUP TALENT, THE KEY TO OUR CURRENT AND FUTURE SUCCESS
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REACH,
A TOP PRIORIT Y
Safran has been actively preparing for the implementation of new standards in Europe's REACH
regulation by studying practical replacement solutions of
toxic chemical substances used during the life cycles
of our products.
HEALTH, SAFETY AND ENVIRONMENT
ANTICIPATE AND PROTECT Safran conducts a proactive health, safety and environment (HSE) policy, reflecting our values and commitments. We have established a culture based on anticipation and prevention, which is supported at the highest corporate level and is an integral part of our continuous performance improvement initiative. Safran’s HSE policy is anchored in very solid commitments: protect everyone’s health and safety; ensure the security of all facilities; protect the environment; and integrate HSE requirements throughout the product life cycle.
MEETING AND EXCEEDING STANDARDS
We have defined our own strict in-house guidelines to support this policy, setting down the rules for each facility. The 28 standards in these guidelines incorporate well-known international standards such as ISO 14001 and OHSAS 18001, along with our own specific requirements. Each facility is regularly audited using a maturity scale to classify it as gold, silver or bronze. Nearly 100 of our facilities have already earned one of these labels. By setting up management systems that emphasize local support and sharing best practices, Safran guarantees the occupational well-being of all employees.
In our high-tech business sectors, today’s innovations, and the talent behind them, will ensure tomorrow’s successes. Unleashing our human potential is a top priority for Safran, one that we support through diversified hiring, a dynamic training policy and much more.
RECRUITING AND DEVELOPING TALENT
Safran is shaping its future by attracting top talent in all categories, investing heavily to bring this talent onboard, and offering highly motivating career development opportunities. We take an active stance to bring young people into the workforce, by welcoming a number of apprentices, interns and student-researchers every year.
These efforts are applied worldwide, in particular calling on the European agreement on the professional inte-gration of young people, signed in 2013, and through special agreements in countries including India, the United States and Canada.
MORE THAN
39,000NEW EMPLOYEES
HAVE JOINED SAFRAN SINCE 2011.
MORE THAN
1.6MILLION
HOURS OF TRAINING provided in 2015.
ALLOWING ALL EMPLOYEES TO SHAPE THEIR OWN CAREER PATHOperational excellence and the ongoing enhancement of employee skills are two major drivers of Safran’s competitiveness. Safran University was founded to meet these goals, through an ambitious training policy designed to enhance expertise, develop leadership and management skills, and bolster employability by adapting skills sets to today’s fast-evolving technologies. Safran University calls on the Safran Campus in the greater Paris area, plus facilities in Dallas and Beijing, and also develops e-learning courses. At the same time, Safran offers employees multiple opportunities for mobility, between regions, countries, functions and companies, to improve their adaptability and foster skills development.
A WEALTH OF DIVERSITY As a responsible employer, Safran values diversity, a factor in driving performance and innovation, and makes a concrete commitment to upholding equal opportunity. Our initiatives focus on employment for young people and seniors, integrating people from underserved neighborhoods in the workplace, gender equality and the continued employment of people with disabilities.
AFFIRMING OUR SOCIAL MODEL Safran’s social model is based on the firm conviction that employees are our primary asset. We give them a stake in determining our strategy and sharing the fruits of success through a constructive labor-management dialog, an active employee shareholding policy, including matching funds, profit-sharing and incentive payments, employee savings plans, and much more.
60%OF EMPLOYEES
ARE SAFRAN SHAREHOLDERS.
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CREATING VALUE WITH OUR STAKEHOLDERS
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CREATING VALUE WITH OUR STAKEHOLDERS
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Safran has sponsored more than 550 philanthropy projects since being founded in 2005. Whether in France or in other countries where we operate, these actions reflect our values and commitment to responsible corporate citizenship. We support joint projects with associations, and carry out our own actions with the help of employees, to encourage social and professional inclusion, help creative talents, and more. Our philanthropy policy focuses on education and equal opportunity, applied through long-term partnerships based on a combined educational, social and cultural approach. Safran also has two corporate foundations, for integration and music, enabling us to participate in the fight against the exclusion of young people with disabilities, and support the training and early career development of talented young classical musicians.
A RESPONSIBLE CORPORATE CITIZEN PHILANTHROPY AND FOUNDATIONS
SUPPLIERSSHARING EXPERTISE AND VALUES
Our suppliers naturally play a major role in our success. We seek to establish long-term relationships with them based on mutual trust and a joint emphasis on performance. Safran’s purchasing policy also includes measures to support our suppliers’ growth, their rise up the skills chain, and the development of their ability to innovate. While Safran applies the same demanding standards to all suppliers, we provide special support to those
with the greatest potential. As a member of the “SME Pact”, for small and medium-size enterprises in France, we are developing a
“First Circle” initiative to establish a favored relationship with industry partners willing to make a long-term commitment to our strategic projects, ranging from research to production. We have also undertaken an initiative to award the “responsible supplier relations” label to all Safran companies. The first label was awarded in 2014 to Safran Aircraft Engines’ production purchasing department and it was extended in 2015 to its MRO activities.
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AS OF DECEMBER 31, 2015
BENCHMARKS
AMERICAS
14,250—
20% of total workforce
AFRICAMIDDLE EAST
2,900—
4% of total workforce
EUROPE
49,000—
70% of total workforce
ASIA-PACIFIC
3,950—
6% of total workforce
OVER 70,000 EMPLOYEES IN MORE THAN 60 COUNTRIES
69,000
2014 2015
66,300
2013
70,100+1.5%
More than 7,700 new employees joined Safran in 2015, and we created over 1,000 net jobs, including more than 800 in France. This sustained pace of hiring supports the launch and ramp-up of new programs and also renews our skills base.
50%
21%
29%
The breakdown by job type reflects Safran’s broad industrial foundations and the extensive resources dedicated to Research & Development. Our people leverage their excellence and innovative mindsets not only in production and design, but also in support functions.
Production
Other
R&D
TOTAL NUMBER OF EMPLOYEES
EMPLOYEES BY JOB TYPE
36%OF PURCHASES IN
FRANCEARE FROM SMEs.
Since our founding in 2005, Safran has sponsored an ocean racing team, which incorporates our values, technologies and processes in a project that rallies everybody in our Group around a common objective. Skipper Morgan Lagravière took the helm of a brand-new Safran IMOCA class monohull ocean racer in 2015, targeting the Vendée Globe round-the-world solo race starting at the end of 2016.
OCEAN RACING SPONSORSHIP
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STOCK MARKET INDICATORS
RECORD RESULTS
RECURRING OPERATING INCOME (adjusted data, millions of euros)
Adjusted recurring operating income reached 2,432 million euros (14.0% of revenue) an increase of 16.4% compared with the 2014 figure of 2,089 million euros (13.6% of revenue). This increase was driven mainly by growth in aerospace aftermarket activities, and by landing gear and wheels and brakes businesses.
2,089
2014 2015
1,780(1)
2013
2,432+16.4%
SALES (adjusted data, millions of euros)
Safran posted adjusted sales of 17,414 million euros in 2015, a year-to-year increase of 13.4% (3.9% on an organic basis). The increase of 2,059 million euros includes a positive exchange rate impact and reflects growth in the aviation (propulsion and equipment), security and defense businesses.
15,355
2014 2015
14,363(1)
2013
17,414+13.4%
(1) Restated to reflect impact of IFRS 11.
Following the divestment by the French State of 2.6% of its capital shareholding in Safran on December 1, 2015, the State held 15.4% of the Group’s capital at the end of the year, compared with 22.0% at year-end 2014. This further increases the Safran share’s float and improves its liquidity. Safran’s large number of employee shareholders, which boosts employee motivation and loyalty, is a factor that ensures our stability.
CAPITAL SHAREHOLDING STRUCTURE
Public
French State
Employees
Treasury shares
SALES BY BUSINESS SECTOR
The aerospace business logged strong growth in 2015, with propulsion climbing 14.3% and aircraft equipment 11.2%. The commercial engine service business logged strong growth in 2015 (up 18.9% in USD), driven by overhauls of recent CFM56 engines, as well as the GE90, in an environment that is favorable for airlines. Helicopter turbine engines and military aircraft engines also contributed to the overall growth in service business. Defense sales showed an overall increase of 3.7%, with all defense sectors remaining stable. The security business recorded a 22.7% increase over 2014. All aspects of this business, identification, smart cards, detection, etc., recorded organic sales growth.
Aerospace Propulsion
Aircraft Equipment
Security
Defense
€1.38PER SHARE DIVIDEND
IN 2016.
A dividend payment of €1.38/share (an increase of 15% over 2014) was submitted for a vote by the Annual General Meeting of Shareholders on May 19, 2016. In line with general practice at Safran, the payout rate will be approximately 40% of adjusted net income.
54%
7%
11%
28%
70.9%
0.1% 13.6%
15.4%
AS OF DECEMBER 31, 2015
BENCHMARKS
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Safran2, boulevard du Général-Martial-Valin
75724 Paris Cedex 15 - FrancePhone: +33 (0)1 40 60 80 80
safran-group.com
@Safran
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