FY 2015 results documents to

Full-year 2015 Earnings
/ February 25, 2016 /
0 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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/ 01/
FY 2015 Highlights
Philippe Petitcolin - CEO
1 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015 financial highlights
Growing adjusted revenue, including
positive $ impact, mainly driven by
Aerospace services and Security
+13.4%
15,355
Adjusted recurring operating income
at 14.0% of revenue
FCF representing 40% of adjusted
recurring operating income
+16.4%
17,414
2,432
+31.6% 974
2,089
740
(€M)
(€M)
FY 14
FY 15
Adjusted net profit (group share) at
€3.55 per share
(€M)
FY 14
FY 14
1,248
1.20
+15.0% 1.38
Dec. 31, 2014 Dec. 31, 2015
(€M)
(748)
(€)
FY 14
FY 15
FY 15
Low net debt level
(12.7% gearing)
Proposed 2015 dividend
up 15.0%
+18.8% 1,482
(€M)
FY 15
FY 14
FY 15
2 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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(1,503)
Excellent progress of LEAP


LEAP development proceeding according to plan

LEAP-1A: Engine certified on November 20, 2015 by both the FAA
and EASA. Flawless flight test program on A320neo and A321neo to
date. 540 hours logged in 220 flights since May 19, 2015. Zero engine
issues - all operating conditions. Engine is on specifications. EIS midyear.

LEAP-1B: Engine certification on track. Flawless first flight on 737
MAX on January 29, 2016. Start of one-year flight test certification
program. 18 flights within 3 weeks. Engine is on specifications. EIS in
2017.

LEAP-1C: Engine certification on track. C919 roll out on November 2,
2015. First flight planned for 2016.
Preparing for EIS and production ramp-up

First commercial deliveries of LEAP in 2016

LEAP supply chain mostly based on CFM56 supply chain

Building new and enhanced facilities, including:

2 new assembly lines dedicated to LEAP in Villaroche, France

A 3rd production plant of 3D woven carbon fan blades in Querétaro, Mexico,
to meet rising production rates and to enhance LEAP supply chain
3 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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First flight of A321neo
Powered by LEAP-1A
First flight of the Boeing 737MAX
powered by LEAP-1B
Comac C919 roll-out
powered by LEAP-1C
Capturing growth in Propulsion



Commercial leadership of CFM engines confirmed

13,252 engines (firm orders and commitments) at year-end

1,399 orders and commitments for LEAP and 736 orders for CFM56 in 2015
Excellent performance of CFM56

Record production rate: 1,612 deliveries in 2015

Increasing market share on A320ceo
Continuing momentum for LEAP

LEAP total firm orders and commitments surpassed 10,000 engines in February
after a good start to 2016

70%+ market share for future narrow-bodies, including 53% on A320neo

Orders from Egypt and Qatar for Rafale fighters powered by Safran’s
M88 engines

Helicopter turbines development proceeding to plan

Certification by EASA of the Arrius 2R powering the Bell Jet Ranger 505 X;
commercial deliveries starting in 2016

First flight of Arrano 1A engines on Airbus Helicopters H160 (sole source)
Rafale
Arrano 1A
4 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Continuing momentum in civil aftermarket

Civil aftermarket up 18.9%* in 2015, in line with
guidance
 More, higher value shop visits on recent CFM56
 Positive trend in GE90 aftermarket

Positive global outlook for the airline industry in 2016
Maintenance,
Saint-Quentin-en-Yvelines, France
 Passenger demand expected to be up 6.9% according to
IATA
 Airlines profitability benefitting from lower oil price

Civil aftermarket to grow by a percentage in
the high single digits* in 2016
 Growth driven by recent CFM56
 High comparison base
*In USD
5 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Maintenance,
Casablanca, Morocco
Strong execution in Aircraft Equipment

Successful ramp up of deliveries of accessory drive trains, landing
and wiring systems for A350

Growing shipments of wiring and landing gear systems for 787

Record production rates of thrust reversers, accessory drive
trains, wiring and landing systems for A320

Maintaining leadership in carbon brakes


Multiple contracts for carbon brakes: 737MAX, A320neo, 787, A350...

Increasing capacity to meet growing demand including the successful start
up of production in the new plant in Malaysia inaugurated beginning 2015
Landing gear of A350
Wiring for 787
Bolstering partnership with Rolls-Royce in accessory gearboxes

Creation of Aero Gearbox International, a company jointly-owned by Safran
and Rolls Royce, that will supply accessory drive trains for all of Rolls
Royce’s future civil aircraft engines, starting with the Trent 7000 for the
A330neo
6 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Braking system for A320
Scoring commercial successes in Defence



Key systems and equipment on Rafale fighters

Supplying FADEC, inertial navigation systems and gyros for the fly-by-wire
flight control systems for the Egyptian and Qatari orders of Rafale

Supplying AASM Hammer missiles as part of the Rafale’s weapons suite
for Egypt and Qatar
Excellent performance of PASEO, a new generation of combat vehicle
sights

2 major contracts signed to supply PASEO to more than 2,000 systems for
the French army (Scorpion program) and international markets

Also selected by the French Army (Scorpion program) to provide optronics
equipment for remotely controlled turrets
Selection of the Patroller system, Safran’s long endurance tactical drone,
by the French defence procurement agency (DGA) in 2016


Paseo sight
Safran will supply 14 Patroller systems with deliveries starting in 2018, as
well as the related support activities
Patroller
Electronics: FADEC International* selected for the control system of the
GE9X powering the 777X, in partnership with GE Aviation**
*JV between
Safran and Bae
**Under the
FADEC Alliance
JV
Good order intake (France and exports)
Maintaining technological differentiation through R&D investment
7 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Good performance in Security

Market leadership in Civil ID



Civil ID
Expansion in Commercial ID




Unique ability to deliver large-scale turnkey solutions and operation services
 Strong momentum in Public Private Partnerships (Chile, Albania, Netherlands)
 Deployment of Civil ID solutions to secure and ease electoral campaigns in
Africa (Ivory Coast, Chad, Egypt)
 Driver license issuance solutions to 85% of U.S. citizens (70M+ IDs issued per
year)
Pursuing development in digital ID programs for governments (launch of the
SecureIdentity platform in the UK for citizens to access government online services)
Strategic partnerships (US, Brazil, etc.) to capture EMV migration of payment cards
Entering the mobile payment activity with acquisition of specialist Airtag
Strengthening in digital ID services (contract with Airtel in India for enrolment and
access to online services, based on Aadhaar national biometric identification
system)
Commercial ID
Growth leverage in Public Security


Leadership in enrolment services in the U.S., where MorphoTrust enrolled 2M+
travellers in the TSA pre-Check program
Large contracts in border control (e-Border contract in UAE with deployment of a
multi-biometric system in 5 airports)
8 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Public Security
Investing in our future
In €M
€1,990M

2015 total R&D effort of €2.1bn

2015 self-financed R&D decreased by
€108M to €1.36bn (7.8% of sales) in 2015
€2,057M


Total R&D effort
€1,464M
2015 split of spending in line with
business roadmap:

€1,356M


Total self-funded R&D
€644M
€495M
Capitalized R&D

Lower spending on LEAP, A350
c.50%: LEAP (3 applications), Silvercrest,
A350, helicopter next gen turbines, GE9X,
A330neo
c.30%: R&T in preparation of the future
(mostly next gen engines and electrical
technologies)
c.20%: Defence, Security, others…
2016 self-funded R&D to drop by €100€150M driven by a decline in capitalized
R&D


Lower level of capitalized R&D as LEAP will
enter into service
Increase in expensed R&D by around €100M
After peaking in 2014, continuing decline in R&D
9 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Silvercrest update

Major tests successfully performed: icing, bird ingestion…


Complementary developments to achieve the targeted specifications and a
revised schedule have been agreed with Dassault Aviation




The current schedule provides for engine certification early in 2018, 18 months later than
the previous schedule and in line with the indication given in October 2015
Very confident that the technical solutions to obtaining the desired specifications have
been identified
Once implemented, they ensure that we offer customers an engine which meets their
requirements and remains the most competitive of its kind with respect to the market it
addresses
Ground test of Silvercrest
Citation Longitude redefinition


More than 4,000 hours of accumulated testing (500 hours on FTB)
In November 2015, Cessna announced changes to its range of business jets, including a
redefinition of the Longitude and a different choice of engine appropriate for the smaller
design
Safran confirms that the effect of the developments on the group’s financial
performance is expected to be limited and spread over several years
10 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Flight test of Silvercrest on FTB
/ 02/
FY 2015 Results
Bernard Delpit – Group CFO
11 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Foreword
All figures in this presentation represent adjusted data
Safran’s consolidated income statement has been adjusted for the impact of:

purchase price allocations with respect to business combinations. Since 2005, this restatement concerns the amortization charged against
intangible assets relating to aircraft programmes revalued at the time of the Sagem-Snecma merger. With effect from the first-half 2010 interim
financial statements, the Group has decided to restate the impact of purchase price allocations for business combinations. In particular, this
concerns the amortization of intangible assets recognized at the time of the acquisition, and amortized over extended periods, due to the length
of the Group's business cycles, along gains or losses remeasuring the Group’s previously held interests in an entity acquired in a step
acquisition or assets contributed to a JV.

the mark-to-market of foreign currency derivatives, in order to better reflect the economic substance of the Group's overall foreign currency risk
hedging strategy:

revenue net of purchases denominated in foreign currencies is measured using the effective hedged rate, i.e., including the costs of the
hedging strategy,

all mark-to-market changes on foreign currency derivatives hedging future cash flows is neutralized.
The resulting changes in deferred tax have also been adjusted
Recurring operating income

It excludes income and expenses which are largely unpredictable because of their unusual, infrequent and/or material nature such as
impairment losses/reversals, capital gains/losses on disposals of operations and other unusual and/or material non operational items.
12 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Fx volatility
 Continued Fx volatility during FY 2015

Translation effect: foreign currencies translated into €
Average spot rate
 Positive impact from $
 Impact on Revenue and Return on Sales

FY 2014
$1.33
Transaction effect: mismatch between $ sales and € costs
is hedged
 Positive impact from $
 Impact on Profits
FY 2015
$1.11
Hedge rate
FY 2014
$1.26
FY 2015
$1.25
Spot rate

Mark-to-market effect
 €(2,485)M on fair value of financial instruments
 Impact on consolidated “statutory” income statement
Dec. 31,
2014
$1.21
13 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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June 30,
2015
$1.12
Dec. 31,
2015
$1.09
Consolidated and adjusted income statements
Currency hedging
FY 2015 reconciliation
(In €M)
Revenue
Consolidated
Redata
measurement
of revenue
Deferred
hedging
loss / gain
Business combinations
Amortization
of intangible PPA impacts assets other business
Sagem/Snecma combinations
merger
-
Adjusted
data
18,100
(686)
-
(15,272)
8
(5)
89
152
(15,028)
45
-
-
-
1
46
2,873
(678)
(5)
89
153
2,432
(796)
-
-
133
(35)
(698)
2,077
(678)
(5)
222
118
1,734
(28)
-
-
-
-
(28)
(3,248)
678
2,485
-
-
(85)
(111)
-
-
-
-
(111)
(3,387)
678
2,485
-
-
(224)
508
-
(806)
(75)
(30)
(403)
4
-
-
-
-
4
421
-
-
-
-
421
Profit (loss) from continuing operations
(377)
-
1,674
147
88
1,532
Attributable to non-controlling interests
(47)
-
-
(3)
-
(50)
Attributable to owners of the parent
(424)
-
1,674
144
88
1,482
Other operating income and expenses
Share in profit from joint ventures
Recurring operating income
Other non-recurring operating income and
expenses
Profit (loss) from operations
Cost of debt
Foreign exchange gains (losses)
Other financial income and expense
Financial income (loss)
Income tax expense
Share in profit from associates
Gain on disposal of Ingenico shares
14 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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17,414
FY 2015 profit from operations
(In €M)
FY 2014
FY 2015
Revenue
15,355
17,414
Recurring operating income
2,089
2,432
% of revenue
13.6%
14.0%
Total one-off items
(107)
(698)
-
-
Impairment reversal (charge)
(45)
(641)
Other infrequent & material non operational items
(62)
(57)
Profit from operations
1,982
1,734
% of revenue
12.9%
10.0%
Capital gain (loss) on disposals
Including
€(654)M Silvercrest
€(16)M helicopter
programme
€(28)M restructuring and
others
14.0% recurring operating income margin, up 0.4pt
15 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015 income statement
(In €M)
FY 2014
FY 2015
Revenue
15,355
17,414
Other recurring operating income and expenses
(13,311)
(15,028)
45
46
Share in profit from joint ventures
Recurring operating income
% of revenue
2,089
2,432
13.6%
14.0%
Total one-off items
(107)
(698)
Profit from operations
1,982
1,734
% of revenue
12.9%
10.0%
Net financial income (expense)
(165)
(224)
Income tax expense
(522)
(403)
18
4
-
421
(65)
(50)
Profit attributable to owners of the parent
1,248
1,482
EPS (in €)
3.00*
3.55**
Share in profit from associates
Gain on disposal of Ingenico shares
Profit for the period attributable to non-controlling interests
FY 2015 net profit up 18.8%
16 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Of which cost of debt of
€(28)M
Apparent tax rate of
26.7%
Post-tax capital gain from
placements of Ingenico
Group shares
* Based on 416,413,368 shares
** Based on 417,569,031 shares
One-off items

Impairment of assets related to the Silvercrest program
 Complementary developments to achieve the targeted specifications and a revised
schedule have been agreed with Dassault Aviation. The current schedule provides for
engine certification in the spring of 2018, 18 months later than the previous schedule
and in line with the indication given in October 2015
 In November 2015, Cessna announced changes to its range of business jets, including
a redefinition of the Longitude and a different choice of engine appropriate for the
smaller design
 On the basis of revised programme assumptions, notably higher development
expenses, lower volumes and a later entry into service, Safran has decided to
depreciate all programme-related intangible assets and other programme-specific
assets resulting in a one-off, non-cash charge of Euro (654) million

Post-tax capital gain on the sale of Ingenico shares
 Sale of Safran’s entire remaining stake in Ingenico Group: 5.5 million shares
representing about 9.1% of Ingenico Group’s capital
 Safran received total proceeds of Euro 606 million and recorded a post-tax capital gain
of Euro 421 million
17 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015 revenue
(in €M)
+13.4%

1,399
598
17,352
62
 Driven by momentum in Aerospace
services (notably civil aftermarket up
18.9% in $) and in Security (+11%)
17,414
15,953
15,355
Organic growth: +3.9%

Currency impact: +9.1%
 Significant positive translation effect of
USD. Positive translation impact from
GBP
+3.9%
organic
 Positive effect of improved $ hedged
rate

External growth: +0.4%
 Eaton, Dictao…
FY 2014
Organic
variation
FY 2015
at constant
FY 2014
structure and
exchange rates
Currency
impact
FY 2015
at constant
FY 2014
structure
Acquisitions &
activities
newly
consolidated,
disposals
FY 2015
18 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015 recurring operating income
(In €M)
+16.4%
283
2,372
64
2,436
(4)
2,432

Main profitability drivers

Strong growth of Aerospace
services, notably civil aftermarket

Contribution of CFM56 OE

Organic growth in Identification and
business solutions activities in
Security

Increased performance of corporate
holding

Positive currency effect, notably
from USD
2,089
13.6%
RoS
FY 2014
14.0%
RoS
+13.5%
organic
Variation
excluding
currency
impact and
changes in
scope
FY 2015
at constant
FY 2014 scope
and exchange
rates
Currency
impact
FY 2015
at constant
FY 2014
scope
Changes in
scope
FY 2015
19 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Research & Development
(In €M)
Total R&D
External funding
Total self-funded cash R&D
as a % of revenue
Tax credit
Total self-funded cash R&D after tax credit
FY 2014
FY 2015
Variation
(1,990)
(2,057)
(67)
526
701
175
(1,464)
(1,356)
108
9.5%
7.8%
(1.7)pt
151
165
14
(1,313)
(1,191)
122
Gross capitalized R&D
644
495
(149)
Amortised R&D
(78)
(95)
(17)
P&L R&D in recurring EBIT
(747)
(791)
(44)
as a % of revenue
4.9%
4.5%
(0.4)pt

Decrease of self-funded cash
R&D effort as planned, at 7.8% of
sales

Self-funded R&D declined notably
for LEAP and A350

Falling capitalised costs, as
expected, driven by lower LEAP
and A350 spending; Silvercrest
fully expensed since April 1, 2014
20 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015 results by activity
(In €M)
FY 2015
Propulsion Equipment
Defence
Security
Holding
& others
Revenue
17,414
9,319
4,943
1,266
1,878
8
Year-over-year growth in %
13.4%
14.3%
11.2%
3.7%
22.7%
na
Recurring operating income
2,432
1,833
466
64
151
(82)
as a % of revenue
14.0%
19.7%
9.4%
5.1%
8.0%
na
 Record
 Strong
level of recurring operating income driven by Aerospace, Security
improvement in performance of Holding by €93M
 Cost reduction
 Higher level of shared services provided on behalf of, and invoiced to, subsidiaries
explaining their profit evolution
21 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Aerospace Propulsion
(In €M)
FY 2014
8,153
9,319
+14.3% +6.0%
Recurring operating income
1,633
1,833
+12.2%
20.0%
19.7%
(0.3) pts
(9)
(619)
1,624
1,214
19.9%
13.0%
One-off items
Profit (loss) from operations
% of revenue
Revenue
 Strong growth in civil aftermarket
 Good contribution from helicopter turbines and military engine support activities
 Increase in civil aircraft engines sales
 Recurring
Organic
Change
Revenue
% of revenue

FY 2015 Change
operating income
 Excellent contribution of civil aftermarket
 Good performance of helicopter turbine support contracts
 Positive impact of CFM56 OE
 Increase in R&D charges
22 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Aircraft Equipment
(In €M)
FY 2014
Revenue
Recurring operating income
% of revenue
One-off items
Profit (loss) from operations
% of revenue
FY 2015 Change
4,446
4,943
426
466
+9.4%
9.6%
9.4%
(0.2)pt
(58)
(43)
368
423
8.3%
8.6%
Organic
Change
+11.2% (0.9)%
 Revenue
 Higher deliveries for A350 (landing gear, wiring) and A320 (thrust reversers, landing gear, wiring) and
modest increase in shipments for 787 (landing gear, wiring)
 Lower volumes on A380 (nacelles) and A330 (thrust reversers, landing systems)
 Growing contribution of services thanks to carbon brakes and landing gear activities
 Recurring
operating income

Temporary OE headwinds: lower OE deliveries for A380 and A330, higher OE deliveries for less mature
programs (notably A350), temporary pricing pressures as strong cost reduction and productivity actions
have been put in place to mitigate the impacts and drive margin improvements
 Favourable impact from services, notably supported by high returns in carbon brakes and good
contribution of landing gear
23 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Defence
(In €M)
FY 2014
Revenue
Recurring operating income
% of revenue
One-off items
Profit (loss) from operations
% of revenue

FY 2015 Change
1,221
1,266
+3.7%
71
64
(9.9)%
5.8%
5.1%
(0.7)pt
3
(10)
74
54
6.0%
4.3%
Organic
Change
(1.6)%
Revenue
 Optronics: higher contribution from sights for combat vehicles and submarines offset the expected
negative impact of the end of FELIN infantry combat system deliveries to the French army
 Avionics: lower volumes of inertial navigation and flight control systems, partially compensated by
the growing contribution of support activities and aircraft information systems revenue
 Recurring
operating income
 End of FELIN deliveries partially compensated by new contracts
 Unfavourable products mix (mostly infrared goggles)
 Sustained R&D charges to maintain technological leadership
 Investments to improve industrial performance weighed temporarily on profitability
24 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Security
(In €M)
FY 2014
Revenue
Recurring operating income
% of revenue
One-off items
Profit (loss) from operations
% of revenue
 Identification


FY 2015 Change
1,530
1,878
134
151
+12.7%
8.8%
8.0%
(0.8) pt
(25)
(18)
109
133
7.1%
7.1%
Organic
Change
+22.7% +11.0%
& Security
Broad-based growth from public sector customers in Europe (France, Holland, Albania), the Americas (US
Federal contracts, Chile) and in the Middle East Africa region
Improving trend in smartcards for telco (product mix) and banking customers (volumes)
 Detection

Revenue up thanks to the strong increase in CTX tomographic equipment shipments and to the success of
Itemiser 4DX (new trace detection system)
 Positive
currency effect, notably from the $
 Investments in new commercial offers to address new markets, notably in digital identity, weighed
temporarily on margin.
 Continued cost reduction actions to drive profitability improvements
25 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Fx hedging: $20.6bn Hedge portfolio* (Jan 28, 2016)
Yearly exposure: $7.4bn to $8.0bn
Increasing level of net USD exposure for 2016-19 in line
with the growth of businesses with exposed USD revenue
2018
 $4.3bn achieved through forward sales
and short dated knock out option
strategies to rise to a maximum of $8.0bn
at a target rate between $1.17 and $1.20 as
long as €/$<1.25 up to end 2016
2016 & 2017 fully hedged
($bn)
3.7
5.7
7.4
7.5
7.7
2019
4.3
2.3
2015
2016
2017
2018
2019
€/$ hedge rate
Target
1.25
 Knock out options barriers set at various
levels between $1.20 and $1.45 with
maturities up to 2 years
1.24
1.22
1.17-1.20 1.15-1.20
 $2.3bn achieved through forward sales
and short dated knock out option
strategies to rise to a maximum of $8.0bn
at a target rate between $1.15 and $1.20 as
long as €/$<1.25 up to end 2017
 Knock out options barriers set at various
levels between $1.19 and $1.45 with
maturities up to 1 years
*Approx. 45% of Safran US$ revenue are naturally hedged by US$ procurement
26 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Fx hedging: benefiting margins over 2016-2019e
Estimated impact on recurring operating income
of targeted €/$ hedge rates
€/$
hedge
rate
EBIT impact
vs previous
year (in €M)
Up to 250M
Up to 100M
€250M to €500M of tailwind over 2016-2019e
27 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Free Cash Flow
(in €M)
FY 2014
FY 2015
1,248
1,482
Depreciation, amortization and provisions
906
1,688
Others
314
(357)
Cash from operating activities before
change in WC
2,468
2,813
Change in WC
(111)
(60)
Capex (tangible assets)
(674)
(758)
Capex (intangible assets)*
(943)
(1,021)
740
974
Adjusted net profit
Free cash flow
Of which amortization of
tangibles and intangibles for
€681M, provisions (net) for
€133M and depreciation for
€874M
Healthy increase in cash
from operations despite
higher expensed R&D
+14%
+32%
* Of which €495M capitalised R&D in 2015 vs €644M capitalised in 2014
28 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Slight increase in WC to
cope with rising assembly
rates in aerospace partly
offset by advance payments,
as planned
• Lower capitalized R&D
• Higher tangible and
intangible (ex-R&D)
investments due to the
transition to new engine
programs
Net debt position
(in €M)
Net debt at
Dec 31, 2014
Net debt at
Dec 31, 2015
Cash flow
from ops
Change
in WC
(60)
R&D
and
Capex
 2014 final dividend (€0.64/share)
and 2015 interim dividend
(€0.60/share)
2,813
(1,779)
(1,499)
Acquisitions
/Divestments
& others
(1,503)
 Cash flow from operations
equals 1.17x recurring EBIT
(540)
Dividends*
 “Acquisitions/Divestments &
Others” includes:
(748)
321
193
€974M Free Cash Flow
* Includes €(23)M of dividends to minority interests
29 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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 €606M of proceeds from the sale
of Ingenico Group shares
 €(117)M of foreign exchange
differences on USPP
Gross debt and liquidity
Gross debt repayment schedule
(Dec. 31, 2015)
Cash & equiv.
€1,845M
+
Debt hedging
instruments €35M
Gross
debt
€2,628M
Net debt €748M
 April 2014 private placement - €200M,
maturity 2024, no covenant
 USPP - $1.2bn, maturities 2019, 2022 &
2024; subject to 1 covenant
(net debt/EBITDA <2.5)
 Committed & undrawn financing
resources:

Credit line - €2.52B, maturity Dec. 2020 – no
covenant
 OCEANE (issued on January 8, 2016) €650M, maturity 2020, zero coupon
30 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Balance sheet highlights
Dec 31,
2014
Dec 31,
2015
Goodwill
3,420
3,590
Tangible & Intangible assets
8,464
8,593
Investments in joint ventures and associates
771
765
Other non current assets
674
1,403
1,025
1,042
(1,503)
(748)
6,266
5,627
225
266
Non current liabilities (excl. net cash (debt))
1,549
1,411
Provisions
3,329
3,456
Other current liabilities / (assets) net
1,482
3,885
(In €M)
Operating Working Capital
Net cash (debt)
Shareholders’ equity - Group share
Minority interests
31 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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 OWC
almost stable
at €1,042M (6.0% of
revenue)
 Slight
increase in provisions
mostly linked to service
contracts
Customer financial guarantees
Dec. 31,
2014
Dec. 31,
2015
Total guarantees
52
50
Estimated value of pledges
20
19
Net exposure on these guarantees
35
32
Provisions
29
23
(In $M)
Decrease of the level of total guarantees
Outstanding risk of the portfolio (net exposure) well covered by the provisions booked in Safran’s
accounts
32 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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/ 03/
Outlook
33 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Equity shareholding
As of Dec. 31, 2015
As of Dec. 31, 2014
French State
Public
22.0%
63.5%
Public
70.9%
French State
15.4%
Employees
Employees
14.4%
13.6%
Treasury shares
Treasury shares
0.1%
0.1%
Free float continued to increase
34 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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2015 dividend
1.38
Dividend
per share
(€)
1.20
1.12
Final
Dividend
distribution
(€M)
Total
dividend
distribution
(€M)
A proposal for a dividend payment
to parent holders of €1.38 at next
AGM on May 19, 2016
0.96

€0.60 interim dividend already
paid in 2015 (€250M)

€0.78 to be paid in 2016
(€326M)
326
267
0.62
267
271
0.50
Interim
dividend
distribution
(€M)

0.38
154
152
152
202
202
102
256
129
400
200
467
233
500
250

Ex-dividend date: May 23, 2016

Payment date: May 25, 2016
576
€1.38/share dividend payment subject to shareholders’ approval, up 15%
35 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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2016 key assumptions
 Healthy increase in aerospace OE deliveries
 Civil aftermarket growth by a percentage in the high single digits
 Start-up costs of series Leap production
 Reduction of self-funded R&D of the order of €100M - €150M with a greater drop in
capitalised amounts
 Less spending on LEAP, A350, helicopters, as they come closer to
certification and entry into service
 Expensed R&D to rise by around €100M
 Sustained level of tangible capex, including expansions, new production capacity
and tooling, around Euro 850 million, as requested by production transitioning and
ramp-up
 Profitable growth for the security business
 Continued benefits from productivity improvement
36 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2016 outlook
 Adjusted revenue expected to increase by a percentage in low single
digits at an estimated average rate of USD 1.11 to the Euro
 Adjusted recurring operating income likely to increase by around 5% and
a further increase in margin rate at a hedge rate of USD 1.24 to the Euro
The hedging policy largely isolates adjusted recurring operating income from
current EUR/USD variations except for the part generated in USD by activities
located in the US, subject to the translation effect when converted into Euro
 Free cash flow expected to represent more than 40% of the adjusted
recurring operating income, an element of uncertainty being the rhythm of
payments by state-clients
Safran’s 2016 outlook is applicable to the Group’s structure as of December 31, 2015 and does not take into account the
impact in 2016 of the finalisation of the regrouping of its space launcher activities with those of Airbus Group in their joint
venture, Airbus Safran Launchers (ASL). Guidance will be revised as necessary upon finalisation of Phase 2 of the operation.
Safran expects the contribution of its space launchers activities to ASL to be accretive to adjusted recurring operating margin.
37 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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/ 04/
Questions & Answers
38 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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/ 05/
Additional information
39 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2014: R&D by activity
(In €M)
FY 2014
Propulsion
Equipment
Defence
Security
(1,464)
(894)
(308)
(133)
(129)
9.5%
11.0%
6.9%
10.9%
8.4%
151
58
46
35
12
(1,313)
(836)
(262)
(98)
(117)
Gross capitalized R&D
644
475
122
26
21
Amortised R&D
(78)
(25)
(37)
(11)
(5)
P&L R&D in recurring EBIT
(747)
(386)
(177)
(83)
(101)
as a % of revenue
4.9%
4.7%
4.0%
6.8%
6.6%
Total self-funded cash R&D
as a % of revenue
Tax credit
Total self-funded cash R&D after tax credit
40 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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FY 2015: R&D by activity
(In €M)
FY 2015
Propulsion
Equipment
Defence
Security
(1,356)
(875)
(229)
(119)
(133)
7.8%
9.4%
4.6%
9.4%
7.1%
165
66
46
37
16
(1,191)
(809)
(183)
(82)
(117)
Gross capitalized R&D
495
357
98
24
16
Amortised R&D
(95)
(27)
(40)
(21)
(7)
P&L R&D in recurring EBIT
(791)
(479)
(125)
(79)
(108)
as a % of revenue
4.5%
5.1%
2.5%
6.2%
5.8%
Total self-funded cash R&D
as a % of revenue
Tax credit
Total self-funded cash R&D after tax credit
41 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Aerospace OE* / Services revenue split
FY 2014
Revenue
Adjusted data
FY 2015
% change
(in Euro million)
OE
Services
OE
Services
OE
Services
Propulsion
4,073
4,080
4,334
4,985
6.4%
22.2%
% of revenue
50.0%
50.0%
46.5%
53.5%
Equipment
3,166
1,280
3,463
1,480
9.4%
15.6%
% of revenue
71.2%
28.8%
70.1%
29.9%
* All revenue except services
42 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Quantities of major aerospace programmes
Number of units delivered
2014
2015
CFM56 engines
1,560
1,612
3%
High thrust engines
690
695
1%
Helicopter engines
832
625
(25)%
26
12
(54)%
118
127
8%
16
32
x2
A380 nacelles
112
104
(7)%
A330 thrust reversers
162
130
(20)%
A320 thrust reversers
506
564
11%
Small nacelles (biz & regional jets)
688
711
3%
M88 engines
787 landing gear sets
A350 landing gear sets
43 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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% change
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
Snecma and its subsidiaries and reflects the Group’s performance in civil
aircraft engines aftermarket compared to the market.
44 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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Disclaimer
The forecasts and forward-looking statements described in this document are
based on the data, assumptions and estimates considered as reasonable by the
Group as at the date of this document. These data, assumptions and estimates
may evolve or change as a result of uncertainties related in particular to the
economic, financial, competitive, tax or regulatory environment. The occurrence
of one or more of the risks described in the registration document (document de
référence) may also have an impact on the business, financial position, results
and prospects of the Group and thus affect its ability to achieve such forecasts
and forward-looking statements. The Group therefore neither makes any
commitment, nor provides any assurance as to the achievement of the forecasts
and forward-looking statements described in this document
45 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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46 / FY 2015 EARNINGS / FEBRUARY 25, 2016 /
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