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Safran 2014 Business and Corporate Social Responsibility Report Contents SAFRAN 2014 BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT CONTENTS 2 Challenges 4 A new governance structure for Safran 6 Interview with Philippe Petitcolin 8 Corporate governance 12 Leadership positions in each of our core businesses 04 AIMING FOR TECHNOLOGICAL AND OPERATIONAL EXCELLENCE 36 Tomorrow’s factory 38 2014 highlights 01 REDUCING THE ENVIRONMENTAL IMPACT OF AIR TRANSPORT 16 “ More electric” aircraft 18 2014 highlights 05 CREATING VALUE WITH OUR STAKEHOLDERS 44 A global, responsible corporate citizen 48 Ethics and integrity 52 Shareholders 54 Human resources 60 Health, safety and environment 62 Suppliers 64 Philanthropy and foundations 66 Sponsorship 02 MAKING OUR LIVES SAFER AND EASIER 24 Identity security across 06 BENCHMARKS the board 68 Financial indicators 26 2014 highlights 72 Stock market indicators 74 CSR indicators The e-accessible version of the 2014 business and corporate social responsibility report can be read 03 POWERING ACCESS TO SPACE directly on desktop computers, tablets or smartphones without having to download an app. 32 The conquest of space Go to our website: www.safran-group.com/group or scan the QR code. 33 2014 highlights CHALLENGES EXPANDING MOBILITY MODES Safran invents solutions that improve INNOVATE TO RISE the circulation and security of people, goods and data, while also enhancing the economic and environmental TO THE CHALLENGES performance of the air transport OF A FAST-CHANGING industry. WORLD Safran is a leading international high-technology group and Tier-1 supplier of systems and equipment for aerospace, defense and security. Operating SUPPORTING worldwide, Safran has 69,000 employees and gen- erated sales of 15.4 billion euros in 2014. Through SOCIAL its global presence Safran not only enhances com- PROGRESS petitiveness, but also builds industrial and commer- Preserve natural resources and protect the environment, support modernization of cial relations with the world’s leading prime countries and contribute to stable societies… In today’s fast-changing world, Safran contractors and operators, while providing fast, local delivers concrete solutions to adapt the way service to customers around the world. Working we live to these major social challenges. alone or in partnership, Safran holds world or European leadership positions in its core markets. To keep pace with these changing markets and rise to current and future challenges, Safran invents inci- sive technology solutions, and undertakes extensive SHAPING research and development programs, representing TOMORROW’S expenditures of 2 billion euros in 2014. WORLD Maintain leadership, design new ways of working and collaborating, explore new horizons… Safran is investigating new paths for research and experimentation, marking a break with today’s technologies, so that we can conceptualize the full range of possibilities. 2 I SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT I 3 A NEW GOVERNANCE STRUCTURE FOR SAFRAN ON APRIL 23, 2015, DURING THE BOARD OF DIRECTORS MEETING FOLLOWING THE ANNUAL GENERAL MEETING OF SHAREHOLDERS, PHILIPPE PETITCOLIN WAS NAMED CHIEF EXECUTIVE OFFICER OF SAFRAN, AND ROSS McINNES WAS NAMED CHAIRMAN OF THE BOARD. THEY SUCCEED JEAN-PAUL HERTEMAN, WHO HELD BOTH FUNCTIONS. From left to right: Ross McInnes, Jean-Paul Herteman and Philippe Petitcolin. 4 I SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT I 5 INTERVIEW “SAFRAN HAS THE ASSETS NEEDED TO RISE TO MAJOR CURRENT AND FUTURE CHALLENGES” PHILIPPE PETITCOLIN CHIEF EXECUTIVE OFFICER After 27 years with our Group, businesses, including respect for cus- several major contracts for national o! ering of aircraft electrical systems, you are now replacing Jean-Paul tomers, a focus on innovation, and the ID programs. and meet our strategic goal of achiev- Herteman as Chief Executive strength of teamwork. Today, it’s up We are continuing to invest in the ing a presence in all aspects of secure Officer. What’s your state of mind to me to perpetuate the values inher- defense business to maintain our tech- identifi cation, both physical and digital. as you take on this task? ited from my predecessors, while also nological di! erentiation against the We will continue to invest heavily in It’s with both pride and confi dence that bolstering Safran’s performance and backdrop of a demanding geopolitical research and innovation so we can o! er I succeed Jean-Paul Herteman. competitiveness, to ensure the growth context. The fi rst export contracts for our customers the breakthrough, and I’m proud because I am inheriting a of our enterprise for everyone’s benefi t. the Dassault Aviation Rafale fi ghter, for even disruptive technologies that add powerful group in great health, with instance, guarantee sustained business signifi cant value, while carving out a a wealth of exceptional technologies How do you see Safran today? in the coming years. position on upcoming programs. With that make a di! erence to our daily Safran has confi rmed its position as a We have also started the process to the recent opening of our corporate lives. Safran boasts excellent results, technology benchmark and leader in merge our space propulsion business Research and Technology center, as shown by our order backlog of our core markets. with Airbus Group’s launcher business Safran Tech, we now have a powerful 64 billion euros, plus a very healthy Our aviation business is posting strong to help ensure the long-term viability of facility that allows us to centralize and fi nancial situation and the exemplary growth. While the CFM56® engine still Europe’s independent access to space. direct our research e! orts, and thus performance of our share. Our reve- has a backlog of 4,169 orders and Our recent major successes in each of accelerate breakthroughs in strategic nues continue to grow, rising 7% over commitments, and dynamic service our core markets clearly illustrate the markets. Furthermore, we have created 2014, and our profi t margin jumped 17% business, its successor, the advanced strength of Safran. an entity dedicated to big data, Safran from the previous year. LEAP® turbofan, is already the best- Analytics, to support the development I am confi dent because Safran has the selling engine while still under develop- What are the main challenges that of innovative and personalized services assets needed to rise to major current ment in the history of aviation, with face Safran? in all of our business lines. and future challenges: the all-out com- more than 8,900 orders and commit- First, we have to ensure on-time delivery Working in concert with our partners mitment of our 69,000 employees, ments at April 30, 2015. Systems and of current products, while handling the and shareholders, my aim is to further investments in R&D equal to 13% of equipment from Safran are used on all ramp-up for new products and success- improve Safran’s performance and sales, state-of-the-art industrial facili- current major aircraft programs, espe- fully completing developments in pro- competitiveness, so we can deliver ties, a full slate of continuous improve- cially Airbus and Boeing jetliners, and gress. In particular, we have to gear up even better service to our customers, in ment actions and more. our aircraft equipment service business for production and then the delivery of line with the corporate social responsi- I am also fully aware of my own respon- is also showing sustained growth. our new LEAP and Silvercrest® engines, bility values that underpin our strategy. sibilities. Because of my career that Our security business has resumed as well as equipment and systems cho- took me to a number of Safran com- profi table growth. Thanks in particular sen for a number of new aircraft, such panies, I discovered the strong val- to our unrivaled expertise in biome- as the nacelles on the Airbus A330neo. ues that are shared by our di! erent tric identifi cation systems, we won We also have to develop our complete 6 I SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT I 7 CORPORATE GOVERNANCE EXECUTIVE COMMITTEE The!Safran!Executive!Committee!comprises!the!following!persons!(as!from!June!"#$!%&"#)' 01 02 03 01 PHILIPPE PETITCOLIN 06 JEAN-PAUL ALARY 14 JEAN-LUC BÉRARD CHIEF EXECUTIVE OFFICER CEO, AIRCELLE EXECUTIVE VP, HUMAN RESOURCES 07 OLIVIER ANDRIÈS CEO, SNECMA 15 ÉRIC DALBIÈS EXECUTIVE VP, 02 STÉPHANE ABRIAL 08 ANNE BOUVEROT STRATEGY AND M&A SENIOR EXECUTIVE VP, CEO, MORPHO INTERNATIONAL (as from August 1, 2015) 16 PASCALE DUBOIS AND PUBLIC AFFAIRS EXECUTIVE VP, 09 BRUNO EVEN COMMUNICATIONS 04 05 03 BERNARD DELPIT CEO, TURBOMECA SENIOR EXECUTIVE VP, 17 JEAN-JACQUES ORSINI 10 VINCENT MASCRÉ FINANCE EXECUTIVE VP, CEO, MESSIER-BUGATTI-DOWTY PERFORMANCE AND 04 PIERRE FABRE 11 ALAIN SAURET COMPETITIVENESS SENIOR EXECUTIVE VP, CEO, LABINAL POWER SYSTEMS R&T AND INNOVATION 12 PHILIPPE SCHLEICHER 05 ALEX FAIN CHAIRMAN AND CEO, HERAKLES CORPORATE SECRETARY 13 MARTIN SION CEO, SAGEM 06 07 08 09 10 11 12 13 14 15 16 17 8 I SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT I 9 CORPORATE GOVERNANCE BOARD OF DIRECTORS BOARD The!Safran!Board!of!Directors!comprises!"*!members!offering!a!wide!range! COMMITTEES of!complementary!areas!of!expertise!in!Safran’s!strategic!business!sectors'!The!members! Two!committees!prepare! of!the!Board!include+!one!State!representative!and!two!directors!proposed!by!the!State/! the!Board’s!deliberations! two!employee!shareholder!representatives!and!two!employee!representatives'! and!submit!proposals! More!than!half (") !of!the!directors!are!independent!and!one-third
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