2020 INTEGRATED REPORT CONTENTS SAFRAN AT A GLANCE 2020 KEY FIGURES

SAFRAN AT A GLANCE €1,073 million FREE CASH FLOW P. 01 rd Global aerospace group, excluding * RISK 3 airframers €2,792 million EDITORIAL MANAGEMENT NET DEBT P. 02 P. 40 REVENUE(1) CORPORATE down 33.0% (down 32.5% €449 million GROUP €16,498 million CAPEX PROFILE GOVERNANCE on organic basis) on 2019 P. 04 P. 42 RECURRING OPERATING INCOME(1) €1,213 million €1,686 million down 55.9% (down 58.6% TOTAL R&D ECOSYSTEM PERFORMANCE AND VALUE on organic basis) on 2019 (including customer-funded R&D) P. 10 CREATION (1) P. 50 PROFIT €844 million (Group share) 78,892 STRATEGY down 68.3% on 2019 EMPLOYEES AND BUSINESS (at December 31, 2020) MODEL P. 18

Long-term credit rating: BBB+ (with stable outlook)

Our activities AEROSPACE AIRCRAFT AIRCRAFT PROPULSION EQUIPMENT/ INTERIORS DEFENSE/ AEROSYSTEMS

BREAKDOWN OF REVENUE(1) BY SEGMENT €7,633 million €6,893 million €1,922 million

BREAKDOWN OF RECURRING OPERATING INCOME(1) BY SEGMENT €1,192 million €687 million €(174) million

BREAKDOWN OF RECURRING OPERATING MARGIN(1) BY SEGMENT 15.6% 10.0% (9.1)%

* Classification criteria: revenue - Source: Safran. (1) Adjusted data. See section 2.1.1 of the 2020 Universal Registration Document for a reconciliation of the consolidated income statement with the adjusted income statement and a breakdown of the adjustment.

1 I SAFRAN 2020 INTEGRATED REPORT EDITORIAL EDITORIAL

Message from the Chairman of the Board of Directors IN 2021, SAFRAN WILL ROSS McINNES and the Chief Executive Officer CONTINUE TO DRAW OLIVIER ANDRIÈS STRENGTH FROM ITS The total mobilization of all teams enabled Safran to tackle the crisis in 2020. Although uncertainties remain, notably for the first ADAPTABILITY half of 2021, I am determined to push ahead with the ongoing efforts, and I am optimistic for the future of the Group, which will harness full strength from its assets once the recovery is underway. Leadership in low-carbon aviation is a priority, and Safran, Safran has robust fundamentals, and the Board of Directors stands firm in its support as a leading aircraft engine and equipment manufacturer, of the new Chief Executive Officer on Group-wide efforts to emerge from the crisis in stronger shape has a central role to play in achieving the aerospace industry’s and face the future with confidence. The Board of Directors is fully aware of the strategic importance carbon neutrality objectives by 2050.

of the climate challenge, and will be working with the Director responsible for monitoring climate OLIVIER ANDRIÈS issues to ensure the Group achieves its climate roadmap.

ROSS McINNES

n 2020, Safran published results The total workforce fell by Our priorities are to contribute In connecting people and countries, that were as good as could be more than 16,500 people (over to the development of a new aviation is an accelerator of human expected given the severe crisis 21,000 including temporary staff), generation of ultra-efficient short- and trading links. affecting the aerospace industry, from around 95,400 employees and medium-haul aircraft for 2030- Safran will leverage the quality confirming the strength of its at the end of 2019 to around 2035, powered by an ultra-efficient of its many assets, which will Ibusiness model and the impact 78,900 at the end of 2020. engine consuming 20% less fuel than together help to drive the recovery: of the cost reduction measures In France, the Group Activity the present-day LEAP® and running • LEAP, the engine of choice of taken during the year. Transformation Agreement signed on up to 100% sustainable fuels. airlines for fleet renewal and new While implementing the necessary in July brought in measures including Another development area that will investments; health measures to enable a safe long-term short-time working prove essential in meeting carbon • a young in-service fleet of return to work for its employees, (covering up to 40% of working time), neutrality objectives is that of electric second-generation CFM56® engines, Safran reacted rapidly by accelerating in order to preserve skills in and hybrid propulsion systems for widely used by airlines even in the streamlining of its sites and production as well as research short-distance flights. times of crisis, and the first to demonstrating organizational and technology. Safran also benefit from the coming recovery; flexibility. streamlined its industrial footprint, In late February, Safran released • leading global positions in the with a number of site closures its financial targets for 2021, a year systems that will equip aircraft in Our business was heavily impacted and production transfers in several of gradual recovery with back-end the recovery phase, as customers' by the crisis, with 2020 revenue down regions of the world. loaded in terms of business and aircraft return to the air; by 33.0% on 2019, at €16.5 billion. profitability. • technical and industrial credibility in Despite the decline, Safran posted Safran is committed to offering an Air traffic at the start of the year Aircraft Interiors, which has restored recurring operating income(1) of effective response to the major confirms the need for caution customers’ trust in the business €1.7 billion (for a recurring operating challenge of climate change, which in the first half of 2021, especially despite being hard hit by the crisis; margin(1) of 10.2%) and free cash flow will prove an essential factor in the in service and spare parts activities, • proven organizational agility of €1,073 million. Our financial targets ongoing acceptability of air transport. where a gradual pick-up is expected (as with the introduction of for 2020, as reviewed in July 2020, Its strategy seeks to reduce from the third quarter. In view of long-term short-time working were all reached. greenhouse gas emissions from airframers’ new production rates, and teleworking). its operations and its products. especially on long-haul programs, Thanks to the commitment of its Safran foresees a slight organic dip We would like to thank you employees across the world, Safran Innovation is a central feature in original equipment sales for 2021. for your trust and hope you enjoy swiftly implemented the adaptation of the major shift under way. reading this report. plan drawn up in March, showing With its broad coverage of aircraft The long-term outlook for Safran

determination in the face of the crisis systems, and propulsion systems in remains bright, because we are Regards, and adjusting its capacities to its particular, Safran is capable of convinced that people will continue customers’ needs. offering technological solutions. to need and want to travel. Ross McInnes and Olivier Andriès

(1) Adjusted data.

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SAFRAN’S RESPONSE TO

THE COVID-19 CRISIS 3 The magnitude and duration of the unprecedented Covid-19 crisis will have Rapid, proactive implementation of adaptation plan, a lasting impact on the aerospace industry. The central scenario points to a very lowering Safran’s breakeven point gradual recovery, driven by the short- and medium-haul segment, with air traffic expected to be back to 2019 levels by 2025.

Action Achievements (in 2020)

Workforce resized Global workforce reduction of more than 16,500 people, over 21,000 including temporary staff, in line with Company at end-2020. 2 needs In France, signature of the Activity Transformation Agreement in July 2020 with all trade unions at Group level, running to the end of 2021 and renewable: Increased liquidity and sound - Rollout of long-term short-time working, with potential worktime reductions of up to 40-50% in France, granting more flexibility balance sheet to navigate the crisis - Wage restraint and finance ongoing business - Promotion of mobility - Cap of profit-sharing and savings schemes On average from April to December 2020, short-time working concerned 21% of employees worldwide and 23% in France (excluding public holidays and days off) SECURING LONG-TERM FINANCING At end-2020, the bridge facility set up at the start of the crisis Industrial footprint Closure of sites in Seats (Camberley in the United Kingdom, Santa Maria in the United States), (April 22, 2020) for a maximum maturity of two years remained streamlined Cabin (Sterling in the United States) and Electrical & Power (Eatontown in the United States) undrawn, and the initial amount of €3.0 billion was reduced to €1.4 billion*, with Safran refinancing more than 50% of the Purchasing programs purchases of raw materials and supplies subcontracting scaled back -43% (excluding impact of change in inventories) expenses undrawn short-term facility with long-term debt (at 7-12 year -48% terms): Operating expenses May 15, 2020: issue of €800 million of convertible bonds reduced(1) -25% due May 15, 2027. June 29, 2020: issue of senior unsecured notes in euros and US dollars on the US private placement market (USPP), R&D expenses reduced -35% for the equivalent of €564 million (€282 million at 10 years and €282 million at 12 years). Capex commitments reduced -67% and a €246m reduction in cash outflow from 2019 to 2020 1 October 12, 2020: tap issue of €200 million in convertible bonds due May 15, 2027. Safran also has a €2.52 billion undrawn credit facility available Employee until December 2022.

protection against Covid-19 and business continuity ▲ 4 In 2020, Safran withstood The Group crisis management unit formed in January 2020 Support for the supply chain the crisis thanks to its rapid set two initial priorities: provide optimally safe working response capability and resilient conditions for Safran employees, and ensure the continuity business model, drawing on of essential businesses. its long-standing presence ATTENTIVE MONITORING INDUSTRY-SPECIFIC RELIEF FUND Safran adapted its work organization in rigorous compliance in the civil engine aftermarket OF SAFRAN SUPPLIERS In 2020, Safran invested €58 million in and the short- and medium-haul with the requirements set by governments in its host countries, To weather the crisis, Safran set up a the Ace Aéro Partenaires fund set up aircraft segment. applying strict health standards and social distancing measures, watch tower for monitoring and under the French aerospace industry and even temporarily shutting down some sites for varying In the longer term, the growth supporting its strategic suppliers, with support plan. With contributions from durations. fundamentals behind Safran’s the following aims: the French State, major industrial Safran managed to continue serving its customers, while business remain unchanged. identify the suppliers most at risk, with contractors and asset management firm ensuring the protection of its employees. Temporarily closed  Safran’s technological roadmap a potential impact on Safran businesses; Tikehau Capital, initial funds of remains appropriate thanks to sites were reopened swiftly, with four sites remaining closed MAIN FINANCIAL RATIOS (2) determine the impact of the crisis on €630 million were raised in July 2020 the French government’s on October 16, 2020 (down from 14 on July 17 and 30 on  large-scale support plans (1) these suppliers and their capacity to (subsequently increased to €730 million), May 18) . Net debt/EBITDA(3) sustain business; the aim being a total of €1 billion. In (current roadmap pushed back just less than a year behind the examine possible measures (payment contributing to the financing of pre-Covid-19 roadmap). Climate term adjustments, advance orders, businesses hit by the crisis, Safran is 1.13 change will be a central etc.), and the impact of government actively participating in the restructuring Net debt/total equity challenge in the recovery support, and, where applicable, guide and consolidation of the industrial fabric process: Safran is committed to (1) Including sites closed because of a decline in business. suppliers towards more structural of the French aerospace sector. green aviation, which will emerge (2) Calculated on the basis of aggregates published in Safran financial communications. solutions (backing from other industrial as a major post-crisis trend. (3) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of recurring operating 21.9% income plus net recurring and non-recurring amortization, provisions and depreciation. companies, investment funds, etc.). * The bridge facility was fully canceled on March 16, 2021 following the March 4, 2021 signature of a long-term €500 million loan with the European Investment Bank, and the March 16, 2021 issue of €700 million in five-year bonds and €700 million in ten-year bonds. (1) Excluding purchases, including R&D expenditure and government aids on short-time working measures.

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A balanced portfolio across SAFRAN: the aerospace and defense sector A COMPREHENSIVE OFFERING

Present in all aircraft components, BREAKDOWN OF 2020 REVENUE Safran strives to build the future of the global aerospace sector BY SEGMENT (ADJUSTED) (in %) A and be the preferred partner of airframers and airlines. IRC RA FT E 42% Q Avionics Cabin interiors Power & data wiring U €6,893 MILLION Inertial navigation systems Seats IP M Flight data acquisition unit IFEC - In-flight N E O 38,471I entertainment & connectivity I N S Electrical flight Cabin lighting S T , EMPLOYEESL L actuators Air management Original D U U equipment E systems P Services P F Cockpit O O 61% 69% E

R R • Pilot control systems N

Auxiliary P S • Panels & displays Oxygen systems P Power Unit (APU) E

• Seats E

E

C

• Windshield C A

A

N A

wiper systems P

P

D

S

S

O A

O

E R

R

R

E

E Original Services

46% O

A equipment

€7,663 MILLION 31% S

Y

39% Original S

T

equipment E

24,204 M 75% S EMPLOYEES Services 25% 12% €1,922 MILLION Evacuation slides T Exterior and life rafts AIRCRAF lighting S Anti-icing & de-icing I RIOR 13,928 Landing gears Civil Helicopter Military NTE Braking & landing Cargo Lavatories, EMPLOYEES containers water & waste aviation turbines aviation control systems Inerting & fuel systems * including retrofit activities Wheels and carbon and pallets Nacelles 66% 16% 18% brakes and components Engines Power transmission Engine control systems (FADEC) Galleys & equipment systems Power distribution and generation * including retrofit activities

Safran products have common features that contribute to the resilience of its business model: its position as a tier-one supplier to airframers and airlines; high technology content; Leadership positions and leadership positions in its main business segments.

in its main business segments

▲ ▲ ▲

(1) (1) A full-fledged engine manufacturer , Safran supplies a wide range of aircraft To ensure passenger safety and optimize Safran supplies airframers with engines equipment including landing and comfort, Safran develops cabin interiors NO. 1 WORLDWIDE for commercial aircraft, military aircraft, braking systems, nacelles, and related (overhead bins, lavatories, galley and regional transport aircraft, business jets electrical systems and engineering catering equipment, etc.) passenger and helicopters. solutions. and crew seats, water and waste To increase cost efficiency and share Defense: Safran provides solutions management systems, in-flight risks, engine manufacturers develop and services in optronics, avionics, entertainment systems (RAVE™), and their engine programs in partnership. navigation systems, tactical drones, interior refits for commercial aircraft. AEROSPACE AIRCRAFT EQUIPMENT/ AIRCRAFT Safran has primarily partnered with electronics and critical software for Safran’s aircraft interiors business PROPULSION DEFENSE/AEROSYSTEMS INTERIORS GE since the 1970s, when they set up civil and defense markets. addresses both airframers (under the the 50-50 joint venture CFM International, Aerosystems: Safran is one of the world's SFE(2) model) and airline companies (3) engines powering single-aisle landing gear cabin interiors for regional which develops the CFM56® and LEAP® leading players in aerosystems, supplying (BFE model). (2) mainline commercial jets wheels and carbon brakes and business aircraft engines. This partnership has been equipment that assures essential aircraft helicopter turbine engines for 100+ seater civil aircraft cabin liners, extended through to 2040. Safran also functions and aircraft safety: safety electrical wiring galleys, contributes to access to space through systems (evacuation slides, oxygen trolleys, its 50% stake in the ArianeGroup joint masks, etc.); cockpit systems; and fluid evacuation slides and oxygen systems containers, venture, prime contractor for the Ariane management systems (fuel, pneumatic onboard water and waste 5 and Ariane 6 launchers. and hydraulic circuits). management systems

(1) A full-fledged engine manufacturer is present in all engine components and all propulsion market segments. (1) Source: Safran. (2) Supplier Furnished Equipment: equipment specified and purchased by the airframer. (2) In partnership with GE, under the CFM International joint venture. (3) Buyer Furnished Equipment: equipment specified and purchased by the airline.

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EUROPE FRANCE (excl. France) A LEADING GLOBAL PLAYER 55% 11% Since its creation in 2005, Safran has expanded internationally. 43,315 8,800 With around 78,900 employees in 27 countries, EMPLOYEES EMPLOYEES the Group has extended its footprint beyond its European base

and is now present in North and South America, Africa, 63 14 20 27 8 3 the Middle East, Asia and Oceania.

ASIA Leveraging its global footprint, the Group establishes strong OCEANIA and sustainable relationships with the majority of aerospace players and airlines, reflecting its desire 4% to supply its customers promptly 3,405 from local bases. AMERICAS EMPLOYEES

8 8 2 24% 18,469 EMPLOYEES

70 31 8 AFRICA MIDDLE EAST GEOGRAPHIC SPREAD OF EMPLOYEES AND SITES AT END-2020

— 6% Percentage of employees 4,903 % of employees in the total Group workforce EMPLOYEES —

Number of sites(1) 10 3 1  

R&D and Service and Commercial and production activities maintenance activities administrative activities

(1) Each site corresponds to a legal entity covering one or more tertiary, production, service or maintenance sites.

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A LOOK BACK AT OUR HISTORY OWNERSHIP STRUCTURE (in %)

With a rich history spanning over 100 years, Share capital at December 31, 2020 Safran has made high technology its hallmark. Number of shares: 427,235,939 2018 7.3 0.1 Takeover and merger Employees Treasury of Zodiac Aerospace shares by Safran. Rebranding 11.2 under the Safran name TRENDS IN THE SAFRAN SHARE PRICE of all former Zodiac 1905 French AND THE EURO STOXX 50 INDEX State Aerospace businesses. Société des Moteurs Gnome (in %) (May 11, 2005 to March 25, 2021) is founded in the Paris suburb of 81.4 Gennevilliers. Gnome rotary engines Free float become the standard for planes around the world. 1000

SAFRAN: +654% 2017 1912 EURO STOXX 50: +29% Business Creation of Société des Moteurs combination Le Rhône, Gnome’s main competitor — agreement between before being taken over by its rival. Safran and Zodiac Aerospace. Disposal 800 of the detection, 1924 identity and security businesses. Creation of Société d’Applications Générales d’Électricité et de Mécanique (Sagem), that will mainly 2016 manufacture cameras and artillery equipment and go on to design the Inclusion of “Safran” world’s first infrared guidance system in the corporate name for air-to-air missiles. 600 of all its subsidiaries. Creation of ArianeGroup with Airbus. 2008 1945 Extension of Gnome & Rhône is nationalized and the partnership renamed Snecma (Société Nationale with GE until 2040. 2013 d’Étude et de Construction de Moteurs d’Aviation). 400 Acquisition of Goodrich’s electrical systems business. 2005 1945-2002 Safran is formed from Several aerospace companies join the merger of Snecma Snecma: Hispano-Suiza, a specialist and Sagem. in power transmission for aircraft engines, followed by Messier- 200 2020 Hispano-Bugatti, a specialist in landing gear. Worldwide stock- market downturn In 2000, wiring specialist Labinal and resulting from the its helicopter engine manufacturer Covid-19 crisis. subsidiary Turbomeca join Snecma. In 2002, nacelles specialist Hurel‑Dubois joins Snecma. 0

1974 Snecma becomes a civil aircraft engine manufacturer through a cooperation agreement with Trends in the Safran share price since May 2005 Trends in the EURO STOXX 50 index since May 2005 GE for the manufacture of the CFM56 engine. -200

05/11/2005 01/01/2006 01/01/2007 01/01/2008 01/01/2009 01/01/2010 01/01/2011 01/01/2012 01/01/2013 01/01/2014 01/01/2015 01/01/2016 01/01/2017 01/01/2018 01/01/2019 01/01/2020 03/25/2021

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STAKEHOLDER BENEFITS – OUR CONTRIBUTIONS In 2020, Safran maintained its essential activities for all its customers. Throughout the crisis, Safran’s CSR(1) approach proved its worth Civil society as a key asset for short-, medium- and long-term value creation. The Group sought to minimize the impacts of the crisis on its employees and stakeholders, while contributing to a safer, more sustainable world, where air transport Academia, local community, associations is more environmentally friendly, comfortable and accessible. and Non-Governmental Organizations (NGOs)

Main expectations Youth training; exchanges between Key points business and academic worlds; • Technological roadmap preserved consideration of environmental and despite the crisis, thanks to Expectations shared by all stakeholders, consistent social challenges in the Group government support. with Safran’s absolute priorities: strategy and throughout the value • Ambitious climate strategy with chain. three focuses: technological Aviation safety breakthrough in next-generation Safran contribution engines, massive development of Ambitious climate strategy Youth training; school presentations sustainable fuels, and electric of Safran’s businesses; support on hybridization for propulsion systems. developing educational programs; • More than 5,000 interns, work- Employees sustained R&D to prepare for the study program participants and Business community Public partners and employee future of the aerospace industry and PhD students across Europe in representatives the development of new products 2020. and equipment contributing to • Sponsorships and foundations on Customers (airframers, and mid-sized companies) in the decarbonizing the aviation industry. professional and social integration. pursuit of operational excellence, Government bodies airlines, etc.) Main expectations competitive performance and carbon and local authorities Suppliers and sub-contractors Safeguarding of jobs and business; footprint reduction, in order to offer European and international bodies (industrial companies, motivating career paths; regular skills Partners customers the very best products Certification authorities research laboratories, etc.) development; commitment to workplace and services. Main expectations health and safety and the environment; Main expectations Ethical business conduct, internal and and compliance with national and Financial community Key points Customers: safe, reliable, efficient, external CSR commitments. international labor conventions. • Safran holds the Responsible available and innovative products Safe products that comply with Purchasing and Supplier Relations and services. international standards. Safran contribution Institutional investors, individual Key points Label(2) since 2014. Suppliers and subcontractors: Contribution to the European Green Rapid adaptation to the crisis; shareholders and employee • Publication and fulfillment of • €8 billion in purchasing from relationships rooted in fulfillment Deal. commitments on maintaining staff shareholders, financial analysts, financial targets in 2020, despite suppliers (48.5% of Group revenue). of reciprocal commitments, trust employability; ongoing employee financial rating agencies the unprecedented crisis impacting • 42% of purchasing volume sourced and shared long-term vision. Safran contribution training; expertise retained; active and the aerospace industry. in France in 2020, including 83% Partners: pursuit of continuous Systematic communication of the constructive employee dialogue; steadily Main expectations • Performance recognized by the from SME and mid-sized companies. innovation, and protection of their business ethics culture to all our decreasing accident rates; new Attractive shareholder value creation main non-financial rating agencies. • 75% of R&T(3) expenditure focused intellectual property. employees and suppliers; sustained international employee shareholding and transparency in company • Communications reinforced with on environmental efficiency. R&D. An ambitious climate strategy. plan in 2020. management, financial and alignment of climate reporting to • More than 1,000 initial patent Safran contribution non-financial commitments, long-term TCFD recommendations(4). requests per year worldwide. Trust-based relationships renewed Key points Key points strategy and implementation, and • Safran assigned its first long-term with each generation of aircraft; • In 2012, Safran became the first CAC 40 • Signature of an Activity Transformation inclusion of CSR criteria. credit rating in February 2021: BBB+ reliable, environmentally-responsible company to obtain “anti-corruption” Agreement with all trade unions in (with stable outlook). products that create value. certification from the French Agency France in order to protect jobs. Safran contribution Payment terms met (any potential for the Diffusion of Technological • 7.25% of share capital held by current Accurate, precise and fair information delays following the March 2020 Information (ADIT). and former employees in 2020. accessible to the financial community; lockdown in France were caught up • 43.5% of buyers were trained in • Frequency rate of lost-time work regular presentation of the Group’s during 2020). responsible purchasing methods in 2020. accidents: 2.0 (number of accidents multi-year objectives at Capital Mobilization and everyday • 30% reduction in greenhouse gas per million hours worked) in 2020. Markets Days; availability for the commitment with suppliers and emissions across operations by 2025 • Approx. one million training hours entire financial and non-financial subcontractors (especially SMEs vs. 2018. worldwide in 2020. community.

(1) Corporate social responsibility. (2) The Responsible Purchasing and Supplier Relations Label replaces the Responsible Supplier Relations Label. (3) Research and Technology. (4) Task Force on Climate-related Financial Disclosures.

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SAFRAN’S CSR(1) STRATEGY: Key objectives for 2025

ENGAGE FOR THE FUTURE To fulfill its ambitions and create value, Safran has set objectives for 2025 that will enable the Group to track progress annually for each pillar in the CSR roadmap. These objectives can also be found on page 51, in the overall table of key performance Through its commitments and the related actions, Safran’s CSR strategy indicators, marked with the symbol CSR . – Engage for the Future – is a reflection of the Company’s corporate identity and contributes to the Group’s core purpose. PILLAR 2025 OBJECTIVE 2019 2020 Decarbonize Scope 3 (product usage): aerospace 75% of R&T investment focused on environmental efficiency Choose technologies (engines and equipment) contributing 75% 75% A CSR approach co-constructed “Engage for the Future”, to ultra-efficient aircraft for 2035, targeting carbon neutrality for 2050, with all stakeholders a new CSR strategy with 100% sustainable fuels 3% -31% Scopes 1 and 2: 30% reduction in CO2 emissions vs. 2018 (1) (623,619 t CO2eq.) (414,988 t CO2eq.) Safran’s CSR strategy – Engage for the - innovation and eco-design of products “Engage for the Future” was developed 100% of facilities to have achieved the five zero targets roadmap(2) * * Future – sets out commitments and services; in line with the Group’s core purpose, Be Maintain the number of training hours per employee per year(3) 26 13 addressing stakeholder expectations. It - technological developments; as defined in 2020, and actively an exemplary Frequency rate of lost-time work accidents below 2.5(4) 3.2 2.0 was developed from an update to the - customer satisfaction and trust; contributes to it through its objectives, employer materiality matrix of non-financial - business ethics and the fight against commitments and actions. It is aligned 100% of employees worldwide to benefit from a minimum level of health cover (medical, optical and dental) * * challenges plotted in early 2020, along corruption; with the UN Global Compact, of which with input from working groups formed - skills development and talent retention; Safran has been a signatory since 2014, 22% of women among senior managers 12% 13% with Group employees. - health and safety in the workplace; and actively contributes to progress 100% of senior managers and exposed and affected people trained Embody - 66% - attractiveness of Safran and recruitment toward 12 of the 17 UN Sustainable responsible in anti-corruption(5) Update to the materiality matrix of talent; Development Goals (SDGs) set out industry 100% of senior managers and exposed and affected people trained resulting from consultation with more - quality and safety of products and below. in export control(6) * * than 70 external stakeholders services. 80% of purchases made from suppliers that have signed (suppliers, customers, etc.) and 600 the Safran's responsible purchasing charter(7) - 40% internal stakeholders. Nine challenges Consultation with more than 100% of sites certified “Gold” to internal HSE standards for Safran were pinpointed: 160 Group employees, across over 50% 60% - reduction of atmospheric emissions 30 business lines in all of the geographic Increase the waste recovery ratio (objective to be calculated in 2021) 68.3% 70.5% and the carbon impact linked to the regions where Safran operates. Affirm our Increase the number of new PhD students in the company per year (> 65) 63(8) 36 use of products and services; commitment to citizenship At least one social or professional integration initiative run by each Safran site * *

* Measured across the whole scope in 2021. CORE PURPOSE (1) 2019 emissions figures, which included estimated data for fourth-quarter 2019, were revised in 2020 to reflect the actual data. “Thanks to the commitment of our employees, proven innovation and operational excellence, (2) Zero non-recycled paper in 2021, zero machines or equipment running unnecessarily in 2022, zero single-use plastic cups or dishes in 2023, zero catering products from extracontinental geographic areas in 2024, and zero non-eco-friendly green spaces in 2025. Safran designs, builds and supports high-tech solutions to contribute to a safer, more sustainable world, (3) Compared to 2019. Excluding employees on long-term absence. where air transport is more environmentally friendly, comfortable and accessible. (4) Number of accidents per million hours worked. Décarboner Être un employeur DécarbonerIncarner l’industrie Être unArmer employeur Incarner l’industrie Armer Décarboner Être un employeur Incarner l’industrie Armer (5) Purchasing, HR, Sales, Legal, Finance, Audit & Internal Control, Compliance & Business Ethics, Risks and Communications Departments, with customers, Décarboner Être un employeur Incarner l’industrie Armer l’aéronautiqueWe alsoexemplaire apply ourl’aéronautiqueresponsable skills to developexemplaireson engagement solutionsresponsable that meetson engagement strategicl’aéronautique needs,exemplaire such as defenseresponsable and sonaccess engagement to space.” suppliers and partners concerned. l’aéronautique exemplaire responsable son engagement sociétal sociétal sociétal sociétal (6) People exposed and affected in all Group departments. (7) Or using an equivalent responsible purchasing charter. (8) Average new PhD students over three years (2017-2019). 1 2 3 4 Non-financial ratings

Decarbonize Be an exemplary Embody Affirm our commitment aerospace employer responsible industry to citizenship A dedicated CSR ▲ Be recognized as a leader Be considered as an employer Be the benchmark in our Get involved with our local governance 2019 2020 in the decarbonization of choice by our employees production methods and communities and contribute of the aviation sector and the talents of the sector throughout our value chain to their development 55/100 Robust level

The CSR strategy is led by the Executive ▲ st 1. Make carbon 4. Accelerate training 7. Uphold the highest 10. Be at the • 1 company out of 20 in the aerospace and neutral aircraft in the skills and jobs standards of ethics forefront of innovation Committee and steered by the Executive Rating reviewed defense industry ranking in Europe the R&T priority of tomorrow to protect citizens Vice President, Corporate Human and every two years. • 1st out of 44 worldwide Social Responsibility, who draws on the work of the CSR Department in defining 2. Reduce CO2 5. Ensure health and 8. Strengthen 11. Develop ▲ partnerships for the CSR strategy, its roadmap and its C (Awareness level) A- (Leadership level) emissions throughout safety of employees, responsible supply Rating from “F” to “A” our value chain improve the quality chain management training and research rollout. The department works with all (A being the highest). of life at work and and support suppliers Group companies and departments to maintain a thriving social dialogue ensure that the CSR strategy is in place 28.0 – Medium risk 24.9 – Medium risk across the whole of the Group and The rating evaluates ESG risk ▲ • 6th out of 82 in the • 4th out of 88 in the engages all employees on its Group-wide level, with the lowest rating aerospace and defense aerospace and defense Involve employees Encourage equal Respect Enhance 3. 6. 9. 12. commitments. CSR challenges are corresponding to the best industry industry in the reduction of opportunities and the environment professional non-financial performance. their carbon footprint promote diversity and natural resources and social integration presented to and monitored by the Board of Directors and the Executive Committee each year. ▲ Rating from “CCC” to “AAA” A rating A rating (AAA being the highest).

(1) Corporate social responsibility.

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OUR MARKETS Despite the impact of the Covid-19 crisis on the aerospace market over the coming years, the underlying air traffic development fundamentals remain solid and should continue to drive strong long-term growth in the global commercial aircraft fleet. FOCUS ON SAFRAN’S MILITARY ACTIVITIES Over and above the electronic Civil aviation activities of Safran Electronics & Defense, all Group subsidiaries are present in the military sector, which accounted for approximately The Covid-19 crisis has had an demand in regions enjoying strong Estimates point to a total of around 24% of Group revenue in 2020. unprecedented impact on air traffic: the economic growth (in particular China, 34,500 new planes over the next Products notably include ICAO(1) estimates a 60% drop in the South-East Asia and India), and 20 years. This dynamic is especially the M88 engines powering number of passengers in 2020. renewal of the existing fleet (mainly pronounced in the short- and the Rafale, military helicopter Nevertheless, the underlying air traffic in North America and Europe). medium-haul aircraft segment, which turbine engines, TP400(1) engines growth fundamentals, for the medium expects 22,400 new planes over the powering the A400M transport and long term, remain: High growth in air traffic proved resilient same period. In addition, airframers plane, electrical wiring for the Rafale, landing gear, tactical the increasing accessibility and against previous global economic crises Airbus and Boeing report very high drones and auxiliary power units popularity of air travel spurred by (in 2001 and 2008), and Safran expects order backlogs despite the crisis (7,184 (APUs). Safran also holds 50% falling prices; a return to 2019 traffic levels somewhere and 4,997 respectively, at the end of of ArianeGroup, which develops higher load factors to win market share between 2023 and 2025, followed by December 2020). The same trend has launchers for nuclear deterrence. and increase profitability in airline sound growth, despite the increasing also been observed in the aftermarket, company operations; weight of ecological impact on air with strong growth driven by the transport. increasing in-service fleet size.

Defense and space

CIVIL AVIATION, GLOBAL PROJECTIONS A clear and ongoing upward trend in was formed to co-finance collaborative The long-term growth outlook remains strong, despite the short- and medium-term impact of the Covid-19 defense and space budgets has been research and development programs, crisis on air traffic. observed worldwide over recent years, with a budget of €7 billion over the in a context of persistent or heightening period covered by the upcoming tension in many regions. European Union multi-annual financial 21,000 Global aircraft capacity (measured in ASK) until 2040*: +2.8% In Europe, the initiatives taken in recent framework (2021-2027). Prospects on 18,000 Global aircraft tra c (measured in RPK) until 2040*: +2.9% years by the European Commission and new space projects are advanced by a member states have proved successful, record budget of €13.2 billion for 2021- 15,000 with co-financing for cooperative 2027, plus confirmation of a firm intention -57% ASK** programs topping €500 million in 2019- to strengthen European sovereignty in 12,000 -66% RPK** 2020. The European Defense Fund (EDF) space. 9,000

6,000

3,000 X 2.5 Air tra c X 1.8 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Business aviation and helicopters 62.8% 82.6% 64.8% 84.2% Business aviation was less impacted in different contexts, with usage in Global aircraft capacity (ASK) Global air tra c (RPK) Load factor than commercial aviation by the Covid-19 military, healthcare and public service RPK: Revenue passenger kilometers, in billions (= number of occupied seats multiplied crisis in 2020. Growth prospects for the remaining robust. Overall, the impact by the total distance traveled by the global fleet). business aircraft fleet, already limited was less pronounced than in commercial ASK: Available seat kilometers, in billions (= number of available seats multiplied by the distance before the crisis, nevertheless appear aviation, with a 25% drop in flight traveled by the global fleet). uncertain. volumes at the worst of the crisis, with Source: Safran Aircraft Engines. At the end of 2020, there were around a swift return to normal expected. Some * Annual growth (reference year: 2019). 21,700 business aircraft in service plus 51,000 helicopters were in service ** In 2020 vs. 2019 (source: International Air Transport Association). some 500 in storage. The crisis impacted worldwide in 2020. the helicopter market to different extents

(1) International Civil Aviation Organization. (1) Through the EPI (EuroProp International) consortium.

SAFRAN 2020 INTEGRATED REPORT I 16 1 7 I SAFRAN 2020 INTEGRATED REPORT STRATEGY AND BUSINESS MODEL STRATEGY AND BUSINESS MODEL

AEROSPACE INDUSTRY TRANSFORMATION Safran operates in a changing industrial landscape, hit by the short-term impact of the Covid-19 crisis. 3 5 Shifts in vertical integration Stronger role and consolidation patterns of national authorities

UNDERLYING TRENDS STILL STRONG Environmental challenges Towards carbon neutral aviation Collapse of the Boeing/Embraer merger program. After the wave of equipment for 2050 deal in 2020 marks a halt in the airframer manufacturer and supply-chain mergers consolidation trend initiated in 2017, in 2018-2019, further consolidations 1 when Airbus took over the A220 might occur given the crisis impacting (formerly the Bombardier C-Series) the commercial aviation industry. Stronger role of national authorities Technological breakthroughs Traffic resumption, border and next-generation aircraft reopenings, air safety, support 5 2 Breakthrough innovations, for the aviation sector entry-into-service scenarios

3 4 Shifts in vertical integration Geopolitical risks and consolidation patterns and global competition Though air transport is today one of the safest means of transport in the world, the two Boeing 737 MAX accidents, in 2018 and 2019, sharpened certification authorities’ attention on safety throughout the aircraft life cycle. The flight re-authorization process begun 2 in 2020 revealed intensified expectations on flight safety, a fundamental challenge shared by all Group companies. Technological breakthroughs That aside, the crisis has marked a and next-generation aircraft reinforcement of the roles played by national authorities in the aviation sector, as regards the management of border Innovation has been a cornerstone of hydrogen, etc. Innovations here will pave openings, health measures for the aerospace sector from the outset. the way to engine architectures, passengers, support for airlines, and aid Today’s aircraft are five times more fuel concepts, production methods, services, for the aerospace industry. efficient than those of the 1950’s, chiefly players and uses (particularly VTOL(1)). because of engine improvements, and At the same time, the Covid-19 crisis civil aviation is one of the world’s safest creates uncertainty in airframer means of transport. schedules for forthcoming aircraft To meet the climate challenge, disruptive generations. innovations are needed in forthcoming 4 platforms: digitalization, connectivity, autonomy, hybrid and/or electric 1 Geopolitical risks propulsion, distributed propulsion, and global competition materials, processes, sustainable fuels, Environmental challenges The Covid-19 crisis comes at a time of Lastly, aircraft leasing companies, geopolitical and commercial tensions, investors and finance companies remain which are affecting the aviation sector major players in the aviation ecosystem, The crisis confirmed expectations with and the aerospace industry in various contributing to the resilience of the regard to climate change, especially for ways: tensions over the resumption crisis-hit sector. In 2020, more than 50% the aviation sector, which must step up of international flights during the of short- and medium-haul civil aircraft efforts on decarbonization (pages 24 crisis, flight re-authorization delays, delivered were financed by leasing to 27). measures restricting license or export companies. authorizations, etc. (1) Vertical Take-Off and Landing aircraft.

SAFRAN 2020 INTEGRATED REPORT I 18 1 9 I SAFRAN 2020 INTEGRATED REPORT STRATEGY AND BUSINESS MODEL STRATEGY AND BUSINESS MODEL

OUR AMBITIONS The major ecosystem trends outlined previously point to a return to solid growth CFM56 – LEAP engines for the sector, which will be required to meet major technological challenges leaders on the short- and medium-haul segment, a key asset for Safran on decarbonization, while upholding safety and competitive performance.

In this segment, CFM International (a 50-50 joint venture between Safran Aircraft Engines and GE) has a market share of around 70% thanks to 40 years of commercial success. Safran aims to become the world’s • coverage of all sub-segments of the By focusing on both operating excellence aerospace and defense sector (regional and the investment needed to lead in leading aircraft equipment supplier LONG-TERM A LARGE CFM56 FLEET LEAP, FOLLOWING THROUGH aircraft, short and medium haul, long state-of-the-art technology, the Group within the next 15 years. To achieve this PROSPECTS IN SERVICE ON THE CFM56 SUCCESS STORY haul, business jets, helicopters, military is ideally placed to emerge from the goal, the Group draws in particular on: The propulsion business generates With an in-operation base(1) of 31,865 The successor to the CFM56 is the hugely aircraft), to reduce sensitivity to crisis in a stronger position and cross a significant service activities, mainly engines at the end of 2020 (including innovative LEAP engine, which consumes a business model building on: variations in business cycles; new threshold in business growth and comprising the sale of spare parts and some 23,000 CFM56-5B/-7B), the 15% less fuel than its predecessor, the value creation. • products with business cycles of two key priorities: climate change and maintenance, repair and overhaul (MRO) CFM56 is the biggest commercial CFM56. The LEAP is a commercial different maturities (from just a few aviation safety; services. Given the size of the engine success in the history of civil aviation. success, with an order backlog(2) years for an aircraft seat and up to a clear strategy drawing upon three fleet in service, Safran has substantial It will continue to generate service exceeding 9,600 units at the end of 2020. 40 years for an engine); key Safran assets: sustainable growth potential. The Group has been activities for Safran over the next • service and aftermarket businesses innovation, operating excellence and developing long-term service contracts 20 years. The fleet of second-generation It has been selected for three aircraft: (including spare parts and long-term responsible conduct; for a number of years, in response to CFM56 engines (-5B/-7B) is young LEAP-1A for the Airbus A320neo, contracts), that now generate nearly “Engage for the Future”, a CSR strategy customer demand, which now apply to (roughly 50% under 10 years, and only which came into service in August half of its revenue. These services with four pillars: decarbonize the LEAP engine. Aftermarket services 10% over 20 years), and boasts proven 2016 (61% market share(3)); ensure recurring revenue streams, aerospace, be an exemplary employer, for LEAP engine will gradually take over in-service reliability, which means LEAP-1B for the Boeing 737 MAX, margins with smooth time-spreads, embody responsible industry and from the CFM56 engine from 2025. withdrawal and part-out risks remain which came into service in May 2017(4) and improved visibility; affirm our commitment to citizenship. relatively low. (100% market share); LEAP-1C for the COMAC C919 (China, exclusive Western source).

AEROSPACE PROPULSION CFM56 (-5B/-7B) FLEET BY NUMBER OF SHOP VISITS PERFORMED Adapt production in phase with the ramp-up in airframer demand Be on the cutting edge of green aviation No shop visit ~ 50% performed Consolidate the position of full-fledged with no engine manufacturer(1) 1 shop visit 2020 shop visit performed ~ 25% ~ 23,000 Prepare the civil and military propulsion engines technologies of the future More than 2 shop visits with 1 performed shop visit Profit from growth in service activities thanks to a large operation base Source: CFM data AIRCRAFT EQUIPMENT/ of still young civil engines DEFENSE/AEROSYSTEMS

Become the world’s leading aircraft equipment supplier CFM56 IN-OPERATION BASE(1) GEOGRAPHIC DISTRIBUTION OF THE FLEET Be the leader in systems and equipment A CLEAR OF AIRCRAFT POWERED BY CFM56 ENGINES* for more electrical aircraft, ROADMAP Including propulsion hybridization 35,00035,000 33,00033,000 Capitalize on business lines consistent 31,00031,000 with French and European self-reliance, 32%32% leveraging proprietary technologies 29,00029,000 31,86531,865 Asia-Pacific**Asia-Pacific** 27,00027,000 CFM56CFM56 Keep a leading global position 25,00025,000 EndEnd 2020 2020 AIRCRAFT INTERIORS 28%28% in onboard safety systems 23,00023,000 +4.6%+4.6% per per year* year* NorthNorth Restore the operational excellence 21,00021,000 AmericaAmerica 27%27%EuropeEurope and competitiveness of this business 19,00019,000 Propose innovative solutions 17,00017,000 4%4% 5%5%LatinLatin America America for our customers in clean, 15,00015,000 MiddleMiddle Eas East t 4%4%AfricaAfrica connected and sustainable cabins 3 3 8 8 201020102011201120120122012201201420142012015201652016201720172012012019201920202020 20202020 Build on our strong position on the market 2008200820092009 with a broad, modular product range * Weighted* averageWeighted* Weighted annual average growthaverage rate annual annual growth growth rate rate *  Source: Cirium - Aircraft fitted with CFM56 engines in service Source: CFM and parked at end of 2020. Return to world-class ** Including 18% in China financial performance

(1) In-operation base is equal to engines delivered less engines dismantled or scrapped. (1) Safran is present in all engine components and all segments (2) On the basis of pending orders and cancellations. of the propulsion market. (3) Firm orders at December 31, 2020. (4) Boeing 737 MAX grounded from March 2019, with return to service authorized by the US certification agency in November 2020 and by its Canadian and European counterparts in January 2021.

SAFRAN 2020 INTEGRATED REPORT I 20 2 1 I SAFRAN 2020 INTEGRATED REPORT STRATEGY AND BUSINESS MODEL STRATEGY AND BUSINESS MODEL

A RESILIENT BUSINESS MODEL SERVING OUR CUSTOMERS

Trends Our resources(1) Our business model Our impacts(1) serving our customers

HUMAN CAPITAL HUMAN CAPITAL Around 78,900 employees Attractive working conditions in 27 countries and labor relations model 2.7% of payroll spent on training 49% of employees are (France) Company shareholders Recognized governance and together hold 7.3% of the share capital Environmental challenges INTELLECTUAL CAPITAL INTELLECTUAL CAPITAL Towards €1.2 billion total R&D expenditure Our business A balanced carbon neutral 16% of Group employees in R&D 45,000 intellectual aviation (including R&T) model business portfolio property titles for 2050

AEROSPACE INDUSTRIAL CAPITAL INDUSTRIAL CAPITAL INNOVATION, DESIGN 46% PROPULSION 2020 R&D expenditure: €1.2 billion €250 million of synergies 276 sites in the world serving — our customers expected in 2022, following Technological AIRCRAFT the acquisition of Zodiac €449 million in industrial breakthroughs ORIGINAL EQUIPMENT SALES 42% EQUIPMENT, Aerospace investments and next-generation 2020 revenue: €9.2 billion (56%) DEFENSE AND AEROSYSTEMS Agile supply chain aircraft Structuring alliances and — Breakthrough partnerships, including the CFM SERVICES International joint venture AIRCRAFT FINANCIAL CAPITAL innovations, 2020 revenue: €7.3 billion (44%) formed with GE in 1974 and INTERIORS entry-into-service 12% Fulfillment of financial targets scenarios renewed until 2040 set in July 2020 during the Covid-19 crisis Prompt cost adjustment FINANCIAL CAPITAL capacity A full order backlog Faced with 32.5% organic Shifts in vertical A growing base in operation fall in adjusted revenue integration (up approximately 4.6% annually (with respect to 2019): and consolidation for short- and medium-haul 3 assets • Recurring operating engines) patterns Two margin of 10.2% One of the strongest financial • Free cash flow signatures in the industry absolute priorities ASSET NO. 1 ASSET NO. 2 ASSET NO. 3 of €1,073 million A stable shareholder base SUSTAINABLE OPERATIONAL RESPONSIBLE • A disciplined M&A policy (employees, French State, INNOVATION EXCELLENCE CONDUCT 14.27% annual growth in TSR(3) Geopolitical long-term institutional investors) (page 30) (page 34) (page 36) from 2005 to 2020 risks and global A strong financial structure CLIMATE CHANGE competition (net debt/EBITDA(2) of 1.13) (page 24) Stock market performance up 654% (from May 11, 2005 — A foreign exchange risk hedging to March 25, 2021) policy providing visibility Decarbonize Be Embody Affirm our aerospace an exemplary responsible commitment SOCIAL AND Stronger role SOCIAL AND employer industry to citizenship ENVIRONMENTAL CAPITAL of national authorities ENVIRONMENTAL CAPITAL AVIATION SAFETY LEAP: -15% CO emissions Traffic resumption, 75% of R&T investment focused (page 28) 2 and -50% NOx emissions border reopenings, on reducing our environmental air safety, footprint RESPONSIBLE SUPPLIER support for RELATIONS label Training in responsible purchasing st the aviation sector and good conduct charter 4 CSR pillars 1 CAC 40 company certified “anti‑corruption” by the ADIT(4)

(1) All figures refer to 2020 except where noted. (3) Total Shareholder Return corresponds to dividends plus the change in the share price. (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of recurring operating income plus (4) French Agency for the Diffusion of Technological Information (Agence pour la diffusion de l’information technologique – ADIT). net recurring and non-recurring amortization, provisions and depreciation.

SAFRAN 2020 INTEGRATED REPORT I 22 2 3 I SAFRAN 2020 INTEGRATED REPORT (1) 2022 SBTi-certified, it did apply SBTi-certified, the methodologies and emission trajectories reduction this organization by recommended setting its objectives. for Financial Disclosure. Scope 3 Scope all for Full declaration notably for categories, across the use of products scope the Group objectives Reduction 3 emissions Scope for * Universal Registration Document. Registration * Universal URD). (prior-year year (1) Reporting is not yet Safran (2) While on Climate-related (3) Taskforce ▲ REPORT INTEGRATED 2020 I SAFRAN Milmort (Belgium) and Sendayan Milmort (Belgium) and Sendayan studies Feasibility sites. (Malaysia) with partners in will be conducted the installation, continue to 2021 States; notably in the United phase-in of sustainable fuels for civil fuels for phase-in of sustainable to committed is Safran tests: engine the fuels by using 10% of sustainable 2025. by 35% and end of 2021 choosing low-carbon energy sources, sources, energy low-carbon choosing with a solar power as in Mexico, supplies power for contract energy and in the United sites, all Group to supply Kingdom, with a wind power contract;   2 5 In 2020, Safran also introduced an introduced also Safran 2020, In its investment for carbon price internal of favor in decisions swing to projects, solutions including decarbonization 20% of the end of 2020, actions. By of actions needed for the program had been objective the 2025 reaching of quantity the as (measured achieved be to gas emissions greenhouse reduced).

eq. . 2 (1) ) eq. for Scope 2 (2018 emissions figures were revised in 2020 to in 2020 revised were figures emissions 2 (2018 Scope eq. for 2 (2) (1) 2021 eq. in 2019, 20.6 Mt CO 20.6 eq. in 2019, 2 : solar photovoltaic : solar photovoltaic 30% reduction by 2025 by reduction 30% The new objective aligns objective new The (2) category declarations: declarations: category

(3) eq. for Scope 1 and 383,186 t CO 1 and 383,186 Scope eq. for - and self-con production on-site sumption production facilities have been been have facilities production (United the Gloucester at installed (France), Kingdom), Montluçon reducing sites’ energy consumption, consumption, energy sites’ reducing the energy by improving chiefly site, (Valence of buildings efficiency France); 2 developing disruptive solutions for solutions disruptive developing - con by our sites, at generation heat gas boilers such as replacing versions boilers; with biomass Direct (Scope 1) and indirect (Scope 2) (Scope 2) and indirect (Scope 1) Direct emissions:     Reduction of 30% by 2025 vs. 2018 vs. 2025 of 30% by Reduction industry for In line with 1.5°C trajectory (based on SBTi methodology Purchases of goods and services Purchases In early 2021, Safran stepped up its stepped Safran In early 2021, on reducing ambition and objectives its from gas emissions greenhouse operations. trajectory reduction with an emissions with a global warming compatible of the the end of 1.5°C by scenario century. Some of the assets employed to meet to employed Some of the assets as follows: are our objectives STRATEGY AND BUSINESS MODEL BUSINESS AND STRATEGY reducing emissions from its operations; its operations; from emissions reducing in 2020 Scopes 1 & 2 Scopes ambitious and made more reviewed Objectives •  •  3 Scope Extended TCFD in URD* presented in 2020 chapter Climate recommendations with TCFD accordance •  • Freight commuting • Employee 3 emissions, of Scope Initial partial declaration from emissions, – direct of products use from CO Mt engines: 41.9 through a climate strategy with two focuses: with two strategy a climate through ▲ SAFRAN’S CLIMATE STRATEGY CLIMATE SAFRAN’S reducing emissions from the use of its products, its essential mission. its essential the use of its products, from emissions reducing ) emissions from operations from emissions 2 (2) (1) Safran intends to lead the way towards decarbonization of the aviation sector, sector, of the aviation decarbonization towards way lead the to intends Safran emissions in 2018, i.e., 219,790 t CO 219,790 i.e., in 2018, emissions 2 2020 Reduction of 8% and 18% Reduction 2018 vs. in 2025 In line with 2°C trajectory on (based industry for SBTi methodology travel Business treatment Waste Scopes 1 & 2 Scopes Objectives •  •  3 Scope declarations Category •  •  Compared to CO to Compared reflect the actual data). the reflect needs. its own for sites Safran at of electricity produced Consumption (1) (2) Progress in climate reporting climate in Progress in CO Reduction and ambi- a committed takes Safran the carbon on reducing tious stance methods, of its production footprint project. its low-carbon through project in a low-carbon brought Safran , with a dedicated the end of 2018 at each of through relayed organization tier-one companies. the Group’s involves phase of the project first The indirect and 1) (Scope direct reducing - con energy from 2) emissions (Scope sumption in our operations. launched phase, project second The of part concerns 2020, early in (referred emissions indirect Safran’s as Scope 3to logis- from emissions): of goods purchases tics operations, travel. and employee and services, of these emissions An initial evaluation prior to in 2020, undertaken was in 2021. objectives setting reduction

emissions emissions 2 , particles, etc.). x SAFRAN COMMITMENT SAFRAN General Annual the 2020 At made the Meeting, Safran in support commitment following fuels: “Safran of sustainable support to undertakes notably the governments the launch by the European and, in particular, plans and investment Union, of aiming to measures regulatory and the availability promote fuels sustainable of utilization be to will have This aviation. for taking way, done in a sustainable the situation consideration into and, industry the aerospace of our airline of in particular, the end after customers crisis.” the Covid-19 of air traffic management management air traffic and operations fuels sustainable Renewing Renewing the fleet Introducing breakthroughs technological new-generation of in the efficiency and engines aircraft Improving Incorporating  A 90% reduction in CO A 90% reduction ... while also reducing other pollution ... while also reducing NO (noise, per passenger kilometer kilometer per passenger 2050 will be by through: reachable 10% 40% 40% (vapor (vapor 2 emissions from from emissions 2 -90% NO. 1 NO. PRIORITY *

to bring a 90% reduction in bring a 90% reduction to (3) for CO emissions -50% No action 2050e STRATEGY AND BUSINESS MODEL BUSINESS AND STRATEGY response to climate change. climate to response 24 2040e . Because of the significant expansion expected in expected expansion . Because of the significant AND SAFRAN’S VISION TO ACHIEVE IT ACHIEVE VISION TO AND SAFRAN’S (2) 2030e SAFRAN’S CLIMATE STRATEGY CLIMATE SAFRAN’S 2020 . Considering the effects of emissions other than CO other than of emissions the effects . Considering (1) AN AMBITIOUS COMMITMENT FOR THE AVIATION SECTOR SECTOR AVIATION FOR THE COMMITMENT AN AMBITIOUS Climate change sets a major and systemic challenge for civil aviation. civil aviation. challenge for major and systemic change sets a Climate 2010

and all energy systems in particular, the Group spearheads the technological the technological spearheads Group the in particular, systems and all energy

2 emissions emissions EMISSIONS EMISSIONS CO 2 2015 * Compared to 2005. solutions at a competitive cost. With its position in most aircraft-system segments, segments, aircraft-system in most its position With cost. a competitive solutions at emissions by 2050 compared to 2005 (ATAG) to 2050 compared by emissions Data from IAE (International Energy Agency), ICCT (International Council on Clean Transportation). on Clean Transportation). Council (International ICCT Agency), Energy IAE (International from Data 2020. Environment, et al., Atmospheric S. Lee , David 2018 2000 to for Forcing Climate Anthropogenic to Global Aviation of Contribution The Group. Action Air Transport 2 FROM GLOBAL CIVIL AVIATION CIVIL AVIATION FROM GLOBAL CO Safran’s climate strategy addresses the challenge in order to offer customers innovative innovative customers offer to the challenge in order addresses strategy climate Safran’s (1) keeping the global temperature rise below 2°C. Our objective is achievable and is achievable 2°C. Our objective rise below the global temperature keeping airports, control, airlines, air traffic (industry, in the sector all players should involve authorities). government (2) (3) The aviation sector commitments are consistent with the Paris Agreement on on Agreement with the Paris consistent are commitments sector aviation The Civil aircraft in operation account for 2% to 3% of global CO 2% to for account in operation Civil aircraft air transport in the long term, the necessary transition to sustainable aviation is aviation sustainable to transition necessary the term, long the in transport air Safran. priority for an absolute on halving global commitment up a voluntary took sector In 2008, the aviation CO human activities AMBITION: LOW-CARBON AVIATION BY 2030-2035, 2030-2035, BY AVIATION AMBITION: LOW-CARBON 2050 CARBON NEUTRALITY BY TOWARDS average emissions per passenger kilometer across the worldwide fleet, taking fleet, worldwide the across kilometer passenger per emissions average over the period. in air traffic growth the expected account into trails, for example), scientists estimate that aircraft in service are responsible for for responsible are in service aircraft that estimate scientists example), for trails, about 3.5% of global warming 2020 INTEGRATED REPORT I INTEGRATED 2020 SAFRAN

- ▲ LIQUID emissions 2 distances distances Zero in-flight Zero HYDROGEN CO • Breakthrough Breakthrough Fuels requiring Fuels requiring infrastructures specific aircraft and specific aircraft technology at longer term, term, longer at technology for short- and medium-haul for emissions reduction, and and reduction, emissions 2

2020 INTEGRATED REPORT INTEGRATED 2020 I SAFRAN

2 7 technical obstacles to enable 100% enable to obstacles technical sustainable drop-in of incorporation - genera engine fuel with forthcoming the 50% threshold cross tions, and to primarily This engines. on present-day of the issue the solving involves fuel for pumps and seals of lifespan optimum and ensuring systems performance. combustion work also is Safran time, same the At of CO terms the ReFuelEU Aviation initiative. It also initiative. Aviation the ReFuelEU on synthetic supports pilot projects supplier of As a fuel production. equipment, engines and fuel system on lifting the is working Safran industry ing with other aerospace of option the explore to companies fuel on short- and medium- hydrogen 2035. around for haul or small aircraft ambitious in option is more This requires disruptive innovations in in innovations disruptive requires - of liquid hydro (in the form storage in addition gen) and the fuel circuit, sustainable drop-in of phase-in the to (biofuels and hydrogen-derived fuels expected is decision A fuels). synthetic the on the fuel option for 2025 around and medium- short- next-generation the from taking over haul aircraft A320neo. emissions 2 hydrogen) CO low-carbon (from Potential for zero net for zero Potential SYNTHETIC FUELS • ▲ electric motors flew electric motors TM and infrastructures) the current mix limit of 50% the current in all decarbonization scenarios in all decarbonization Sustainable fuels: Sustainable Key contributor through to 2050, 2050, to through contributor Key emissions 2 2. (not competing CO a workable solution for the near future the near solution for a workable with food crops) Drop-in fuels (usable in existing aircraft aircraft fuels (usable in existing Drop-in Up to 80% lower net Up to 80% lower • Technological development under way to overcome overcome to under way development Technological ADVANCED BIOFUELS ADVANCED SUSTAINABLE FUEL TYPES SUSTAINABLE There is no single solution applicable There - without a con all applications to All pathways on resources. straint be pursued, starting therefore must biofuels, with a with advanced now - environmen the most for preference Development processes. virtuous tally - (cur production fuel in sustainable expensive times more three rently public policy requires than kerosene) support. , for initiatives supports public Safran - a Euro for advocating by example on 10% sus- pean-scale requirement under 2030, tainable fuel in the mix by electric and hybrid architectures, architectures, electric and hybrid of electric-system a range developing turbogenerators, (engines, products and systems) management energy on companies innovative with working conducts also Group The batteries. 2020, In technologies. cell fuel on research ENGINeUS Safran’s aircraft 1 hybrid Cassio on VoltAero’s power to selected and were demonstrator, electric aircraft, e-Flyer Aerospace’s Bye units. 700 exceed which already for orders Safran holds a leading position in all- Safran STRATEGY AND BUSINESS MODEL BUSINESS AND STRATEGY

- aircraft for urban or for aircraft (2) Contributing to to Contributing 3. Electric and hybrid propulsion: propulsion: 3. Electric and hybrid

1. a solution for short distances short a solution for the development of a new of a new the development of ultra-efficient generation with engines compatible carbon neutrality or STOL (1) Vertical Take-Off and Landing aircraft. aircraft. and Landing Take-Off Vertical and Landing aircraft. Short Take-Off (1) (2) The short- and medium-term outlook medium-term and short- The energy in battery developments for hybrid highly and electric means density short- to will be limited propulsion aircraft: flights in low-capacity distance small shuttles, regional aircraft, training and new (in the medium term), aircraft VTOL and helicopters aircraft future for highly meeting the to will contribute fuel reducing on objectives ambitious consumption. suburban transport. Hybrid propulsion Hybrid propulsion suburban transport. Safran is convinced that accelerating accelerating that is convinced Safran carbon neutrality to the transition in generation” a “skipping requires meaning bringing of efficiency, terms a short- 2030-2035 by service into - con that and medium-haul aircraft previous the than fuel less 30% sumes Elec- and General Safran generation. this to contributing are tric (GE) on an engine work through endeavor in a 20% improvement delivers that with the compared fuel consumption LEAP engine (LEAP being 15% more compatible CFM56), the than efficient fuel, with the use of 100% sustainable carbon neutrality. to the way pave to break for calls challenge major This rotor (open technologies through an involving example) engines, for and of aircraft in-depth transformation the and will require their architecture, of airframers. involvement active will aircraft ultra-efficient Tomorrow’s lighter be considerably to also have chain. energy and use an optimized Safran coverage, broad its very With all these challenges, with can address (electric e-taxiing as such solutions lightweight wheel), the driving motor materials, new featuring fittings cabin electrical systems. and optimized (2) (3) 2050 TOWARDS TOWARDS AVIATION Synthetic Synthetic fuel and/or liquid hydrogen, in addition to biofuels advanced High-density batteries Aircraft of Aircraft the future with low-carbon source energy •  •  •  CARBON-NEUTRAL (2) ▲ (biofuels, synthetic fuels) (biofuels, synthetic (6) SAFRAN’S TECHNOLOGICAL ROADMAP (3) Integrated management of electric/hybrid management of electric/hybrid Integrated systems Ultra-efficient propulsion (20% more efficient propulsion (20% more Ultra-efficient than the LEAP engine) e-taxiing electrical aircraft, More design equipment Lightweight with 100% drop-in engines compatible Future SAF option combustion Exploring hydrogen short-haul or smaller aircraft) (for efficient electric motors More        : ultra-efficient : ultra-efficient (4) ▲ ). (1) 2030 - 2035 2030 LOW-CARBON emissions arising from use of its products use of its products arising from emissions 2 compatible with 100% compatible fuels of sustainable short- option for hydrogen and medium-haul aircraft ) Hybridized helicopters Hybridized mobility solutions New Small electric aircraft/ aircraft regional hybrid aircraft (30% less fuel consumption), fuel consumption), (30% less aircraft 20% for with engines accounting of the improvement “Skip a generation” Increased use of sustainable use of sustainable Increased fuels in fleet •  •  (5) •  •  •  •  •  (SAF Extensive Extensive PRIORITIES for 2030-35 range travel range haul aircraft haul aircraft ▲ Electric/hybrid short- and medium- Future ultra-efficient Future ultra-efficient propulsion for short- propulsion STRATEGY AND BUSINESS MODEL BUSINESS AND STRATEGY use of sustainable fuels SAFRAN PRIORITIES FOR GREEN AVIATION PRIORITIES SAFRAN TOWARDS CARBON NEUTRALITY BY 2050 NEUTRALITY BY CARBON TOWARDS 3 1 2 SAFRAN’S CLIMATE STRATEGY CLIMATE SAFRAN’S 26 the priority is to reduce emissions in the medium- and long-haul segment. emissions reduce the priority is to emissions from products from emissions 2020 2 100% Because flights longer than 1,000 km account for 50% of journeys and close to 80% of emissions, to 80% of emissions, and close for 50% of journeys km account Because flights longer than 1,000 KEROSENE Long-haul Short- and medium-haul Regional Helicopters

•  •  •  • 

FLIGHTS OVER FLIGHTS OVER FLIGHTS 1,000 KM 1,000 1,000 KM 1,000

FLIGHTS UNDER FLIGHTS FLIGHTS UNDER FLIGHTS 1,000 KM 1,000 1,000 KM 1,000 Greenhouse Gas Protocol. Greenhouse by 2050. zero to close to fuel production related & emissions/capture gas emissions In-flight greenhouse in service. aircraft for date Target gain (15%). the usual next-generation bringing twice release aircraft new “Skip a generation”: Fuel. Aviation Sustainable to modification without requiring impact, i.e., operational without any kerosene all or some of conventional can replace fuels that are fuels Drop-in or under development. or engines, whether existing aircraft or to example) airports, for (at infrastructures (referred to as Scope 3 indirect emissions in the GHG Protocol in emissions indirect 3 as Scope to (referred (1) (2) (3) (4) (5) (6) Because the production of an aircraft accounts for only a small percentage of its emissions over its life cycle, cycle, its life over of its emissions only a small percentage for accounts of an aircraft Because the production CO reduce is to its primary challenge that considers Safran Reduction in CO Reduction 2020 INTEGRATED REPORT I INTEGRATED 2020 SAFRAN STRATEGY AND BUSINESS MODEL STRATEGY AND BUSINESS MODEL

PRIORITY NO. 2

AVIATION SAFETY Our commitment Aviation safety has always been to aviation safety an absolute Group-wide priority for Safran.

Aviation safety is the responsibility of all Group employees. As a leading global aerospace industry player, FLIGHT SMS(1) Safran gives the utmost importance to safety. The lives of passengers, crew and those on the ground under flight Safran encourages employees to report, paths depend on this. Safran is as committed as ever to assuring its customers (airframers and airlines), passengers, confidentially, anomalies so that they crew and populations under flight paths that the products and services that it supplies are safe. can be remedied to prevent any possible This is an imperative that influences everything we do. jeopardy to safety. Safran Landing Systems employees have access to an anonymous reporting system via the intranet. Reports must be sufficiently precise to ensure the Aviation safety fundamentals necessary remedial action can be taken, for Safran while preserving the anonymity that ultimately ensures that employees will trust the system. The system is also At the end of 2021, European regulations and the possible consequences of their Each company’s policy will come with operational at Safran Aircraft Engines, will extend coverage of the Safety actions, that information sharing is detailed objectives spanning the whole and is ready for other Safran companies. Management System to design and encouraged, and that safety manage- product life cycle, including design, production functions, in addition to ment systems ensure continuous production and maintenance. Accom- maintenance operations, already bound monitoring of and improvement in panying action plans will include details by this requirement in France, Canada safety performance. Safran is stepping on organizational and product focuses. and some Asian countries. Safran is up its harmonization approach here to Safran is preparing for the amendments preparing for application of this directive attain the highest performance level, to Part 21 European regulations on design by further improving the visibility and standing as the industry benchmark in and production practices in the civil reach of its aviation safety fundamentals. this field. aerospace industry. These chiefly involve the implementation Safran has put in place an aviation of a safety management system at each safety policy; Safran Aircraft Engines, company, capable of ensuring company- Safran Helicopter Engines and Safran wide employee compliance with safety Landing Systems had already drawn THE STRONGEST principles and take-up of a strong avia- up formal flight safety policies based a maturity matrix), and the air safety accident investigation methodologies, tion safety culture. on these fundamentals. The other Saf- POSSIBLE AVIATION SAFETY CULTURE THAT: culture (through surveys). employee awareness-raising, and training It is essential that all people in the Group ran Group companies will be following The toolkit content is continuously on air safety. • makes aviation safety are fully aware of their individual roles suit in 2021. upgraded to include shared tools and The joint charter sets out reciprocal a top priority; practical examples. Forthcoming commitments between Airbus and its • prevents and manages aviation THE SMS TOOLKIT: additions include an analysis of the suppliers on communication, experience safety risks; INFORM, SHARE, EDUCATE AND ANTICIPATE impact of regulatory changes expected sharing, development of an air safety • encourages everyone to report in 2021, tools for extending SMS culture, product and organizational risk aviation safety concerns within To strengthen synergies, in 2019 Safran requirements to suppliers, and training management, and SMS rollout. Safran a climate of confidence, through set up a network of SMS leaders in all a just and fair culture; Group companies. The network materials. took up the charter in March 2021. • investigates and addresses coordinates the SMS toolkit, which was safety concerns. made available to all employees in SAFRAN AT THE AIRBUS October 2020. SUPPLIERS SMS FORUM The toolkit includes material for Effective communication and interfacing SAFETY MANAGEMENT simplifying the application of air safety is a key prerequisite in our endeavors SYSTEM ACROSS ALL SAFRAN COMPANIES, WITH requirements in design, production and on tackling and preventing air safety THE ASSURANCE THAT: maintenance processes. There is a guide risks. to help companies draw up air safety Safran is an active participant in the • adequate resources are available; policies, a scorecard on evaluating SMS Suppliers SMS forum run by Airbus with • all Safran employees understand management maturity, safety information its main suppliers and partners. The aim the implications of their own cards, specific examples of safety of the forum is to promote air safety actions on aviation safety; analysis, and surveys on organizational and determine joint approaches, through, • aviation safety is promoted; and human factors. Tools have been for example, a joint charter on data • aviation safety performance is developed for measuring (by means of sharing, management of new risks arising measured and continuously indicators) the safety performance of from the Covid-19 crisis within our improved. our products, operation of the SMS (with organizations and on our products,

(1) Safety management system.

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ASSET NO. 1 SUSTAINABLE INNOVATION: Aircraft energy SHAPING THE NEXT STATE and propulsion chain OF THE ART IN AEROSPACE In this rapidly changing environment, success depends first and foremost on managing disruptive innovation and technological excellence, to provide customers with a critical edge. 1 2 3 4 5 JET ENGINES AND POWER ELECTRIC ELECTRIC POWER GAS TURBINES TRANSMISSIONS GENERATORS MOTORS MANAGEMENT he competitive performance of Safran products depends largely Improving aircraft From materials and To meet the needs Safran offers different Power management Ton the Group’s innovation propulsion systems processes to system of more and all-elec- families of compact yet is taking on an capabilities, across a breadth of sectors is presented on design, Safran keeps tric aircraft, Safran powerful electric motors increasingly impor- including electric taxiing, composite pages 26 and 27. upgrading its systems is developing the with integrated control tant role with the 3D-woven fan blades and hemispheric and equipment to most extensive and electronics, tailored for electrification of resonator gyros. The Group is enhance integration advanced range of various applications such aircraft, to distribute implementing an innovation strategy with engines. “smart” generators as landing gear actuation. this energy and firmly focused on efficient R&T serving on the market, with Other motors are ensure a stable and all its businesses. fully integrated purpose-designed protected power This strategy draws on a dedicated R&T control electronics. to drive propellers on supply. management system and an internal aircraft with all-electric organization providing Group companies or hybrid propulsion with a balance between own development systems. and shared activities. Interactions with the scientific, technological and innovation ecosystem are organized around strategic partnerships, scientific networks and chairs, collaborative innovation in the supply chain and 6 7 8 9 investments in the share capital of innovation-oriented startups. WIRING ELECTRICAL AUXILIARY POWER BATTERIES The number of patents filed bears DISTRIBUTION UNITS (APUs) witness to the creativity of the teams and their capacity to innovate, as well MORE THAN With more and more Because of the high power Emerging more and All aircraft are fitted the importance placed on protecting functions going electric, required by non-propulsive all-electric architectures with batteries used to start intellectual property. Safran stands 1,000 75% aircraft need denser electrical functions and are changing the traditional their engines. Tomorrow’s of R&T investment 16% initial patent requests and more complex emerging propulsion needs role of the APU, making batteries will have to rise to among the front-runners for patents of workforce focused on filed by Safran wiring systems. Safran is especially propulsion, it less and less “auxiliary”! the challenge of electric filed with the French patents office in R&D environmental worldwide in 2020 (Institut National de la Propriété efficiency developing these systems the aim is to develop Safran is therefore propulsion. Safran is Industrielle – INPI). Overall, the Group’s with its advanced modeling smart distribution systems, developing the eAPU to naturally focused on system, and is also working capable of managing address the requirements significantly increasing patent portfolio protects close to 12,000 on systems capable of an increasing number of new more electric battery power density and inventions and encompasses over handling the high voltages of loads, and supporting aircraft, and is already endurance, while keeping 45,000 intellectual property titles. needed for electric high voltages without looking further ahead weight as low as possible. propulsion. overheating, short with fuel cells that could Even so, Safran considers THE AEROSPACE INDUSTRY SUPPORT PLAN circuits or arcing. supplement or even the prospect of an all-elec- 5 R&T Safran’s strategy is closely aligned with the measures set out in the French replace APUs. tric medium- and long-haul PRIORITIES: government’s aerospace support plan, announced in June 2020, to limit aircraft unrealistic for the the impacts of the Covid-19 crisis. time being. In R&D, the plan aims to turn France into one of the most advanced leaders — Aircraft energy and propulsion in “green” aviation technologies: ultra-low energy consumption for all future chain platforms (short- to medium-haul, regional, helicopters), electric hybridization on regional aircrafts and helicopters, and engines compatible with 100% — High‑performance materials sustainable fuels, etc. Since 2020, Safran has been involved in a number of NEW AIR MOBILITY: A STRATEGIC FOCUS FOR SAFRAN and processes in-depth research projects, on aircraft engines (successor to the LEAP engine), Working in partnership with airframers in a highly dynamic ecosystem, Safran stands out as a leader in key systems — Aircraft cabin of the future the hybrid-electric light helicopter demonstrator (HELYBRID project), (propulsion, equipment and interiors) for players in urban and regional air mobility. Safran is ideally placed to provide and the HYPERION project to assess the challenges of a hydrogen engine. — Navigation and autonomy electric and hybrid propulsion and autonomy solutions for demonstrators and forthcoming commercial programs. The aerospace support plan will enable Safran to maintain its overall research technologies In 2020, Bye Aerospace selected Safran to supply ENGINeUSTM smart electric motors for its e-Flyer aircraft. and technology activity on decarbonization over the coming years. — Digital technologies

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High‑performance materials Digital technologies and processes

ADDITIVE MANUFACTURING These processes also open opportunities Limited on the rollout of Cassiopée The need to reduce aircraft and Higher running temperature is also a Additive manufacturing provides an for reducing the cost and environmen- Alpha, its new flight data decoding and equipment weight leads to an increased key factor in improving engine perfor- opportunity to improve costs, cycles tal impact of transportation in the analysis software platform, across the use of composite materials. Safran mance. The Safran Ceramics complex, and performance for numerous engine production of parts. Safran Tech’s Saf- whole of its fleet of more than 600 engines and equipment, whether opened in 2018, centralizes Group and aircraft equipment components, by ran Additive Manufacturing hub aircraft. nacelles, landing gear or brakes, are research on ceramic matrix composite reducing the number of parts and tool- accelerates the development of these characterized by heavy mechanical materials adapted to very high temper- ing and introducing new methods of processes for future use in series pro- ELECTRONICS, DIGITAL PLATFORMS loads. To develop these solutions, Safran atures. Lastly, a platform for developing optimizing design. duction and repairs. Safran will be AND CRITICAL SOFTWARE set up the Safran Composites Center, new monocrystalline casting techniques centralizing all its capabilities at a new Given that onboard electronics tech- part of the Group’s R&T center, Safran for turbine fans was inaugurated in 2019. site under construction in Haillan, near nologies for harsh environments are a Tech, with resources and expertise in Bordeaux, which will house all the central feature of many Group products, organic matrix composites. Group’s operations in research, indus- Safran Electronics & Defense runs ambi- Up to trialization and production of additive tious projects on controller architectures 50 components manufacturing components, to encour- featuring more efficient processors, and replaced age optimally efficient rollout across all on component packaging capable of by a single part relevant products. withstanding the higher temperature environments of future aircraft systems. DATA PROCESSING In systems engineering, Safran is work- Lead time Techniques used to diagnose and fore- ing on process harmonization: a software Navigation divided by 6 cast the condition of aircraft equipment development workshop has been set and autonomy and systems bring value for Safran prod- up for Group-wide rollout. technologies uct users, as regards both operational considerations (optimization of main- tenance) and fleet management support (evaluation of residual value). With Saf- Air, land, sea, satellite and military navi- ran Analytics, front-line digital resources gation markets are constantly evolving 15% are implemented for complex data pur- and expanding. Operational and reduction in poses. economic gains are sought by increasing manufacturing costs Such techniques also entail demanding autonomy, and by ensuring land-onboard requirements on managing growing continuum via secure links. Actions such volumes of flight data, a field in which as these prove to be powerful drivers Safran holds substantial international of renewed technological development. experience. In November 2020, Safran Safran is actively preparing the shift 25% SAFRAN ECO-DESIGN mass reduction Electronics & Defense signed a contract to autonomous systems for civil and AND PRODUCT LIFE-CYCLE with China Southern Airlines Company MANAGEMENT defense applications based on tech- The aircraft cabin nologies developed in optronic sensors, Environmental impact reduction at of the future inertial navigation, critical onboard elec- each stage of a product’s life cycle is an integral factor, from product tronic systems and image processing design onwards. Safran pays and analysis. The use of sensors and particular attention wherever Through system integration and opti- Safran Cabin Innovation, Safran offers artificial intelligence in an integrated non-renewable natural resources mization, the aircraft cabin of the future its customers opportunities for improving system resulted in eRider, an auton- SAFRAN CORPORATE VENTURES: are used, making product will offer passengersenhanced comfort revenues (by adding seats capable of omous vehicle demonstrator for military VENTURE CAPITAL FOR INNOVATION repairability a key point in its and traveling experience. Through generating revenue or providing new applications that can transport infantry offering of maintenance solutions. services), offering an incomparable equipment on the ground and navigate Safran also proposes the use of reconditioned parts, applying passenger experience (with a more autonomously. The demonstrator helped Safran Corporate Ventures, the Safran investment subsidiary formed a circular-economy logic in spacious and comfortable cabin, new Safran Electronics & Defense win the in March 2015, contributes to the Group’s innovation strategy by financing partnership with other industry features, etc.), and creating or enhancing Furious contract put out for tender by companies at average first-round amounts of €1 million to €5 million, players. In 2007, Safran partnered brand image (through distinctive service, the DGA(1). The tender covers auton- under an overall portfolio target of €80 million. with Airbus and Suez in founding design and products). omous vehicles, small land robots and Its fields of interest include decarbonization, industry 4.0, new materials, etc. Tarmac Aerosave, which has Safran is also developing innovative drones, laying the groundwork for become the European benchmark solutions in three major aspects of the autonomous and collaborative combat Since its creation in 2015, Safran Corporate Ventures has invested in 11 tech operator in storage and aircraft cabin of the future: smaller systems. Proficiency in technologies companies, ten of which are still in its portfolio. In 2020, it provided ongoing dismantling of military and civil ecological footprint, equipment connec- merging navigation and environment support for the companies in its portfolio to help them tackle the crisis, aircraft. Since 2007, 250 aircraft while also taking part in the refinancing of Outsight. tivity, and cleanliness to rebuild perception data also enables the devel- and 140 engines have been During the year, Safran Corporate Ventures also contributed to half a dozen dismantled and recycled, with passenger confidence in the wake of opment of piloting assistance partnerships or demonstrators between Group companies and innovation- the Covid-19 crisis. applications for all types of aircraft. a recovery rate of more than 92% oriented startups. of total aircraft weight.

(1) French Directorate General of Weapons Procurement (Direction générale de l’armement).

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ASSET NO. 2 OPERATIONAL EXCELLENCE: FOR LASTING CUSTOMER TRUST Supply-chain performance Constant improvement

Safran aims to become its customers’ leading supplier Excellence in supply-chain control is a assurance managers, responsible for The Safran+ progress approach by offering world-class products and services. prerequisite for performance quality ensuring day-to-day quality of all encompasses a number of permanent Flight quality and safety are the number-one decision criteria in product delivery. Safran’s purchasing products purchased. The supplier quality and cross-Group initiatives: for all Group employees. policy is designed to meet its objectives assurance managers are backed by a participative innovation initiatives of excellence, in seamless alignment team of more than 200 supplier enabling employees in all sectors to with its manufacturing strategy. Safran performance managers, who identify put forward ideas for improving has successfully built a supplier panel risks, provide support on risk prevention, company performance. More than that meets its present and future measure suppliers’ quality and delivery- 109,000 employee ideas were taken performance needs (cost, quality and time performance, and ensure that up across all the Group’s business Voice of the customer, Digital transformation lead time) and enables Safran to provide progress plans are properly implemented sectors in 2020; a Safran priority for the highest its customers with innovative, value- and that a business continuity plan is Lean Sigma, with Green Belts, Black operational standards creating solutions. in place. Belts and Master Black Belts driving To develop an agile supply chain, the The requirements that Safran applies to the Group’s transformation through Customer confidence and satisfaction Group promotes supplier involvement its suppliers are formalized in its general a structured and standardized project is founded on the Group meeting its from the development stage of its purchasing conditions, in the general management approach; Tools and resources in design, produc- products and services, inviting them to quality requirements set out in the SAFe QRQC(2), initially developed across commitments to quality-cost-lead time tion, maintenance and services benefit and the safety of products and services put forward their innovations and (“SAFran exigencies”, French for industrial and technical operations in from Safran’s investments in digital delivered. contribute the full breadth of their requirements) document, based on the all Group companies, and now also solutions such as augmented reality, Performance quality for services is expertise. Safran has also designed a EN 9100 standard and on customer and being phased in across support robotics, imaging, artificial intelligence founded on constantly listening to policy to diversify suppliers, by regulatory requirements, and in product- functions. and data use. These new applications customer needs. Maintenance centers systematically qualifying multiple specific documents. The 2020 version significantly improve operational per- have been located to ensure maximum sources for critical materials and parts. of SAFe will extend the Advanced PARTICIPATIVE INNOVATION, formance in terms of cycle, cost and proximity to customers, and the Group Safran’s suppliers undergo a rigorous Product Quality Planning (APQP) BOOSTING RESILIENCE product quality. Digital transforma- has also developed remote maintenance selection and approval process. Decisions requirements, strengthen requirements IN TIMES OF CRISIS tion stands at the heart of the Safran solutions to enable rapid and efficient to award new supply or development on prevention and remediation of quality Leveraging employees’ know-how, strategy. The Factory of the Future is troubleshooting and action. For the past contracts are taken collectively by a deviations, clarify design requirements industrial capabilities and creativity, the method of choice for obtaining the (1) 12 years, under a maintenance in oper- Supplier Selection Committee spanning for build-to-spec suppliers and promote Safran’s structured continuous best possible profitability from invest- ational condition (MCO) contract for industrial, quality and purchasing industry-wide standardization. Safran’s improvement method helped to achieve ments and a disruptive competitive- helicopter engines with the French functions. Suppliers are regularly audited responsible purchasing charter is also effective implementation of multiple ness tool producing remarkable pro- CUSTOMERS ARE government, Safran has been guaran- and monitored by supplier quality an SAFe requirement. ideas, and to identify appropriate ductivity gains. It is a major asset for SAFRAN’S PRIMARY teeing a 100% service rate for all of the solutions in record time, such as using the Group’s current activities. Appro- CONCERN THROUGH 1,600 helicopter engines in service in 3D printing tools to produce protective priately paced rollout of this project THE COVID-19 CRISIS mainland France and overseas territories barrier systems for use at Safran sites, continued in 2020: of the 49 projects and on overseas operations. In 2020, and manufacturing metal plates for for the production lines of the future Safran Helicopter Engines opened a new medical structures in the United States. Throughout the crisis, Safran teams identified in 2018, 24 were operational 4.0 aerospace maintenance facility in OPERATING EXCELLENCE IN HEALTH, remained particularly focused on by the end of 2020. south-west France that will offer SAFETY AND THE ENVIRONMENT (HSE) providing high quality service to Safran’s health & safety culture Group customers. The Safran customers a 30% reduction in mainte- Aircraft Engines customer support nance cycles. Safran is committed to nurturing a culture of prevention of occupational center remained open 24 hours a health and safety risks, for the greater benefit of its employees, suppliers, day, 7 days a week despite the crisis customers, and all other stakeholders concerned by its operations, in a spirit ONE SAFRAN, AN ASSET and the steep fall in air traffic, of transparency and sincerity. Faced with the Covid-19 crisis, Safran teams IN TIMES OF CRISIS continuing to answer all airline immediately mobilized to take effective measures on adaptation and employee company queries within four hours. protection. Alongside the health protection protocol applicable to all sites, Safran also reinforced measures on psychosocial risk prevention. Safran is pushing ahead with Vertical magazine placed Safran In April 2020, it opened an attention and support service for employees its One Safran initiative on the Helicopter Engines at the top of in France and overseas. rollout of top-level industrial its ranking of engine manufacturers, Rollout of Safran’s occupational health, safety and environment standards, launched nearly five in recognition of the quality of its policy draws on: years ago. Continuous improvement products and services. Customer efforts were rapidly refocused support during the crisis was rated • a tight-knit organization across all levels, with HSE coordinators at tier-one on the operational priorities arising good or excellent by 80% of entities, site prevention officers, occupational health services, ergonomists, from the impact of the pandemic customers, some of which were a network of decentralized experts, and division coordinators covering several on the business, in order to uphold involved in performing key public entities locally; core work standards, adapt to health service missions during this period • Safran’s global Health, Safety and Environment (HSE) guidelines meeting constraints, and guarantee product (transport of patients, protection the requirements of ISO 14001 and ISO 45001 standards, for steering risk and service quality and customer of populations, etc.). management and improving HSE performance. satisfaction.

(1) Designed by the supplier according to customer specifications. (2) Quick Response Quality Control, a fast problem solving management method that emphasizes constant vigilance and immediate response.

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ASSET NO. 3 RESPONSIBLE CONDUCT: A responsible relationship A STAKEHOLDER DEMAND with suppliers and subcontractors Safran’s leading positions in aerospace, defense and space owe everything to the dedication of its 78,892 employees, and to its many partners. Safran operates a purchasing policy that comply with international trade regula- seeks to ensure it works with suppliers tions and with all applicable requirements Safran propagates a culture of integrity to ensure ethical conduct and commercial Safran holds the guaranteeing high-performance, reli- on environmental protection, personal compliance in all its business relationships. Seeking to increase employee engagement, Responsible Purchasing the Group is committed to developing employability through stimulating career paths. ability and strict compliance with all health and safety, ethics and labor and Supplier Relations applicable national and international relations. label(1) since 2014 Strong emphasis is also placed on talent diversity, with Safran convinced regulations. Suppliers are required to The policy ensures business is awarded of the benefits of a diverse workforce. to suppliers capable of meeting the Group’s standards, its competitiveness PURCHASING Safran has been criteria and the demands of the aero- a member of the space, defense and space markets. SME Pact since Alongside its suppliers and subcon- 2010(2) Commercial compliance, 48.5% tractors, Safran is committed daily in of adjusted Group the search for operational excellence, a decisive factor and revenue complete commitment competitive performance and carbon footprint reduction. The Group seeks to Under its duty of care plan (in application offer its customers the very best, through of French law 2017-399 of March 27, fair, long-term relationships of trust that 2017 on duty of care), Safran assesses In 2012, Safran became the first CAC 40 program operated by Safran SA and all takes eight focuses: exemplary conduct 42% address the challenges of the aerospace the risks faced by the Group and its company to obtain “anti-corruption” the subsidiaries and companies under from the very top (“tone at the top”); of purchasing volume industry. Safran helps its suppliers and main subcontractors and suppliers in certification from the French Agency its control. specific risk mapping; code of conduct; sourced in France, subcontractors tackle the Covid-19 crisis the areas of the environment, health, including 83% sourced for the Diffusion of Technological Safran’s corruption detection and dedicated organization; appropriate and the repercussions on the aerospace safety and human rights, along with the Information (ADIT). This certification, prevention program is based on the procedures; information and training from SME and mid-sized companies industry, notably with a crisis monitoring measures taken to prevent and minimize renewed in 2017, attests to the robustness requirements set by international program; procedure monitoring; as well and support unit. such risks. of Safran’s anti-corruption program, the conventions and the national regulations as an internal whistleblowing alert requirements of which align with those applicable to Safran’s operations. system. of the most rigorous international It seeks to instill a Group-wide culture The corruption detection and prevention standards: US Foreign Corrupt Practices of honesty, as set out in Safran’s Ethical program comprises a series of standard Act, UK Bribery Act, OECD Convention, Guidelines, and convince operational operating procedures applied by each the French Sapin II Act, the tenth employees that it is imperative to Safran subsidiary in accordance with Safran, a responsible employer principle of the United Nations Global demonstrate exemplary conduct in this local legislation applicable to its EMPLOYEE Compact, and ISO 37001. In 2020, the regard. With the dual objective of organization, products and markets. It SHARE OWNERSHIP, French anti-corruption agency (AFA) developing personal responsibility and is also proposed to affiliates in which A SAFRAN PRACTICE audited the corruption risk prevention protecting Group assets, the program the Group is not the majority shareholder. STRONG MOBILIZATION A RECOGNIZED EMPLOYER BRAND Safran successfully encourages TO LIMIT THE IMPACT Safran’s policy on constant development its employees to hold shares OF THE COVID-19 CRISIS of the employer brand and attractiveness in the Company, through Safran reacted rapidly to minimize the is designed to help it draw in top talent. permanent measures such as impact of the crisis on its operations, Long‑term partnerships are forged to savings plans: 49% of Group adjusting its organization and applying strengthen ties with schools and employees worldwide hold the measures brought in by local universities running courses in aerospace- Safran shares. In connection PREVENTING EXPORT CUSTOMS legislation. related subjects. Safran also fields a with employee share ownership, two representatives of the INTERNAL CORRUPTION RISKS CONTROL REGULATIONS In 2020, 16,551 employees left the Group dynamic employee network of 265 Safran employee shareholding funds (mainly in the United States and Mexico). ambassadors, graduates from selected NETWORK • 242 Trade Compliance • 439 Export Control • 140 Customs Officers participate in the work Correspondents, Experts and and Correspondents In France, an Activity Transformation schools and universities. Despite the

▲ ▲ of the Board of Directors. ▲ Managers and Officers Correspondents Agreement was signed with all trade crisis, Safran recruitment continued In 2020, Safran launched unions in July 2020. This agreement worldwide, with more than 3,300 new a new international employee EMPLOYEES safeguarded around 10,000 jobs, hires across the world and more than shareholding plan, aimed at TRAINED while upholding solidarity among 3,200 work-study students in Europe. associating employees with > 5,600 > 3,800 442 employees and building the skills and Safran has a recognized employer brand: Safran's objectives, successes IN 2020 expertise needed for business recovery. 4th place in the Universum “students” and future performance. Employee Under the agreement, Safran also ranking, best employer worldwide take-up of the new plan proved enthusiastic. Employee share benefits from the French government’s in Forbes’ aerospace and defense sector 99 information memos 9 tier-one entities 20 tier-one entities ownership, totaling 7.25% (10.4% and 2 companies certified 73 trade compliance short-time working measures. ranking, and 8th place (2nd in the “Air, Risk mapping issued on corruption risks holding ADIT (or currently Authorized Economic Operator or reviews performed at tier-one in voting rights) at December 31, for 100% of subsidiaries to persons concerned renewing) anti-corruption Rail & Sea” category) in Capital 2020, provides a stable long‑term throughout the Group certification equivalent Customs certification and tier-two subsidiaries by custom authorities magazine’s annual ranking of the best shareholder base. employers in France.

(1) The Responsible Purchasing and Supplier Relations label replaces the Responsible Supplier Relations label. (2) France agreement scope (excl. Safran Aerosystems, Safran Passenger Solutions, Safran Seats, Safran Cabin).

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Workplace gender equality is crucially organizational and managerial creation of interactive, mutually important for Safran, with the resulting adaptations are a necessity, through supportive networks of executives who 78,892 balance and diversity representing a collaborative management, develop their transformative capabilities employees, major asset in response to the challenges autonomous cross-functional teams, and acquire and transmit the Group’s of which to come. In 2020, women accounted multi-machining, multi-skills, values and culture. Faced with the health for 27.7% of the Group’s workforce. For internationalization of managerial crisis in 2020, Safran University 2025, Safran has set an objective of practices, etc.; reconfigured its operations to ensure 27.7% increasing the proportion of women Safran’s well-established skills (in effective continuity in its teaching women among senior managers to 22%. mechanics, avionics and materials) programs and employee training remain major factors in Safran’s ability capabilities, In 2020, 77% of Safran Safran is intent on achieving a lasting to stand out from the competition University’s training was online. change in corporate culture, eradicating and will gradually include digital the gender pay gap, and raising employee technologies to offer high-performance 3,332 awareness to counter discrimination products and services. new hires and unconscious stereotypes and biases. It also wishes to become a more attractive employer to women and to increase the number of women in 34.6% management positions. proportion of women 1,418 mobilities and transfers among new hires For over ten years now, Safran has been EMPLOYEES PREPARED running a proactive policy on the FOR TOMORROW’S CHALLENGES inclusion of people with disabilities, Skill sets and business lines must adapt covering four key objectives: keeping to address increasingly critical employees with disabilities on the payroll, Approx. environmental challenges, accelerating hiring people with disabilities, working 5.37% change in the aerospace industry, employment rate of with sheltered workshops and disabled- toughening demand for competitiveness, disabled workers 1 million staffed companies, and ensuring a hours of training (on-site and distance) the need to step up Group digitalization, disability-friendly workplace (according worldwide in 2020 and emerging employee aspirations: ENCOURAGEMENT to the Afnor standard). Safran has set EMPLOYEE TRAINING, digital skills in fields such as data ON VARIED CAREER PATHS itself an objective of increasing the A SAFRAN PRIORITY governance across all business lines, 84% of employees attended performance employment rate of people with Each year, Safran’s strategic training data science, data architecture, data and career development interviews in disabilities to 6% of the workforce. focuses are shared with all of the Group’s engineering, digital continuity, 2020. Varied career-path propositions HR and managerial teams. Safran 67% predictive maintenance, software, are available to all employees, through attendance at one or University develops a full catalog of more training sessions artificial intelligence, additive career committees in operational entities training courses, and Group companies in 2020 among all manufacturing, cybersecurity etc.; and Group cross-functional committees. assess training priorities in line with employees worldwide expertise in systems engineering, Workforce fluidity and opportunities for these focuses. navigability and systems architecture employees to switch jobs and locations Safran University acts as a key vector are growing in strength to position seamlessly, to develop existing skills for onboarding new hires, transforming the Group as a global solutions and acquire new ones, is both a key the organization and instilling leadership DIVERSITY AND INCLUSION, architect; to maintaining their employability across the Group. It handles induction CORPORATE CULTURE skills in areas such as power electronics, and a prerequisite for the Group’s for new recruits and on-site or online Diversity is at the core of the identity energy management and new fuels transformation and agility. In the context training for Group employees from of Safran, whose employees work in must be developed as part of the of the Covid-19 crisis, Safran strengthened different companies, countries and over 25 different countries and cover a ecological transition drive; its encouragement and support for multitude of professions. This diversity business lines, in a manner that inspires mobilities across subsidiaries impacted is an intrinsic part of the Group’s success: pride and a sense of belonging in the in different ways and to different strong strategic fits of profiles, skills and Safran community. It ensures skills extents by the pandemic. A total of viewpoints is a powerful force behind development and participates in the 1,418 employees changed business creativity, innovation and collective function and company in 2020. performance. It is essential for Safran At the same time, Safran stepped up its to recognize and value individual Safran is also active in social inclusion 13% HR policy aimed at allowing employees singularities, and to develop an inclusive and professional integration for young women among senior to sidestep from a declining profession corporate culture. The Group has a people. In 2020, Safran kept up its efforts managers, with 22% to a growing one. The crisis has actually objective for 2025 diversity and inclusion policy, promoting despite the economic crisis by welcoming expanded career opportunities, nudging equal opportunity and combating all more than 5,000 interns, work-study employees toward openings in growing forms of discrimination. Safran has been students, PhD graduates and young professions, in digital transformation a signatory to the diversity charter since people on international corporate and ecological transition for example, 2010, and ensures that its principles are volunteer programs. More than 50% of 2.73% and encouraging the development of applied throughout all the Group’s graduate positions were filled by young absenteeism rate new skills through a program put companies. people trained within the Group. together with Safran University.

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SAFRAN’S ENTERPRISE MAIN RISKS RISK MANAGEMENT SYSTEM The risks identified by Safran as material are ranked by criticality (in terms of likelihood of occurrence and potential impact) in a limited number AND ITS MONITORING of categories, consistent with Safran’s three key assets. Safran operates a robust Enterprise Risk Management (ERM) system.

FOCUS ON CLIMATE RISK

afran’s ERM set-up has spawned ties, the central corporate departments, Each tier-one entity has a risk manager a strong risk management culture and ultimately the Group Risk Committee. who prepares a risk map and constantly To contend with the climate change spanning all company processes. liaises with the Risk and Insurance Asset No. 1 Asset No. 2 Asset No. 3 related physical risks to which S the Group is exposed, Safran has Today, it enjoys very strong take-up by The Risk and Insurance Department Department. Risk managers are tasked all teams, across all units and at all levels reports to the Deputy CEO. It comprises with implementing the risk management devised an HSE (Health, Safety SUSTAINABLE OPERATIONAL RESPONSIBLE and Environment) strategy and throughout the organization. the Risk and Insurance Department direc- process for their entire operational INNOVATION EXCELLENCE CONDUCT governance framework to ensure ERM has become one of the Group’s tor and Corporate Risk Managers, and is scope, i.e., in their respective tier-one appropriate protection for all key performance drivers. Full details on responsible for implementing the Group’s entities and in their subsidiaries and its employees and assets. the system can be found in chapter 4 ERM system. investments. Self-funded Digital Responsible Safran is deploying a proactive of the Universal Registration Document. It develops methodological techniques Each of Safran’s central corporate R&T and R&D transformation purchasing strategy underpinned by quantified Identification, appraisal, processing and and processes to ensure consistent departments also prepares a map of objectives for meeting key climate Patent portfolio Health, safety, No discrimination change challenges and the control of major risks is regularly updated handling of risks by tier-one entities and the main risks in its scope. environment by the risk committees of tier-one enti- central corporate departments. increasing scarcity of fossil fuels, by carefully controlling and reducing its energy consumption and the greenhouse gas emissions produced by its operations and services (Scopes 1 and 2). To manage FINANCIAL PERFORMANCE this transition risk, Safran has deployed a number of targeted Chief Executive O cer Board of Directors actions for improving the performance of its new buildings, reducing energy consumption at its existing sites, and switching Group Risk Committee Audit and energy sources by using (Chief Executive O cer + 8 Directors) Risk Committee breakthrough solutions for heat generation, selecting low-carbon energy sources, or introducing Risks relating to the environment Risks relating to Group operations biofuels into its engine tests. The Audit and Risk Committee Safran contributes to the work of R H A in which the Group operates – Aircraft accidents reviews the risk mapping international institutions in drafting – Changes in the competitive – Delays, program development ERM and the work related to the environmental standards on main risks faced by the Group, landscape (political and geopolitical and industrialization aerospace industry decarbonization. as presented to it twice uncertainties, health uncertainties, – Products and services Following a technological roadmap a year by the Risk and including measures on tackling – Supplier and partner risks on reducing the emissions from the Group Risk and and Insurance Department. Covid-19, etc.) – Health, safety use of its products (Scope 3), all of Insurance Department The Committee reports to – Changes in economic conditions and environmental risks Safran’s R&T activities are oriented the Board of Directors on its – Impact of the aviation cycle – Personal safety risks towards: risk management work – Competition – Data confidentiality — designing engines that consume at the same intervals. and cybersecurity risks less fuel and lighter aircraft equipment that contributes H A Financial market risks to reducing CO2 emissions; ERM – Foreign currency risk Risks relating to the Group’s — participating in research programs – Interest rate risk strategic development on sustainable fuels (biofuels, – Counterparty risk – Technological evolutions liquid hydrogen, etc.); – Liquidity risk – Uncertainty regarding returns — developing more electric aircraft Central corporate on investments with an optimized energy chain Tier-one entities departments (electric/hybrid propulsion for Legal and regulatory risks – Dependence on government short-distance travel). Risks of negative media coverage procurement contracts – Acquisition and restructuring risks Tier-two entities and joint ventures Risks relating to climate change Human resources risks

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A BOARD OF DIRECTORS AN EXPERIENCED BOARD INCORPORATING BEST GOVERNANCE OF DIRECTORS TAKING UP THE GROUP’S STANDARDS INTO ITS ACTIVITIES STRATEGIC CHALLENGES Safran refers to the “Corporate Governance Code A Board membership structure that is consistent with Safran share ownership. of Listed Corporations” drawn up jointly by the French employers’ associations, AFEP and MEDEF. Safran’s Board of Directors determines its strategy and oversees its implementation. THE BOARD OF DIRECTORS SHAREHOLDER VOTING RIGHTS AT DECEMBER 31, 2020 AT DECEMBER 31, 2020

(number of Directors) (as a %) SEPARATION OF THE ROLES Audit and Risk 10.4 OF CHAIRMAN OF THE BOARD Committee Employees 4 and employee Employees OF DIRECTORS AND CHIEF shareholders EXECUTIVE OFFICER 17.1 Link 72.5 French State Since 2015, the Board has chosen to Appointments and Board of Directors Independent 9 2 to French separate the roles of Chairman of the Compensation Committee State(1) Free float Board of Directors and Chief Executive Chief 1 Executive Officer. O cer Innovation, Technology This choice of governance, confirmed & Climate Committee Other 1 1 Chairman with the appointment of Olivier Andriès Chairman of as the new Chief Executive Officer as the Board of Directors from January 1, 2021, brings the Group the combined benefits of his managerial Chief Executive O cer and industrial record in addition to the A diverse range of profiles, expertise and skills within the Board international stature of the Chairman, Scientific Committee Ross McInnes. Complementarity across Executive Committee their profiles will be one of the underlying The Board of Directors has a wide range Compliance, Ethics and Experience and specific positions factors enabling the Group to be Number Anti-Fraud Committee, of experience, making it well equipped exercised by Directors in different sectors governed harmoniously, based on of Directors to deal with strategy and performance and activities transparent relations between the Board challenges. It regularly considers the of Directors and Executive Management Aerospace industry 11 desired balance and diversity of its and a balanced and respectful distribution Other industries Chief Executive Officer, the Board felt INDEPENDENT DIRECTORS membership structure and that of its 15 of roles between the Chairman of the that it would be good practice to have The aim of having independent Directors Committees. Its diversity policy is Innovation, R&T, Development, Engineering 13 Board and the Chief Executive such a Director. on the Board is to provide shareholders structured around principles and Officer, thus guaranteeing an effective International career and experience 11 with assurance that the collegiate body objectives related to the size of the segregation of duties. AN INDEPENDENT DIRECTOR of the Board comprises members who Board, the representation of the Strategy, competition and M&A 12 RESPONSIBLE FOR MONITORING have total independence to analyze, judge, Company’s various stakeholders, the Finance and management control 11 LEAD INDEPENDENT DIRECTOR CLIMATE ISSUES take decisions and act, always in the proportion of independent Directors, In 2018, the Board of Directors decided Digital – New technologies 6 Fully aware of the strategic importance Company’s interests. Highly engaged and the depth and fit of the Directors’ skills to appoint Monique Cohen as Lead of climate issues for the aerospace indus- involved in the Board’s work, their freedom and expertise, international experience, Governance and compensation 14 Independent Director and define her try, in early 2021 the Board of Directors of judgment and expression contributes and gender balance. Human Resources – CSR 11 duties. Although the position of Lead appointed Patrick Pélata as Director to the quality of the Board’s discussions Independent Director is not indispens- responsible for monitoring climate issues, and decisions. Their professional and able because the Company has separated and defined his roles and responsibilities personal experience provides an external the roles of Chairman of the Board and accordingly (see page 45). view that is beneficial for the Group. Committees addressing the Group’s strategic challenges (2020 key figures)

EXECUTIVE SESSIONS AND ASSESSMENT OF BOARD OPERATING PROCEDURES As part of the formal self-assessment of its operating procedures, the Board decided that an “executive session” should be Appointments Innovation, added at the end of each scheduled Board meeting as from 2021, enabling Directors to discuss functionning of the Board Audit and Risk Committee and Compensation Technology & Climate if required. Previously, two “executive sessions” were held per year. At these sessions, not attended by any executive or Committee Committee in-house Directors, the other members of the Board generally discuss the functionning of the Board and its Committees, the performance of the Chairman and the Chief Executive Officer and the work carried out on succession plans, and identify issues to be addressed at subsequent Board meetings. 6 6 9 8 2 5 meetings members meetings members meetings members The self-assessment process confirmed the main observations of the 2018 assessment (carried out with input from an external consultancy), namely satisfaction with the separation of the roles of Chairman and Chief Executive Officer, the Board’s functionning (very professional, good balance between operations and strategy, and high-quality documents 94% 80% (4 out of 5) 90% 71.43% (5 out of 7) 100% 75% (3 out of 4) provided), and the handling of strategic issues. attendance independent(2) attendance independent(2) attendance independent(2) In 2020, the Directors also noted that progress had been made on the measures and action plans put in place for the areas of improvement that were identified in the 2018 assessment. (1) One representative of the French State appointed by way of a ministerial decree and one Director put forward by the French State and appointed by the Annual General Meeting. (2) Excluding Directors representing employee shareholders and Directors representing employees, in accordance with the AFEP-MEDEF Code.

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MEMBERSHIP STRUCTURE OF THE BOARD OF DIRECTORS AND ITS COMMITTEES table, and also enables the Board to She would also make valuable (AT MARCH 25, 2021) benefit from his contribution to its contributions as a member of the Audit BOARD OF DIRECTORS discussions. and Risk Committee. (2020 key figures) At the May 28, 2020 Annual General Laurent Guillot will take over as the Meeting: Chairman of the Audit and Risk – Patricia Bellinger was appointed as Committee, after the Annual General 10 an additional independent Director; Meeting, on expiration of the term of meetings – Anne Aubert and Marc Aubry were office of Odile Desforges. appointed as Directors representing employee shareholders. Proposed re-appointment of three ROSS OLIVIER ANNE MARC HÉLÈNE Suzanne Kucharekova Milko, Secretary- independent Directors, including the McINNES ANDRIÈS AUBERT AUBRY AURIOL POTIER General of the French State Investments Director responsible for monitoring 98% Agency (APE), was appointed as climate issues: Chairman Chief Executive Director Director representing Independent attendance of the Board Officer representing employee Director representative of the French State. The Board will also propose the of Directors employee shareholders re-appointment of the following three I ACC ITCC shareholders PROPOSITIONS PRESENTED independent Directors: ARC TO THE ANNUAL GENERAL Hélène Auriol Potier, who is also a 18 MEETING OF MAY 26, 2021 member of the Appointments and Directors Proposed appointment of a new female Compensation Committee and the independent Director, with a change Innovation, Technology & Climate in the composition of the Audit and Committee; Risk Committee: Sophie Zurquiyah, who is also a 64.3% The Board will propose the appointment member of the Audit and Risk Committee; of Fabienne Lecorvaisier as an Patrick Pélata, who is also Chairman PATRICIA HERVÉ JEAN-LOU MONIQUE ODILE (9 out of 14) (1) independent Director to replace Odile of the Innovation, Technology & Climate BELLINGER CHAILLOU CHAMEAU COHEN DESFORGES independent Directors Desforges. She has all of the qualities Committee and a member of the Independent Director Independent Lead Independent Director that the Company was seeking during Appointments and Compensation Director representing Director Director Chair of the Audit the selection process. Committee. employees Chair of the and Risk Committee I ACC I ACC ITCC Fabienne Lecorvaisier would bring to Appointments and ITCC I ARC the Board the experience that she has With the appointment of Patrick Pélata Compensation CHANGES IN THE MEMBERSHIP Committee STRUCTURE OF THE BOARD gained in various functions within as the Director responsible for OF DIRECTORS IN 2020 international industrial groups in France monitoring climate issues, the I ACC Olivier Andriès, Chief Executive Officer, and overseas, as well as her expertise shareholders would also have the was also appointed as a Director, as a Chief Financial Officer and her opportunity to express their support effective from January 1, 2021. This experience as a Director. She also has for the climate approach adopted by decision reflects the Board’s continuing the skills, profile and ability to take on Executive Management and the Board belief that it is useful, necessary and of other tasks and responsibilities required of Directors. real value for the Chief Executive Officer of a Board member, notably in the areas Safran’s climate strategy and action to also be a Director of the Company, of strategy, energy transition, risk and plan will be presented at the Annual as it enables the Chief Executive Officer financial transaction management, and General Meeting. DIDIER LAURENT VINCENT SUZANNE DANIEL to be among his peers around the Board wide-reaching projects. DOMANGE GUILLOT IMBERT KUCHAREKOVA MAZALTARIM MILKO Director Independent Director appointed at Director Director the recommendation Director representing ACC of the French State employees I ARC representing the French State ACC ITCC ARC ACC DIRECTOR RESPONSIBLE FOR MONITORING CLIMATE ISSUES – PATRICK PÉLATA

Consistent with its shareholders’ vision, the Board of Directors is fully aware of the strategic importance of “climate issues” for the aerospace industry. Therefore, the Board has appointed Patrick Pélata as “Director responsible for monitoring climate I  ACC issues”. He is also the independent Chairman of the Innovation, Technology & Climate Committee. He will embody and represent the Board’s commitment on climate issues. Independent Appointments and Compensation He will take the lead in ensuring follow-up of the climate action plan by the Innovation, Technology & Climate Committee, PATRICK ROBERT SOPHIE Committee whose name and responsibilities have been changed to reflect its new scope. Within this scope, he and the Committee ARC PÉLATA PEUGEOT ZURQUIYAH will be involved in overseeing Executive Management’s climate action plan and in preparing information for publication Audit and Risk by the Company and for presentation to the Annual General Meeting. He is informed of shareholders’ questions on matters ITCC Chairman of Director Independent Committee falling within the scope of his role and, where necessary, makes himself available to discuss those matters with them, the Innovation, representing F&P Director Innovation, in conjunction with the Chairman of the Board of Directors. His roles and responsibilities are set out in the Board of Directors’ Technology & Climate Technology & I ARC I ARC Internal Rules. Committee Climate Committee Director responsible for monitoring climate issues

I ACC ITCC (1) In accordance with the AFEP-MEDEF Code, Directors representing employee shareholders and Directors representing employees are not taken into account when calculating the percentage of independent Directors.

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AN EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE MEMBERS IMPLEMENTING GROUP STRATEGY (AT MARCH 25, 2021) AND MANAGING GROUP OPERATIONS CROSS-BUSINESS FUNCTIONS COMPANY CEOs BERNARD DELPIT JEAN-PAUL ALARY The Executive Committee is in charge of conducting Safran’s business in line with the strategy Deputy CEO and Chief CEO Safran Aircraft Financial Officer Engines defined by the Board of Directors.

STÉPHANE CUEILLE VINCENT CARO

CEO Safran Nacelles Executive VP OLIVIER R&T and Innovation ANDRIÈS The Executive Committee ensures that Safran’s strategy is implemented Chief Executive Officer consistently across all Group entities. STÉPHANE DUBOIS CÉDRIC GOUBET It also monitors its operational perfor- Executive VP CEO Safran Landing mance and facilitates interaction with Corporate Human and Systems the various Group companies. Social Responsibility The Executive Committee comprises EXECUTIVE the Chief Executive Officer, holding COMMITTEE company executives and the heads of BRUNO DURAND NORMAN JORDAN the Group’s main operating companies. Executive VP CEO Safran Cabin This membership structure provides for Production, Purchasing balanced representation of the Group’s and Performance 18 members* businesses and cross-business support functions. CELESTE THOMASSON VINCENT MASCRÉ Under the authority of the Chief Executive Officer, the Executive Corporate Secretary and CEO Safran Seats Committee meets as often as is neces- Chair of the Ethics and sary and at least once a month. It has Compliance Committee 18 members. To maximize the Group’s strengths, FRÉDÉRIC VERGER FRANCK SAUDO which are integral to its success, the Executive Committee is supported Executive VP CEO Safran Helicopter by a number of committees, including Chief Digital and Chief Engines Information Officer the Compliance, Ethics and Anti-Fraud Committee and the Scientific Committee. ALEXANDRE ZIEGLER ALAIN SAURET

Executive VP CEO Safran Compliance, Ethics and Electrical & Power Scientific Committee International and Anti-Fraud Committee Public Affairs This Committee is responsible for Led by the Group Director of Innovation, supervising employee compliance with the Scientific Committee is tasked with MARTIN SION the rules defined in the Ethical Guidelines helping Safran deploy a world-class (upholding the law, engaging in proper scientific research policy. It assesses, in CEO Safran business practices, protecting people particular, the excellence of scientific Electronics & Defense and assets, etc.), as well as any updates partnerships and the relevance of the and revisions. long‑term R&T plan. The Committee This approach is sponsored by the also contributes to Safran’s technological SÉBASTIEN WEBER Corporate Secretary, and the difference by identifying new areas of responsibilities are handled by the research. CEO Safran Aerosystems relevant departments (for example, the The Committee comprises eight Group International and Public Affairs top-level academics and holds three CHANGES IN THE MEMBERSHIP STRUCTURE Department manages trade compliance plenary meetings a year. Recent work OF THE EXECUTIVE COMMITTEE IN JANUARY 2021 and export control). The Group’s includes approximately 15 theme-based Olivier Andriès takes over from Philippe Petitcolin as Chief Executive Officer resources mainly include the Ethical reviews in three major areas (software Bernard Delpit, Chief Financial Officer, also in charge of Strategy, Mergers & Acquisitions and Real Estate, Guidelines, anti-fraud policies, internal and systems engineering, materials and is appointed Deputy CEO control procedures, processes and structures, and sensors and signal Celeste Thomasson, Corporate Secretary, is appointed Corporate Secretary and Group Ethics standards, and a fraud prevention, processing). These reviews ensure the Sébastien Weber is appointed CEO of Safran Aerosystems awareness, detection and assessment Group is advancing in the right direction. Frédéric Verger is appointed Executive VP, Chief Digital and Chief Information Officer program. Bruno Durand is appointed Executive VP, Production, Purchasing and Performance

* Including the Executive VP, Communications whose appointment will be effective in April 2021.

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A COMPENSATION POLICY SUPPORTING An equivalent variable compensation policy is adapted for certain Group executives SHORT- AND LONG-TERM and senior managers VALUE CREATION

ANNUAL VARIABLE COMPENSATION LONG-TERM INCENTIVE PLAN – PERFORMANCE SHARES The Chief Executive Officer’s annual variable compensation is contingent on achieving economic and individual, This mechanism is well adapted to the Chief Executive financial and non-financial, quantitative and qualitative Officer position given the level of direct contribution performance objectives, consistent with the Group’s overall expected from him to the Group’s long-term performance. business. This system helps promote the alignment of management’s Corporate officer interests with those of the Company and shareholders. For 2021, CSR-HR-Climate objectives cover measures and Performance shares are awarded to the Group’s top compensation policy priority actions on the new CSR policy, with a number of managers. The grant of these shares is currently subject to specific focuses: improved gender balance in the Executive the attainment of demanding internal (ROI and FCF)(2) and Committee and companies’ management committees; external (TSR)(2) performance conditions, measured over the low-carbon project (including ongoing promotion three years. In the interests of the Group and its CHIEF EXECUTIVE OFFICER’S of sustainable fuels); and safety (frequency rate of stakeholders, the compensation policy COMPENSATION POLICY occupational accidents). must be competitive in order to attract, AND STRUCTURE motivate and retain the best profiles The structure of the Chief Executive VARIABLE COMPENSATION OBJECTIVES(1) LONG-TERM INCENTIVE PLAN PERFORMANCE CRITERIA(3) and talent (which may come from within Officer’s compensation package (as a %) (as a %) or outside the Group) for key positions. comprises fixed compensation, annual variable compensation, and performance 33 30 CHAIRMAN OF THE BOARD OF shares awarded under a long-term Individual TSR 35 DIRECTORS’ COMPENSATION incentive (LTI) plan. The Chief Executive ROI POLICY AND STRUCTURE Officer is covered by the supplementary PAY RATIO(1) 40 In line with his position as a pension and personal risk insurance ROI non‑executive Director and the specific plans implemented by the Group. 7 duties conferred on him, the Chairman The underlying aim is to closely align In France, pay ratios between the Working Capital 20 35 level of compensation of Safran’s receives fixed compensation. He does the CEO’s interests with those of the FCF FCF not receive any variable compensation Group and its shareholders, by achieving corporate officers (Chairman and or compensation under a long-term a balance between short- and long-term Chief Executive Officer) and the incentive plan. He does not receive performance, as assessed by the Board. average compensation of Safran’s employees in 2020 were 8 and attendance fees. The Chairman is Compensation subject to performance 32 respectively. covered by the supplementary pension conditions accounts for the largest and personal risk insurance plans percentage of the overall compensation IMPACT OF THE COVID-19 CRISIS implemented by the Group. package. ON COMPENSATION

2020 2021

• The metrics of the • The Board of Directors decided that the annual fixed former Chief Executive compensation of the new Chief Executive Officer for Officer’s annual variable 2021 would be the same as that of the former Chief CHIEF EXECUTIVE OFFICER’S RECURRING COMPENSATION STRUCTURE compensation policy Executive Officer for 2020. This decision was taken were not adjusted as in view of the prevailing situation (the crisis in the this represented his aerospace industry and the Covid-19 pandemic) and contribution to the wage the current context (Safran’s Activity Transformation ≈ 69% restraint efforts that Agreement, which includes wage restraint measures). Subject to performance conditions the Group asked of ≈ 38% its employees in view • The 2021 compensation policies for the Chairman Target ≈ 38% of the current crisis. ▲ of the Board of Directors and the Chief Executive Officer, which will be submitted for approval at long-term incentive* In performance shares The reference budget (potential) for calculation purposes the 2021 Annual General Meeting, will also remain ≈ 31% was therefore as substantially unchanged with respect to the figures Target annual ≈ 63% determined for the year approved by the 2020 Annual General Meeting. variable compensation In cash before the sudden onset • As provided for in the Activity Transformation ≈ 31% of the Covid-19 crisis. Agreement, employer contributions to Annual fixed compensation ≈ 31% Payment of this annual defined-contribution supplementary pension Not subject to performance conditions variable compensation plans have been frozen for 2021. Consequently, for 2020 will be subject no contributions will be made to such plans to shareholders’ approval for the Chairman of the Board of Directors at the 2021 Annual * Value at grant date in accordance with IFRS. or the Chief Executive Officer for 2021. General Meeting.

(1) Reference: annual budget. (2) TSR: Total Shareholder Return corresponds to dividends plus the change in the share price. ROI: Recurring Operating Income. FCF: Free Cash Flow. (1) See chapter 6 of the 2020 Universal Registration Document. (3) Reference on principle: the Group’s medium-term plan.

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SUSTAINABLE KEY PERFORMANCE VALUE CREATION INDICATORS Safran is convinced that in order to sustain prosperity, a company must create and share value Key sustainable innovation indicators 2019 2020 with all its stakeholders. Scope 3 (product usage): R&T investment focused 75% 75% on environmental efficiency CSR Objective for 2025: 75% 63* 36 Number of new PhD students CSR Objective for 2025: > 65 y generating a positive contribu- The Group therefore shares the value its, the environment benefits from the R&D expenditure self-funded €1,337 million €864 million tion for all its stakeholders and that it creates among all its stakehold- Group’s technology portfolio and R&D Number of initial patent requests More than 1,200 More than 1,000 Binvesting in technologies that will ers: customers benefit from efforts and shareholders receive attrac- * Average new PhD students over three years (2017-2019). contribute to meeting aviation sector differentiating and competitive products tive and sustainable compensation Key operational excellence indicators 2019 2020 greenhouse gas emission commitments, serving their businesses, employees thanks to a capital allocation policy that 22 24 Safran is preparing the foundations for enjoy attractive working conditions and seeks to provide, over the long term, Number of production lines “of the future” in operation 50% 60% its future growth. a social model where they share in prof- organic growth in our businesses. Percentage of sites certified “Gold” to internal HSE standards CSR Objective for 2025: 100% of sites Capex (property, plant and equipment) €695 million(1) €449 million CFM56 in operation 31,802 31,865 LEAP backlog 15,614 9,614(2) 3.2 2.0 Lost-time accident frequency rate(3) CSR BREAKDOWN OF VALUE CREATED IN 2020 Objective for 2025: LTAFR < 2.5 623,619* 414,988 CSR Scope 1 and 2 emissions (t CO2eq.) +3% -31% Change in Scope 1 and 2 emissions(4) Objective for 2025: 30% reduction(4)

PURCHASING Waste recovery ratio CSR 68.3% 70.5% REVENUE AND OTHER * 2019 emissions figures, which included estimated data for fourth-quarter 2019, were revised in 2020 to reflect the actual data. COSTS(1) Key responsible conduct indicators 2019 2020 Proportion of purchases made from suppliers that have signed - 40% Safran's responsible purchasing charter(5) CSR Objective for 2025: 80% Proportion of senior managers and exposed and affected - 66% VALUE people trained in anti-corruption(6) CSR Objective for 2025: 100% GENERATED 26 13 Number of training hours per employee per year(7) CSR BY SAFRAN Objective for 2025: 26

Global absenteeism rate 2.8% 2.7%

▲ ▲ ▲ ▲ ▲ % of women in the workforce 29.1% 27.7% 12% 13% % of women among senior managers CSR Objective for 2025: 22%

EMPLOYEES(2) INVESTMENT IN SHAREHOLDERS(4) FRENCH STATE(6) DEBT HOLDERS(7) THE FUTURE(3) Key financial performance indicators 2019 2020** Organic growth in adjusted revenue +9.3% -32.5% Growth in civil aftermarket (in USD) +9.9% -43.2% 65% 23% 2% 9% 1% Recurring operating margin 15.5% 10.2% EBIT to FCF conversion 51.9% 63.6% • Attractive working • 5% of revenue • TSR(5) 2005-2020: • Taxes and duties • One of the * conditions and invested +14.27% per year • The world’s best industry Dividends €0/share €0.43/share social model in self-funded best technology financial signatures * In response to the impact of the Covid-19 crisis, Safran’s Board of Directors decided not to propose to the Annual General Meeting the payment of a dividend in R&D in 2020 serving national worldwide 2020 for the 2019 financial year. • 75% of R&T and European • Long-term credit ** In the context of the Covid-19 pandemic, an unprecedented crisis for the aerospace industry. investment focused self-reliance and rating: BBB+ on environmental dissuasion (with stable Key governance indicators 2019 2020 efficiency outlook) Average attendance rate at Board meetings 95% 98% % of Chief Executive Officer compensation subject 69% 69% to performance conditions % of independent Directors on the Board of Directors 64.3% 64.3%(8) after the Y+1 AGM % of women on the Board of Directors after the Y+1 AGM 42.86% 42.86%(8) N.B.: Based on 2020 adjusted data. (1) Raw materials and consumables used + net charges to provisions + asset impairment + other recurring operating income and expenses + share in profit from (1) Net of the cash inflow from the disposal of a tertiary property complex in the Paris region. joint ventures + other non-recurring operating income and expenses + foreign exchange gain (loss) + other income + change in inventories + capitalized (2) On the basis of pending orders and cancellations. production. (3) Number of accidents per million hours worked. (2) Personnel costs and benefits, excluding employee share ownership. (4) Compared to 2018. (3) Profit for the year not distributed, plus net charges to depreciation and amortization. (5) Or using an equivalent responsible purchasing charter. (4) Dividend proposed to the Annual General Meeting of May 26, 2021. (6) Purchasing, HR, Sales, Legal, Finance, Audit & Internal Control, Compliance & Business Ethics, Risks and Communications Departments, with customers, (5) Total Shareholder Return corresponds to dividends plus the change in the share price. suppliers, auditors and partners concerned. (6) Income tax and other taxes and duties. (7) Excluding employees on long-term absence. (7) Cost of net debt and other financial income and expenses. (8) Assuming adoption of the resolutions at the Annual General Meeting of May 26, 2021.

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OTHER SAFRAN 2020 UNIVERSAL PUBLICATIONS REGISTRATION DOCUMENT www.safran-group.com, Finance section Document prepared in accordance with French and European regulations and notably including the annual financial report, the Board of Directors’ report, the consolidated and separate financial statements for the fiscal year, all corporate, CAPITAL MARKETS DAY 2018 social and environmental information www.safran-group.com, concerning Safran and the resolutions Finance section presented to the Annual General Meeting for approval. Presentation of the Group’s strategy and mid‑ and long-term financial objectives (2018-2022).

2020 UNIVERSAL CONTACT REGISTRATION DOCUMENT

including the Annual Financial Report

FINANCIAL COMMUNICATIONS DEPARTMENT

Analysts and institutional investors Individual shareholders ■ Tel.: +33 (0)1 40 60 80 80 ■ Toll-free number (France only): 0 800 17 17 17 Monday to Friday, 9 a.m. to 5 p.m. ESSENTIALS PRESENTATION ■ E-mail: [email protected] ■ E-mail: [email protected] www.safran-group.com, OF SAFRAN Media/Publications section www.safran-group.com, Institutional brochure Group section presenting an overview ESSENTIALS Presentation of the Group’s SAFRAN of Safran’s activities, profile, its roles and 2, boulevard du Général Martial-Valin products and its governance. 75724 Paris Cedex 15 - France commitments. All financial information pertaining to Safran is available on the Group’s website at www.safran-group.com, in the Finance section. © Photo credits: Front cover: Raphaël Soret • Philippe Stroppa.

Cyril Abad / CAPA Pictures / Safran • Rodolphe Alary / Safran • Sylvain Cambon / Safran • Adrien Daste / Safran • Eric Drouin / Safran • Yvan Dube / Getty Images • ESA / CNES / Arianespace • Eric Forterre / Safran • Aurélie Lamachère / Safran • Thierry Mamberti / Safran • Laurent Miaille / Safran • Alex Ojeda / CAPA Pictures / Safran • Raphael Olivier / CAPA Pictures / Safran • Orao / Safran • Anthony Pecchi / Safran • Frank Rogozienski / CAPA Pictures / Safran • Christel Sasso / CAPA Pictures / Safran • Safran Seats • stock.adobe.com • Philippe Stroppa / Safran • Bryan Tarnowski / CAPA Pictures / Safran • ThinkStockPhoto • Béa Uhart / CAPA Pictures / Safran • Benoit Vallet / Safran • VoltAero 2020 • Paul Weatherman • Yalcin Sonat • L’Oeil Du Chat / Safran.

Design and production: Tel.: +33 (0)1 55 32 29 74

SAFRAN 2020 INTEGRATED REPORT I 52 5 3 I SAFRAN 2020 INTEGRATED REPORT Safran 2, boulevard du Général-Martial-Valin – 75724 Paris Cedex 15 – France Tel.: +33 (0)1 40 60 80 80 www.safran-group.com Powered by trust: trust: by Powered