ESSENTIALS A single-aisle commercial jet powered by our engines(1) TAKES OFF SOMEWHERE IN THE WORLD EVERY 2 SECONDS

SAFRAN IS AN INTERNATIONAL 54,000+ LANDINGS 1 OUT OF EVERY 3 HELICOPTER HIGH-TECH GROUP a day using our products TURBINE ENGINES and tier-1 supplier of systems and equipment sold worldwide in the and defense markets. Operating worldwide, has nearly 58,000 employees and generated sales of 15.8 billion euros in 2016. The Group’s international footprint allows it to enhance its competitiveness, build industrial and commercial relationships with the world’s leading prime contractors and operators, and provide + 75 SUCCESSFUL 3,000 COMBAT 5(2) launches in a row fitted with our inertial responsive local service anywhere in the world. Working navigation systems alone or in partnership, Safran holds world or European leadership positions in its core markets.

500 KILOMETERS OF WIRING 35,000+ POWER in each A380 TRANSMISSIONS, totaling over 850 million flight-hours

17,300 NACELLE 250 EJECTION COMPONENTS SEATS in service for Rafale fighters(3)

SAFRAN AERO BOOSTERS • • SAFRAN CERAMICS SAFRAN ELECTRICAL & POWER • SAFRAN ELECTRONICS & DEFENSE (1) In partnership with GE through CFM International. SAFRAN HELICOPTER ENGINES • (2) In partnership with Airbus Group through ArianeGroup. SAFRAN NACELLES • SAFRAN TRANSMISSION SYSTEMS (3) Through Safran Martin Baker , the 50/50 joint company between Safran and Martin-Baker.

3 15,536 15,781 1.6% 7.9% Treasury 1.6% increase Employees shares

14% French State 76.5% Float

2015 2016

FINANCIAL AND GO TO THE SAFRAN WEBSITE FOR MORE INFO: https://www.safran-group.com/finance 15,536 15,781 1.6% OPERATING HIGHLIGHTS7.9% Treasury 1.6% increase Employees8% shares 2,404 Defense 2,281 5.4% increase RECORD SALES AND EARNINGS* 14% French 15,536 State 15,781 76.5% 1.6% Float 7.9% SHAREHOLDING STRUCTURE 15,536 1.6% Treasury 15,781 2016 SALES1.6 % increase Employees shares (at April 30, 2017) (adjusted data,7.9 millions% of euros) Treasury 1.6% increase Employees shares Following the French government’s sale of Safran recorded adjusted sales a 1.4% stake in Safran on November 22, 2016, 2015 2016 of 15,781 million euros in 2016, an increase 14% 59% French at the end of 2016, it held 14% of share capital, of 1.6% over the14 previous% year (or 3.9% 76.5% 33% Aerospace State French Float compared with 15.6% a year earlier. on anAircraft organic basis).State The 245 million euro 76.5% 2015 2016 equipment This gives the Safran share a larger float increase reflects a rise in Aerospace Float and better liquidity. 15,536 15,781 1.6% business (propulsion and equipment). 7.9% Treasury 1.6% increase Employees shares 2015 2016 2015 2016

14% 8% 2,404 62 French Defense 76.5% 59 BACKLOG OF ORDERS State 2,281 increase Float 5.4% increase 5% (billions of euros)

Safran booked orders worth 17.8 billion euros in SALES BY BUSINESS SECTOR 2016, clearly reflecting a very dynamic market. 2015 2016 The Aerospace8 %business grew The growth in orders was mainly the result of 2,404 ® again in 2016, buoyedDefense by commercial the success of the new LEAP engine, 8% 2,281 engine deliveries and services for civil2,404 5.4% increase which had 12,200 orders and commitments Defense 2,281 and military aircraft. 5.4% increase at March 31, 2016. On that same date, 59% Safran’s total backlog of orders stood 33% Aerospace propulsion 2015 2016 at 62 billion euros. Aircraft 2015 2016 equipment

8% 2,404 59% Defense 2,281 RECURRING OPERATING INCOME Aerospace 5.4% 59increase% 33% (adjusted data, millions of euros)propulsion Aerospace Aircraft 2015 2016 33% propulsion equipment Aircraft The 5.4% increase in recurring2015 operating2016 62 equipment 59 income was primarily due to the Aircraft5% increase Equipment segment, which saw a sustained rise in service business, especially for wheels and brakes. The defense business also contributed to this growth. 59% 62 *AT DECEMBER 31, 2016, 59 (unless specified otherwise). Aerospace 62 33% propulsion 5% increase Aircraft 2015 2016 59 5% increase equipment 4 5

2015 2016

62 59 5% increase 2015 2016

2015 2016

2015 2016 AIRCRAFT HELICOPTER BOOSTING ENGINES ENGINES

AIR TRANSPORT Safran provides the world’s Safran turbine engines power leading aircraft manufacturers helicopters from the world’s leading PERFORMANCE with innovative and reliable manufacturers, including Airbus propulsion solutions. Through Helicopters, Bell Helicopter, Leonardo, CFM International(1), Safran HAL, Russian Helicopters and AVIC. developed and is producing the The Arrius and Arriel engines power LEAP engine, successor to the machines in the light (1.5 to 3.2-ton) CFM56®, the world’s best-selling and medium (2 to 5-ton) classes, commercial . while the Makila and RTM322 power LEAP engines power the Airbus heavy helicopters such as the NH90 A320neo, Boeing 737 MAX and and AW101, in the 9 to 16-ton class. Comac C919. We also make We are developing several new the SaM146(2) for the Sukhoi models, the Arrano for helicopters Superjet 100 , and we in the 4 to 6-ton class (H160) and are developing the Silvercrest® the Ardiden for the 5 to 8-ton class business jet engine. As one of the (Dhruv, LUH, Ka-62 and AC352). world’s leading makers of military aircraft engines, Safran produces the M88 for the Rafale multirole fighter, and makes the TP400 (3), which powers the Airbus A400M military transport aircraft.

© Cyril Abad / CAPA Pictures Safran NACELLES

Safran makes a wide range of No. 1 WORLDWIDE engine nacelles for all types of • engines powering single-aisle mainline aircraft. Light and streamlined, Safran covers the entire lifecycle commercial jets(1) these nacelles help reduce engine of engines, systems and equipment • helicopter turbine engines noise. We supply the nacelles for for civil and military fixed • wheels and carbon brakes(2) the super-jumbo jet, and rotary-wing aircraft. • and we are developing, alone or As a long-standing partner to • helicopter flight controls in partnership with GE, nacelles (2) the world’s leading aircraft • accessory drive systems for the LEAP-powered Airbus • aircraft wiring systems manufacturers, Safran anticipates A320neo and Comac C919, as its customers’ needs, supports the development of new mobility well as the Airbus A330neo and ® modes and helps reduce the Silvercrest and GE Passport™ the environmental fingerprint of bizjet engines. the air transport industry. No. 2 WORLDWIDE • aircraft engine nacelles © Airbus Helicopters / Anthony Pecchi © Airbus Helicopters / Anthony Pecchi

(1) In partnership with GE. (1) The 50/50 joint company between Safran Aircraft Engines and GE. (2) Mainline commercial jets (2) Through PowerJet, the 50/50 joint company between Safran Aircraft Engines and NPO Saturn. with more than 100 seats. (3) Through the European consortium GmbH. 7 AVIONICS ENGINE AND ELECTRONICS EQUIPMENT

Safran offers a range of advanced Safran makes a wide range avionics solutions, including of systems and equipment navigation, flight control and for the engines powering civil onboard information systems. and military fixed and rotary- We’re the world leader in wing aircraft: accessory drive helicopter flight controls and systems, engine control units(1), in full-authority digital engine lubrication, cooling and filtration (1) controls . This equipment is components, etc. used by many different airplane Our innovative solutions are used and helicopter manufacturers, on a number of different engines, including Airbus, Boeing, Dassault including the CFM56 and LEAP Aviation, Bombardier, Embraer, from CFM International, and the Airbus Helicopters and Leonardo. Rolls-Royce Trent 500, 700, 800 and XWB. © Adrien Daste / Safran © Daniel Linarès / Safran

ELECTRICAL LANDING SYSTEMS AND BRAKING SYSTEMS Safran covers all aspects of aircraft electrical systems, Safran designs, produces and including power generation, supports landing gear, wheels, distribution and conversion, carbon brakes and complete wiring, load management, landing systems for civil and systems integration and military fixed and rotary-wing ventilation. The world’s leading aircraft, including the Airbus A320, supplier of aircraft wiring, we A320neo, A330, A350 XWB provide wiring harnesses and and A380, the Boeing 737 Next- electrical cabinets for many Generation, 737 MAX, 767, 777 different Airbus and Boeing and 787 commercial airplanes, airplanes, as well as the electrical the Rafale, Eurofighter Typhoon distribution systems on the and F-18 fighters, and the A400M Embraer KC-390 transport. military transport. © Cyril Abad / CAPA Pictures Safrann

(1) Through FADEC International, the 50/50 joint company between Safran Electronics & Defense and BAE Systems. 8 (2) The 50/50 joint company between Safran Aircraft Engines and GE. © Patrick Wack / CAPA Pictures Safran ENGINEERING PROTECTING Safran offers a complete array of engineering services centered CITIZENS on five areas of expertise: integrated propulsion systems, aerostructures and mechanical equipment, electrical and power systems, integrated systems, production engineering and in-service support. © Cyril Abad / CAPA Pictures Safran

CUSTOMER SUPPORT © Alexandre Paringaux / Safran Safran offers customers comprehensive service packages that help drive down operating costs. Through our global maintenance, repair and overhaul (MRO) network, we keep aircraft in the air. We also analyze the As a major player in the global market No. 3 WORLDWIDE for optronics, avionics, inertial navigation, • Inertial navigation systems huge streams of data from electronics and safety-critical software, connected equipment to develop Safran offers a complete range of systems personalized service solutions and equipment that improve the efficiency and guarantee maximum dispatch of armed forces in many different countries. No. 1 IN EUROPE reliability for our customers, along Our innovative solutions also facilitate • Tactical drones with more efficient maintenance the jobs of homeland security and police • Inertial navigation systems planning, plus lower cost and forces, customs agencies and search & rescue • Optronic (electro-optical) systems more efficient management of teams at sea or in the mountains. spare parts inventories. © Adrien Daste / Safran

10 DRONES AVIONICS Safran has developed expertise in Safran understands and applies all technologies that go into a drone all inertial navigation technologies system, allowing it to meet the (mechanical, laser, optical fiber, requirements of many different types vibrating and MEMS). These systems of missions: surveillance, intelligence, offer an excellent combination of high protection of armed forces, threat reliability, very high precision and detection, etc. Drawing on ten years extreme robustness, allowing them of operational experience with to operate in the harshest, air, land the Sperwer drone, Safran is now and sea environments. Safran is prime developing the Patroller™, a multi- contractor for the AASM Hammer sensor, long-endurance tactical drone, guided missile deployed by France’s already selected by the French army. Rafale fighters, and also makes the We are also developing eRider, an seekers for the Mistral and MICA IR autonomous, reconfigurable all-wheel missiles, and is developing the seeker drive vehicle that can be used for a and sight for the upcoming MMP wide range of missions.

© Adrien Daste / Safran medium-range missile. © Marc Scudeletti / Safran

OPTRONICS

Safran offers a complete range of optronic (electro-optical) systems and equipment for military applications (submarines and surface vessels, combat vehicles, aircraft, etc.). We also design and produce portable optronic equipment, like the JIM family of multifunction infrared binoculars, in service with or on order by more than 40 countries. Furthermore, Safran is prime contractor for the FELIN soldier modernization program, an integrated equipment suite deployed by French infantry units. © Adrien Daste / Safran

12 © Olivier Lapy / Safran HIGH-PERFORMANCE FACILITATING PROPULSION SPACE OPTICS AND EQUIPMENT ACCESS Safran designs, develops, ArianeGroup is prime contractor manufactures and integrates a TO SPACE for Europe’s and complete range of high-performance launchers, with responsibility for optics and high-precision opto- design, production and marketing mechanical equipment for , of launch services, via its subsidiary large telescopes and high-energy . ArianeGroup also lasers. In particular, we make makes the missiles for France’s advanced mirrors for leading ocean-going nuclear deterrent force. astronomy programs such as the ArianeGroup and its subsidiaries Extremely Large Telescope (ELT) are recognized worldwide for the and the Apollon giant laser. quality of their space equipment and propulsion systems, and also apply their expertise to other sectors.

SATELLITE © ESO/Y. Beletsky PROPULSION AND EQUIPMENT

Safran designs and produces thrusters and propulsion subassemblies used by satellites Safran is a major player in the space sector, No. 1 WORLDWIDE including launch vehicles and missiles, • Launch vehicles for commercial throughout their operating life. propulsion and equipment for satellites and launches into geostationary In particular, we are a pioneer in space vehicles, and high-performance optics. orbit (GEO), via ArianeGroup(1) electric propulsion systems, which In short, Safran facilitates access to space, a • High-performance space optics significantly decrease the amount strategic capability at several levels, including of fuel that satellites need to carry, safeguarding national independence, thus reducing launch costs and supporting the growth of telecommunications environmental impact. Safran’s and expanding our scientific knowledge, No. 1 IN EUROPE PPS®5000 thruster has been chosen whether through observing the Earth or •  plasma propulsion to handle propulsion duties on all- exploring the Universe. systems electric satellite platforms for Thales Alenia Space and Airbus Defense & Space satellites. © ArianeGroup

(1) The 50/50 joint company between Airbus Group and Safran. 15 INNOVATIVE SOLUTIONS INVESTING TO PROVIDE TO ANTICIPATE MARKET LOCAL SUPPORT FOR NEEDS CUSTOMERS

At Safran, research and innovation We continually invest to develop our are fundamental. By focusing on production facilities and sales presence these essential areas we can develop throughout the world, thus supporting tomorrow’s technologies, products higher production rates and local and services. We invested some contacts with our customers. While 1.7 billion euros in R&D in 2016, we are of course solidly anchored in including more than 400 million France, which accounts for 63% of euros of our own funds in Research & our workforce and the strategic core Technology (R&T). Our efforts in this of our R&D and production activities, area are applied through major research we have also made international programs, our own centers of expertise development a top priority. and partnerships, as well as targeted acquisitions enabling us to add basic © Adrien Daste / Safran technology building blocks. More than 21% of our employees support our technological excellence, whether working in Group companies, or Safran DELIVERING Tech, our corporate R&T center. EXCELLENCE © Cyril Abad / CAPA Pictures / Safran FOSTERING PERFORMANCE TO SUPPORT CROSS-DISCIPLINARY IMPROVEMENT EXPERTISE OUR CUSTOMERS Safran focuses on cost-effective Safran has always teamed up with technological and industrial excellence top-tier partners from around the across the entire product lifecycle. For example, we have implemented 11% world, reflecting our commitment to open innovation. We work with leading an approach called QRQC (Quick OF 2016 SALES Response Quality Control) across the Safran has always aimed to deliver reinvested in R&D government and academic research excellence to consolidate centers, including the CEA(1), Onera(2), Group and at our suppliers, to support our positions and drive growth, engineering schools and universities. daily, on-site performance management. based on a strategy of standing NEARLY 300 EXPERTS We also deploy Lean-Sigma methods to support Safran’s We also form partnerships with our out through innovation. We focus to enhance our processes, and most of on R&D, backed by the continuous innovation-based strategy suppliers and with companies from improvement of all functions other sectors, such as the auto parts our support functions are now organized and the development of new ways Ranked among the giant Valeo. Through our corporate into shared services centers. In 2017 we of working together. TOP 100 capital venture fund, Safran Corporate kicked off the “One Safran” initiative to GLOBAL INNOVATORS Ventures, we invest in innovative modernize our management system, by BY THOMSON REUTERS startups. In-house, we encourage setting up common processes, along every year since 2011 the cross-fertilization of expertise, with a focus on operational excellence. especially through an employee- driven innovation initiative.

(1) French Atomic Energy and Alternative Energies Commission. (2) French aerospace research agency. 17 © Adrien Daste / Safran CITIZEN CORPORATE A RESPONSIBLE our CSRstrategy around sixobjectives Safran’s corporate socialresponsibility all stakeholders, we have organized To better meettheexpectations of (CSR) policy isbasedonsustained commitments andvalues that are supported by top management and shared by allemployees. and alsosetupadedicated governance structure.

the involvement ofsuppliers andpartners and protection ofpeopleandproperty

with minimalenvironmental impact innovative products andprocesses for excellence inthesafety optimum communications optimum communications 6 STRATEGIC OBJECTIVES with allstakeholders a culture ofintegrity people’s potential 6. 2. 3. 1. 5. 4. ALWAYS AIM GUARANTEE DEVELOP DEVELOP SUSTAIN FOSTER FOSTER

its HSEperformance. a bronze, silver orgoldlabelfor facilities around the world earned every year: in2016, 92 ofthese audited by independentbodies practices. Allofourfacilities are on localsupportandshared best management systems that focus in-house guidelinesand We have alsosetupdemanding throughout theproduct lifecycle. and integrate HSErequirements facilities, protect theenvironment ensure thesecurityofour everybody’s healthandsafety, commitments to protect (HSE) policy, builtonsolid health, safety andenvironment Safran conducts aresponsible approach. a clearlyaffirmed “zero tolerance” All oftheseefforts are basedon effective export control structure. program. We have alsosetupan charter andatrade compliance charter, aresponsible lobbying expressed formally inanethics Our anti-corruption policy is its international business. its international business. comply withalllaws concerning of honesty andintegrity, andto Safran pledgesto upholdthevalues HEALTH, SAFETY ETHICS AND THEENVIRONMENT

system (3outof4)since 2015. an Advanced ranking inthis practices. We have earned protection andfair trade commitment to environmental clearly confirms the extent ofits Nations GlobalCompact, Safran Having signedtheUnited capabilities. development oftheirinnovative their riseuptheskillschain,and to supportoursuppliers’growth, purchasing policy includesmeasures emphasis onperformance. Safran’s based onmutualtrust andajoint we establish long-term relationships play amajorrole inoursuccess, so We are fullyaware that suppliers © Abdellah Azizi / CAPA Pictures / Safran AND VALUES SHARING EXPERTISE SUPPLIERS: GLOBAL COMPACT UNITED NATIONS

19 WORKINGAT SAFRAN: ALLOWING A UNIQUE EXPERIENCE EMPLOYEES IN A HOTBED TO SHAPE THEIR OF EXCELLENCE OWN CAREER PATH

Working at Safran means being When you join Safran you're part of an enterprise that is shaping choosing a diversified career, our future, and being part of a starting with onboarding support community of people who are and continuing with mobility passionate about their professions and skills development. Safran and who share the same values University, the leading corporate and goal: to meet tomorrow’s training center in France in 2016(1), technological, environmental and gives our employees a wide social challenges. From operators range of courses to support their on the shop floor to senior development within the Group. management, everybody at Safran Safran also offers possibilities is passionately committed to for geographic and professional © Cyril Abad / CAPA Pictures / Safran © Cyril Abad / CAPA Pictures Safran developing today's and tomorrow’s mobility, allowing our employees high-tech, international and to develop their multidisciplinary multicultural environment. Our expertise, acquire new skills and facilities deploy state-of-the-art shape their own careers. Last, but techniques, including additive not least, we organize initiatives TALENT, THE KEY manufacturing, augmented reality, to support the integration of advanced machine tools, cobots young people in the workforce, by TO OUR CURRENT (collaborative robots) and much welcoming a number of students in more. Reflecting this initiative, two work-study programs, plus interns production lines at Safran earned the and student researchers. AND FUTURE SUCCESS French government’s “Showcase for Tomorrow’s Industry” label in 2016. Not to mention that teamwork and knowledge sharing are both integral parts of Safran’s DNA, allowing our employees to fulfill themselves in 1.6+ MILLION their jobs. HOURS OF TRAINING In our high-tech business sectors, today’s provided yearly innovations, and the talent behind them, will ensure tomorrow’s successes. Unleashing our human potential is naturally 6,000+ YOUNG PEOPLE a top priority for Safran. IN TRAINING PROGRAMS

Working at Safran means being part of a deep welcomed in 2016 © Cyril Abad / CAPA Pictures Safran culture of innovation, and undergoing a unique and enriching experience day after day. 7,000+ HIRES in 2016 COMMUNICATE WITH OUR E-AMBASSADORS (1) Distinction awarded by BPI Group during the AND SEE OUR JOB OFFERS AT first Printemps des Universités d’Entreprise, safran-talent.com in the category, “Large Corporations”.

21 AFFIRMING OUR SOCIAL MODEL

Safran’s social model is based on including matching funds, profit- the firm conviction that employees sharing and incentive payments, are our primary asset. We give employee savings plans, and much them a stake in determining our more. As a responsible employer, strategy and sharing the fruits of Safran values diversity, a key factor success through a constructive in performance and innovation, and labor-management dialog, an active makes a proactive commitment to employee shareholding policy, equal opportunity. © Cyril Abad / CAPA Pictures / Safran © Cyril Abad / CAPA Pictures Safran NEARLY 58,000 EMPLOYEES WORLDWIDE PHILANTHROPY & FOUNDATIONS Europe

42,800 Whether in France or in other countries Safran has supported where we operate, Safran’s philanthropic 74 % actions reflect our values and commitment to MORE THAN responsible corporate citizenship. We support 550 PROJECTS actions by associations and also carry out since 2005 projects in conjunction with our employees, spanning key areas such as education, social and professional inclusion, equal opportunity, 9,700 support for creativity and talent, etc. THROUGH OUR TWO 16.7 % CORPORATE FOUNDATIONS, 2,900 2,500 SAFRAN’S PHILANTHROPY POLICY FOR INTEGRATION AND is based on a three-pronged approach MUSIC, Safran is committed 5% 4.3% encompassing educational, social and cultural to the fight against the Americas initiatives. We provide financial support to exclusion of young people public and private partners, independently of with disabilities, and we Africa Asia-Pacific our commercial interests. Ethics and integrity support the training and and Middle East are the two watchwords in our philanthropy early career development endeavors. of talented young classical musicians.

22 2, BoulevardduGénéralMartialValin 75724 ParisCedex15-France safran-group.com

Safran Corporate Communications - Design: Free-Lance’s l’Agence - Document printed by PDI Imprimerie - June 2017 - Photo Credits cover: Cyril Abad / CAPA Pictures / Safran. CFM, CFM56, LEAP and the CFM logo are registered trademarks of CFM International, a 50/50 joint venture between Safran Aircraft Engines and GE.