POWER AT SEA THE CHAIRMAN’S MESSAGE01 P. 2 — 3

01 02

EXPANDING EMBODYING P. 4 — 25 P. 26 — 41

03 04

ACCOMPLISHING INNOVATING P. 42 — 57 P. 58 — 77

05 06

ENGAGING STEERING P. 78 — 87 P. 88 — 99 THE CHAIRMAN’S MESSAGE

Innovation underpins our strategy of growth and conquest

n 2017, we wrote launches of the F21 . countries, as well as capitalising a new page in our We have also had a number of on our naval skills in the field “ group’s long history commercial successes, such of energy production. It pays of serving our clients. as the United Arab Emirates’ homage to the pride and values decision to choose the now of excellence that drive and The operational successes sea-proven Gowind® . bond our staff members, uniting stemming from the joint Finally, our income is growing, them around a powerful vision commitment of our staff and our average margins are of the future. members and partners are too steadily improving. numerous to be listed in full. This name change marks an As examples, I can mention These achievements in 2017 additional stage in our group’s the delivery of the Gowind® highlight our new brand, far-reaching transformation. corvette to the Egyptian . Resulting from the sense in just thirty-seven months, Consistent with our past and of commitment shown a record for the first of a series. our values, it allows us by all our teams, we are able There were also the delivery to clearly express our field of to fully command the most of the FREMM Auvergne to the activity, raising our profile on technologically complex , the commissioning international markets as well as programs at the best possible HERVÉ GUILLOU of the Kalvari, the first being more attractive for new cost. With Naval Group, Chairman and CEO Scorpène® built for the Indian talent. In 2017, we recruited our name may have changed, Navy using technology transfer, over 1,000 new staff members but not our commitment!” the smooth progress of the and have made commitments to mid-life refit for the Charles three French regions to step up HERVÉ GUILLOU de Gaulle , training in our naval activities the completion of maintenance and their appeal. Our new name work on the Améthyste attack clearly states our expertise and , progress on the our vocation: to contribute to Téméraire upgrade as well the French Navy’s sovereignty as the three successful and that of our partner

P—2 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—3 PART 01

P. 6 AUSTRALIA P. 10 BELH@RRA® P. 12 THE FRENCH-ITALIAN ROADMAP 01 P. 16 THE LA FAYETTE-CLASS P. 18 THE GOWIND® P. 20 THE JOINT-VENTURE WITH ZAMIL P. 22 THE SITES P. 24 THE RANGE EXPANDING

In 2017, Naval Group reasserted its position as a global benchmark for naval defence and its commitment to renewable energies. Spurred on by its successes, the group is staying on course and continuing to extend its activities throughout , Europe and beyond to conquer new markets.

P—4P—4 NAVAL GROUP — YEARBOOK 2017 NAVALNAVAL GROUP — YEARBOOK 2017 P—5P—5 01 — EXPANDING

Australia

Building a partnership over more than sixty years

The Australian Future Submarine (AFS) program concerns the design and production of 12 Australian oceangoing, conventionally powered, . Following an international invitation to tender in April 2016, Naval Group was selected by the Commonwealth of Australia to integrate the powered platform. The combat system was awarded to Lockheed Martin. The first industrial contract, concerning the initial design stages, came into effect on 17 October 2016.

P—6 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—7 01 — — EXPANDING ANTICIPER

Malcolm Turnbull, the Australian Prime Minister, and Florence Parly, the French Minister, at Cherbourg in July 2017.

Naval Group has committed to supplying Australia with a submarine having regional 40 STAFF MEMBERS SCIENTIFIC INTERACTION superiority to replace the Collins-class submarines. ARE WORKING ON THE FIRST STAGES OF BETWEEN FRANCE AND AUSTRALIA IS GATHERING PACE. THE PROGRAM IN ADELAIDE, PARTICULARLY DESIGN, NAVAL GROUP IS LEADING A COLLABORATIVE R&D PROJECT SELECTION OF SUPPLIERS AND INFRASTRUCTURE WITH THE UNIVERSITY OF WOLLONGONG ON WELDING PLANNING FOR THE NEW SHIPYARD PROCEDURES TO BE USED FOR SURFACE ’ HULLS

The new building devoted In Australia, invitations to tender to the program in Cherbourg, were issued to equipment Hughes House, was officially suppliers throughout 2017. Over opened in the summer of 2017. 500 companies expressed interest It brings together the Franco- in being one of the local suppliers American-Australian governmental involved in the project. Naval Group and industrial teams which will be marked the opening of its new jointly using the latest engineering offices in Keswick by starting th tools and methods to create to plan studies for the design During the 36 edition of the La Presse de la Manche runs, the initial concept of the future and construction of the Adelaide the Naval Group team brought Australian submarines. shipyard. together 255 French and Australian runners.

P—8 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—9 01 — EXPANDING

France

Belh@rra®

In April, the Army Minister announced that Naval Group had been awarded the contract to develop and produce five medium- size frigates (FTI) for the French Navy. Naval Group will be offering a French version of its new, latest generation digital Belh@rra®. The first of the five frigates in this program steered by the Defence Procurement Agency (DPA) must be delivered in 2023 so as to become fully operational in 2025. Producing a Belh@rra® frigate takes on average some two million working hours, three hundred thousand of which are spent in the design offices. This is a front-line frigate with a displacement of 4,000 t devoted to antisubmarine warfare. The French version of the Belh@rra® has been designed to meet all national needs.

P—10 NAVAL GROUP — YEARBOOK 2017 NAVALNAVANAVNNAAVAAAVVVAALLGRLG GRGGROUPROUOOUPUUPP ——Y—YE YEYYEARBOOKEARARBARBOARRBORBBOBOOKOK2K 2 20170170011177 P—11P—1P—PP11—11—11111 01 — EXPANDING

2004 CONSTRUCTION OF THE AERIAL DEFENCE FRIGATES FORBIN AND CHEVALIER PAUL BEGINS, AS PART OF THE HORIZON FRANCO-ITALIAN COOPERATION PROGRAM

France-Italy

Franco-Italian roadmap launched to boost cooperation in naval military fields

In September 2017, a significant milestone and the French and Italian an opportunity to take naval governments initiated a cooperation to another level. collaborative process opening Hervé Guillou, CEO of Naval the way to establishing an Group, and Giuseppe Bono, alliance between Naval Group CEO of Fincantieri, have and Fincantieri in the field stated: “Our two groups have of naval defence. already worked together The two groups play a key successfully on the Horizon role within the steering frigate and FREMM programs, committee set up to define and we are very keen to a roadmap between now and consolidate our European June 2018 that precisely ambitions together. This describes the principles on project must enable us to which the future alliance underpin our international will be founded. development within Furthermore, the the context of keener agreement made between competition in the military the French and Italian naval market, while at the governments concerning same time continuing our Naval Group and Fincantieri respective missions to meet participating in the capital the needs of French and of STX France marks Italian .”

P—12 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—13 01011— — EXPANDINGEXPEXEXXPPANANDAANDINNDINDDINNGG

Reinforcing European naval defence

The aims: Avenues of collaboration: • To reinforce the technological • Joint design and production of and industrial foundations of naval surface ships (support and supply defence in France and Italy, while vessels, etc.). also extending both countries’ • Pool research and development international reach in the field projects in the naval sector. of naval industry. • Synergise and share best • To create more jobs and support practices in the fields of the trade balance both in France procurement, services and and Italy. industrial methods. • Cooperate on surface projects.

Florence Parly, the Army Minister, and Bruno Le Maire, Minister for the Economy and Finance, in Rome on Thursday 1 February 2018 with their Italian opposite numbers and the CEOs of both groups, Hervé Guillou and Giuseppe Bono.

P—14 NAVAL GROUP — YEARBOOK 2017 NAVALNAVANAVNNAAAVAVAVVAALGLLGR GRGGROUPROUPOOUUPUP —YE— YEYYEARBOOKEAARBARBOARRBORBOBOOKOKK2 2 20170170011717 P—15PP—P15P—1P1—15—1—1515 010 — EXPANDINGEEXPXPPAANDANNNDDIDINGNG

France

Renovation of La Fayette- class stealth frigates

The program to renovate electronic and IT systems the three La Fayette-class controlling the ship frigates (FLF) currently in (propulsion, rudder system, service with the French Navy power plant, etc.) as well as was launched in May by the the combat management Army Minister. The aim is to system. This will be replaced maintain the French Navy’s by a version based on Senit® 8, capacity during the transition currently being installed phase leading up to delivery on the as of the medium-size frigates part of its comprehensive (FTI) from 2023. This upgrade. The tactical data renovation work, due to begin links and anti-aircraft in 2020, will be carried out defence system will also at with Naval Group be renovated. as the prime contractor. Finally, the FLF ships Designed to carry out will be equipped with an missions involving prevention, anti-submarine capability, protection and intervention, incorporating a hull sonar the FLF vessels contribute and the Canto® anti-torpedo to managing crises and countermeasure system, protecting French interests developed by Naval Group throughout the world. to meet the threat posed In particular, the by latest generation renovation will concern the torpedoes.

15 2001 2021 FRONT-LINE FRIGATES THE LAST FLF FRIGATE GUÉPRATTE ENTERS DELIVERY OF THE FIRST IN THE FRENCH NAVY SERVICE WITH THE FRENCH NAVY RENOVATED FLF

P—16 NAVAL GROUP — YEARBOOK 2017 P—17P—1PP17P——17—1717 United Arab Emirates

Choice of the Gowind®

As part of the United Arab Emirates’ naval forces’ strategic development plan, the acquisition of two Gowind® 2500 multi-mission , together with their associated services, was confirmed in December 2017. These are to be built by Naval Group in partnership with the Ship Building Company (ADSB). Naval Group and its UAE industrial partner will now continue discussions to finalise the contract. These Gowind® corvettes are versatile, latest generation combat ships, adapted to the needs of the United Arab Emirates’ Navy.

12 1 110 CORVETTES ON ORDER INTEGRATED MAST, THE PANORAMIC SENSORS & CREW MEMBERS THROUGHOUT THE WORLD INTELLIGENCE MODULE (PSIM)

P—18 NAVAL GROUP — YEARBOOK 2017 01 — EXPANDING

France-Saudi Arabia

Zamil Offshore Services Company and Naval Group set up a joint-venture

This joint-venture is responsible for maintaining civil and military ships, with a particular focus on the Saudi naval fleet. This is an important stage in naval and industrial cooperation with Saudi Arabia. Already established in the country for three decades, Naval Group is a strategic partner, playing an active role in the country’s Vision 2030. The joint-venture provides solutions meeting its client’s needs and local facilities for carrying out naval and industrial maintenance in Saudi Arabia, drawing on Naval Group’s expertise as well as that of the Zamil Offshore Services Company. Naval Group has been working in Jeddah since 2014 on maintenance and modernisation programs for the Saudi Navy’s combat ships (Medina-class frigates, Boraida-class supply tankers and Al Riyadh-class frigates). The partnership between Naval Group and Zamil will drive the development of local skills and generate many new jobs, in line with the objectives of Vision 2030. It will also extend the strategic relationship between France and Saudi Arabia in the field of defence.

P—20 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—21 01 — EXPANDING

1. AMERICAS 3. EUROPE AND THE MIDDLE EAST BRAZIL DCNS do Brazil (100%); Projetos SAUDI ARABIA e Sistemas Navais SA (100% DCNS Support (100%), in-service subsidiary of DCNS do Brazil); support, DCNS Zamil. Itaguaí Construções Navais (41%), construction of submarines (in EGYPT partnership with Odebrecht). Forward base at Alexandria; Representative office. Naval Group Technologies Canada UNITED ARAB EMIRATES Inc. (100%). Representative office. CHILE GREECE Energia Marina SpA (100% Naval Representative office. Energies subsidiary), renewable marine energies and offshore oil/gas in Chile and South America. IRELAND OpenHydro (62.4% subsidiary COLOMBIA of Naval Energies), marine turbine design and production. Representative office. 2 NORWAY 3 Representative office. 1 NETHERLANDS Representative office.

POLAND Representative office.

2. FRANCE 4 ANGOULÊME-RUELLE SAINT-TROPEZ Equipment, simulators Underwater weapons. and training. TOULON BAGNEUX Services. Information and surveillance systems. DÉFENSE ENVIRONNEMENT SERVICES (49%) 4. OCEANIA AND ASIA BREST Multi-service and multi-technical infrastructure management Services, renewable marine AUSTRALIA (in partnership with Veolia energies. Naval Group Australia (100%). Environnement). CHERBOURG KERSHIP (45%) INDIA Submarines. Design and production of medium- DCNS India (100%), technical tonnage ships for governmental support for local industries and shipyards. Surface ships. action at sea (in partnership with Piriou). INDONESIA NANTES-INDRET NAVAL ENERGIES (55%) Representative office. Submarine equipment. Builder of turnkey marine NANTES-TECHNOCAMPUS renewable energy installations MALAYSIA OCEAN (in partnership with Bpifrance, Naval Group Malaysia (100%) R&D. Technip and BNP Paribas Boustead Naval Group Naval Développement). Corporation (40%), submarine PARIS – in-service support (in partnership SIREHNA (100%) Head office, renewable, marine with Boustead). Dynamic ship positioning, and civil nuclear energies. naval hydrodynamics, drone SINGAPORE OLLIOULES stabilisation and deck landing Naval Group Far East (100%), Information and surveillance systems. logistics, naval and aeronaval systems. maintenance systems.

P—22 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—23 01 — EXPANDING

Surface ships Submarines Renewable marine GOWIND® 2500 SCORPÈNE® 2000 energies The latest generation multi-assignment corvette. The new generation international Missions: offshore and high-seas missions, benchmark in submarines. surveillance, protection and escort, anti-smuggling Missions: surface ship attacks, and piracy prevention. underwater warfare, land strikes, special operations and information gathering.

BELH@RRA® FRIGATE The digital multi-mission frigate. Missions: high-seas operations, striking power, commanding all aspects of combat. SSN BARRACUDA A powerful, versatile and swiftly TIDAL TURBINE deployable nuclear . Underwater turbine used Missions: coalition deployment, to harness tidal current strategic defence and sea area energy. FREMM FRIGATE interdiction. The ultimate . Missions: all types of transoceanic naval operations, naval force command and long-range onshore strikes.

CONVENTIONAL BARRACUDA A powerful, versatile and swiftly deployable MISTER-CLASS LHD attack submarine. The tried and tested amphibious ship. Missions: all types of conflict and large-scale marine Missions: force projection, aircraft launches, attacks in large-scale theatres of operation. vehicle transport, humanitarian support and operational command. FLOATING WIND TURBINE Captures the energy produced by ocean winds. AIRCRAFT CARRIER BALLISTIC MISSILE The flagship of an oceangoing fleet. (SSBN) Missions: high power force The undetectable, therefore invulnerable, projection, independent aerial aspect of nuclear dissuasion. support for all types of operations Missions: nuclear dissuasion and ultimate at sea and on land. protection of France’s vital interests.

250 m 200 m 150 m 100 m 50 m 0 m 100 m 50 m 0 m

SYSTEMS SHIPMASTER® UNDERWATER WEAPONS SYSTEMS UNDERWATER WEAPONS AND EQUIPMENT The nautical steering and equipment AND EQUIPMENT control system for safe navigation under MU90 F21 TORPEDO SETIS® all circumstances. The world’s most modern light torpedo, SUBTICS® The latest generation heavy torpedo OCEAN THERMAL The combat system used by frigates adopted by seven navies. It can be A powerful, highly automated for submarines. ENERGY and corvettes for high-intensity naval SYLVER® deployed from any naval or aerial and integrated combat system. Uses differences in ocean operations. The lightweight and fully secured modular platform. CANTO-S® temperatures to generate vertical multi-missile module. MAST RAISING SYSTEM The countermeasure operating on electric power. POLARIS® CANTO-V® for optronic masts, attack periscopes, the principle of confusion/dilution, The compact, robust and intuitive The anti-torpedo ESM and communications antenna a revolution in anti-torpedo warfare. on-board marine surveillance and countermeasure, operating on the for all types of sensors. defence system. principle of confusion/dilution.

P—24 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—25 PART 02

P. 28 LORIENT P. 30 NANTES-INDRET P. 34 BREST AND TOULON P. 38 PARIS P. 40 BAGNEUX AND OLLIOULES 02 EMBODYING

Above all else, Naval Group is made up of 13,000 staff members who proudly perpetuate a unique heritage boasting 400 skills, passed down from generation to generation for almost four centuries. The group aims to extend the reach of this vast expertise offered by the women and men who provide it.

P—26 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—27 02 — EMBODYING

Lorient

“Within the Fluids family of professions, my contribution concerns the surface ship programs. I take care of training, TRAINING carry out on-board checks and also take part in R&D work. No two days are ever the same. In the morning, I can be in the classroom explaining technical operations instructions and, in the afternoon, on board a ship, taking care of a pipework assembly problem. I enjoy this kind of variety.”

MIGUELITO LE FLOCH, Alexis, Meven and Alexandre, boilermaker and pipefitter experts in installing crews on board, rely on augmented reality for their work.

INSTALLATION

STRATIFICATION

Patrick, experienced in working with composites, carries out the stratification of a rudder.

P—28 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—29 02 — EMBODYING

Nicolas is a maintenance technician. He is contributing to the deployment of an ambitious investment plan for machines. Nantes-Indret

“I am a miller-borer. I do We improve our machining various types of machining procedures by incorporating such as drilling, boring new tools such as high-feed or milling of parts made cutters. For the current of stainless steel, steel part, we start rough or titanium for use in machining a 5.5 t block propulsion equipment. Here to produce a finished part we are producing single weighing 600 kg, with items with high added value everything having been and very complex geometry. entirely machined from the Miller-borer is a highly same piece. The advantage specialised job technically. is there’ll be no problems MAINTENANCE You must enjoy working out caused by foundry defects how the parts should be and fewer quality checks DESIGN positioned on the machine. will be needed later on.” That’s what makes this such an interesting job: no chance FATHI GHERAIRI, of falling into a routine! miller-borer

INDUSTRIALISATION MACHINING Christian and Frédéric, specialised in mechanical design and industrialisation, are engineering experts who ensure the success of programs in this field.

Nicolas and Quentin are focused on designing future ships, such as the upcoming intermediary sized frigates or third generation ballistic missile submarines.

P—30 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—31 02 — EMBODYING

Nantes-Indret

“I manage 20 boilermakers, welders and machine fitters, responsible for assembling the nuclear boiler on the Barracuda submarines. These operators have skills that are both rare and outstanding, resulting from the extreme complexity of our products. One of the aspects I focus on particularly is training their successors. It takes five to ten years to be fully competent and able to work independently in this team.”

NICOLAS GÉRARD, team leader

P—32 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—33 02 — EMBODYING

Brest

“My role involves helping the shipyard manager in charge of adapting the M51 missile for the ballistic missile nuclear submarine MAINTENANCE Le Téméraire during its regular refit and repair program on issues concerning “health and safety” at the shipyard. My day-to-day responsibility consists in making sure that the safety measures in At Brest, on board the Téméraire, Alain and Laurence, place correspond to the work being from the program management team, contribute their MECHANICS carried out by the 1,000 people expertise in production management. employed at the shipyard every day. Not exactly a guardian angel, I’m more of a safeguard, my job being to protect the workers by ASSEMBLY preventing incompatible procedures Gauthier is a mechanic-assembler at from taking place at the same time Toulon. He takes part in inspecting the aircraft catapults, a strategic aspect and recommending preventative of the ship’s refit. measures. Monitoring peoples’ working conditions, improving them over time and making sure everyone gets home safely at night is a very satisfying achievement.”

HERVÉ MAZÉ, MILLING Health and Safety Manager IA M51

At Toulon, Éric supervises the positioning of a new deck landing mirror on the Charles de Gaulle aircraft carrier.

Glenn was hired as a machinist-miller after an apprenticeship at the Brest milling workshop.

P—34 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—35 02 — EMBODYING

Toulon

“My assignment consists in monitoring the mid-life refit of the Charles de Gaulle aircraft carrier. This includes managing a communications plan, photo shoots and videos of the major milestones. Other important aspects include VIP visits and presentations, travelling and press briefings in liaison with the French Navy. The work is intense, varied and exciting. After twenty-four years spent as a communications in the French Navy, I very much appreciate working with Naval Group on this monumental project which is a major industrial challenge. And, like everyone else taking part in it, I am extremely proud of contributing to the comprehensive upgrade of the French fleet’s flagship!”

MARIE-LAURE MASSON, communications manager

P—36 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—37 02 — EMBODYING

LEGAL

At the registered office, the jurists and contract management experts – such as Nicolas, Armelle, Michel, Sonia and Vincent – advise on and follow up the group’s projects in France and abroad. STEERING Paris

“I am in charge of monitoring the legal aspects of operations PROJECT MANAGEMENT involving group entities’ social life, from when they are initiated to when they are dissolved. My aim is to make sure they comply with all applicable company law regulations and our own governance rules. Contributing to the group’s internationalisation and extending my knowledge of legal systems in countries where we are established is extremely satisfying!”

FÉRIEL REDJOUANI, company law manager Members of the Program management team, Guillaume, Yves and Sébastien make their expertise available to clients.

P—38 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—39 02 — EMBODYING

ENGINEERING

Jean-Daniel, Charles and Jean-Bernard Bagneux at the nerve center of a nuclear ballistic missile submarine combat system integration platform at Ollioules. “I take part in integrating FUNCTIONAL INTEGRATOR combat management systems on multi-mission frigates. The aim is to detect any anomalies as early as possible, and above all making STUDIES sure they have been eliminated when the software is installed. This means being able to accurately analyse clients’ needs so as to provide the best possible system tests. These are complex systems, making them all the more interesting to explore. It is a very proud moment to see them operating on board with the crew during the trials!”

NICOLAS LECACHEUR, functional integrator

Gwendoline, an IT product engineer at Bagneux, manages combat system functional integration.

P—40 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—41 PART 03

P. 44 THE GOWIND® P. 48 THE CHARLES DE GAULLE P. 50 DISSUASION P. 52 THE FREMMS P. 54 LATEST NEWS 03 ACCOMPLISHING Naval Group, showcasing French excellence, is the only industrial group with full command of the entire production process, from design to the building and maintenance of cutting-edge ships and submarines throughout their entire operational lives.

P—42 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—43 03 — ACCOMPLISHING

Gowind®

It was a highly emotional sea-proven, is a moment when the first concentrate of the very Gowind® corvette was latest technological delivered to the Egyptian advances, giving it great Navy at Lorient on military capacity. The Setis® 22 September 2017. In the combat system, the words of its chief of staff, corvette’s veritable nerve “The Gowind® corvettes centre, provides full designed by Naval Group command of all sensors fully represent the and weapons in real time. cooperation existing The Panoramic Sensors and between France and Egypt, Intelligence Module (PSIM) two nations pursuing their consists of the integrated historical relationships. mast with its various We are proud of them.” sensors and the operational “Completing this warship centre as well as all the in thirty-seven months, associated technical from initial studies to final installations. As a result training, is an unprecedented of this major innovation, performance in Europe, integration and validation clearly demonstrating the of on-board systems capacity for innovation we was fully completed, even now have in the construction before the platform was methods and responsiveness floated out. of our Lorient shipyard,” Work is continuing at the Hervé Guillou declared. Alexandria shipyard on The Gowind® 2500 the next three ships to be corvette, now fully produced in the series.

P—44 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—45 In Malaysia, the first of the six corvettes on order was floated out by our partners at the end of August. The second combined mast/radome produced by Naval Group was transferred from Lorient to the Lumat shipyard to be fitted onto the PSIM’s steel block. Determining the line of fire – to accurately define the shaft line’s positioning – was also completed in mid-December. This high-precision operation was carried out jointly by the Naval Group teams and their Malaysian colleagues.

NAVAL GROUP FACTORY FIRST SEA IS RESPONSIBLE FOR THE DEVELOPMENT ACCEPTANCE TRIALS AND COMMISSIONING OF THE COMBAT OF THE COMBAT MANAGEMENT SYSTEM ARE PLANNED FOR 2019 SYSTEM FOR THE FIRST TWO SHIPS PLANNED FOR JUNE 2018 IN THE MALAYSIAN PROGRAM

P—46 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—47 03 — ACCOMPLISHING

Charles de Gaulle aircraft carrier

The French Navy’s flagship went into dry dock on 8 February 2017 for its midlife overhaul. This is a unique challenge for Naval Group as prime contractor, with the aircraft carrier’s availability and the future of its military efficiency depending on a successful outcome. The work involves modernising the combat system, the aviation installations and the platform as well as carrying out more conventional maintenance on the ship. Meeting these challenges will also benefit French industry – stimulating a whole labour pool and a sector of the economy. It will also enable key skills to be retained, particularly in the nuclear and fields.

P—48 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—49 Dissuasion

In 2017, Naval Group celebrated 50 years of nuclear dissuasion and 45 years devoted to maintaining this capability. Backed by its unique industrial skills, particularly providing in-service support for the oceangoing strategic force, the group works tirelessly to ensure its ballistic missile nuclear submarines (SSBN) can maintain their presence at sea at all times. At Brest and at l’Île Longue, 500 Naval Group staff members work solely on providing ongoing maintenance of the four SSBN vessels: Le Triomphant, Le Téméraire, Le Vigilant and Le Terrible. Naval Group is also carrying out preparatory operations for installing sea-to-land strategic ballistic missiles on board.

PASSING ON SIX OR SEVEN NOT A MINUTE’S PERIODS LETUP AND UPGRADING SKILLS ARE MAINLY CARRIED OUT BY WORKING IN DUOS, SEAMANSHIP OF UNAVAILABILITY FOR MAINTENANCE ARE IN DISSUASION SINCE THE LAUNCH MENTORING AND WORK/STUDY PROGRAMS MANAGED BY NAVAL GROUP EVERY YEAR OF THE REDOUTABLE

P—50 NAVAL GROUP — YEARBOOK 2017 NAVALNANAVNNAVAAAVAAVVVAALLGRLG GRGGROUPROUPOUOUPUP —YE——Y YYEYEARBOOKEARBOARBAARRBRRBOBBOOOKOKK2 2 20170170101177 03 — ACCOMPLISHING

The FREMM Bretagne at float-out.

FREMM

On 11 April in Toulon, Naval Group after the other, to our clients’ delivered the multi-mission FREMM satisfaction: the Aquitaine, the The FREMM Tahya Misr Auvergne for the French Navy. This Auvergne, the Provence and the takes to the sea. delivery of the Auvergne illustrates Languedoc in Brest and Toulon, our ability to produce and deliver the Mohammed VI in Morocco and a series of frontline on the Tahya Misr in Egypt. Software schedule to meet our clients’ needs. updates take place almost all the Naval Group is currently in the time: these new generation ships process of completing the FREMM are highly digitalised and software Bretagne, which began sea trials in evolves very rapidly. October, and is continuing with its The tactical simulator for training assembly of the FREMM Normandie Egyptian for this type of ship at a steady rate. Furthermore, work has also been set up in Alexandria. has started on the Alsace, one of the Finally, i-maintenance has been two FREMM ships with strengthened introduced for the disassembly anti-aerial capacities scheduled for and reassembly of the rudders delivery before the end of 2022. and stocks on the Languedoc. The technical shutdowns for the FREMMs in service took place one

P—52 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—53 03 — ACCOMPLISHING

PROSUB stays Successful F21 Barracuda: The home straight for Le Téméraire on course launches the series gains momentum Le Téméraire, the last of its height, over 1,000 people The integration work Three consecutive the French ballistic missile were working in the carried out by Itaguaí launches of the new nuclear submarines to shipyard. The submarine Construções Navais (ICN), generation F21 heavy The Barracuda nuclear benefit from the M51 missile will return to l’Île Longue on board the Riachuelo, torpedo carried out attack submarine adaptation, is currently for everything to be the first in the series at Saint-Tropez in 2017 program has been given being reassembled at Brest. completed before the end of Brazilian Scorpène® 3 were successful, bringing fresh impetus. Four When the activity was at of June 2018. submarines, continued the torpedo closer ships are currently without any letup in 2017, RANGES OF FLAGSHIP PRODUCTS: to its qualification and being constructed in and particularly since the LIGHT TORPEDOES, HEAVY TORPEDOES subsequent entry into Cherbourg, with over weapons handling module AND COUNTERMEASURES service. The F21 is swifter, 95% of the integration was installed on board more manoeuvrable and work on board the last March. Construction intelligent as well as Suffren now completed. of the massive benefitting from enhanced The combat system infrastructure in operational performance. was developed at Sepetiva Bay has almost Toulon-Ollioules. reached the 70% mark. At Nantes-Indret, the The development of the delivery, tests, assembly four simulators has also and pre-assembly of been validated by the four boiler modules and Brazilian Navy, meaning propulsion units were they are now ready conducted, while the to be transferred from equipment (torpedo Angoulême to Itaguaí. tubes, mast, etc.) were fitted as standard at Angoulême-Ruelle.

4 SCORPÈNE® SUBMARINES DESIGNED AND BUILT USING TECHNOLOGY TRANSFER

NAVAL GROUP HAS A 41% STAKE IN ICN The first operational COSIN 4 The first COSIN (integrated monitoring the digital SHIPS UNDER CONSTRUCTION digital operational support integrity of ships, tools and AT THE SAME TIME: SUFFREN, DUGUAY- 1,000 M² centre) has been in service at infrastructures, developing TROUIN, TOURVILLE AND DE GRASSE 1,000 Toulon since the end of 2017. cyber-services, identifying DEVOTED TO THE DIGITALISATION It has been created around needs and introducing new PEOPLE WORKING OF MAINTENANCE ACTIVITIES the notion of providing solutions such as remote 2 ON THIS PROJECT flexible and efficient services diagnoses and assistance, SHIPS, CASABIANCA AND RUBIS, adapted to our clients’ needs. intelligent maintenance FOR WHICH CRITICALLY IMPORTANT Its purpose involves and predictive maintenance. COMPONENTS HAVE BEEN ORDERED

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Serving the Technical shutdown French Navy of the Saudi Arabian in the Pacific F814 frigate

The major technical The technical shutdown shutdown of the of the frigate Makkah surveillance frigate started in early 2017, Vendémiaire based with delivery to the Saudi in Nouméa called for Arabian Navy at the end OVER The SIMDAV, extensive heavy of the year within the 4,000 a technological infrastructure. Naval agreed timeframe and to concentrate Group staff members the client’s satisfaction. LINES OF WORK WERE CARRIED OUT from Brest and This is the third and last BY THE GROUP’S STAFF MEMBERS, Singapore moved into Sawari 2 frigate to be TOGETHER WITH FRENCH AND LOCAL Naval Group has the Devonport Naval maintained at the SUBCONTRACTING COMPANIES delivered a second visual base (Auckland Bay) in shipyard in the naval base defence simulator New Zealand for several at Jeddah under the terms (SIMDAV) to the French 2 KM months. With Naval of the ERAV contract. THE WORK Navy at Brest. The new OF STAINLESS STEEL PIPEWORK Group as the prime WAS CARRIED OUT WITH SUPPORT equipment will enable INSTALLED ON BOARD TO SET UP contractor, they worked FROM THE FRENCH REAR BASE WHICH naval action force crews A NEW FIRE EXTINCTION SYSTEM alongside teams from PROVIDED INDUSTRIAL FILES, SPARE to train under highly USING WATER MIST Babcock NZ Ltd. PARTS, EXPERTISE AND CARRIED OUT realistic conditions EQUIPMENT INSPECTION at Brest as well as at Toulon.

Scorpène® India: 120 the success story DAYS OF SEA TRIALS continues FOR THE KALVARI First major Delivered to the Indian technical shutdown Navy in September, the for the Malaysian submarine Kalvari went Scorpène® into active service on 14 December. This is the submarines first submarine to have been entirely produced The refit of the Tunku using technology Abdul Rahman, the first transfer. This delivery to be carried out for the demonstrates once more Malaysian Navy since Naval Group’s ability delivery in 2007, began to command complex at the Kota Kinabalu naval programs on an base in January 2017. international scale. The submarine was At the same time, the subsequently relaunched on Khanderi, the second 15 December of the same submarine in the series, year, marking a significant was undergoing its industrial milestone before sea trials. commencing sea trials.

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P. 60 DRONES P. 64 I-MAINTENANCE P. 66 CYBER-SECURITY P. 68 ENHANCED REALITY P. 72 COLLABORATIVE INNOVATION P. 74 ACOUSTICS P. 76 ON-BOARD DIGITAL ARCHITECTURE 04 INNOVATING

Naval Group stands out for its understanding of evolving operational needs and above all for the excellence of the technological solutions it makes available to navies throughout the world; thereby providing them with operational superiority.

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Drones: impressive maturity

In June 2017, Naval Group confirmed its status as a comprehensive architect in the aero-maritime field by achieving a European first. Taking place during its Naval Innovation Days, the group successfully coordinated the deployment of three types of drone: underwater, in the air and on the ground, via its 14®Drones mission system. During this demonstration, a suspicious vessel was detected, identified and neutralised in less than 20 minutes. At the same time, the group Marine aerial drone system (SDAM): integration of the presented its docking station for submarine upcoming tactical drone system capacity drones, developed in one year with innovative to be installed on warships. SMEs. This station is capable of recovering, immobilising and storing the drone, recharging and communicating with it, preserving it in an anticorrosion liquid and relaunching it for a new AUSYRIS I4®DRONES THE SDAM mission. This is a first stage, which has allowed MORE THAN 80 HOURS 20 MINUTES TO LAUNCH, 750 KILOS DELIVERED BY AIR, Naval Group to resolve the various technological OF AUTONOMY DURING MISSIONS DETECT, IDENTIFY AND NEUTRALISE PAYLOAD OF UP TO 150 KILOS, issues and begin to work on launching and A THREAT 10 HOURS’ AUTONOMY WITH A RANGE recovering drones from a submarine. OF 100 NAUTICAL MILES FROM THE SHIP Naval Group has succeeded in carrying out a campaign of trials on board the Dixmude Landing Helicopter Dock (LHD) ship. This allowed the Serval A European first: system (Schiebel Camcopter® S-100 drone) to be coordinated deployment validated. This aerial drone is capable of carrying of three types of drone. out surveillance and information gathering missions by using its on-board camera. Following this success, in July, the Defence Procurement Agency (DPA) notified Naval Group of the second phase of studies with the aim of deploying the drone on the first of several ships in the LHD fleet.

29 10 DECK LANDINGS DURING THE FIRST CAMPAIGN HOURS OF DAY AND NIGHT FLYING OF TESTS ON BOARD THE DIXMUDE DURING THE SECOND CAMPAIGN

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REMORINA, a surface drone developed by Sirehna, can approach an object independently or by remote control and interact with a threat.

The use of this aerial tactical helicopter drone drone in an operational system’s future capacity context was validated when carried on warships. during a Corymbe mission This demonstration in the gulf of Guinea. program will ultimately lead On 29 December 2017, to tests being conducted the DPA notified the from a French Navy ship. Naval Group and Airbus Naval Group has also consortium of a launched the Ausyris technological study market project with its partners in the field of rotary-winged Thales and the ECA Group. aerial drones (SDAM marine Working with the DPA, in the aerial drone system). course of 2018, this aims to Its purpose is to study build a program designed to risk-reduction solutions develop a first multi-mission followed by developing military underwater drone a demonstrator of the demonstrator.

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REMOTE MAINTENANCE

I-maintenance

Until now, ships’ missions than a predetermined were interrupted by maintenance schedule. regular technical shutdowns Furthermore, the ship’s in order to carry out integrated capabilities corrective and preventative enable operators to update maintenance. the ships on-board software With the Belh@rra® systems without DIGITALISATION frigate, Naval Group is interrupting the mission. BIG DATA relying on the digitalisation When a technical of its ships from the design shutdown is required in stage onwards to meet spite of everything, the navies’ demands for maintenance program greater flexibility as far itself is optimised via as maintenance is digitalisation, making it concerned in order to possible to reduce the improve availability. amount of time spent By having access to data in dock. By collecting the on the ship’s condition ship’s data under secure and that of its physical and conditions, the COSIN I-MAINTENANCE electronic components, (integrated digital it will now be possible operational support centre) CYBER-SECURITY to program technical is able to anticipate work to TRACEABILITY shutdowns according to an be carried out and its teams’ assessment of needs rather day-to-day organisation. PREDICTIVE MAINTENANCE

1,000 M² 2,000 ARE DEVOTED TO MAINTENANCE ITEMS OF EQUIPMENT CHECKED ACTIVITY DIGITALISATION FOR CYBER-SECURITY IN ONE YEAR FOR THE FIRST COSIN IN TOULON AT BREST AND TOULON

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Cyber-security: anticipating threats

THE MISSION AND COMBAT SYSTEMS TEAM WAS REWARDED IN DECEMBER 2017 WITH The digital, connected ship the combat and of the future, such as the communications system, the LEVEL 2 CLASSIFICATION FOR THE CAPABILITY Belh@rra® frigate, opens up ship’s automated steering, MATURITY MODEL INTEGRATION (CMMI) fresh development and propulsion and energy efficiency opportunities for production systems, right clients and industrialists. This through to production and is achieved by automating quayside facility management tasks or extending on-board infrastructures. capacities, even though The group is developing such an approach demands new technologies such stronger protection, as defensive IT protection involving cyber-defence and expanding operational and resilience. capacities with solutions Naval Group has adopted such as the COSIN an integrated cyber-policy, (integrated digital from initial concepts right up operational support centre). to the ship’s in-service Furthermore, Naval Group support, personnel security is working in partnership and the security of suppliers’ with academic cyber- systems. security players as well This covers the intelligent as with innovative SMEs on-board systems, such as and start-ups.

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The industrial application of enhanced reality ENHANCED REALITY

Enhanced reality is coming to the workshops and on board ship where, by using 3D spectacles, tablets or direct projections, staff members can be given accurate information to carry out their tasks under the best possible conditions. These cognitive COGNITIVE ASSISTANCE assistance solutions contribute to having full technical command of situations and reducing non- quality sufficiently to improve traceability and establish conformity in real time for warships. During the Laval Virtual exhibition in March 2017, the group introduced an enhanced reality application making it possible to view and monitor the progress of assembling equipment during work on building a ship. Currently being tested in situ at Lorient, this application is being developed within the framework of a cooperative project supported by the unique interministerial funds (FUI).

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In particular, enhanced reality makes it possible to monitor and simplify maintenance IMMERSIVE and verification operations at the shipyard. APPLICATION DIGITAL MOCK-UP

TACTICAL SIMULATOR

FUTURE OPERATORS

VIRTUAL REALITY Naval Group is a systems designer and integrator also providing on-board cyber-security.

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Collaborative innovation is scientific, technical and also forgetting digital manufacturing a watchword for Naval Group. sociological, anthropological, and prototyping in “sprint” THE JOINT LABORATORY OF MARINE R&D is carried out within etc.,” explains its chairman, Joël mode. Open.Lab has all the site’s TECHNOLOGY WITH THE NANTES the group and extended Bertrand, director of research expertise to draw upon, from CENTRAL SCHOOL AND UNIVERSITY to all company levels. Under and special adviser to the its Innovation and Technical OF NANTES; THE GUSTAVE ZÉDÉ the impetus given by the chairman of the CNRS. Excellence (particularly the LABORATORY WITH THE ENSTA ADVANCED TECHNICAL SCHOOL Department of Innovation and Technological Research team) IN Technical Excellence (DIT), all Hackathons, catalysing to the skills available from THE LABORATORY DEVOTED TO programs and projects, sites innovation innovative local SMEs, SYSTEM ENGINEERING AND ARTIFICIAL and various industrial partners For the very first time, university partners and INTELLIGENCE WITH THE PARIS TECH are concerned (large groups, the group took part in the the digital sector. ENSTA; THE LABORATORY DEVOTED ETIs, SMEs and start-ups). This 2017 24 hours of innovation, TO PROCESSING SONAR INFORMATION WITH THE UNIVERSITY collaborative dialogue makes organised in mid-September A collaborative program OF TOULON-AIX-MARSEILLE it possible to swiftly give form at 507 FabHouse, the temple of to reduce the environmental to an idea, eliminate risks, Hutchinson’s open innovation. impact of civil ships speed up its development and It also attended the Airbus In the context of the European implementation on board ships hackathon in Nantes. Hackathons Union’s H2020 project entitled using new working methods and are based upon the principle “RAMSSES” (Realisation and 4 procedures, thereby thinking of mixing, within a very limited Demonstration of Advanced JOINT LABORATORIES ahead towards a product’s timeframe, various profiles Material Solutions for industrialisation and potential driven by a spirit of challenge Sustainable and Efficient Ships), for further development. around the subject under Naval Group will be heading a We will now focus on a number discussion. Naval Group’s own project to create two innovative of examples illustrating this hackathon will be organised prototypes. Bringing together procedure in 2017. at the beginning of 2019. 37 partners, including major NAVAL GROUP IS A STAKEHOLDER IN naval shipyards and laboratories Scientific advice to clarify The Open.Lab at Angoulême- engaged in maritime research, 3 the future Ruelle, a creative laboratory RAMSSES aims to accomplish COMPETITIVE CLUSTERS CREATED Set up in 2016, Naval Group’s The new collaborative and demonstrate via TO HELP INNOVATIVE PROJECTS MAKE Scientific Committee is workshop focusing on fast experimental campaigns THE TRANSITION FROM R&D WORK TO INDUSTRIALISATION ON BUOYANT made up of 15 acknowledged prototyping and collective that new advanced material MARKETS ( personalities from the world innovation was set up in solutions used in ship design CLUSTER, BRITTANY ATLANTIC SEA of science and research, most January 2017. Driven by a can reduce its environmental CLUSTER AND THE EMC2 CLUSTER) of whom have previously desire to combine production, footprint. Apart from its had little to do with the naval design and R&D at a single determination to defend Naval NAVAL GROUP BELONGS TO defence sector. It is precisely location open to everyone, Group’s place in the field of the this fresh look at its research the initiative aims at making the energy economy, Research 3 policy, its technical strategy and Angoulême-Ruelle site an asset also demonstrates its ability TECHNOLOGICAL RESEARCH INSTITUTES (IRT) WITH FRENCH GOVERNMENTAL even its business models that for the group and its future to attract external funding for APPROVAL (IRT JULES VERNE, IRT M2P the group is expecting from this innovation. The space financing its research. AND IRT SYSTEMX) body, with the aim of enhancing reproduces the path taken its scientific approach. “Our role by a product idea: from defining is to help define Naval Group as the development strategy it will be in 2040. What products to the various stages of will it be making? What services benchmarking the project, will it be offering? For what from computer-assisted design purpose? What will its business to electronic and electro- consists of? The approach is technical development, without

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Leader in applying acoustics to naval systems

Naval Group finances theses and various in-house and collaborative R&D projects which contribute to advancing the state of the art in line with evolving threats. It also designs and produces some of the most innovative and quietest ships on the market. The company is currently interested in the propagation of sound in water and its environmental impact, the issues of sound travelling through water and furtiveness, the new acoustic materials that could be used for cladding future submarines and vibroacoustic modelling applied to creating the ship’s digital twin.

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On-board digital architecture

To deal with the increasing digitalisation of our ships imposed by the latest threats and challenges, Naval Group is developing a flexible, scalable solution capable of dealing with the acceleration of technological cycles. Afloat Common Computerized and Evolutive Secured Systems (ACCESS), developed by Naval Group, consists of regrouping and rationalising ships’ IT resources, currently disseminated throughout the ship (network, calculation, storage, etc.) into powerful, rationalised, on-board, scalable, cyber-safe and maintainable computing centres.

DIGITALISATION RATIONALISATION STANDARDISATION PROVIDING ACCESS TO BIG DATA, REDUCTIONS IN VOLUME, MASS, SLAVE INFRASTRUCTURE ACCESS IS BASED PREDICTIVE MAINTENANCE, APPLICATIONS AND THE ENERGY REQUIRED ON OPEN AND MODULAR ARCHITECTURE ARTIFICIAL INTELLIGENCE, GREATER BY ON-BOARD IT INFRASTRUCTURES AUTHORISING INTERCONNECTION AND ENABLING CYBER-SECURITY AND AN ABILITY TO KEEP SHIPS TO EVOLVE IN STEP WITH ONGOING PACE WITH CHANGING NEEDS TECHNOLOGICAL ADVANCEMENTS

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P. 80 RESPONSIBLE GROWTH P. 82 TECHNOLOGY TRANSFER P. 84 NEWS P. 86 NAVAL GROUP, POWERING THE REGIONS 05 ENGAGING

Naval Group makes corporate social responsibility (CSR) the cornerstone of its projects. It is committed to an ongoing improvement approach for its economic growth, its human resources policy and also for reducing the impact of its activity and the footprint its products make on the environment.

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Naval Group, driving French Governance (DECG), managing implements its commitment industry in terms of jobs, a network of Compliance via very tangible operational A NEW research and development, Officers distributed throughout initiatives and active 6.27% considers that the aim of the group’s sites, its various participation in initiatives and COMPANY responsible growth goes hand activities and subsidiaries activities relating to its sector: THE PROPORTION OF STAFF in hand with the growth and in France and abroad. GICAN, CEDEF, strategic MEMBERS WITH DISABILITIES AGREEMENT profitability of its activity. committee, Ocean centres, SME ON 1 JANUARY 2017 This is why the group is aiming The maritime sector is full of Pact, the charter encouraging WAS SIGNED ON to be among the best companies economic promises but remains innovative SMEs, SME defence 11 APRIL 2017 in its field of activity in terms a fragile environment. Fully plan, etc. Not only does the of compliance, encouraging aware of this reality, the group group carry out an annual stakeholders to adopt its values is dedicated to addressing the assessment of its suppliers, and make its day-to-day environmental issues relevant particularly with regard commitment to its social to its activities as well as to its to governance criteria, responsibility more efficient products. compliance, safety and the and more apparent. environment, it also carries out To produce some of the an annual satisfaction survey 5 ENVIRONMENTAL Naval Group took part in a world’s most complex using an extensive panel, EXCELLENCE TARGETS peer review organised by the products, Naval Group can enabling it to record ongoing United Nations Global Compact draw upon its teams’ highly improvement. Naval Group has network in April 2017. The developed skills and is been awarded the Responsible initiatives carried out by committed to preserving the Supplier Relations label since the group enabled it to earn quality of life in the workplace, December 2014. the Global Compact Advanced employing staff members with qualification for the third year handicap issues, gender equality running. Only around 60 other in a professional context, job NAVAL GROUP CONTRIBUTES companies in France have openings for young people and TO FIVE OF THE UN’S SUSTAINABLE reached this level of distinction. seniors, etc. Furthermore, DEVELOPMENT OBJECTIVES the group generates tens of For Naval Group, compliance thousands of highly qualified means having a competitive indirect jobs which contribute edge which allows us to meet to our country’s industrial SINCE 2008, NAVAL GROUP HAS HAD the highest international excellence. Naval Campus, ISO 14001 CERTIFICATION FOR standards and thereby satisfy a project set up by Naval Group ALL ITS SITES AND ACTIVITIES our clients’ and future clients’ and the Brittany Regional expectations. In 2017, the group Council, aims to bring together pursued and extended its effort regions, industrial and to strengthen its capability, educational actors with emphasising its determination the aim of meeting the needs to prevent corruption in all of the naval sector. 30 shapes and forms. The group’s ethical organisation and Naval Group’s commitment COMPLIANCE OFFICERS, compliance was reiterated to responsible purchasing is INCLUDING 7 ABROAD in April when it set up just one aspect of its ongoing a Department for Ethics, drive for improvement steered Compliance and Group from the very top. Naval Group

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Underpinning partner countries’ sovereignty

Naval Group is currently working on industrial programs for established clients on the five continents and helping them with the modernisation or restructuring of their fleets by developing industrial partnerships with local actors. Technology and skills transfers, backed by competitive tenders, are strongly leveraging the group’s presence on 25 YEARS NO. 1 70% international markets. They also OF TECHNOLOGY KALVARI, THE FIRST SUBMARINE PROGRESS MADE SO FAR ON BUILDING act as a transformational tool TRANSFER PROGRAMS TO BE ENTIRELY BUILT USING THE INFRASTRUCTURE IN BRAZIL for our industrial processes that TECHNOLOGY TRANSFER benefit all group stakeholders, including in France.

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France’s favourite company!

According to a study 400 skills for the future carried out by Randstad and published in March 2017, Naval Group Maintaining and passing a factor on which the growth procedures. Work/study is France’s favourite on design and construction of our competitivity depends. programs serve to maintain company. The survey expertise is a constant This was incorporated into skills acquired by training covered the most challenge for Naval Group the company agreement young people who attractive employers, which must meet the signed in spring 2017. subsequently join the who were assessed particularly stringent A great deal of our training company with a permanent by a panel of several demands imposed by our is focused on seamanship, contract. This also thousand people located activities. Managing integrating new arrivals via demonstrates social in 23 countries. This forecasts of jobs and skills discussions and creating a responsibility, and is the recognition illustrates plays an essential role in digital library of knowledge reason why the company the group’s growing accurately assessing our organised into films has included it in its skills reputation, its evolution ongoing needs, making it demonstrating technical management agreement. and the work its teams carry out to further high-technology.

Quality of life at work

In April 2017, Naval Group the agreement. Among signed an agreement other things, this will be concerning the quality of translated into manager life at work. This was based training and implementing on setting up expression a managerial behavioural 2,200 groups within the entities charter. The methodology NEW RECRUITS BETWEEN NOW AND 2020 to improve collective for assessing the quality functioning, industrial of life at work was performance and staff deployed at all sites in 2016 members’ well-being, and 2017. More than 120 further development of this 120 assessment groups, experimental approach each made up of 10 to YOUNG PEOPLE TAKEN ON AS PERMANENT STAFF MEMBERS FOLLOWING THEIR WORK and participation from the 12 staff members, came EXPERIENCE CONTRACTS management. A national together at the various committee, together sites to assess the risks with similar local bodies, facing their entity and were set up to monitor setting up preventative and take part in deploying action plans.

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Naval Group, powering the regions

An analysis of the socio- generated by local activities. economic impact Naval These flows make it Group has at all its sites possible to quantify direct in France was carried out in impacts (the site’s added 2017 based upon the much value), indirect impacts respected studies of the (economic benefits) and INSEE Institute. Naval induced impacts resulting Group has entrusted the from activities (family independent consultant consumption and public Utopies with this task. spending) sustained by the The survey was based salaries and taxes paid by on in-house data, the site or its suppliers. For macroeconomic French example, for each job at the indicators and Local Naval Group site in Lorient, Footprint® methodology. almost five other additional It focused on three main jobs are sustained in France, financial flows injected into more than a third of them in the economy by the group: Brittany. The site’s activity the site’s expenditure made it possible to (mainly purchasing) paid to generate a total wealth its suppliers, salaries paid of 663 million euros to staff members and taxes in France in 2017.

THE LORIENT SITE’S ACTIVITY THE SITE ACCOUNTS FOR FOR €1 OF WEALTH GENERATED BY THE SITE, WAS ABLE TO SUSTAIN 16% AN ADDITIONAL 9,107 OF ALL JOBS SUSTAINED €3.3 DIRECT, INDIRECT AND INDUCED BY NAVAL GROUP IN FRANCE ARE GENERATED IN THE FRENCH ECONOMY JOBS IN FRANCE

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P. 90 THE MANAGERIAL TEAM P. 92 THE ECOSYSTEM P. 94 THE STRATEGY P. 96 THE OFFERING P. 98 THE RESULTS

06 STEERING

Having adopted a strategy of reconquest and enjoying its associated benefits since 2015, the group is advancing on the right path, in line with its stated perspectives – thanks to the commitment and confidence of everyone – partners and staff members alike.

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HERVÉ GUILLOU ALAIN GUILLOU OLIVIER DE LA BOURDONNAYE JEAN-MICHEL BILLIG Chairman and Chief Executive Officer Executive Vice President, Senior Vice President, Industry Executive Director for the Australian International Development Future Submarine Program

FRANK LE REBELLER JEAN-YVES BATTESTI PIERRE LEGROS NATHALIE SMIRNOV PHILIPPE SAUVAGEOT Executive Vice President, General Secretary Senior Vice President, Programs Senior Vice President, Services Senior Vice President, International Trade Finance, Legal & Purchasing

THE BOARD OF DIRECTORS the Senior Vice President, to introduce measures to detect and Ms Isabelle Roué; Chaired by the Chairman and Services, the Executive Director and overcome them; the – administrators appointed 9 Chief Executive Officer, the for the Australian Future company’s growth and the by the Shareholders’ General MEMBERS OF THE COMEX Board of Directors is responsible Submarine Program and the protection of its social interests. Assembly: Mr Jacques Hardelay, A tightly-knit and for defining the group’s targets, Senior Vice President, It is made up of 18 members, Ms Sandra Lagumina, supportive team taking decisions on all issues International Trade. including 11 administrators Mr Bertrand Le Meur, Ms Sophie 18 to speed up our having a major impact on the appointed by the Shareholders’ Mantel, Mr Bernard Rétat internationalisation. group’s strategy, functions, THE GENERAL MANAGEMENT General Assembly, 6 as appointed on the Government’s MEMBERS OF THE GENERAL ASSEMBLY sales activities and operations. COMMITTEE representatives of the advice; Mr Pascal Bouchiat, It ensures a unity of purpose The General Management workforce and 1 administrator Mr Patrice Caine, Ms Nathalie and action, giving the group Committee considers all the representing the Government. Ravilly appointed on Thales’ a dynamic identity. major strategic, economic, Naval Group’s General advice; Ms Gabrielle Gauthey, It is made up of the Executive financial or technological policies Management Committee Mr Hervé Guillou and Mr Luc Vice President, Finance, Legal & relating to the company’s is made up of: Rémont; Purchasing, the Executive Vice activity. It mainly focuses on: – administrators elected to – the administrator appointed President, Development, the the definition, consistency and represent the staff members: by decree as a representative General Secretary, the Senior implementation of the strategic Mr Jacques André, Mr Thierry of the Government: Mr Jack Vice President, Programs, the plan; the global overview Barbarin, Mr Laurent Chagnas, Azoulay. Senior Vice President, Industry, of risks and the group’s ability Mr Gilles Rapale, Mr Joël Ricaud

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SHAREHOLDERS Fulfilling missions entrusted In France, and worldwide, Naval Group by them by relying on their support and expertise. aims to establish its societal approach based on collaboration and collective initiatives with all the stakeholders MEDIA, JOURNALISTS involved, via its activities in the naval Creating a positive dynamic defence and energy sectors. of propagation and influence.

INDUSTRIAL PARTNERS Engaging in win-win cooperation.

SECTORS OF EXCELLENCE AND INNOVATION Using cutting-edge technologies to make a real difference.

SUPPLIERS CLIENTS Uniting them around shared Creating a favourable context targets for growth. to satisfy their expectations.

PUBLIC BODIES, INSTITUTIONS Involving them in the decision- making process by taking their local constraints into account. STAFF MEMBERS Giving them the first opportunity to leverage company SCHOOLS, UNIVERSITIES performance. Providing expertise for current and future generations.

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A geopolitical climate drones and upgrades to missile its development in the encouraging naval defence in a systems. The resulting international arena. This will context of keener competition challenge involves reconciling enable the group to realise Securing regions, the long cycles that its strategic vision of being 3 transportation and characterise the naval a European leader in naval STRATEGIC TRACKS SERVING communications when access sector with those dominating defence with a global reach and THE GROUP’S GROWTH 3 to resources increasingly technological fields which the best possible profitability. involve having command of the are extremely rapid. This strategy is built around ALLIANCES seas is once again drawing three ambitions: to gain Alliances are a major means nation states into struggles A sovereignty mission strength, extend its network of expanding Naval Group’s critical for power. Tensions are even In this shifting environment, and gain more partners. size compared with other world building in the oceans Naval Group must also continue leaders and speed up its themselves, as we are seeing to pursue its primary mission Major achievements international deployment. These in the China sea, the Arctic of being an industrial partner Ramping up the Australian alliances can be formed more and Indian Ocean. The effort of excellence serving the French program in 2017 reflected this 1 naturally in Europe, where the of reinforcing naval military Navy. To this end, it designs, strategy, as did the creation convergence of certain national STRONGER AND BETTER resources resulting from builds and performs in-service of a joint company with a local markets, the complementarity of this global situation opens up support of the nuclear industrialist in Saudi Arabia, Building on assets inherited from sites and shared product lines can perspectives for considerable submarines and a large part of and the French and Italian its long history to challenge be planned over shorter timeframes. growth which will reach beyond the surface fleet, to conserve announcement of an initiative competition more efficiently and These initiatives must rely on the spheres of the historical its superiority. designed to open up the means consolidate its role as the mainstay governmental backing to succeed. players. This mission’s success of progressively creating of national sovereignty, Naval Group More and more actors are depends upon preserving its an alliance between the two continues to further upscale its moving into the naval defence outstanding, rare and varied countries in naval defence. The design and production system’s market as it becomes expertise associated with beginning of these discussions, efficiency and competitivity. The increasingly international. a complex ecosystem of announced by the French group is devoted to developing lines These include major European suppliers. Naval Group also and Italian governments on of products and services adapted to 2 industrials, but also Chinese, constantly strives to keep its 27 September 2017, must allow its clients’ needs and ensure their BECOMING ESTABLISHED Japanese, Korean, Russian programs’ costs, quality and Naval Group and Fincantieri to operational superiority. It has and Turkish players. These lead times under control while develop internationally in the increased its capacity to innovate When Naval Group decides to become established in its competitors’ rapid growth at the same time committing context of keener competition in the long term, particularly in the clients’ countries, it is a long-term commitment. Either alone is financed by the armament significant resources to R&D on the market, while allowing digital environment, and is fully or with local businesses, the aim is to become a partner of programs of their home and innovation in order to the two groups to continue their focused on its skills’ staying power. confidence, capable of providing the goods and services they country. Most of them also produce the ship of the future, respective missions serving are expecting in the long term while meeting their demands benefit from low production which will be digital, cyber- the navies of both countries. for local content and technology transfer. This international costs. protected and connected. growth also enables Naval Group, via export contracts, to maintain its specialised skills and develop competitive A swiftly changing A strategy of profitable products which will benefit its French client. Apart from technological landscape growth the Australian Future Submarine program, which will lead At the same time, new Taking all these trends and to Naval Group becoming physically and industrially technologies, some of them imperatives into account to established in the long term outside France, this international even coming from the civil preserve its skills, capacities growth strategy is particularly aimed at India, Brazil, sector, are steadily gaining for investment (R&D, industrial Malaysia, Egypt and Saudi Arabia, where Naval Group greater importance in the naval resources) and to increase aims to boost its status as a benchmark partner world. This is particularly true its world leader ranking, and its industrial commitment. in the fields of cyber-defence, Naval Group must accelerate

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1 2 3 4 5

DESIGN AND PRODUCTION AND TRAINING AND SUPPORTING, DISMANTLING AND PREPARATION INTEGRATION SUPPORTING MAINTAINING, DECONSTRUCTING MODERNISING Naval Group’s engineers, The industrial sites Naval Group offers its Naval Group carries out researchers and experts produce, assemble or clients a comprehensive Navel Group provides the dismantling and are meeting the maritime integrate high-technology solution including training in-service support for deconstruction of the technological challenges naval solutions. and advice on all aspects surface ships, submarines French Navy’s nuclear of the future. of naval defence and equipment. submarines. related skills.

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For the third successive financial Orders Net income year, results for 2017 record an increase in our revenue as well as an improvement in our net margin 2017 and operational profitability. 142.2 GROUP NET CONSOLIDATED INCOME GEOGRAPHICAL BREAKDOWN IN MILLION € Income OF REVENUE 4.00 12.27 11.91 3.52 11.62 2015 2016 Its 15.9% growth compared 2.64 3.69 with 2016 is largely due to the major national construction and 3.03 3.19 68.4 94.3 service programmes: FREMM, 65% Barracuda, Charles de Gaulle 2015 2016 2017 2015 2016 2017 and submarine maintenance. IN FRANCE IN BILLION € IN BILLION € Internationally, Brazil, Egypt GROUP NET GROUP NET and Australia have been ORDERS RECORDED DURING COMPETING OFFERS CONTRIBUTED CONSOLIDATED INCOME CONSOLIDATED INCOME powerful driving forces for THE 2017 FISCAL YEAR TO AN INCREASE IN THE ORDER IN MILLION € IN MILLION € STAND AT €4 BILLION. BOOK’S AVERAGE MARGIN RATE, 20152016 2017 the growth of our activity. 35% WHICH ROSE TO €11.91 BILLION Consolidated net profit share CONSOLIDATED ANNUAL REVENUE AT THE END OF 2017. for the group amounted to WAS €3.69 BILLION INTERNATIONALLY 142.2 million euros, up nearly 50 million euros compared Group workforce Jobs with 2016. This strong momentum reflects the operational improvement BREAKDOWN BY SECTOR of all naval programs and the effectiveness of the initiatives taken within the framework €172.7 million of the industrial and social pact. 55% 45% EBITA (EARNINGS BEFORE INTEREST, TAXES, These results were nevertheless DEPRECIATION AND AMORTIZATION) STANDS weakened by a depreciation AT €172.7 MILLION. THIS SIGNIFICANT of the value of certain assets GROWTH, HIGHER THAN THAT OF THE belonging to our subsidiary REVENUE, RESULTS IN THE OPERATIONAL Naval Energies. 2017 has helped MARGIN RISING EVEN FURTHER, FROM 3.2% to create new jobs, increase New constructions and Services and IN 2016 TO 4.7% IN 2017. investment and strengthen our underwater weapons infrastructures 13,429 40,000 competitiveness, an essential FULL TIME EQUIVALENTS (FTE) JOBS IN THE FRENCH condition for growing our volume AT THE END OF 2017 NAVAL SECTOR of business with the French Navy and our international customers.

P—98 NAVAL GROUP — YEARBOOK 2017 NAVAL GROUP — YEARBOOK 2017 P—99 Communications Department – March 2018. Design and production: – Photo credits: Naval Group, Adrien Daste, French Navy. Illustrations p. 90-91: Agata Marszalek. Printed on 100% recyclable paper by APF 3I Concept, printers, a company geared to employing people with disabilities. NAVAL-GROUP.COM

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