ANNUAL CORPORATE AND SOCIAL RAPPORT D’ACTIVITÉ RESPONSIBILITY ET DE RESPONSABILITÉ REPORT !"#$ SOCIALE D’ENTREPRISE !"#$

— CONTENTS

03 Profile 04 Intelligence 06 Interoperability 08 Durability 10 Interview with Hervé Guillou 14 Governance 16 Financial results

CHALLENGE $ Developing internationally — P. 19

20 Interview with Marie-Pierre de Bailliencourt, Andreas Loewenstein and Philippe Sauvageot 22 DCNS worldwide 24 North and South America 26 Africa and the Middle East 28 Asia – Pacific and India 30 Europe

CHALLENGE # CHALLENGE ! Reinforcing Growing in renewable operational marine energies performance — P. 39 — P. 31 40 Interview with Thierry Kalanquin and James Ives 42 Tidal energy 32 Interview with Frank Le Rebeller, 44 Ocean thermal energy conversion (OTEC) and offshore Pierre Legros, Nathalie Smirnov floating wind turbines and Daniel Cauchon 46 An international excellence centre for renewable 34 Commanding lead times and costs marine energies is established 36 Guaranteeing operational excellence 38 Developing best practices CHALLENGE " Upholding the pillar of sovereignty — P. 47

48 Interview with Jean-Yves Battesti, Alain Guillou and Didier Baichère 50 Developing the future’s key competences, today 52 Contributing to economic and social development 54 Controlling our impact on all product and activity life cycles

! _ DCNS

DCNS, a world leader in naval defence and an innovator in renewable marine energy, develops competitive products and services in a swiftly changing economic and geopolitical context. The Group, which generates %&% of its income in France and ((% on international markets, works with clients in the Middle East, Africa, Asia, America and Europe. It offers them an extensive port- folio of products, creating added value and technology in their respective countries. Pursuing the course of its history, DCNS has just defined a new roadmap, designed to give it full command of profitable and lasting growth. The Group is aiming to grow its industrial activities on international markets, significantly improve its operational performance, become a leader in renewable marine energies and meet clients’ needs to protect their sovereignty. These are all challenges that DCNS, a high-tech company, is capable of meeting with world beating skills thanks to its workforce, partners and suppliers. With the outstandingly broad scope of its engineers’, technicians’ and craftsmen’s expertise, together with its unique industrial resources, the Group designs, builds and provides through-life support for submarines and warships. It also delivers services for shipyards and naval bases as well as offering an extensive choice of renewable marine energy solutions.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ #

— DCNS / !"#$

Navies are responsible for securing the oceans, guaranteeing the free circulation of goods carried INTELLIGENCEby sea and the defence of national interests. To successfully accomplish their missions, they must be able to count upon the durability of their resources. DCNS is one of the only manufacturers in the world offering solutions providing them with the ability to successfully control aeronaval operations. This is achieved by designing, building, modernising and providing through-life support for all their ships, as well as training their crews, designing and operating their naval infrastructures.

Multimission FREMM Information control SUBTICS® Aircraft carrier frigates and superiority The DCNS “combat system” The ultimate ship for Warships (anti-submarine, The system systems submarine product covers deploying a powerful anti-surface vessel, solutions offered by DCNS a conventional submarine’s projection operation, anti-aircraft and land attack meet the needs of navies operational needs in every providing air support operations) enabling navies taking part in coalition type of mission. It can also which is crucial for to use the same ship for military operations. be configured to equip the success of all types carrying out or commanding These solutions are based missile launching nuclear of naval or land preventive, protective and on the networking submarines (SSBNs) and operations. projection operations of means, resources, tools attack submarines (SSNs). whatever the threat and and decision-making aids whatever its origin. engaged in an operation.

$ _ DCNS TECHNOLOGY TRANSFER POWER PROJECTION ANTICIPATION-ANALYSIS PARTNERSHIPS INFORMATION GATHERING-IDENTIFICATION THEATRE OF OPERATIONS WARSHIPS INTERNATIONAL INTELLIGENCESUBSIDIARIES DISSUASIONTHROUGH-LIFE SUPPORT SYSTEM SYSTEMS

Scorpene® !""" A conventional “oceangoing” submarine for asserting naval superiority, information gathering and combat missions with equal efficiency on the high seas and in coastal waters.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ %

— DCNS / !"#$

In a complex and constantly changing geostrategic context, where maritime threats are INTEROPERABILITYgrowing and the number of inter-Allied naval operations are increasing, international force coordination is a key factor in peacekeeping. To meet this major challenge for naval defence, DCNS makes the interoperability of its products and systems the focus of its concern and development so as to provide client navies with ever-increasing efficiency and flexibility.

OPV #" POLARIS® Innovative SMX®-Ocean An offshore patrol vessel. An on-board system currently Operations Centre A new submarine Easy to operate and in service on the OPV %" DCNS offers solutions concept which transposes maintain, based on civil L’Adroit , it enables surveillance incorporating the the design of a nuclear standards and with a and protection missions such human element in the attack submarine mission system adapted as anti-piracy, surveillance decision-making chain to a diesel submarine. to clients’ needs, this ship and protection of exclusive in order to fully deploy the This involves the is ideal for all maritime economic zones (EEZ), various operational capacities of incorporation of new security missions. types of anti-smuggling and the systems being controlled. features enabling convoy protection to be carried An integrator of complex performance to outstrip out. The most advanced systems, DCNS simplifies that of a regular diesel version of this system can also their use while at the same submarine. manage anti-ship operations. time optimising their performance. & _ DCNS ANTI-PIRACY CRISIS MANAGEMENT

SECURITYTARGETED OPERATIONS MARITIME SURVEILLANCE INTEROPERABILITY MARITIME SECURITY

SYSTEMCYBERDEFENCE INTERCONNECTION SOVEREIGNTY

VIPERE® One of the DCNS innovations on display during the Euronaval trade show in October !"#$. This multifunction buoy enables submarines to gather information about the situation above the surface discreetly while remaining submerged.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ '

— DCNS / !"#$

In the context of a fast changing naval defence market, both well established and DUemerging governments’ needs allRABILITY focus on the same objective: to have a naval force with long-term availability and operational excellence that will enable them to carry out their missions while at the same time controlling costs. To satisfy all these needs while meeting its contractual and economic commitments, DCNS offers its naval clients intelligent, high-technology solutions that are also long-lasting and consistent throughout their ships’ operational life cycles.

Naval infrastructure Through-life support The combat bridge Logistic support In line with a constant concern DCNS offers through-life of the future DCNS provides its clients to support its clients, DCNS support solutions for DCNS stands out for its offering with logistic support offers them the benefit equipment, ships and fleets. of an innovative solution involving enabling cost of ownership of its expertise in naval Thanks to its command improved ship management and ship availability to be infrastructure: from project of naval technologies, DCNS information processing which optimised. design through to completion, guarantees the highest rate is applied to both operations centre but also from modernisation to of operational availability and the bridge. This is a maintenance and management at the lowest cost. multifunction bridge which can of industrial installations be reconfigured according to the and port equipment. ship’s operational situation (protection/defence, transit, etc.).

( _ DCNS AVAILABILITY

OPENNESSVERSATILITY SUPPORT DIVERSIFICATION INTEGRATION

QUALITYINFRASTRUCTURES DURABILITY MODERNISATION COMMITMENT PRIME CONTRACTING PERFORMANCE INNOVATION GROWTH

Training DCNS Universeaty®, the Group’s university, offers personalised training in all DCNS Group activities, offering its clients the possibility of complementing the training by consultancy services.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ ) — INTERVIEW WITH HERVÉ GUILLOU

Hervé GUILLOU / What is your view of the naval defence Chairman and Chief Executive Officer market in France and internationally? w In Europe, we are facing an economic and financial crisis which has repercussions on the Union’s countries’ tightly restricted defence budgets. The French Military Programming Law (MPL), passed in !"#(, has maintained the schedule of the FREMM and Barracuda programmes. In the next few months and years, we will be ensuring that the MPL’s undertakings to preserve jobs and manufacturing in the strategic defence sec- tor are being complied with. However, our vision of the market extends beyond France. In addition to our traditional competitors,

* _ DCNS mainly European, there are now a number of highly competitive new contenders from emerging countries. In a multipolar world, a manufacturer like DCNS must fight on sev- eral fronts, have a global presence, assess its strengths and make the most of the neces- In addition to our sary alliances. traditional competitors, The naval defence market has been under- going extensive changes during the last dec- mainly European, there ade. Its centre of gravity has shifted to Asia, are now a number the Near and Middle East and also to South America. More than ever, world trade depends of highly competitive on sea transport with shipping lanes passing new contenders from through straits and areas threatened by pow- forget that of ocean thermal energy in the erful geopolitical tensions. Navies now South East Asian and Caribbean seas. The RME emerging countries. require multimission ships to defend their market covers the whole globe. In a multipolar world, territories while at the same time protecting strategic routes and preserving their ocean How do you assess the !"#$ fiscal year? a manufacturer like resources. Bearing this in mind, from now on w As far as naval defence is concerned, we our product portfolio will include more mod- delivered the FREMM Mohammed-VI to the DCNS must fight ular ships that can be specifically adapted to Royal Moroccan Navy, we were chosen by on several fronts, have meet operational needs. Many of our clients Egypt to supply four GOWIND® corvettes and, also call for their naval shipbuilding to be car- last February, a multimission FREMM frigate. a global presence, ried out locally, combining this with technol- We also reached major industrial milestones assess its strengths ogy and expertise transfer to give them full in the French Navy Barracuda, Indian P&0 and control of their sovereignty. In the light of Brazilian PROSUB programmes. We are on and make the most these far-reaching changes in our markets, schedule with the M0# missile ballistic of the necessary DCNS must develop its industrial presence nuclear submarine (SSBN) adaptation pro- outside Europe. gramme, which represents the seagoing arm alliances. of France’s dissuasive forces. These major suc- How do you see the renewable marine cesses demonstrate our Group’s ability to energy market evolving? offer solutions adapted to navies’ needs w The renewable marine energy (RME) mar- worldwide. ket is rapidly growing, but this expansion As far as RME is concerned, we have been varies according to various governments’ chosen by the French Government to develop a maturity with regard to this field. The pilot marine turbine farm in the Raz Blanchard International Energy Agency forecasts a ("% and Europe has shown its confidence in us by increase in demand by !"(". In the light of choosing our ocean thermal energy generating this, I am convinced that marine energies will project off Martinique. These projects will be contribute to solving some of the energy international firsts. problems the world is now facing. This is why, in !""+, DCNS entered a new area of innova- tion and development. Although the marine turbine market is extremely dynamic, par- ticularly in North America, we should not

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ ** — INTERVIEW WITH HERVÉ GUILLOU

Finally, our fourth strategic track involves ensuring that DCNS can sustainably provide and develop the resources needed to preserve France’s sovereignty.

DCNS has been developing its activities in renewable marine energies over the last five years. What are the Group’s ambitions This being said, DCNS’ economic perform- in this field today? ance is no longer meeting shareholders’ w DCNS has the means of becoming one of expectations. The trend in financial results the world leaders in certain renewable calls for a major change of direction to marine energy segments. The Group has a strengthen our performance, bringing us solid foundation of activities and compet- back to more profitable and sustainable encies in its naval defence core activity which development. We must get off to a new start, opens up genuine opportunities for growth boost our competitivity and once again keep on these new markets. We will be drawing pace with international growth. up a first assessment to identify the sectors To meet these challenges, we can count on which have reasonable chances of being our differentiating assets in our core business, competitive within five to ten years so that which hinge both on our presence and our we can emerge from the restrictions of the competences associated with ships’ entire subsidised market. Renewable marine ener- life cycles and our command of large-scale gies will then be able to lead to profitable systems. Our capacity as a combat systems’ growth, which will ultimately create new developer and integrator sets us apart from jobs in the regions concerned. our competitors’ positions as more conven- tional shipbuilders (the design and construc- What is your short-term roadmap? tion of self-propelled hulls and warships). w With the new managerial team at my side, we have launched an offensive strategy What are your strategic priorities for the designed to make us competitive again and next few years? grow. A plan to make immediate savings of w Our priorities are organised around four 1#"" million involving the entire Group has strongly interdependent strategic tracks. been introduced. These cutbacks should The first of these is to pursue our profitable stimulate our economic performance from growth internationally with a clearly defined !"#0, without affecting our competences. An ambition: to have sustainable industrial improvement plan was launched during the sites and partnerships that go beyond the first half of !"#0 with the aim of enhancing conventional concept of merely exporting efficiency. It will enable the Group to become warships. The second track aims at reinforc- more competitive and cost efficient, thereby ing the Group’s operational performance by generating the resources that are essential respecting our commitments in terms of for financing our growth. leadtimes, cost and quality serving clients, both in France and on international markets. The third track concerns the renewable marine energy market, on which we must continue growing after an initial assess- ment of the investments made until now.

*! _ DCNS Apart from this long-term industrial presence which must be speeded up, we must work on our product range, making it bigger and more modular. What can leverage faster development for DCNS internationally? Greater emphasis w First of all, DCNS can count on the major should also be placed international programmes underway in Brazil, Egypt, India and Malaysia. Apart from on our service offering this long-term industrial presence which and infrastructure must be speeded up, we must work on our product range, making it bigger and more services in discussions modular. Greater emphasis should also be placed on our service offering and infrastruc- with clients who ture services in discussions with clients who appreciate this kind appreciate this kind of commitment in the field. Finally, our international growth will of commitment in continue thanks to a tightly-knit team in the field. Finally, our France, built on the strong strategic relation- ships we have with our main French part- international growth ners, particularly Thales and MBDA, but also will continue thanks the other partners in the naval sector. to a tightly-knit team You are working with a new team. Does this in France. mark a turning point for DCNS? w The new management team and organ- isation, in place since January !"#0, will enable the Group to be set on an active footing and give our four strategic tracks a dynamic launch. With this rejuvenated team, combining experienced managers and new arrivals, I am confident that the Group has all the resources it needs to take up the challenges of opera- tional excellence, competitivity and growth we have to face.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ *# — GOVERNANCE

From left to right: %#_ Marie-Pierre de Bailliencourt Executive Vice President, Development. Hervé Guillou Chairman and Chief Executive Officer of the DCNS Group. Frank Le Rebeller 1 Executive Vice President, Finance & Legal.

2

3

!_ Alain Guillou Senior Vice President, Human 4 Resources & Operations. Andreas Loewenstein Senior Vice President, Strategy, "_ Pierre Legros Partnerships & Innovation. Senior Vice President, Programmes. Thierry Kalanquin Senior Vice President, Energies & Marine Infrastructures.

*$ _ DCNS %$_ Olivier de la Bourdonnaye Senior Vice President, Industry. The Board of Directors

THE BOARD OF DIRECTORS Chaired by the Chairman and Chief Executive Officer, the Board of Directors is responsible for examining company-wide issues having a major impact on how the Group functions. A body for reflection, discussion, consultation and steering, it is made up of the Executive Vice President, Finance & Legal, the Executive Vice President, Development, the General Secretary, the Senior Vice President, Strategy, Partnerships & Innovation, the Senior Vice President, International Trade, the Senior Vice President, Programmes, the Senior Vice President, Industry, the Senior Vice President, Human Resources & Operations, the Senior Vice President, Services and the Senior Vice President, Marine Energies & Infrastructure.

THE GENERAL MANAGEMENT COMMITTEE The General Management Committee considers all the major strategic, eco- nomic, financial or technological policies relating to the company’s activity. It 5 underwrites the company’s social interests and that of its main stakeholders: shareholders, staff members and clients. It is made up of eighteen members. An administrator is appointed by decree as a representative of the Government. 6 Eleven administrators are appointed by the Shareholders’ General Meeting, of which five are designated by the Government. Six administrators are elected to represent the workforce. Since #3 December !"#$, the DCNS General Management Committee is made up of: – Chairman: Mr Hervé Guillou. – Administrator appointed by decree as a representative of the Government: Mrs Astrid Milsan. – Administrators appointed by the Shareholders’ General Meeting: Mr Pascal Bouchiat, Mr Patrice Caine, Mrs Gabrielle Gauthey, Mr Jacques Hardelay, Mrs Sandra Lagumina, Mr Bertrand Le Meur, Mrs Sophie Mantel, Mrs Nathalie Ravilly, Mr Luc Rémont and Mr Bernard Rétat. – Administrators elected as representatives of the workforce: Mr Jacques André, Mr Thierry Barbarin, Mr Laurent Chagnas, Mr Gilles Rapale, Mr Joël Ricaud and From left to right: &_ Jean-Yves Battesti Mrs Isabelle Roué. General Secretary. – Censor: Mrs Sandrine Gaudin. Philippe Sauvageot Senior Vice President, International Trade. '_ Nathalie Smirnov Senior Vice President, Services.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ *% — FINANCIAL RESULTS

REVENUES REVENUE BREAKDOWN (in billions of euros) (in percentage)

33% on international 3.07 markets 2014 3.31 2013 (1) 67% 2.90 in France 2012 (1)

PROPORTION OF REVENUE GENERATED BY SERVICES GROUP STAFF (including subsidiaries) #/% of the income accounted #%,#%" for by the good performance full-time equivalent (FTE) of service activities. at the end of !"#$.

(#) IFRS #", ## and #! consolidation rules withdrawn (minor impact).

*& _ DCNS As far as naval defence is concerned, we delivered the FREMM Mohammed-VI to the Royal Moroccan Navy, we were chosen by Egypt to supply four GOWIND® corvettes and, last February, a multimission FREMM frigate. We also reached major industrial milestones in the French Navy Barracuda, Indian P&' and Brazilian PROSUB programmes. We are on schedule with the M'# missile SSBN adaptation programme, which represents the seagoing arm of France’s dissuasive forces. These major successes demonstrate our Group’s ability to offer solutions adapted to navies’ needs worldwide.

ORDER INTAKE NET LOSS (in billions of euros) (in millions of euros) on international 3.60 2014 2014 –336.1 2.27 114.7 2013 (1) 2013 (1) 2.53 163.6 2012 (1) 2012 (1)

'%% is the percentage of increase in order This drop can be explained by the difficulties intake compared with !"#+. This is despite constantly encountered in energy development, largely in keener competition from Europe and Asia. the civil nuclear sector, as well as in some major naval defence programmes, particularly the Barracuda nuclear attack submarine programme.

ORDER BOOK (in billions of euros)

NAVAL SECTOR JOBS IN FRANCE 13.17 (source: GICAN) 2014 12.62 2013 (1) $",""" 13.84 2012 (1)

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ *' — FINANCIAL RESULTS

The new management team and organisation, in place since January !"#', will enable the Group to be set on an active footing and give our four strategic tracks a dynamic launch. With this rejuvenated team, combining experienced managers and new arrivals, I am confident that the Group INVESTMENT IN RESEARCH AND DEVELOPMENT has all the resources it needs (in millions of euros) to take up the challenges of operational excellence, million competitivity and growth &'$ we have to face. or %% of the revenue. This figure reaches %% if we take into account R&D financed as part of development contracts. This is a fundamental component of DCNS’ activity, enabling ongoing technological progress for all the Group’s products and services for export.

#%$" WILL REMAIN A FISCAL YEAR OF TRANSITION

The audits carried out in !"#$ on the main programmes show we 0#"" million, having no impact on jobs, was implemented at the have a powerful technical command of our core naval defence end of !"#$. At the same time, within the framework of the new activity. But they have also highlighted the need to improve our organisation, the new DCNS management team has launched a cost control and lead times, which therefore affect our financial strategic plan and an improvement plan, designed to enhance results upon conclusion. A variety of measures are now being the Group’s performance. As a result of all these measures, taken to improve DCNS’ results. A short-term cost saving plan of DCNS is now set to become profitable again from !"#'.

*( _ DCNS

CHALLENGE $ DEVELOPING INTERNATIONALLY Warship prime contractor and integrator, DCNS is able to meet demands from navies all over the world thanks to a comprehensive range of products, expertise and services. The Group’s internationalisation, which is its strategic priority and principal means of leveraging growth, started becoming a reality in !"#$ with the delivery of the FREMM Mohammed-VI to the Royal Moroccan Navy. It continued with the implementation of major contracts in Malaysia involving the six GOWIND® corvettes and the ongoing maintenance of the two Scorpene® submarines. Then, in Saudi Arabia, came the contract to renovate the four Al Medinah frigates and the two Boraida class petrol tanker-supply ships.

Brazil Egypt Australia DCNS and ICN, a joint company DCNS signs a contract for the In November !"#$, DCNS set up by DCNS and Odebrecht, supply of a FREMM multimission becomes established in continue with the PROSUB frigate with the Egyptian Arab Canberra and inaugurates the submarine building programme Republic’s Defence Minister. new DCNS Australia subsidiary for the Brazilian Navy. at a ceremony attended by David Johnson, the Australian Defence Minister.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ *) — DEVELOPING INTERNATIONALLY

DCNS carried out a global rethink of its product portfolio so as to offer clients and prospects increasingly efficient practical solutions and the full benefits of our experience in defence. This will greatly enhance the perception of our skills as systems and equipment integrators.

Marie-Pierre de Bailliencourt / Executive Vice President, Development

Andreas Loewenstein / Senior Vice President, Strategy, Partnerships & Innovation Philippe Sauvageot / Senior Vice President, International Trade

DCNS is developing and What challenges and international devel- the cross-fertilisation of our activities in becoming established opment targets has DCNS set itself? France and those abroad. internationally to be even w A. Loewenstein: With markets in w P. Sauvageot: This strategy also reflects a closer to its clients. France stagnating, DCNS must speed up its shift in our international clients’ expectations. growth internationally, for it is here that Most countries are seeking autonomy, first of the outlook for naval defence markets is all to provide their own through-life support more dynamic, while those for renewable and often to carry out modernisation opera- marine energies are rapidly emerging. Our tions. Some countries even aim to ultimately Group is currently at a crossroads: our become completely independent so that they model for accessing international markets can design and build their own ships in the can no longer be based purely on exporta- future. tion but on becoming sustainably estab- lished close to the client. This proximity will What is the current status of the naval thereby enable DCNS to build a viable eco- defence market? nomic fabric to encourage value creation for w A. Loewenstein: The naval defence mar- the Group and local markets. The industrial ket is one of the few defence markets to be activity thus generated will contribute to expanding internationally. The increasing

! _ DCNS From left to right: Philippe Sauvageot, Senior Vice President, International Trade. Andreas Loewenstein, Senior Vice President, Strategy, Partnerships & Innovation Marie-Pierre de Bailliencourt, Executive Vice President, Development.

What advantages does DCNS now have Marie-Pierre de Bailliencourt, which can help it grow internationally? Executive Vice President, w P. Sauvageot: The extent of the DCNS Development range, its ability to supply comprehensive solu- “DCNS carried out a global rethink of its tions including training, maintenance and product portfolio so as to offer clients and infrastructure, together with systems as prospects increasingly efficient practical sophisticated as armaments and submarine solutions and the full benefits of our countermeasures, all make us stand out. Being experience in defence. This will greatly virtually the only supplier for the French Navy, a enhance the perception of our skills as front-ranking navy engaged in combat and systems and equipment integrators. number of threats and risks in the world as active on seas all around the world, is also a The priority in developing our submarine well as territorial issues are now impacting powerful argument. Finally, the successes we offering will be given to the propulsion maritime traffic and commerce. This is gener- have had with a number of leading foreign and armaments systems. As far as surface ating a growing demand for appropriate navies, the fact that we have become estab- ships are concerned, entry-level warships naval hardware and systems. To meet these lished in several countries and our partner- and intermediate size frigates will be the needs, DCNS supplies surface ships, sub- ships all create a solid foundation for us to focus of our marketing efforts. marines and services, as well as high-tech build upon. Our strength lies in our ability to deploy a modular systems and equipment. w A. Loewenstein: We are also able to pro- range of increasingly modular solutions w P. Sauvageot: It is interesting to note vide technology transfers. The Scorpene® P&0 together with a guaranteed level of quality that the navies’ growth invariably goes in India and PROSUB in Brazil programmes, and operational intelligence for our clients’ hand-in-hand with countries’ economic currently underway, contribute to our long- missions, resources and ambitions. and political growth. Navies which began term presence in our partner countries. This allows our positioning to shift from being just a supplier of products (even if by buying patrol boats continue by buying they are the most sophisticated) to becom- corvettes, frigates and even submarines. ing a genuine partner in defence and eco- We have to think ahead, make suggestions nomic development based on innovation and not overlook markets which are still at and the protection of territorial waters.” an embryonic stage.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ !*

DCNS worldwide DCNS is a world-class company. Its activity on international markets accounts for almost +!.&% of DCNS’ income. With its workforce of #+,#+", the Group is active in some #2 countries via joint ventures, subsidiaries or representative offices, implementing a policy of responsible and sustainable international growth. The Group works on a long-term basis with its local industrial partners on all its programmes and assists clients with their technological development.

NORWAY

IRELAND

FRANCE GREECE

UNITED ARAB EMIRATES PAKISTAN EGYPT INDIA SAOUDI ARABIA MALAYSIA SINGAPORE

INDONESIA

AUSTRALIA

SUBSIDIARIES AND JOINT VENTURES

FRANCE KERSHIP ("&%* INTERNATIONAL PROSIN ($%%% SUBSIDIARY — OF DCNS DO BRAZIL* SIREHNA FRANCE ($%%%* Design and construction of medi- AUSTRALIA — — um-tonnage ships for maritime DCNS AUSTRALIA ($%%%* Naval systems engineering for Brazil. Dynamic ship positioning solution security missions (in partnership — development as well as stabilisa- with PIRIOU). Supports the DCNS Group for its ITAGUAÍ CONSTRUÇÕES tion and deck landing systems activities in Australia. NAVAIS ("$%* for marine, aerial and terrestrial PRINCIPIA SAS (!!.!%* — vehicles and UAVs. Technological — SAUDI ARABIA DCNS SUPPORT ($%%%* Submarine construction. The ship- research and development in naval An engineering and expert assess- yard produces the Scorpene® subma- hydrodynamics. ment company in the naval and — Supports the DCNS Group for its rines included in the contract signed nuclear fields. by DCNS with the Brazilian Navy DÉFENSE ENVIRONNEMENT through-life support activities in Saudi Arabia. (in partnership with the Brazilian SERVICES ("+%* company Odebrecht). — Multiservice and multitechnical in- BRAZIL DCNS DO BRAZIL ($%%%* CANADA frastructure management (in part- DCNS TECHNOLOGIES nership with Veolia Environnement). — CANADA, INC. ($%%%* Supports the DCNS Group for its — activities Brazil. Supports the DCNS Group for its activities in Canada.

!! _ DCNS DCNS sites in France (#)

Cherbourg

Brest Paris / Bagneux / Issy-les-Moulineaux Lorient

Nantes-Indret

Ruelle

Le Mourillon

CANADA Toulon Saint-Tropez

BREST #,'#% staff members Services and renewable marine energies _ CHERBOURG #,$$% staff members Submarines _ LE MOURILLON +#% staff members Information and surveillance systems BRAZIL _ LORIENT $,+'% staff members CHILE Naval surface systems REPRESENTATIVE _ OFFICES NANTES-INDRET $,%0% staff members SUBSIDIARIES AND Submarines and R&D JOINT VENTURES _ PARIS – BAGNEUX – ISSY-LES-MOULINEAUX CHILE logical and commercial leader on +&% staff members ENERGIA MARINA SPA ($%%% the marine turbine energy market. Registered offices / Information and SUBSIDIARY OF DCNS ÉNERGIES* surveillance systems / Renewable marine — MALAYSIA and civil nuclear energies Supports the DCNS Group for its renew- DCNS MALAYSIA ($%%%* _ able marine energy and offshore oil/gas — RUELLE activities in Chile and South America. Supports the DCNS Group for its 0"% staff members activities in Malaysia. INDIA Submarines, simulators and training DCNS INDIA ($%%%* BOUSTEAD DCNS NAVAL _ — CORPORATION ("%%* Technical support missions for local — SAINT-TROPEZ shipyards and naval industries, plus Through-life support for submarines #/% staff members the development of services using (in partnership with the Malaysian Underwater weapons Indian competences and sourcing for company Boustead). _ both national and international needs. SINGAPORE TOULON #,%'% staff members IRELAND DCNS FAR EAST ($%%%* OPENHYDRO GROUP LTD (&+./%* — Services — Naval and aeronaval system logistics Design and construction of marine and maintenance. turbines. OpenHydro is the techno- (#) Figures rounded up to the #" above.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ !# — DEVELOPING 1 INTERNATIONALLY

BRAZIL The programme ramps up

w !"#$ was marked by a number tance with the design of the scale contract, DCNS is providing of notable successes within the non-nuclear part of the first assistance with the prime context of the technology transfer nuclear powered Brazilian sub- contractorship for building the contract between DCNS and its marine. In January, the Group shipyard and the future naval Brazilian partner Odebrecht. This inaugurated a combat systems base. On #! December !"#$, covers the design and production integration platform at Saint- Dilma Rousseff, President of the of four conventional Scorpene® Mandrier-sur-Mer. This enables Brazilian Republic, officially inau- !""" class submarines and assis- DCNS and Brazilian Navy teams to gurated the submarine building carry out test phases and train- shipyard’s main hall. Completion ing in the information processing of this new building is an impor- systems. The assembly of the tant milestone in the programme central suspended cradle for the and illustrates the scope of this DCNS IN BRAZIL first conventional submarine major partnership with Brazil. was completed in October at — Four conventional submarines built with technology Cherbourg. Also at Cherbourg, transfer. DCNS inaugurated a logistics — Assistance with building a new naval base and a new platform designed to take deliv- shipyard with a first 00,""" square-metre manufactu- ery of and dispatch equipment ring site for producing submarine units in Itaguaí. for the Brazilian submarines. At — Assistance in the design of the non-nuclear parts of the Itaguaí, in Brazil, ICN, the joint first nuclear attack submarine. company set up by DCNS and — A subsidiary, Itaguaí Construções Navais (ICN), which Odebrecht, continued to build the is a joint company owned by DCNS and Odebrecht. hulls of the first two submarines. Also under the terms of this large-

!$ _ DCNS $_ #! December !"#$ – Inauguration of the main hall at the submarine shipyard by Dilma Rousseff, the 3 President of the Brazilian Republic – with an artist’s impression of the future Brazilian submarine.

#_ The FREMM multimission frigate Aquitaine riding in Halifax Bay (Canada). !_ Colombian Almirante Padilla class frigate, delivered by DCNS and Thales to the Colombian Navy in March !"#$. 2

CANADA COLOMBIA DCNS opens Modernisation a new subsidiary of four frigates

w DCNS Technologies Canada Inc., This new subsidiary, devoted to w The modernisation programme for four Colombian Navy DCNS’ wholly owned Canadian carrying out engineering studies Almirante Padilla class frigates, carried out by DCNS and Thales, was subsidiary, opened for business in with the aim of establishing successfully concluded in March !"#$ with the acceptation sea trials April !"#$ in Ottawa. Its creation industrial partnerships in Canada, for the fourth ship. The completion of this programme demonstrates reflects the Group’s desire to will in particular be steering that modernising existing platforms is an excellent way of extending extend its international growth. design of the Canadian version of ships’ active lives and improving their capabilities. It also once again the FREMM. The multimission confirms DCNS’ capacity to assume the role of prime contractor for frigate designed by the Group is a complex projects within a stipulated budget and timeframe, to the contender for the CSC (Canadian client’s entire satisfaction. In the context of this contract, signed at Surface Combatant) programme. the beginning of !""3, DCNS was the prime contractor while Thales This invitation to tender, issued was responsible for integrating the combat and communication sys- by the Canadian Navy, is part of a tems, in association with the Colombian naval shipyard Cotecmar. much vaster project since the The equipment installed and integrated into the four ships built at Canadian government has the beginning of the #3+"s include a SMART-S Mk! surveillance radar, decided to totally renew its fed- a STING EO Mk! electro-optic firing control system, a MIRADOR Over 100 eral fleet over the next thirty optronics firing control system, a VIGILE !""S electronic war system engineers, technicians and years. As part of the strategically (ESM), communications systems and a Terma SKWS decoy launcher. Brazilian workers have already sustainable and responsible The Altesse information gathering/transmission system (COMINT) received four years’ training in #$ technical fields partnerships DCNS offers all its on the four frigates was also modernised. by DCNS Universeaty®. client navies, the Group aims to provide support for what will be the largest naval defence pro- gramme ever implemented in this country.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ !% — DEVELOPING 1 INTERNATIONALLY

MOROCCO Delivery of the FREMM Mohammed-VI

w On (" January !"#$, at Brest, DCNS delivered the multimission frigate Mohammed-VI to the Royal Moroccan Navy during a ceremony attended by His Royal Highness the Prince Moulay Rachid El Alaoui, brother of His Majesty the King of Morocco, and Jean-Yves Le Drian, French Defence Minister. This ship, which bears the name of the Moroccan king, is the first commercial success for the DCNS FREMM range on the international market. The FREMM multimission frigates are among the most techno- logically advanced and competitive ships on the market. They can respond to all types of threats, whether they come from the air, sea, sub- marines or land, meeting the operational needs of many navies thanks to their versatility and manoeuvrability. The FREMM programme covers the construction of #! ships, ## of which are for the French Navy and one for DCNS IN EGYPT the Royal Moroccan Navy. In accordance with the contractual agreement, — A contract for the supply of a FREMM multimission this ship was built in five years. During the nine months preceding its frigate signed on #1 February !"#0, with the Defence delivery, a series of sea trials permitted to confirm that the frigate is fully Minister of the Arab Republic of Egypt. capable of meeting its specified performance. Some of the future — One of the FREMM frigates from the series planned Moroccan crew were on board during these trials so that they could for the French Navy loaned to Egypt so that delivery become familiar with the ship. Before setting sail, they had followed train- could be made in mid-!"#0. ing on simulators at the Lorient and Le Mourillon sites, a programme — The ! nd international success for the FREMM which in particular enabled them to become familiar with the ship’s multimission frigate, a versatile ship capable piloting systems. The Mohammed-VI multimission frigate, which is the of responding to all types of aerial threat. largest and most powerful warship in the Royal Moroccan Navy, features — Egypt to be supplied with four GOWIND® !0"" corvettes. the same technological and industrial innovations that are to be found on the ## other ships for the French Navy.

!& _ DCNS #_ %" January !"#$ 2 DCNS delivers the Mohammed-VI multimission frigate to the Royal Moroccan Navy.

#_ Ongoing modernisation programme for Royal Saudi Navy warships by DCNS teams. !_ June !"#$ DCNS wins a contract concerning the supply of four GOWIND® corvettes for the Egyptian Navy. 3

SAUDI ARABIA EGYPT A platform devoted Fresh success for to programme the GOWIND® range management

w Since the construction of the concerning the maintenance of w Following an international invitation to tender in June !"#$, first F!""" frigate in Lorient, at three frigates and the AMWAJ pro- the Ministry of Defence for the Arab Republic of Egypt informed the beginning of the #3+"s, DCNS gramme covering support for the DCNS that it had won a contract for the supply of four GOWIND® has built and consolidated a sus- Royal Saudi Navy in terms of sup- !0"" corvettes, with an option for two additional units. The first tainable partnership with Saudi plying spare parts and technical ship is to be designed and built in France, while the three others Arabia. After the ERAV programme assistance, the Saudi Government will be constructed in Alexandria via a technology transfer pro- further demonstrated its confi- vided by DCNS, once again proving its willingness to establish dence in DCNS. In August !"#(, responsible partnerships with its international clients. In addition the Group, in association with to its industrial sector taking an active part in building these ships, Thales and MBDA, was chosen by Egypt will also benefit from the acknowledged technical expertise the Royal Saudi Navy to renovate in the field of naval construction which DCNS will be able to four frigates and two tanker-sup- contribute. This contract represents a major international success ply ships. In order to give a more for DCNS, thereby demonstrating the appeal of its GOWIND® responsive and efficient service to range. To take on board its clients’ needs, the Group has extended this major client, in !"#$, DCNS this range, which now covers the #,""" to (,0""-tonne segment of opened a platform devoted to ships. It consists of the GOWIND® #""", a fast and particularly 300 managing these three pro- well-armed warship, and the GOWIND® !0"", which features grammes at its site in Toulon. This advanced combat capabilities when it comes to countering aerial, DCNS simulators are in service at its sites or installed at its client brings together a team of &" who surface and submarine threats. Finally, on #% February !"#0, DCNS navies’ bases. operate from France to back up the signed a contract with the Ministry of Defence for the Arab teams from DCNS Support, the Republic of Egypt for the supply of a FREMM multimission frigate. Group’s subsidiary in Saudi Arabia, This agreement highlights the strategic relationship of confidence which is responsible for carrying that exists between DCNS and Egypt. out this work.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ !' — DEVELOPING 1 INTERNATIONALLY

INDIA DCNS on all fronts

w !"#$ was a year of multiple ter of the P!+ programme, which be named INS Kalvari – had been successes in India, where the began in !""%. The uncondi- joined, the integration stages Group is highly active via its sub- tional acceptance of the eighth began. At the same time, DCNS sidiary DCNS India and several reducer was indeed the final launched two training sessions for alliances forged with local actors. milestone in the contract to the future crews: one in India on In May, DCNS and its Indian part- design, produce and integrate the piloting systems and the sec- ner Walchandnagar Industries reducer cradles for the propulsion ond at DCNS sites (Le Mourillon Limited, concluded the final chap- of four Indian Navy anti-subma- and Ruelle) on the combat system rine corvettes. !"#$ was also and torpedo tubes. highly eventful for the P&0 pro- gramme. This concerns the con- struction of six Scorpene® !""" DCNS IN SINGAPORE submarines with technology transfer by Mazagon Dock Limited. — DCNS FAR EAST (a wholly-owned subsidiary) was set up in !""0. This is a project which is unique in many ways, since it is the first time — A local presence established for ten years specialised in naval and aeronaval system logistics and maintenance, the first in a series has been pro- also involved in the inspection of submarines from the duced entirely via technology surface using robots. transfer, and now the sixth and — A naval and industrial partner which has delivered six final combat system supplied by frigates to the Singapore Navy, within the context DCNS has been accepted and vali- of a technology transfer programme. dated. After the last sections of the first submarine in the series – to

!( _ DCNS $_ DCNS teams and Mazagon Dock Limited Inc. are continuing with the technology transfer construction 3 programme of the six submarines for the Indian Navy. !"#$ saw completion of the P!+ programme by DCNS teams. P!+ concerns the supply and integration of reducer cradles on the four corvettes operated by the Indian Navy.

#_ DCNS and BDNC launch the through-life support contract for the two Scorpene® !""" submarines operated by the Royal Malaysian Navy, previously constructed by DCNS. !_ November !"#$, inauguration of the new DCNS Australia subsidiary, at a ceremony attended by David Johnson, the Australian Defence Minister. 2

MALAYSIA AUSTRALIA Responsible DCNS opens partnerships in Canberra

w Standing at the centre of one of the world’s greatest maritime w In November, Hervé Guillou, Group is pursuing its interna- crossroads, Malaysia is a driving force of the emerging South East Asia Chairman and Chief Executive tional growth in this highly stra- economies. Twenty years ago, the country began a far-reaching over- Officer of DCNS, inaugurated the tegic country. For Australia has haul of its fleet. DCNS, via its subsidiary DCNS Malaysia, works closely new DCNS Australia subsidiary launched the SEA #""" pro- with this major partner. The Group, which delivered two at a ceremony attended by David gramme, which plans to replace Scorpene® !""" submarines to the Royal Malaysian Navy in !""3 and Johnson, the Australian Defence some of its Collins class subma- !"#", was awarded an additional contract in !"## for the supply of six Minister. By establishing a long- rines. DCNS hopes to steer future GOWIND® corvettes. The ships, the first of which is to be delivered in term presence in Canberra, the discussions towards this pro- !"#&, are now being built in Malaysia with Boustead Naval Shipyard, gramme by speaking on behalf DCNS’ local partner, as the prime contractor. To ensure the flawless of the French Government and success of this project, DCNS has set up an extensive technology trans- French industrialists, including fer programme and, in particular, welcomed some thirty Malaysian Thales Australia. Thanks to its engineers to its Lorient site so that they can be trained and involved in multifaceted expertise in build- the work of designing the ships with contributions from DCNS For over ing submarines of all sizes and Universeaty®. With BDNC, its $"%-owned subsidiary in partnership in combat system integration, with Boustead, this year the Group launched the through-life support the Group can make a significant contract for the two Scorpene® !""" submarines operated by the Royal 20 years contribution to this programme. Malaysian Navy. After having supplied educational and training simu- technology transfer DCNS is planning to present the programmes have been lators for the Scorpene® !""" submarine crews, DCNS continued to implemented for SMX®-Ocean, a conventionally support the Royal Malaysian Navy by helping them acquire the neces- foreign client navies. powered submarine derived sary compet encies this year via major training programmes for the from the Barracuda, which will future crews of the GOWIND® corvettes. give Australia access to the most advanced French engineering capability and design.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ !) — DEVELOPING INTERNATIONALLY

Cooperation agreement between DCNS and Airbus Defence & Space EUROPE to develop integration of the TANAN UAV into warship combat systems. A year marked by success

w DCNS is a driving force in the helicopter TANAN UAV into war- the FREMM Provence , third in the consolidation of the European ship combat systems. series, began while the FREMM naval industry. Last September, The Group, which is aiming to posi- Languedoc , fourth in the series, in Toulon, in front of members tion itself as a leader in the integra- was successfully floated out in July of the European Commission, tion of complex information at Lorient. Finally, !"#$ also saw the Group coordinated the pres- systems in a maritime context, the first commercial success for entation of I!C, a four-year pro- delivered the specification docu- KERSHIP, a joint company set up by gramme of studies involving ments for the LOTI-NG operational DCNS and PIRIOU, which won the !" European partners with the software to Dassault Aviation in B!M contract for supplying and aim of developing an intelligent !"#$. This information processing maintaining three multimission integrated maritime surveillance software controls the implemen- OPV ships based overseas. system. Also at European level, tation of on-board sensors and DCNS has been awarded a con- weapons carried by Atlantique ! tract by BAE Systems to carry out maritime patrol aircrafts. studies of shaft line systems. In France, the FREMM programme, This is for the T!% programme, which concerns the construction which concerns the construction of ## multimission frigates for the of !( frigates for the Royal Navy. French Navy, moved ahead in DCNS also signed a cooperation many areas. Several series of sea agreement with Airbus Defence trials of the FREMM Normandie , & Space, the European leader in the second in the series, enabled its field. This concerns developing its combat system performance the integration of the on-board to be validated. The sea trials for

# _ DCNS

CHALLENGE # REINFORCING OPERATIONAL PERFORMANCE Controlling lead times, costs and quality are key priorities for DCNS. To meet the needs of clients and markets, the Group is strengthening its ongoing performance improvement dynamics. In !"#$, DCNS reached major industrial milestones on several programmes, such as, for example, the adaptation of nuclear ballistic missile submarines for the M0# missile, the delivery of the FREMM frigate to Morocco and also the delivery of nuclear critical equipment for EDF and CIDEN for the Bugey nuclear power station.

FREMM Charles de Gaulle Bugey nuclear Ongoing programme aircraft carrier power station of FREMM multimission frigate Maintenance layup for the Study programme for series – launching of the frigate aircraft carrier Charles de the supply, assembly Languedoc on #! July !"#$. Gaulle . and commissioning of a ventilation network on behalf of EDF and CIDEN.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ #* — REINFORCING OPERATIONAL PERFORMANCE

Respecting commitments, the most important being lead times, costs and quality, are the keywords to remember when it comes to achieving client satisfaction.

Frank Le Rebeller / Executive Vice President, Finance & Legal

Pierre Legros / Senior Vice President, Programmes Nathalie Smirnov / Senior Vice President, Services Daniel Cauchon / Delegate Director, Industry

DCNS is committed to pursuing What assets does DCNS have to improve its DCNS is currently demonstrating its ability its efforts in the fields of operational performance and successfully to act as prime contractor for complex major competitivity, quality and complete its programmes? programmes via its production of ## latest service to its clients. w P. Legros: The acknowledged technical generation FREMM multimission frigates, excellence of our teams in a wide range of the first of which went into service in !"#!. fields makes us stand out for the design and There is also the implementation of the construction of highly complex ships, both in Barracuda programme, the latest nuclear terms of the platform and their combat sys- attack submarine for the French Navy, which tem. We are able to cover all the specific fields features a high degree of complexity and associated with military ships. automated functions. Furthermore, the DCNS integrated model gives our clients the assurance that we will What are the keys to success in this field? be with them during the ship’s entire life w D. Cauchon: One of them lies in providing cycle, from design until through-life support. assistance at a time of change. The aim is to This unique model enables us to build on the explain what is at stake to gain support so that feedback from operational personnel and the DCNS industrial model can be imple- offer them ever better performing ships per- mented by members of our workforce on an fectly adapted to their specific needs. everyday basis. We must improve the group

#! _ DCNS From left to right: Daniel Cauchon, Delegate Director, Industry. Nathalie Smirnov, Senior Vice President, Services. Frank Le Rebeller, Executive Vice President, Finance & Legal. Pierre Legros, Senior Vice President, Programmes.

with the full range of competencies needed, we can steer extremely complex projects sub- ject to tight scheduling constraints, so that we can comply with our clients’ operational needs. Satisfaction surveys among our clients and crews bear witness to the work carried out by our teams on a daily basis. Frank Le Rebeller, dynamics and, to achieve that, implement Executive Vice President, more frequent monitoring loops focused on What role does the management play in Finance & Legal programme milestones. The excellence of maintaining the Group’s operational “Respecting commitments, the most impor- DCNS, which has brought it an unchallenged performance? tant being lead times, costs and quality, are reputation for technical superiority, should w N. Smirnov: As a service provider which the keywords to remember when it comes also apply with regard to lead times. These constantly has to adapt to its clients’ opera- to achieving client satisfaction. In an increas- should be among the fundamental qualities tional constraints, our team leaders and ingly demanding contractual environment, which must be uncompromisingly adhered to departments must be able to fully assume our programme approach must be global. at all times. their day-to-day responsibility for maintain- The operational performance must bring w N. Smirnov: As far as providing services to ing consistent industrial performance. It is together industry, programme and support navies are concerned, the main key lies in essential to have the right level of independ- functions. Steering such a programme actu- sharing a common goal with our client, that ence and delegation defined throughout the ally means being able to command the of fleet readiness. This goal goes hand-in- organisation, with a strong culture of respect chain of development, methods and manu- facturing, including the supply chain. It also hand with the capacity of adapting our teams, for its commitments. It is this higher level of means being equally stringent in the who are used to working in a constantly evolv- responsibility everyone has which should phases of fulfilling the contract as in the ing climate of ship types and formats, enable us to achieve this twin objective, i.e. preliminary phase of making offers and whether they are for the French Navy or for- client satisfaction coupled with improved eco- negotiations.” eign navies. As prime contractor, equipped nomic results.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ ## 1 2

INDUSTRIAL PERFORMANCE Commanding lead times and costs

In #%$", DCNS was awarded the single Quality Security Environment (QSE) certificate by AFNOR for the ISO 3""#, ISO #$""# and OHSAS #+""# standards as well as a specific certificate for the AQAP !##" standard. This certification recognises the efficiency of our current processes and enables us to ultimately improve and consolidate our industrial performance with regard to all of our stakeholders. It commits us to ongoing responsibility for correctly applying our QSE management system, to consistently apply it and introduce the necessary corrective measures.

FREMM, A PROGRAMMED SERIES In !"#$, the French programme, which consists OF SHIPS DELIVERED ACCORDING of ## units ordered by the OCCAR on behalf TO A CALENDAR WITH MAINTENANCE of the DGA (French defence procurement IN PARALLEL agency) and the French Navy, passed some w On (" January !"#$, DCNS delivered the significant milestones. A third series of trials FREMM Mohammed-VI to the Royal Moroccan for the FREMM Normandie added up to more Navy during a ceremony attended by His Royal than 0" combat system and SETIS® combat 83.9% Highness the Prince Moulay Rachid El Alaoui, management system qualification sequences This is the percentage of “satisfied” brother of His Majesty the King of Morocco, and in the course of the five weeks at sea. The clients following a survey concerning Jean-Yves Le Drian, French Defence Minister. The many tests carried out included implementa- all service programmes provided to the French Navy over twelve delivery of the frigate Mohammed-VI, which tion of electronic warfare and establishing months in !"#$. bears the name of the Moroccan king, is the tactical data links. first commercial success for the DCNS FREMM The FREMM Provence, the third in the range on the international market. It fully com- series, carried out its first sea trials on plied with the expected performance specifica- # October, as required by the contractual tions, was delivered on budget and on time. agreements, the main purpose being to test

#$ _ DCNS 3 KEY FACTS

$_ $ OCTOBER #%$" The FREMM Provence, the third in the series, carried out its first sea trials, as required by the contractual agreements, the main purpose being to test the propulsion performance and the ship’s navigation system.

#_ SETIS® COMBAT SYSTEM incorporated into the FREMM multimission frigates.

!_ ' AUGUST #%$" The aircraft carrier Charles de Gaulle left its naval base at Toulon to carry out sea trials and train its crew.

the performance of the propulsion and the sea trials and crew training. The DCNS INDIA: THE FIRST PROGRAMME ship’s navigation system. teams had successfully carried out main- USING TOTAL CONSTRUCTION Finally, on #! July in Lorient, DCNS floated tenance work on the French Navy’s flag- TECHNOLOGY TRANSFER out the FREMM Languedoc, the fourth in the ship which, accompanied by some fifteen w The INS Kalvari, the first of six Scorpene® series. In !"#$, at Lorient, DCNS was engaged other French frontline ships, took part in submarines ordered by the Indian Navy, is in the simultaneous construction of five multi- the historic naval review on #0 August the first submarine to be totally constructed mission frigates in various stages of comple- !"#$. The commemorations for the using technology transfer. Its commission- tion, the fifth and sixth frigates in the series &" th anniversary of the Allied troop land- ing, scheduled for September !"#%, should being in the process of assembly. This excellent ings in Provence took place in presence of be the culminating point of a series of sea progress highlights the fact that the rhythm of the President of the French Republic, trials in !"#0. To achieve this world first, in this major construction programme for the François Hollande. #,("" maintenance !"#$, DCNS recorded !# acceptations of French Navy is being maintained. operations, carried out within three equipment produced or assembled by the The FREMM programme also includes months, had enabled the flagship’s pro- Indian client, the MDL naval shipyard. This through-life support for the ships throughout pulsion to be verified, together with its performance illustrates how this localisation !"#!-!"#+. In consequence, the FREMM equipment and combat system, thereby programme in India has developed and the Aquitaine, first in the series, went into dry guaranteeing its military performance. high degree of support provided by DCNS dock at Brest on #% October for its first major DCNS regularly carries out preventive teams and those of its subsidiary DCNS India, maintenance layup. Carrying out the con- maintenance on the aircraft carrier’s as part of the technology transfer operation. struction of new ships and maintenance equipment. The Group also anticipates Six months ahead of schedule, on + July, operations simultaneously has required the improvements in the combat system and DCNS furthermore recorded its sixth and Group to rethink its through-life support pro- information and communication systems final acceptation of the Scorpene® !""" cesses by optimising its organisation and to ensure greater interoperability in NATO combat system. Since the joining of the first methods to provide the logistics support for operation theatres. This forward planning submarine in August, the French and Indian these military ships. ensures that the new networks will be teams have completed the final equipment installed and commissioned during the integration and startup of the installations THE CHARLES DE GAULLE AIRCRAFT Charles de Gaulle’s next major refit. At before carrying out dockside tests and finally CARRIER AT THE NAVAL REVIEW this time, DCNS will once again deploy its sea trials. ON $& AUGUST tried and tested organisational model, w On % August, the aircraft carrier Charles de involving over a hundred of the Group’s Gaulle left the Toulon naval base to carry out specialised skills and competencies.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ #% 1

INDUSTRIAL PERFORMANCE Guaranteeing operational excellence

On $/ December, DCNS launched a plan to intensify competitivity between the suppliers on its panel. The aim of this move is to galvanise each one of them so as to increase our joint performance from !"#0 and thereby return to sustainable growth, which will be borne out by conquering new markets.

EXTENDING THE LIFE OF FRENCH its capability to meet the most ambitious OCEANGOING DISSUASIVE FORCES technical and industrial challenges. w At L’Île Longue (Brest), DCNS continued The programme to reconfigure the fourth-gen- the regular maintenance work on the French eration Le Triomphant class ballistic missile Navy’s ballistic missile nuclear submarines nuclear submarines (SSBNs) and adapt them (SSBNs). At the same time, !"#$ was the year to carry M0# missiles began in !"#". This pro- for the SSBN Le Triomphant’ s “refit”, one of gramme includes modernisation of Le Vigilant, the most important M0# (IA M0#) missile Le Triomphant and Le Téméraire, bringing 4.5 million adaptations and a genuine challenge to inte- them into line with the SSBN Le Terrible , deliv- working hours for the regular grate and reintegrate the greater part of ered to the French Navy on !" September maintenance layup adapting the SSBN Le Triomphant the components. This operation called for !"#". The programme consists of installing for M0# missiles. a workforce of no fewer than #,#"" staff new sonars, the new SYCOBS combat system, members, who had to disassemble over renovating the navigation/operations com- (",""" items of equipment. By maintaining mand centre and, above all, adapting the its commitments for this operation in terms missile section to accommodate the M0#, of timeframe and costs, DCNS demonstrated which is already carried by the fourth new

#& _ DCNS 2 KEY FACTS

$_ #%$" was the year for “re-assembling” the SSBN Le Triomphant , one of the most important phases was the adaptation programme for the M0# missile and a real challenge to integrate and reintegrate the greater part of the components. #_ $0 JULY #%$" The order for the fourth in the Barracuda class series, the De Grasse The programme amplifies the series and the manufacturing logic required for it to be a success. APRIL #%$" DCNS validated the compliancy of machining and adjusting operations carried out on the breach in the nuclear boiler compartment on the first Barracuda class attack submarine, the Suffren .

generation SSBN Le Terrible, to replace the BARRACUDA: CONFIGURATION In December, the Group began installing the M$0 missiles carried until now by the first AND CONFORMITY ACHIEVED Syracuse satellite communication aerial, IN PREPARATION FOR THE TRIAL three SSBNs. PHASE UNDER STEAM designed and developed by DCNS on the DCNS works on large-scale projects at its Brest Barracuda combat system integration platform. site, outstanding by the complexity and the w Building conformity is among the priori- This stage was required for the qualification expertise they require. Apart from its techni- ties of DCNS’ ongoing improvement drive of the exterior and interior communications cal aspects, the programme’s complexity lies concerning the construction of six nuclear systems. in strictly complying with a very tight sched- attack submarines (SNAs) for the French Navy. With the order, placed on #+ July, for the ule. The French Navy’s strategic oceangoing In April, DCNS validated the compliancy of fourth Barracuda class submarine, the De force operates four submarines constantly machining and adjusting operations carried Grasse, the series was amplified in scale, as obliged to maintain the ongoing deployment out on the breach in the nuclear boiler com- was the manufacturing logic required for it of dissuasion missions a frontline navy must partment on the first Barracuda class attack to be a success. This logic aims to encourage carry out. The time allowed for each ship to be submarine, the Suffren . This stage was essen- pre-equipment as standard, making availa- refitted is limited to around thirty months. tial to achieve the clean conditions allowing ble manufacturing resources devoted to This major programme for DCNS began with the nuclear activity for the boiler compart- reducing costs by virtue of repetition, Le Vigilant, is currently continuing with ment to be engaged. increasing and rationalising the density of Le Triomphant and will end with Le Téméraire A few months later, another major mile- procurement operations and optimising in !"#+. To optimise availability, the moderni- stone was reached when trials of the propul- stocks. The Barracuda programme is now sation is carried out during a regular mainte- sion system were carried out under steam. entering a major phase: completion of the nance and repair layup (IPER) which each These revealed the cause of blockages asso- Suffren, the first in the series, within the con- SSBN undergoes every seven years. This ciated with the configuration as well as vali- tractual timeframe and the industrialised includes checking all equipment and, in par- dating conformity and security compliance. production of the series. ticular, recharging the nuclear core. It also enabled the 0""-tonne module to be integrated into the hull of the Suffren . Before these trials could begin, a significant amount of work checking configuration and con- formity was carried out with total synergy between the engineers and the DCNS teams responsible for assembly and quality.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ #' 5,900 MSV (managerial safety visits) involving staff members devoted to health and safety in theworkplace.

INDUSTRIAL PERFORMANCE Developing best practices

To achieve operational excellence, DCNS implements an ongoing performance improvement strategy by deploying an industrial optimisation process and supporting change so that it can adopt best practices and thereby make client satisfaction the cornerstone of its commitments.

BUGEY NUCLEAR POWER STATION: DIPS, A UNIQUE INDUSTRIAL FRAME the way costs, lead times and resources are DCNS TAKES PART IN SECURING OF REFERENCE managed, OPTI makes sure that the Group’s THE DISMANTLING OPERATIONS w In !"#$, DCNS launched the DCNS indus- commitments are respected, since they are OF THE REACTOR CASING trial performance system (DIPS), the Group’s vital for maintaining client satisfaction. w To maintain a high level of quality and only industrial frame of reference which security, DCNS has made a commitment to includes unavoidable checks and balances to SEARH, A TOOL GEARED improve its project organisation by establish- ensure that commitments concerning the TO CHANGES IN NEEDS, ing check marks within a process that strictly operational command of its programmes are RESOURCES AND COMPETENCIES complies with the stringent demands of respected. The DIPS clarifies each staff mem- w SeaRH is the new global and optimised nuclear procedures. This approach has made ber’s role and responsibilities in operational information system for managing DCNS’ it possible to deliver a batch of studies meet- procedures and provides a common set of human resources, and was deployed in less ing client expectations and to start work on standards, methods and tools. The Group than one year. More comprehensive, better per- the project on the declared date, a result opens the way towards a harmonisation of forming and better adapted to changes in the that the client evaluated positively. Since these procedures with the aim of establishing Group’s human resources functions, this tool June !"#!, it has carried out a programme a better command of its programmes. offers DCNS staff members and managers involving studies, followed by the supply, more efficient standard applications at lower assembly and subsequent commissioning of OPTI, A SYSTEM TO HARMONISE cost for better work time management, train- two ventilation networks at the Bugey nuclear PROGRAMMES’ INDUSTRIAL ing and recruitment. Staff members having power station on behalf of EDF and CIDEN METHODS direct access to their personal information can (the organisation responsible for dismantling w Progressively deployed until the end of update them more easily. Offering efficient pro- first generation nuclear power stations). !"#0 among !,""" of the Group’s staff mem- cedures, the Group’s human resources teams These systems provide ventilation to the reac- bers, OPTI incorporates the cost management, are able to refocus on their expert and advisory tor casing and the associated buildings while lead times and resource processes of all DCNS roles, taking DCNS into an international dimen- the dismantling phases are underway. programmes in a single tool. By reinforcing sion via the integration of all its subsidiaries.

#( _ DCNS

CHALLENGE ! GROWING IN RENEWABLE MARINE ENERGIES The need for alternative energies is a crucial environmental challenge. DCNS has been developing renewable marine energies (RME) since !""+, investing in the market’s key technologies, in particular marine current energy, ocean thermal energy and floating wind turbine energy. Further successes marked #%$". This year sees the transition from a research phase to a demonstration and potentially commercial production of RME phase. The first industrial contracts have been signed for developing pilot marine turbine farms in France and Canada. Europe has allocated a NER ("" subsidy for the realisation of ocean thermal energy projects, a highly innovative technology.

Marine turbines Floating wind turbines Ocean thermal energy December !"#$ – A decisive October !"#$ – DCNS and Alstom End of December !"#$ – Akuo step towards the creation of a sign a partnership agreement for Energy, DCNS and the Entrepose French marine turbine industrial offshore floating wind turbines. Group are partners for the sector, backed by approval from The aim of this agreement development of an ocean the Prime Minister Manuel Valls is to develop and then market thermal energy conversion (OTEC) for DCNS and EDF Énergies a semi-submersible integrated power station in Martinique. Nouvelles. floating wind turbine with an output of 2 MW.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ #) — GROWING IN RENEWABLE MARINE ENERGIES

Renewable marine energies (RME) offer an opportunity for economic development on a global scale.

Thierry Kalanquin / Senior Vice President, Energies & Marine Infrastructures

What is the outlook for the growth of renewable marine energies in France and internationally? w T. Kalanquin: Renewable marine energies (RME) offer an opportunity for economic devel- opment on a global scale. Our aim, based on a strategy of first entrant, is to put forward a dif- ferentiating offer to position DCNS as a major player on this highly competitive market. In this way, with our innovative technology, par- ticularly in marine turbines and ocean thermal energy, we are already active in metropolitan France of course, but also in the French over- seas territories, in Ireland, Canada, Scotland, the UK, the USA, Chile, etc. And our collabora- tion with the largest energy distributors and promoters is likely to further intensify in the years to come, making RME from DCNS a gen- uine path to growth for the Group. w J. Ives: !"#0 is a key year for OpenHydro. We are planning to score a first in the indus- try by supplying the first two marine tur- bines connected to national grids. Off the eastern coast of Canada, in the Bay of Fundy, OpenHydro is working with Emera to deploy two #%-meter turbines. We will also be installing two #%-meter turbines off the coast of Brittany at the EDF Paimpol-Bréhat site. With production forecasts of # GW, we are also developing our industrial processes to be best placed during the commercial launch of marine turbines in !"#&.

$ _ DCNS What are DCNS’ advantages in this field? us to successfully reach a certain number of w T. Kalanquin: DCNS can draw upon all technical and commercial milestones. These !"#' is a key year for the Group’s competencies, which cover a successes, which authorities and clients in OpenHydro. We are unique set of expertise for carrying out com- France as well as on international markets plex and innovative industrial projects in an have found convincing, confirm the viability planning to score environment that is difficult to master: the of our roadmap. a first in the industry sea. Our strength consists in offering a series w J. Ives: During the coming year, OpenHydro of services covering the entire life cycle of our will be focusing on the development and by supplying the solutions, from design through to production industrialisation of its technological expertise first two marine and of course the development of marine to make progress in the fields of production infrastructures and their maintenance. At the and energy costs. Another key field is the turbines connected same time, the Group knows how to work development of sites. Last year, we tripled our to national grids. with the best partners in each field. In marine portfolio of projects and are expecting to pass turbines, we acquired OpenHydro, our subsid- the # GW threshold in !"#0, thanks to new iary since !"#(, in OTEC we work with Akuo international projects. and Entrepose, and in floating wind turbines with Alstom. The combination of the Group’s How does DCNS plan and prepare moving expertise and the know-how of our associates into industrial phases for its various adds up to assets which have already enabled projects? w T. Kalanquin: DCNS’ aim is to set up plants close to energy resources. A number of different stages must be reached before we can attain this large-scale commercial and industrial goal. The technologies are first of all validated by building prototypes. Then, pilot farms and pre-sales, connecting the machines between each other and then feeding them into the grid. This will demon- strate the techno-economic feasibility of the technologies that have been developed. This is what we will do this year for example, with the pilot marine turbine farms which will be set up in France and Canada. These are essential stages to go through before arriv- ing at an industrial and commercially com- petitive deployment of RME. w J. Ives: In !"#$, OpenHydro set up a new division focused on the industrialisation of our procedures. From a company developing tech- nologies, OpenHydro is now moving towards becoming a global industrial group offering a range of commercial products.

James Ives / Managing Director of OpenHydro

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TIDAL ENERGY Tidal current energy enjoys major successes

w Thanks to its Irish subsidiary OpenHydro, DCNS is aiming to become the European leader of the tidal turbine sector: one which is currently undergoing large-scale growth. Tidal turbines, which are underwater turbines, convert the energy of marine currents into electricity. These currents, associated with tide movement, can be forecast and are particularly powerful at certain sites. DCNS, which wants to become a major world player in tidal energy, acquired control of the Irish company OpenHydro, the technological DCNS AND MARINE and commercial leader of the sector, in !"#(. To obtain a TURBINES competitive price for electricity, OpenHydro had developed — In !"#$, DCNS and OpenHydro validated a new design an innovative tidal turbine technology, totally submerged for tidal turbines. and designed to be positioned on the seabed. In !"#$, the — At Paimpol-Bréhat, the first submerged #1-meter dia- Group scored a number of major successes in France and meter prototype was brought to the surface in April after internationally. In March, DCNS won the invitation to ten- four months of tests under actual operating conditions. der issued by the Nova Scotia Ministry of Energy to set up a — The DCNS and OpenHydro teams, which have analysed pilot tidal turbine farm with a power of $ MW in the Bay of all the data collected and inspected all of the tidal Fundy in Canada. To make this project a reality, OpenHydro turbine’s components, approved the design of this preproduction model with a power of ! MW. and its Canadian partner Emera Inc. set up a joint com- pany. This farm, which will be deployed in !"#0, will be one — The very first improved version of this marine turbine, which will be used in the pilot farms that the Group will of the first multimegawatt tidal turbine farms intercon- be deploying from !"#0 in France and Canada, features nected to the world. It will be able to supply electricity to a latest generation rotor designed to optimise the more than #,""" inhabitants of Nova Scotia. In April !"#$, machine’s hydrodynamics. OpenHydro signed an agreement with Alderney Renewable Energy (ARE) to set up a joint venture. The two companies

$! _ DCNS $_ Marine current energy technology. 2 Tidal turbines are underwater turbines. The DCNS offering is presented by its industrial partner OpenHydro.

#_ April #%$" – OpenHydro (Thierry Kalanquin) and Alderney Renewable Energy (Nick Horner) set up a joint venture for the development of a tidal turbine farm with a capacity of ("" MW close to the Channel Island of Alderney. !_ December #%$" – A decisive step towards the setting up of a French tidal turbine industrial sector, backed by the approval of Prime Minister Manuel Valls for DCNS and EDF Énergies Nouvelles. "_ March #%$" – OpenHydro and its Canadian partner Emera Inc. set up a joint venture to install a pilot tidal turbine farm in the Bay of Fundy in Canada, after having won an invitation to tender issued by the Nova Scotia Ministry of Energy.

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will combine their skills to build the successful trials carried out a tidal turbine farm with a on the DCNS prototype L’ Arcouest , capacity of ("" MW close to the which demonstrated the tidal Channel Island of Alderney. This turbine’s performance under will bring the capacity in the actual operating conditions, the OpenHydro development portfo- Group was chosen in June by EDF lio to 3!" MW. In France, after to equip its pilot farm at Paimpol- Bréhat. This was a decisive stage in the creation of a French tidal turbine industrial sector. A stage which received additional sup- port at the end of December when the Prime Minister Manuel Valls gave his approval for DCNS and EDF Énergies Nouvelles to set up a precommercial farm consist- ing of seven tidal turbines in the Raz Blanchard. This followed a call 920 MW for expressions of interest by the OpenHydro’s French Agency for the Environment development portfolio. and Energy Management (ADEME). The turbines, which will each have the power of ! MW, should be fully connected to the national grid in !"#+.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ $# — GROWING IN 1 RENEWABLE MARINE ENERGIES

$_ Hybrid ocean thermal energy conversion (OTEC) technology on land In December !"#$, sponsored by the Prime Minister Manuel Valls, DCNS, Akuo Energy and Entrepose announced the signature of a partnership agreement for a land-based OTEC power station in Martinique. OCEAN THERMAL ENERGY CONVERSION (OTEC* AND OFFSHORE FLOATING WIND TURBINES Cutting-edge technologies

Benefiting from its expertise w The principle of ocean thermal energy conversion (OTEC) in marine environments, consists of exploiting temperature differences in tropical which are key to developing seas between the warm water on the surface and the cold these technologies, DCNS will water in the depths to produce a constant flow of electrical be playing a major role in the current. Ultimately, OTEC will contribute to the energy inde- floating wind turbine and pendence needs of tropical marine regions not connected to ocean thermal energy market. continental grids. This market, which concerns around a hundred countries, could potentially be worth 1(0 billion. DCNS is currently able to offer two complementary OTEC turnkey solutions. One is a hybrid land-based solution with a capacity of around 3 MW and a floating solution at sea, capa- ble of producing #% MW. Via the land-based OTEC prototype OCEAN THERMAL ENERGY CONVERSION located on Reunion Island, DCNS is testing and qualifying the AND OFFSHORE FLOATING WIND TURBINES electricity generating station which will be applicable for both land and sea-based systems. In July !"#$, the project for — Akuo Energy and DCNS are the designated winners in July of the European NER %"" fund by the European a floating OTEC station in Martinique, developed by DCNS Commission for their OTEC power station in Martinique and Akuo Energy, was designated by the European with the power of #1 MW which will supply Commission as winner of the NER ("" programme. This sup- %0,""" households from !"#2. ports projects demonstrating innovative and commercially — Via a partnership signed in October between DCNS viable projects in renewable marine energies. In December, and Alstom, the two companies are to develop and market an integrated semi-submersible floating wind sponsored by French Prime Minister Manuel Valls, DCNS, turbine system with the power of 1 MW, combining Akuo Energy and Entrepose (VINCI Construction) announced their respective expertise as naval architects and the signature of a partnership agreement for a proposed turbine builders. ocean thermal energy conversion (OTEC) power station on land in Martinique. The first deliveries of these two OTEC solutions are scheduled for !"#+-!"#3.

$$ _ DCNS 2 #_ Offshore floating wind turbine technology, to capture energy from ocean winds. !_ Offshore OTEC, ocean thermal energy conversion technology. In July !"#$, the European Commission designated DCNS and Akuo Energy winners of the NER ("" programme, the aim being to develop an offshore floating OTEC generating station in Martinique. "_ October #%$", DCNS and Alstom signed a partnership agree- ment for floating wind turbines. The aim of this agreement is to develop, and then market an integrated semi-submersible floating wind turbine system with an output of % MW. 4

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w Offshore floating wind turbine technology, France has the second largest potential in which captures energy produced by ocean Europe to exploit this resource with possible winds, offers an innovative alternative exploit- deployment on its Atlantic and Mediterranean ing the energy potential to be found in mari- coastlines. Ultimately, world production of time regions located offshore where depths electricity from offshore wind turbines could would prevent building fixed foundations. be enough to equal the production of $" nuclear reactors. In June !"#0, the French Government is due to launch an invitation to express interest for pilot offshore floating wind turbine farms. This announcement will consolidate the Group’s development strategy in this field. In !"#$, the Brittany region and DCNS signed an agreement for developing a pilot floating wind turbine site off Groix Island. €72 million Moreover, DCNS signed an industrial part- of European subsidies are being nership agreement with Alstom to set up an allocated to launch the first floating OTEC generating station offshore floating wind turbine. With this in Martinique. “made in France” prototype, planned for !"#&, the project, entitled “SEA REED”, received financial support from the ADEME and will be designed from the outset to be developed on an industrial scale.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ $% — GROWING IN RENEWABLE MARINE ENERGIES

An artist’s impression of a DCNS International excellence centre.

CHILE An international excellence centre for renewable marine energies is established

w DCNS and its partner Enel Green Power tics, bio-fouling, bio-corrosion, environmen- local and international industrialists wishing were elected in !"#$ by the Chilean govern- tal and social aspects as well as adapting to test our RME technologies in the Chilean ment’s economic development body to set technologies to extreme ocean conditions. maritime environment. With MERIC, DCNS up an international excellence centre for These experts will also make their contribu- will therefore have a strategic bridgehead in renewable marine energies in the country. tion to developing tools for testing and a country which combines an extremely high This centre, known as “MERIC” (Marine adapting our RME technologies to the coun- potential with a powerful ambition to Energy Research and Innovation Centre), will try’s specific natural characteristics. These exploit renewable marine energies. be an innovative hub for marine energies in include seismic activity and the rugged Chile and across the world. DCNS, in addition coastline as well as the diversity of its marine to its technical expertise in renewable flora and fauna. This excellence centre will marine energy systems, will contribute its also implement and integrate an innovative solid experience in managing industrial approach to research and development in naval products. Enel Green Power, which is the marine energy sector, particularly with one of the world leaders in the RME sector, the installation of an experimental wave will provide its perspective as an end user. energy converter which will serve as a vali- The project has support from several quar- dating test bench to compare theoretical ters including major Chilean University results and actual collected data. Ultimately, research institutions. MERIC will bring MERIC will have a consolidated infrastruc- together researchers to back its work on ture at its disposal, together with a body of assessing marine resources, site characteris- experience enabling it to offer services to

$& _ DCNS

CHALLENGE " UPHOLDING THE PILLAR OF SOVEREIGNTY The need for alternative energies is a crucial environmental challenge. DCNS has been developing renewable marine energies. A major industrial actor in naval defence, DCNS operates in a sector with a strategic dimension. As a result, it s responsibility is to sustainably support France and its partner countries in preserving their sovereignty – in political, economic and industrial towns. This is why the Group deploys its activities responsibly, aiming for sustainable growth backed by a social policy founded on developing skills and paying constant attention to the environment.

Economical Environmental Social January !"#$: foundation Renewal of the DCNS Group’s Since !"#!, DCNS has stone laying ceremony of the ISO #$""# certification, been engaged in promoting Ocean Technocampus in the translating its management gender equality in the region of Nantes. From !"#', system’s ongoing improvement workplace. DCNS will be bringing together strategy into the field of the its technological research environment. activities at this site.

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DCNS aims to develop and maintain its staff members’ skills, control the forward planning of its resource management policies and the modernity of its industrial infrastructure and means.

Jean-Yves Battesti / General Secretary Alain Guillou / Senior Vice President, Human Resources & Operations Didier Baichère / Vice President, Human Resources

DCNS enhances its staff members’ How is sovereignty a guarantee of DCNS and technological superiority, DCNS aims to competences to extend their operational excellence? develop and maintain its staff members’ performance over time. w J.-Y. Battesti: Via its activities of design, skills, control the forward planning of its construction and through-life support of resource management policies and the French Navy frontline ships (aircraft carriers, modernity of its industrial infrastructure nuclear attack submarines, etc.), DCNS is and means. It is by leveraging all of these and among the benchmark industrial corner- making the most of our collective intelli- stones of France’s sovereignty. In the current gence that the Group’s performance will be budgetary climate, it must ensure the dura- able to ensure its long-term future. bility of its human resources and the indus- trial infrastructure essential for this role. As a What are your priorities towards the result, the Group must increase the dialogue Group’s stakeholders? with its main client, the French Navy. At the w J.-Y. Battesti: Giving undertakings of same time, it should work in tandem with confidence to all our stakeholders is one of naval sector stakeholders in France and, ulti- DCNS’ priorities. We have to show them our mately, Europe. capacity to implement our strategic plan and w A. Guillou: To increase its competitivity our improvement plan in order to return to and guarantee its clients enduring technical growth, which will ultimately affect all our

$( _ DCNS From left to right: Alain Guillou, Senior Vice President, Human Resources & Operations. Jean-Yves Battesti, General Secretary. Didier Baichère, Vice-President, Human Resources.

strated every year by our training scheme recruitment of engineers in these sectors as which takes on over %"" work/study students. well as opportunities for workers and techni- Furthermore, for the last three years, we have cians in a number of specialised areas, par- been running a Young Talent programme ticularly electricity, robotics, machining and offering development opportunities devoted ship frameworks. Whatever your speciality to future managers. In addition, to further may be, passion and pride in our products will staff members’ development prospects, some foster the excellence of DCNS technology. fifty reclassification openings have been defined in three possible career paths, that of expertise, programmes and management. stakeholders in a positive way. DCNS knows w D. Baichère: At DCNS, we are working on that if it is to return to growth, it can count complex systems in the very high technology on an extensive network of partners who environment of naval defence. DCNS also have significantly contributed to the value of offers opportunities to join a pioneering its ships. Strategic partners or innovative Group which explores new growth sectors in SMEs, they have helped create the conditions renewable marine energies, which makes us enabling its past, present and future suc- stand out from a great many other industrial cesses to become reality. Together, we form companies. one single company devoted to extending internationally. What kind of talents need to be recruited in the future and in which fields? What strengths does DCNS have to w D. Baichère: DCNS is enhancing its update its competences and attract competences in systems architecture and talent? naval construction, as well as all aspects of w A. Guillou: In parallel with ambitious for- engineering from design to construction and ward planning of jobs and skills, DCNS has programme management by ensuring that adopted attractive policies for identifying, engineers make up half of its recruitment selecting and nurturing talent. This is demon- intake. In !"#0, among others, we will see

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ $)

— UPHOLDING THE PILLAR OF SOVEREIGNTY

Jobs at DCNS in !"#$

230 different engineering specialisations

40% 550 young graduates unlimited-term contracts 50 reclassification openings

7% 600 aged over 0" apprenticeship contracts

4.5% of the payroll devoted to training 25% 300 women work experience contracts

400,000 hours of professional training, predominantly for staff members, work/study students and service providers

% _ DCNS Developing the future’s key competences, today In a high-tech company like DCNS, competences, experiences and expertise acquired by staff members constitute key assets with which to meet the challenges of maintaining sovereignty for France and the Group’s partner countries. DCNS therefore implements an HR policy totally focused on developing its human resources via recruitment, training, careers and working conditions. This approach anticipates the rapid development expected in technology markets so as to ensure we always have the best competencies available, generation after generation.

Recruitment in !"#0

12% at least of young graduates, with an objective of 1"" apprentices maintained

KEY FACTS IN !"#$ Around 2" initiatives to Signature of the second Signature of the second Deployment build awareness of the DCNS agreement on gender four-year agreement of a new global Group and its appeal were equality in the workplace encouraging integration HR information carried out among schools for !"#'-!"#3 of disabled persons into management and universities the workplace, targeting system, SeaRH a rate of 2%

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Our stakeholders

French and foreign navies Other clients

Public authorities/institutions Shareholders Local and regional authorities

Industrial partners Suppliers in France in France and abroad and abroad

Staff members Schools and universities, including the DCNS Universeaty® training centre

Excellence and innovation sector, The media including DCNS Research Journalists

%! _ DCNS Contributing to economic and social development A country’s ability to maintain its sovereignty depends on its economic vitality. Being at once an employer, purchaser, investor and partner, the Group actively contributes to local development and the international consolidation of its job, added value and innovations creating subsidiaries.

Impact of the naval sector

40,000 (1) 90%(1) direct and indirect jobs of DCNS’ added value in the naval sector in France contributes to industrial excellence and highly qualified jobs in France

KEY FACTS IN !"#$ January / Foundation June / The DCNS Group October / DCNS obtains December / The DCNS stone laying ceremony joins the United Nations the single AFNOR Quality Group obtains the for the first Ocean Global Compact. This brings Safety Environment (QSE) “Responsible supplier Technocampus in Nantes. DCNS into a worldwide certificate for the ISO %""#, relations” label for three This is where DCNS will be community of companies ISO #$""# and OHSAS #3""# years centralising its technological devoted to jointly respecting standards, and a specific DCNS Research activities human rights, working certificate for the conditions, environmental AQAP !##" standard protection and anticorruption principles

(#) Source GICAN.

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A respectful and involved “environmental” policy

15 26 MSEVS (1) 80% environmental agents per site carried out in !"#$ of NHW (!) recycled and operational entity across all sites at 0 Group sites within DCNS

100% –54% of sites with ISO #$""# certification This is the drop in greenhouse renewed based on a QSE (%) gas emissions over integrated management system four years ($)

(#) Managerial Safety and Environmental Visits. (!) Non-hazardous waste. (+) Quality, Safety, Environment. ($) Results of the latest carbon footprint assessment.

%$ _ DCNS

Controlling our impact on all product and activity life cycles The geopolitical consequences of climate change, competition for resources, increases in raw material prices, their growing scarcity and keener societal demands all combine to make the environment a sovereignty issue worldwide. In this area, the environment management system deployed by DCNS is geared to take control of all impacts associated with its activity. By means of its research and naval eco-design achievements, the Group also aims to help its clients and stakeholders take control of their own impact footprints.

… starting with ship design

The FREMM example Healthier living conditions Water treated and recycled PVC free cables and paint containing no tin. Improved treatment of Improved hydrodynamic performance hydrocarbonated waters !% less fuel by microfiltration. consumed Optimised hull forms to Possibility of extended storage reduce hydrodynamic wake. for $' days to avoid any damage Nano-structured coating to fragile environments. to combat biofouling.

Regulated use of energy Optimised space Hybrid propulsion (electrical and gas turbine). Recyclable waste compacted and ground.

ANNUAL CORPORATE AND SOCIAL RESPONSIBILITY REPORT !"#$ _ %% !"-!#, RUE DU DOCTEUR FINLAY DOCTEUR DU RUE !"-!#, DCNS www.dcnsgroup.com SIRET !!( (''SIRET 2"2 ""('% '"(( –APE Z B !!( PARIS (''RCS 2"2 0%1',""","""OF CAPITAL A WITH LAW FRENCH UNDER )SA* COMPANY LIMITED PUBLIC A IS DCNS + ''PHONE: )"*( %.!" %" "" F-$%$'# (%CEDEX PARIS AT US FIND MORE TOLEARN

Communications Department – April !"#$ – Design and production: . Editorial: Claire Raynaud. Photo credits: DCNS, French Navy, Peter Allan, Stéphanie Ruçay – Illustrations: Koivo. Printed on #""% recycled paper by APF &I Concept printer, a business encouraging employment for the disabled.