SAFRAN, CREATING VALUE, DEVELOPING TALENTS
Human logo formed by 3,000 engineers and managers at Safran Discovery Day on June 6, 2012 in Paris, France.
2012 BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT CONTENTS
02 06 38 50 SAFRAN IS A LEADING INTERVIEW WITH FROM SUCCESS TALENTS GROWTH THE CHAIRMAN TO SUCCESS GUARANTEEING BENCHMARKS INTERNATIONAL AND CEO FUTURE SUCCESS 22 52 Governance INNOVATIVE 56 Key figures PRODUCTS AND 60 Shareholding TECHNOLOGIES HIGH-TECHNOLOGY
40 GROUP Attracting and and Tier-1 supplier of systems and equipment integrating top 62 for aerospace, defense and security. Operating 24 talents Business sectors worldwide, Safran has 62,500 employees 42 Supporting skills 66 Employees 04 Contributing to development and generated sales of 13.6 billion euros in 2012. COMMITMENTS efficient, Through its global presence Safran not only OUR GOAL: environmentally- 44 Diversifying profiles EXEMPLARY friendly air transport 45 Affirming our social enhances its competitiveness, but also builds PERFORMANCE 28 Guaranteeing model industrial and commercial relations with the world’s passenger security 46 Protecting our Discover the enriched version of the employees’ health 2012 business and corporate social leading prime contractors and operators, 30 Enhancing protection responsibility report by downloading for citizens and safety the application at the App Store or on while providing local services to customers around Google play. 32 Facilitating access 48 Supporting the world. Working alone or in partnership, Safran to space meaningful sponsorships holds world or European leadership positions 33 Supporting 49 Fostering social in its core markets. our customers for You can also scan the long haul inclusion and equal the following QR code. opportunity through 34 Aiming for excellence corporate across the board philanthropy
BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 1 We are also a more competitive group, in terms of both production What would you say were and structural costs, thanks to the consolidation of our support the highlights of 2012, which was functions. Lastly, we are a more solid group. From this standpoint, a particularly rich year for Safran? we passed major milestones in 2012, including the birth It was indeed an exceptional year, financially speaking, with sales of Herakles, the acquisition of several technology start-ups and of 13.6 billion euros, up 15.5%, and net income of 999 million euros. the creation of pivotal joint ventures in optronics and safety-critical From the commercial viewpoint, 2012 was also a record year. onboard software and electronics. With the definitive agreement The LEAP engine has logged over 4,300 orders and commitments, to acquire Goodrich Corporation’s electrical systems business, meaning that we are assured of extending the success story of we will also take a major step forward in our development strategy CFM International, our joint company with GE, for several decades. for electrical technologies. We made significant progress Meanwhile, the CFM56 keeps going from success to success. in this area once again in 2012, in particular by continuing Our production and delivery rates set new records in 2012, which the development of an electric taxiing system with our partner will guarantee growth in our service business for many years Honeywell. 2012 WAS. to come, and this is a source of recurring revenues. All of these developments make AN EXCELLENT.. Were trends as positive in all the future look very bright! of the Group’s business sectors? We are confident, but we also know that nothing should ever 2012 was an excellent vintage in all of our markets. In particular, be taken for granted. The keys to our future growth include Safran’s engine, wheels and brakes were selected for Eurocopter’s the continued modernization of our facilities to cope with the new-generation X4 helicopter. Our new business jet engine, ramp-up in production rates and new technologies, an ongoing VINTAGE. focus on R&D to pave the way for tomorrow’s successes, Silvercrest, was chosen by a second customer, Cessna, for their Citation Longitude. We recorded a number of business wins in attracting new talents and training people so they can realize the defense and security sectors as well, including a major order their full potential, and improving our competitiveness to gain for JIM LR binoculars from the British Ministry of Defence, and market shares. IN ALL OF.. a five-year general contract from the Transportation Security To make sure that our growth is sustainable, Safran works with Administration for explosive detection system to be installed our 62,500 employees to promote exemplary individual behavior in American airports. Safran is now firmly established as a pivotal in the professional environment. For Safran, industrial excellence OUR MARKETS. player in all of our business sectors. also means ethical excellence! Safran has come a long way indeed Interview with since the Group was created in 2005! Jean-Paul Herteman, How do you view Safran today? Chairman and CEO It’s true that Safran has changed quite a bit. Today, we are a more unified group, capable of pooling everybody’s expertise to benefit all our companies. To give you an example, that’s the aim of the new Safran Composites research center which we started building this year.
2 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 3 COMMITMENTS RESPONSIBLE PERFORMANCE Safran is part of ASPI Eurozone®, an index that includes the 120 top-rated listed companies in the euro zone, based on sustainable performance rankings by Vigeo. The index OUR GOAL: EXEMPLARY evaluates six areas of corporate responsibility: environment, human rights, human resources, social engagement, behavior PERFORMANCE in markets, corporate governance. Safran’s commitment to social responsibility draws on our values and ethical guidelines applied by all employees. To better meet our stakeholders’ expectations, we have formalized our corporate social responsibility (CSR) strategy and set up a dedicated CSR governance structure.
INTERVIEW DOMINIQUE-JEAN CHERTIER SAFRAN’S DEPUTY CHIEF EXECUTIVE OFFICER, CORPORATE OFFICE STRATEGIC ENSURING SUSTAINABLE, New CSR governance in compliance with all applicable laws and information. We were one of the pioneers OBJECTIVES Safran set up a new structure in 2012 to oversee regulations, thus providing each employee in adopting Binding Corporate Rules (BCR), RESPONSIBLE GROWTH our corporate social responsibility (CSR) with the basic information needed to analyze which govern the processing and transfer Underpinning our CSR policy, Safran has approach, directed by Dominique-Jean Chertier, any situation and do their jobs in consequence. of personal data outside the European Union. defined six strategic objectives based on the Deputy Chief Executive Officer, Corporate Office. Safran has also implemented a professional code These rules are already applied at all French general areas defined in the ISO 26000 Is Safran’s commitment to CSR that took us several months, We also appointed a coordinator to deploy of ethics, concerning any securities-related companies in the Group and are being deployed standard, concerning corporate social a recent phenomenon? we defined six strategic objectives. and lead CSR policy throughout our Group, in operation and the prevention of insider trading, in our international companies. responsibility. Not at all! Safran has long made CSR Each of these will be associated with conjunction with the heads of the departments and we conduct a program designed to detect requirements part of our strategic an action plan, monitored by quarterly involved in implementing this initiative, and prevent any fraud within the Group. Develop innovative products objectives. Designing products with meetings of a steering committee, operating through a steering committee. The Group has established requirements and processes with minimal outstanding environmental with members representing all applicable to all companies concerning the fight environmental impact. performance, recruiting a wide variety of these departments. Long-term commitments against corruption and export controls. of profiles to diversify our talent base, Safran’s social responsibilities reflect the values In December 2012, Safran was the first company Always aim for excellence practicing zero tolerance for What are the keys to success? underpinning our corporate culture: focus on in the French stock market index, CAC 40, in ensuring the security and corruption – all of that and more is an The first is that our CSR approach customers, meeting our commitments, to receive anti-corruption certification from protection of people and goods. indispensable part of our sustainable should be fully supported by innovation, responsiveness, the power the agency Adit (Agence pour la diffusion growth. However, we wanted corporate management. Secondly, Develop people’s potential. of teamwork, people development and de l’information technologique), based on to express this commitment more that it should be shared with recognition, and corporate citizenship. A series guidelines validated by the SCPC (Service central Foster the involvement formally in 2012 to meet the all stakeholders, both internal – our of unyielding commitments has always been an de prévention de la corruption), the French of suppliers and partners expectations of our stakeholders. 62,500 employees – and external, integral part of our strategy and development: corruption prevention department. in this initiative. Companies today are no longer whether partners, customers or – products with outstanding environmental Safran also participates in a number of sector- judged solely on their economic shareholders. In fact, that’s our aim performance; specific initiatives at the European or Sustain a culture of integrity. performance or the quality of their with this business and corporate social – business development in compliance with international level. We have signed the Common products, but also on how ambitiously responsibility report, which spotlights best business ethics; Industry Standards developed by the Aerospace Guarantee optimum they set the objectives of their CSR Safran’s commitments and – a dynamic human resources policy, based and Defence Industries Association of Europe communications with policy. contributions to this area. on smooth labor-management relations (ASD), which seeks to strengthen integrity all stakeholders. and fostering diversity; and fair business practices in international trade. How did you do this? – anticipation and management of health, safety Safran is a member of the steering committee We decided to use a collective Safran’s CSR approach covers all stakeholders, and environmental risks; of the International Forum on Business Ethical including business partners (aircraft approach, bringing together all the – philanthropy and solidarity actions. Conduct (IFBEC), and has signed the Global manufacturers, airlines, shareholders, etc.), departments concerned, including Principles on Business Ethics for the Aerospace internal stakeholders (employees, unions), human resources, international affairs, Strong, shared ethics and Defence Industry, which promotes common civil society (neighbors, associations, NGOs, communications, sustainable At Safran we make sure that our activities are standards and best practices in trade media), observers (financial analysts, ratings development, purchasing, foundations conducted according to high standards of compliance. agencies, auditors), public partners (federal and philanthropy, legal affairs, honesty and integrity. An ethics charter defines We carry out all business activities with full and local governments, schools, laboratories). governance, audit and internal control, the Group’s principles and guidelines in this area, respect for the protection of personal etc. Following an in-depth analysis
4 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 5 FROM SUCCESS TO SUCCESS Safran’s business is built on solid fundamentals: leadership positions in growth markets, a robust business model that includes the sale of equipment and services, providing a recurring income stream, long-term visibility backed by an order book equal to about four years of production. Our contract wins in 2012 clearly illustrate Safran’s solid foundations and balance. Whether in aerospace, defense or security, Safran bolstered its competitive positions through new business wins, established on the basis of long-term mutual trust with our customers and partners.
No. 1 No. 1 No. 1 No. 1 worldwide worldwide in Europe worldwide in jet engines* in landing gear for optronic in biometric ID for mainline systems documents commercial jets (over 100 seats)
* In partnership with GE. 6 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 7 MORE THAN , 4ORDERS300 FOR LEAP At year-end 2012, Snecma (Safran) and GE had recorded more than 4,300 orders and commitments for the new LEAP engine, including 1,096 during the year. Designed for the next generation of single-aisle commercial jets, this engine is being developed in three different versions: LEAP-1A for the Airbus A320neo; LEAP-1B, the exclusive powerplant for the Boeing 737 MAX; and the LEAP-1C, the sole Western powerplant for the C919 being built by Chinese company Comac. The LEAP engine family is being developed by CFM International, a 50/50 joint company of Snecma and GE.
8 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 9 FRENCH GOVERNMENT RENEWS HELICOPTER ENGINE LIFE-CYCLE SUPPORT CONTRACT FOR
10The French government and TurbomecaYEARS (Safran) have renewed for a period of ten years their contract providing for life-cycle support of the 1,408 turbine engines powering helicopters for French armed forces, civil security units and the defense procurement agency DGA. The contract covers a wide range of support services, including repair and overhaul of engines, on-site technical support, spare parts and maintenance training for users. To ensure maximum dispatch reliability of these helicopters, Turbomeca pledges to re-install any engine removed for servicing within ten days – and it has scored 100% on this point in recent years.
10 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 11 EASYJET & TUIFLY PARTICIPATING IN THE DEVELOPMENT OF THE ELECTRIC GREEN TAXIING SYSTEM The electric green taxiing system (egts) developed by Safran and Honeywell is based on the use of electric motors in the main landing gear wheels, enabling the aircraft to move on the ground without using its jet engines. Following initial tests at the end of 2011, using an Airbus A320 flying testbed acquired by Safran, the program reached new milestones in 2012. EasyJet announced that it was participating in the development of the system, and a series of tests was performed on a Boeing 737 Next-Generation twinjet operated by German carrier TUIfly. The aim of these tests is to quantify the expected gains (operating costs, environmental benefits) and to size the system so that it optimizes operating conditions for airlines. Safran worked with several airlines to calculate the estimated gains, which show an average of 2% to 4% net reduction in aircraft fuel consumption.
12 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 13 MORE THAN , 10FELIN 000SYSTEMS DELIVERED In November 2012, French defense procurement agency DGA took delivery of the 10,170th FELIN system, an integrated equipment suite for soldier modernization programs, to outfit a tenth Infantry Regiment in the French army. Developed by Sagem (Safran) as prime contractor, the FELIN system represents a major advance in terms of protecting warfighters and increasing their operational efficiency, including observation, communications, mobility and support. According to the initial contract, covering more than 20,000 systems, ten other regiments will be equipped with FELIN systems by 2015, at a delivery rate of four regiments per year.
14 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 15 MORE THAN
200MILLION INDIANS ALREADY HAVE A UNIQUE ID NUMBER Morpho (Safran) is one of the suppliers chosen by the Indian government to carry out the first phase of the Aadhaar program, which involves the assignment of a unique identification number to some 300 million Indian citizens. Safran’s products and technologies are widely used in this large-scale program, in particular biometric terminals to scan fingerprints and irises, along with enrollment services and processing software. The 230 millionth ID number was issued in November 2012. The government also announced the start of the Direct Cash Transfer Initiative, so that Indian citizens can use their ID number to carry out banking transactions, receive social benefits, etc.
16 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 17 MORE 2012 HIGHLIGHTS…
CFM56, THE BEST HERAKLES IS BORN MORPHO TO GEPS, A STRATEGIC SAFRAN SELECTED CONTINUED MORPHOTRUST FIRST PRODUCTION SELLING AIRCRAFT The merger of SME and PRODUCE ID ACQUISITION AGAIN FOR SUCCESS FOR USA IS FOUNDED LANDING GEAR ENGINE IN HISTORY Snecma Propulsion Solide DOCUMENTS In October 2012, Safran BRAZILIAN KC-390 WHEELS AND US government agencies DELIVERED FOR With more than was officialized on May 1, IN CHILE signed the definitive MILITARY CARBON BRAKES and companies now have AIRBUS A400M 24,000 delivered, the CFM56 2012, creating the company Morpho (Safran) has signed agreement for the acquisition TRANSPORT Messier-Bugatti-Dowty a dedicated supplier of ID Messier-Bugatti-Dowty is the best-selling engine in Herakles, a year after SME was a ten-year contract with the of Goodrich Electrical Power Brazilian plane-maker (Safran) bolstered its position management solutions: (Safran) delivered the first the history of aviation. acquired by Safran. Through Chilean public registry Systems (GEPS). This will add Embraer has chosen Sagem as the world’s leading MorphoTrust USA. This new production-standard landing It continued to chalk up this new entity, Safran service to produce electronic new capabilities to Safran’s (Safran) to supply the supplier of aircraft wheels company offers state-of-the- gear for the Airbus A400M exceptional sales in 2012, becomes a world leader in passports and ID cards existing range, in particular horizontal stabilizer trim and carbon brakes, by art technologies for at the end of January 2012. with 898 firm orders for all solid rocket propulsion for as part of a new system the company’s expertise system for its new military signing 90 new contracts in biometrics (iris, fingerprint The company provides versions. In particular, the missiles and launch vehicles. to manage and issue the and critical experience transport, the KC-390. In 2012, especially for the and facial recognition) and ID the complete landing system CFM56-7B will power the country’s ID and travel in electrical generation and 2011, Safran had already Airbus A320, Boeing Next- management (access control, for this military transport, Boeing Next-Generation 737 documents. distribution systems. been chosen as supplier Generation 737 and secure ID documents and including wheels and carbon twinjets ordered by United of the primary and secondary Boeing 787. It booked orders enrollment services). brakes. Airlines (50), China electrical distribution for wheels and brakes Eastern (45), and Lion Air of SAFRAN SYSTEMS CESSNA OPTS FOR systems, the backup on more than 850 aircraft, up Indonesia (29). The CFM56-5B CHOSEN FOR SAFRAN POWER generation system and the 23% on 2011. was chosen by 11 airlines in EUROCOPTER X4 ON NEW FOUR-SEAT complete integration of the 2012, and will power Eurocopter has selected the AIRCRAFT KC-390 electrical system, 65 Airbus A319s and A320s new Arrano turboshaft Cessna Aircraft Company along with its wheels and ordered by American Airlines engine by Turbomeca announced in July 2012 brakes. and 20 Airbus A321s for the (Safran) and the electric its selection of the SMA Russian airline UTair. brake by Messier-Bugatti- SR305-230E diesel engine Dowty (Safran) for its for its new Turbo Skylane CESSNA CHOOSES new-generation X4 NXT, a four-seat utility helicopter. Sagem (Safran) airplane. SMA is a wholly- SILVERCREST Snecma’s new-generation will provide the flight owned subsidiary of Snecma Silvercrest turbofan engine controls and some (Safran). SAFRAN ON THE CREATION has won a second contract, information systems for this INTERPOL TRAVEL SUKHOI this time from Cessna for OF AEROSPACE helicopter in the 5 to 6-ton DOCUMENTS EMBEDDED SUPERJET 100 Interpol has chosen Morpho the Citation Longitude, its class. Russian aircraft manufacturer SOLUTIONS (Safran) to supply the secure new long-range business jet, Sukhoi had booked Sagem (Safran) and MTU ID management and travel slated to enter service 179 orders for its Superjet 100 Aero Engines have created document production in 2017. regional jet at the end of the the joint venture Aerospace system for its agents. year. In October, it rolled out Embedded Solutions GmbH This system includes the first Superjet 100 for a (AES), to develop their registration of multibiometric Western client, the Mexican business in safety-critical data, verification of identity airline Interjet. Safran software and hardware for and personalization provides a number of military and civil aviation of documents. systems and equipment on applications. the Superjet 100, in particular the SaM146 engine, designed and produced by Snecma (Safran) and NPO Saturn through their joint enterprise PowerJet.
18 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 19 BRITISH AND FIRST VEGA SAGEM AND WIRING INSTALLED 25-YEAR INDIA IN EXCLUSIVE MESSIER-BUGATTI- PARAFE E-GATES DANISH ARMED LAUNCH A SUCCESS THALES ON FIRST A350 XWB MAINTENANCE NEGOTIATIONS DOWTY WINS FOR CHARLES- FORCES ORDER JIM Europe’s new Vega launcher, CONSOLIDATE In September, Labinal CONTRACT FOR RAFALE OVERHAUL DE-GAULLE LR BINOCULARS designed for small satellites, FRENCH (Safran) teams installed the FOR BRITISH The GIE Rafale consortium CONTRACTS FOR AND MARSEILLE Sagem (Safran) has won the successfully carried out its OPTRONICS 50 meter long wiring harness AIRWAYS A380 has entered exclusive AIRBUS AND BOEING AIRPORTS Long Range Thermal Imager first qualification flight on INDUSTRY on the first Airbus A350 XWB, NACELLES negotiations with the Indian LANDING GEAR Morpho (Safran) has program contract from the February 13, 2012. Herakles Sagem (Safran) and Thales to be used for flight testing. Rolls-Royce and Aircelle government for the sale of Messier-Bugatti-Dowty delivered six PARAFE e-gates British army, and another (Safran) and its subsidiaries have begun to group their Labinal provides the wiring (Safran) have signed a 126 Rafale fighters. A number (Safran) has won a number to the Paris airports authority contract from the Danish provide a number of systems infrared detector for all production aircraft. 25-year contract to provide of Safran companies of contracts for the general (ADP), which now has a total Ministry of Defense, giving and equipment for this light development and maintenance on the nacelles contribute to Rafale, from the overhaul of landing gear of 33 of these automated it a total of over 5,000 JIM LR launcher, including the production activities within for the Trent 900 engines Snecma M88 engine and on commercial aircraft border control gates. In July, binoculars now in service ignition and separation their joint subsidiary Sofradir, powering British Airways’ Messier-Bugatti-Dowty deployed by different airlines, Marseille-Provence airport or under order. systems, and nozzle now a 50/50 company 12 Airbus A380s. landing gear, to the Sagem amounting to more than 240 became the first French subassemblies for the second following their purchase inertial navigation system. landing gear shipsets in all. airport outside of Paris and third stages. of Areva’s 20% stake in to deploy these e-gates. Europropulsion, our joint January 2012. By boosting MORPHO subsidiary with Avio, makes its expertise, Sofradir DETECTION, the solid rocket motor for the becomes part of the very first stage. FROM SUCCESS select club of detector TO SUCCESS manufacturers that apply A JOINT VENTURE In December 2012, Safran all infrared technologies. DEDICATED TO acquired GE’s remaining 19% In July 2012, the two SILICON CARBIDE stake in Morpho Detection, companies also created Nippon Carbon Company, Inc. (MDI). This Morpho INAUGURATION Optrolead, an equally-owned GE and Safran have created (Safran) subsidiary won major joint venture dedicated a joint venture for the OF LABINAL’S NEW contracts in 2012, especially ELECTRIC BRAKES to new optronic programs production and sale of silicon PLANT IN FRANCE the Israeli Airports Authority’s ENTER SERVICE ON for defense applications. carbide fibers, an essential Labinal’s (Safran) new plant selection of its CTX/XRD DREAMLINER part of ceramic matrix in Villemur-sur-Tarn was checked luggage inspection The first Boeing 787 composites (CMC). The use inaugurated in system, and a non-exclusive Dreamliner with electric of CMC should be February 2012. Safran contract from the brakes by Messier-Bugatti- increasingly widespread in invested some 12 million Transportation Security Dowty (Safran) entered tomorrow’s aircraft engines. euros in this new facility, Administration (TSA) of the service with Ethiopian which makes electrical wiring United States, worth up to Airlines in August 2012. and cabinets for Airbus and 528 million dollars, for the Other airlines have also Eurocopter aircraft, houses supply of CTX 9800 explosive chosen these electric brakes aftersales services for Airbus, detection systems, along for their 787s, including and coordinates Labinal’s with an initial order for Norwegian Air Shuttle, British worldwide production. 37 systems to be installed Airways and LAN Airlines. at seven American airports.
20 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 21 INNOVATIVE PRODUCTS AND TECHNOLOGIES The world demands a constant stream of increasingly innovative solutions to meet today’s economic, societal and environmental challenges. These challenges include the growing mobility of people and goods, the demand for increasingly efficient services, the advent of new threats, climate change, the scarcity of natural resources, and many more. Working with our suppliers and partners, Safran leverages an ongoing focus on innovation and competitiveness to deliver integrated solutions that address these multiple challenges.
€1.6 21% 15% 750+ billion of employees increase patent R&D are involved in patents applications expenditures in R&D filed in 3 years filed in 2012
22 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 23 PRODUCTS & TECHNOLOGIES LEAP SILVERCREST ARRANO SMA SR305 Tomorrow’s The new- Power for Minimum fuel aero-engine generation the X4 helicopter burn for the business jet Cessna Turbo CONTRIBUTING engine Skylane NXT TO EFFICIENT,
ENVIRONMENTALLY-FRIENDLY The Silvercrest engine built by The SR305 engine produced Snecma (Safran) has been chosen by SMA, a subsidiary of Snecma AIR TRANSPORT ACARE’S OBJECTIVES for a second application, Cessna’s (Safran), will power Cessna’s new upcoming Citation Longitude Turbo Skylane NXT airplane. As a major player in the global aviation industry, Safran FOR AIR TRANSPORT business jet. Designed for This advanced compression takes a lead role in developing sustainable solutions IN 2020 (VS. 2000): super-midsize business jets in ignition engine meets that combine cost-effectiveness with environmental the large cabin, long-range class, the requirements of the general respect. Silvercrest will reduce fuel aviation market, since it will The CFM International LEAP has consumption and CO2 emissions reduce fuel consumption by 30% The new Arrano turboshaft already been chosen to power by 15%, NOx emissions by 50% to 40% compared to engine by Turbomeca (Safran) the Airbus A320neo (LEAP-1A), and significantly reduce noise, piston-powered aircraft using 50% will power Eurocopter’s Boeing 737 MAX (LEAP-1B) all performance features aviation gasoline (AVGAS). new-generation X4 helicopter, DECREASE IN and Comac C919 (LEAP-1C). demanded by the highly scheduled to enter service CARBON DIOXIDE (CO ) This engine offers a significant competitive business aviation 2 in 2017. In addition to improvement in economic and market. EMISSIONS environmental performance significantly reducing fuel compared to current engines, consumption compared with including a 15% decrease today’s engines, it will also in specific fuel consumption and increase the helicopter’s range and payload capacity, while CO2 emissions, a considerable 80% reducing its environmental Innovate today to meet tomorrow’s decrease in the ground noise challenges DECREASE IN footprint, and NOx emissions footprint. Furthermore, thanks Today’s aviation industry faces a two-pronged NITROGEN OXIDE (NOx) 50% under CAEP/6 standards. to optimized maintainability, challenge, namely the increasing scarcity of fossil In 2008, as the world experienced skyrocketing it will reduce operators’ total cost fuels and climate change. At Safran, our Research oil prices, Safran and GE announced the EMISSIONS of ownership. & Development efforts therefore focus on development of a brand-new engine that would solutions that offer maximum energy efficiency enter service in 2016 and significantly reduce and environmental protection, by providing fuel consumption. Designated LEAP, this new propulsion systems that reduce fuel engine is available in three different versions and consumption, making aircraft systems that run had already recorded more than 4,300 orders 50% on electricity, and spreading the use of and commitments at the end of 2012. innovative materials. DECREASE IN Our constant focus on innovation is an integral A major player in aeronautical research part of Safran’s corporate identity. Our success Safran plays a lead role in the European research PERCEIVED NOISE in the market has always been the result of program Clean Sky, a Joint Technology Initiative technological developments that kicked off (JTI) launched in 2008 to meet the objectives set decades earlier, as shown by the history of the by the Advisory Council for Aeronautics Research two aircraft engines, CFM56 and LEAP. in Europe (ACARE). In 2012, Safran and 13 other After Snecma (Safran) and GE created their companies signed a letter of intent to continue equally-owned joint venture CFM International this program as Clean Sky 2, running from 2014 in 1974, they had to wait five years to win the to 2020. first customer for the new CFM56 engine, We also carry out our own research programs on designed to power single-aisle commercial jets. specific subjects, in collaboration with outside The CFM56 is now the world leader in its thrust partners. In September 2012 we launched class, with six different models for both civil and a program called HAIDA to accelerate R&D military aircraft, and the best-selling aircraft on aerodynamics and aerothermodynamics, engine of all time with more than two disciplines that heavily impact the 24,000 delivered to date. performance of propulsion systems.
24 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 25 PRODUCTS & TECHNOLOGIES
SAFRAN COMPOSITES ARCOCE GREEN TAXIING A RESEARCH CENTER DEDICATED A world first in Economical, SAFRAN POWER TO COMPOSITE MATERIALS Specialist in onboard In September 2012, Jean-Paul Herteman, Chairman and CEO ceramic matrix ecological taxiing of Safran, and Arnaud Montebourg, French Minister for composites for commercial electrical power Industrial Renewal, laid the cornerstone for Safran’s new research center dedicated to organic matrix composite jets Safran’s expertise in electrical energy materials, at the Le Bouchet site in Itteville, in the greater Paris is concentrated in the Safran Power center area. Outfitted with state-of-the-art machinery and equipment of excellence, part of Hispano-Suiza (Safran), and staffed by up to 150 researchers, this center is tasked Electricity gains ground dedicated to technologies for more electric with validating innovative composite technologies already One of today’s top priorities for aircraft Herakles (Safran) has launched aircraft. Operating at Group level, in the pipeline, exploring new areas of research through manufacturers is the trend toward “more electric” an advanced R&T program it coordinates projects concerning electrical aircraft. This means replacing the hydraulic and a network of partners (universities, laboratories, specialized dubbed ARCOCE, the French systems and power electronics for aircraft. pneumatic systems that have traditionally been small businesses), and “seeding” these technologies initials for ceramic composite Safran also deploys a test rig dedicated used to power the aircraft’s systems throughout the Group. Safran has invested some 50 million to the integration of electrical systems, by electrically-driven systems. However, afterbody, aimed at the use of euros in the new 10,000 square meter research center, which dubbed Copper Bird®, developed this changeover demands a significant increase ceramic matrix composites (CMC) will be up and running by the end of 2013. by Hispano-Suiza for the European Power in the power offered by electrical generation on the exhaust assemblies and distribution systems. of aircraft engines. A CMC Optimized Aircraft (POA) program, and also Electrical power has a number of advantages, exhaust cone was used on chosen by Clean Sky as a test platform including greater flight safety and weight an Airbus A320 flying testbed for aircraft electrical systems. The electric green taxiing system savings that reduce fuel consumption and in February 2012, a world first. greenhouse gas emissions. Above all, the advent (egts), jointly developed of electrical systems will help reduce the cost by Safran and Honeywell, enables of assembling and maintaining aircraft, while commercial jets to move around increasing their dispatch reliability. airports independently without The trend to more electric aircraft is one using their own jet engines, of Safran’s pivotal strategic objectives, supported thanks to electric motors fitted by sustained Research & Technology to the wheels on their main investments for a number of years, leading landing gear. The aim is to reduce to contracts on major aircraft programs. operating costs and pollution For example, the Electrical Thrust Reverser while the aircraft is on the Actuation System (ETRAS®), designed by Hispano-Suiza (Safran) and equipping the ground, which in turn improves Aircelle (Safran) nacelles on the GP7200 and airlines’ financial and Copper Bird® test rig Trent 900 engines powering the Airbus A380, environmental performance. is the world’s first system of this type. In 2011, Safran and Honeywell plan Hispano-Suiza was chosen by Embraer of Brazil to introduce the egts on new to supply all primary and secondary electrical single-aisle jets starting in 2016, distribution systems on its new KC-390 military and subsequently retrofit this transport, along with a backup electrical system on aircraft already generation system. The electric brake by Messier- in service. Bugatti-Dowty (Safran), a breakthrough that had already been chosen for the Boeing 787 electronics (Safran Power/Hispano-Suiza), Molding) composite material production production plants that will combine Dreamliner, in a world first, was selected by and innovative electrical equipment (Messier- method for fan blades, which lightens jet the resources and capabilities of Snecma (Safran) Eurocopter in 2012 for its new-generation X4 Bugatti-Dowty electric brakes, Aircelle thrust engines and enables higher bypass ratios, and Albany, an American company that helicopter. reversers). a factor in reducing fuel burn. Other initiatives is the Group’s exclusive partner in the three- are under way to introduce composite materials, dimensional weaving of carbon-fiber preforms. Acquisition of GEPS, a strategic move The growing use of innovative materials, for instance a Techspace Aero (Safran) program Two identical plants will handle the production On October 16, 2012 Safran signed the definitive combining lightness and strength to use these materials on low-pressure of composite fan blades and casings for agreement to acquire Goodrich Electrical Power Another focus on today’s aircraft is the compressors. the LEAP engine. The first, in Rochester, Systems, or GEPS, giving birth to a world leader increasingly widespread use of innovative New Hampshire, in the United States, will in aircraft electrical systems. With the acquisition materials. Safran is one of today’s aerospace New production plants, dedicated be commissioned in 2014, while a second plant, of GEPS, Safran adds critical skills and experience industry leaders in the application of composite to composite parts for LEAP in Commercy, in the Lorraine region of eastern in electrical power generation systems, which materials, which are lighter and stronger than The new LEAP engine makes broad use France, will turn out its first parts in 2015. are at the heart of airborne electrical systems. their metallic counterparts, and will be used of composite parts, which contribute Safran is now a world-class supplier of these more and more to meet the economic significantly to its higher performance. To handle electrical systems, adding the capabilities and environmental challenges facing the air the ramp-up in demand for 3D woven RTM of GEPS to its own broad expertise, spanning transport industry. For instance, we have parts for this engine, Safran has reorganized data and power transmission (Labinal), power developed the 3D woven RTM (Resin Transfer its production organization, in particular building
26 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 27 PRODUCTS & TECHNOLOGIES CAT/BPSS R&D E-GATES CTX/XRD An ID scanning The challenge Quick, secure State-of-the-art system test of detecting border crossings solution for project in US explosive traces checked luggage airports inspection in Israel
GUARANTEEING The Transportation Security Morpho (Safran) modernizes Morpho’s CTX/XRD is a fully Administration (TSA) of the border control procedures integrated detection system, PASSENGER SECURITY 700,000 United States has chosen by automating the travel combining computed MorphoTrust USA to test a new document authentication tomography imaging of luggage Through Morpho, Safran masters all technologies needed PASSENGERS system in three international process and checking passenger with X-ray diffraction analysis. pass monthly to address security requirements in airports: explosive airports in the country. Dubbed ID using biometric data. The Israeli Airports Authority through over CAT/BPSS, or Credential In France, the Paris airports (IAA) has ordered several systems detection, identification, secure travel documents, border 100 multibiometric control and access control for secure zones. Authentication Technology/ authority and Marseille- of this type following a successful e-gates installed Boarding Pass Scanning System, Provence airport opted for test at the Ben Gurion by Morpho at it will automatically check driver’s fingerprint-based authentication international airport in Tel Aviv. 23 international licenses, passports and other using automated PARAFE airports. routine ID documents and ensure e-gates. Both Australia and New that the passenger matches his Morpho (Safran) has signed Zealand have equipped their or her boarding pass. Now under a research contract with the US airports with biometric test, this technology is designed Department of Homeland SmartGates based on facial to improve the current process, Security to develop two recognition technology. 1 MILLION requiring manual checks. Morpho’s automated e-gates prototypes for shoe scanners FLIGHTS using different technologies, are now deployed in a number have taken advantage which combine sensitivity and of international airports, of Cassiopée’s Flight selectivity: quadripolar resonance speeding up controls for over Combining security and faster passenger Data Management and mass spectrometry. 20 million passages to date, while throughput in airports (FDM) services. The ultimate aim of these ensuring security. The advent of new threats demands effective developments is for travelers countermeasures. This is a critical challenge in air to be able to pass through airport transport, where controls are necessary checks without having to take for security, but should impact travelers as little Safe flights, effective fleet management as possible. Solutions that combine security Sagem (Safran) offers a wide range of avionics 6 off their shoes. and smooth-flowing passenger traffic in airports systems and equipment to handle flight control, are based on automated ID border checks, guidance and onboard information, giving pilots RESEARCH which require the preliminary availability flexible, high-precision systems to ensure of biometric passports, plus effective systems maximum flight safety. Sagem is the world’s CONTRACTS to inspect travelers and their luggage. leading supplier of helicopter flight controls. signed by Safran has made a series of targeted acquisitions Working through FADEC International, an equal Morpho and the since 2008 to bolster our leadership positions joint venture with BAE Systems, it provides these US government in the biometrics and identification markets, full authority digital engine control (FADEC) to develop new- and also underpinned our breakthrough in the systems for a wide range of aircraft, including generation airport detection market. The Group’s security specialist, the Boeing 737 Next-Generation, Airbus A380 security solutions. Morpho, is now in a perfect position to capitalize (with GP7200 engines), Sukhoi Superjet 100, on the growth in global security markets. Comac C919, etc. Morpho is converging its biometric and Safran also develops comprehensive solutions detection technologies to develop a single for airlines and business aircraft and helicopter checkpoint, seamlessly integrating operators, to facilitate their ground and flight all equipment needed to check identities, operations and oversee flight safety. In 2011 and inspect passengers and their luggage. Safran launched Cassiopée, an offering that The upshot is concrete benefits for all comprises five families of innovative, modular stakeholders, including passengers, airlines, services: Flight Safety & Risk Management, airport authorities and police, customs Maintenance Performance, Flight Operations, and immigration services. Airline Organization and Cost Savings.
28 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 29 PRODUCTS & TECHNOLOGIES MORPHO MORPHOTOP™ TURBOMECA MORPHOBIS NFC/LTE Fingerprint SBH® The New York SIM CARDS scanner certified Reliable support Police South Korea by the FBI for rescue Department’s pioneers missions by biometric contactless the Hong Kong ID system ENHANCING technology Government PROTECTION Flying Service FOR CITIZENS 41 (GFS) The products and technologies developed by Safran help OF THE 50 protect people and goods, and ensure the security AMERICAN STATES MorphoTop™ 100R, a compact, The system deployed by Morpho of both transportation and transactions. Our solutions build now use MorphoTrust high-speed fingerprint scanner, (Safran) for the New York Police people’s trust and maintain state security at the highest USA solutions to issue has been certified by the FBI. Department automatically their driver’s licenses. It’s a reliable, economical device manages comparisons possible level. that scans fingerprints on all ten of fingerprint traces from crime fingers for applications including scenes and the “ten-print” identity checks, civil registries or palm-print records in their or criminal arrests. The detector database – all with unrivaled 5,000+ is based on a proven biometric speed and accuracy. Sweden’s technology, used worldwide JIM LR In November 2012, Morpho police force is the first in Europe for major government projects. to deploy this new-generation (Safran) announced the delivery Turbomeca (Safran) has provided MULTIFUNCTION It effectively reads fingerprints automated fingerprint of over 500,000 NFC/LTE (Near reliable support to the Hong in less than two seconds. identification system (AFIS). INFRARED Field Communication/Long Term Kong Government Flying Service BINOCULARS Evolution) SIM cards to Korea (GFS) for its Search & Rescue now in service Telecom, the second leading (SAR) missions for over ten years. or under order mobile operator in South Korea. The helicopters deployed by GFS, worldwide, including This initial delivery resulted from all powered by Turbomeca 2,000 for the French a framework contract for several engines, are covered by army. million units, signed in 2012. a “support by the hour” (SBH®) Through this technology, Korea contract, enabling this Facilitating daily life Solutions for police, military Telecom allows customers government department and ensuring security and civil security forces to make purchases or buy public to anticipate its maintenance The innovative solutions developed by Morpho confirmed its position this year as transport tickets by simply costs and enjoy quick assistance. Morpho (Safran), whether ID documents a favored partner to police forces, with placing their mobile phones or biometric identification technologies, the company’s solutions being chosen No. 1 in front of one of the are applied in many different areas of our daily by Interpol, the New York police and the FBI. IN AUTOMATED 200,000 contactless terminals life, including identity management, Morpho also provides control system installed in the country. telecommunications, healthcare, banking to the French police for road safety applications. FINGERPRINT and transportation, to name just a few. In the United Kingdom, the government used IDENTIFICATION, We confirmed our global leadership in identity Morpho’s solutions to identify illicit funds according to the solutions in 2012, in particular with the creation implicated in drug trafficking, using a portable US National Institute of MorphoTrust USA (formerly L-1 Identity trace detection system. Solutions), whose solutions are already used Sagem (Safran) designs a wide range of products of Standards to issue driver’s licenses – the main ID document for use by police forces, homeland security units & Technology (NIST). in the United States – in over 40 states. and customs services, as well as for mountain Morpho also won contracts this year, through and maritime rescue missions. Sagem offers various consortiums, to supply e-passports in a wide range of increasingly innovative solutions Chile, Panama and Finland. In addition, it signed for avionics, navigation, optronics and safety- a four-year contract with the Finnish transport critical software, including inertial navigation safety agency to supply driver’s licenses and systems, infrared binoculars, the FELIN integrated digital tachograph disks, which record driving equipment suite for soldier modernization time by truck and bus drivers. programs, and much more.
30 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 31 PRODUCTS & TECHNOLOGIES ARIANE 5 ME LANDING GEAR TRUEngine® HERAKLES, BIRTH OF A GLOBAL LEADER IN SOLID PROPULSION SAFRAN TO Support A label On May 1, 2012, Safran finalized the merger SUPPLY ENGINES packages for that meets of its subsidiaries Snecma Propulsion Solide AND EQUIPMENT the complete strong industry and SME (SNPE Matériaux Énergétiques), acquired in 2011. Named Herakles, this new life cycle demand company has over 3,000 employees and FACILITATING five core businesses: strategic propulsion, SUPPORTING tactical propulsion, space propulsion, For the upgraded Ariane 5 ME ACCESS aeronautics and thermostructural (Midlife Evolution), Safran will OUR CUSTOMERS composites, and industry and organic provide the Vinci® cryogenic matrix composites. engine developed by TO SPACE Snecma. This restartable FOR THE LONG HAUL The TRUEngine® label indicates upper-stage engine will that all the parts in a CFM engine With the creation of Herakles, inject the payload into orbit, Safran supports our customers day after day, and its maintenance operations Safran becomes a world leader in solid typically two satellites into and the service business contributes to our financial are approved by the rocket propulsion, a key technology geostationary transfer orbit. health and robust business model. We guarantee manufacturer, which increases for launch vehicles which also provides At the same time, Safran our customers’ business continuity, while keeping the engine’s resale value. a complementary fit with Safran’s will continue to supply their operating and maintenance costs under For Safran, these agreements a number of systems secure the sale of spare parts, long-standing expertise in cryogenic already used on Ariane 5: control. Messier-Bugatti-Dowty (Safran) which have to be original parts rocket propulsion. the solid boosters that announced a series of general to earn the label. provide most of overhaul contracts for Airbus the thrust at liftoff, landing gear at the MRO Europe the Vulcain®2 Custom-tailored services for aircraft 2012 trade show – for Aegean cryogenic main stage engines and equipment Airlines, Cyprus Airways, engine, pressure We signed a number of MRO (maintenance, Maximus Air and Egyptair sensors needed repair and overhaul) contracts in 2012: – confirming the excellence of its for guidance, wiring, – Four of the world’s leading aircraft leasing MRO services. Messier-Bugatti- pyromechanisms firms – International Lease Finance Corporation Dowty uses personalized tracking and control (ILFC), CIT Aerospace, AerSale and GE Capital of each landing gear leg and equipment for the Aviation Services (GECAS) – signed contracts counts on a large stock of landing with CFM International to include their engines upper stage. gear shipsets, ready to be used Safran’s role on Ariane and Vega, in the TRUEngine® program. anywhere in the world. pillars in the European space program – Rolls-Royce and Aircelle (Safran), to deliver Safran is one of the main contributors higher value to their joint customer, signed to Europe’s Ariane and Vega launchers, and plays a 25-year contract providing for the an active role in Research & Development maintenance of the nacelles on the Trent 900 programs for Ariane’s successors. engines powering British Airway’s 12 Airbus In November 2012, the ministerial-level First flight of Europe’s new Vega A380 super jumbo-jets. European Space Agency (ESA) Council meeting launcher a success – Messier-Bugatti-Dowty (Safran) won general systems deployed by the French army, covering explosive trace detectors, deployed in American approved the continuation of the Ariane 5 ME Europe’s family of launch vehicles has expanded overhaul contracts for more than 240 landing all maintenance, repair and technical support airports since November 2009. The OEM (Midlife Evolution) program, for an upgraded with the introduction of Vega, a light launcher gear sets, bolstering its leadership position for systems in service until 2014. In addition, (Original Equipment Manufacturer) guarantee, launcher that will enter service in 2017-18. designed for smaller satellites. Its first in this market. Sagem signed a through-life support contract initially set at two years, has been extended by It also approved the follow-on program, qualification launch on February 13, 2012 from 7 for the STRIX observation and sighting systems a year, with annual renewal options. The TSA has designated Ariane 6, for a launcher scheduled the Guiana Space Center in Kourou, French ARIANE 5 LAUNCHES Life-cycle support: total reliability on the French army’s Tiger combat helicopters. recognized the significant cost savings achieved to enter service in 2021-22. The detailed Guiana was a complete success. Herakles and For the last dozen years, Safran has enhanced In addition to these new contracts, Safran thanks to the OEM warranty. The Botswana definition of Ariane 6 should be completed its subsidiaries play a key role on this launcher: IN 2012. its life-cycle support offering to better meet continues to provide life-cycle support to police also renewed their confidence in Morpho by 2014, based on decisions made to favor Europropulsion, Herakles’ joint subsidiary with the expectations of today’s armed forces: billing the French government for the M88 engine by signing a two-year maintenance contract technological developments that will benefit Avio of Italy, makes the P80 solid rocket motor by flight-hour and firm objectives for dispatch powering the Rafale fighter, and the Tyne engine for their automated fingerprint identification both Ariane 5 ME and Ariane 6, such as the Vinci® for the first stage, with propellant being supplied reliability and response times, in exchange powering the Transall transport and Bréguet system. upper-stage engine being developed by Regulus (also a Herakles/Avio joint venture), for long-term contracts. The most emblematic Atlantique maritime patrol aircraft (ten-year by Snecma (Safran). For the Ariane 6 preliminary and Herakles makes the nozzle. PyroAlliance 53 of these contracts, signed by Turbomeca contracts signed in 2010). design phase, Herakles (Safran) is the prime supplies all destruction, ignition and separation with the French government in 2001 and contractor for design studies on solid propulsion systems for the first three stages, while Herakles SUCCESSFUL LAUNCHES covering 1,408 helicopter engines, was renewed Security equipment maintenance systems, while Snecma has the same makes the igniter casing, high-performance IN A ROW BY ARIANE 5 in September 2012 for a period of ten years. Morpho (Safran) booked an order from the US responsibility for the upper-stage liquid pressure transducers and nozzle subassemblies Also last year, Sagem (Safran) signed a life-cycle Transportation Security Administration (TSA) propulsion system. for the second and third stages. AT YEAR-END 2012. support contract for Sperwer tactical drone for the maintenance of its Itemiser DX portable
32 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 33 PRODUCTS & TECHNOLOGIES SME PACT RESPONSIBLE PURCHASING HELPING FINANCE COMMITMENT TO SHELTERED WORKSHOPS OUR SUPPLIERS AND ADAPTED ENTERPRISES Safran helps small and medium-size Safran calls on adapted enterprises and the ESAT network enterprises (SME) secure the financing in France that facilitates subcontracting or other work needed to fund their growth or development for disabled persons. The Group’s agreement to support into a Tier-1 supplier, especially the employment of disabled persons provides for an increase by supporting their financing requests to in this program, with a sales target of 8 million euros in 2014, organizations such as Aerofund, or the versus 2.5 million euros in 2011. AIMING Strategic Investment Fund. FOR EXCELLENCE ACROSS THE BOARD Safran, a dynamic, constantly evolving enterprise, seeks excellence in all areas to underpin our own development and foster total customer satisfaction. €419 MILLION €1.6 BILLION 75 CAPITAL EXPENDITURES R&D EXPENDITURES TRADE COMPLIANCE OFFICERS in 2012 to keep pace with production and more than 750 patents guarantee that our business is conducted ramp-up and new technologies. filed in 2012. according to the highest ethical standards.
An ambitious R&D policy Safran’s success is based on continuous innovation, anchored in sustained Research & Development investments. In 2012, we had R&D expenditures of 1.6 billion euros, or about Large-scale capital investments 12% of our revenues. Over the last few years, Safran invests heavily in industrial facilities this innovation strategy is also based on targeted to keep pace with rising production rates, acquisitions, especially technology start-ups. support our strategy of establishing a distinctive Morpho (Safran) acquired Cassis International difference through innovation, and move closer in 2012, for instance, a pioneer and leader to our customers. The opening of new facilities in Trusted Service Management (TSM), along offering world-class industrial and environmental with the European subsidiaries of ABnote, performance clearly reflects our commitment. specialized in the production and In February 2012, for example, Labinal (Safran) personalization of bank cards. Sagem (Safran) inaugurated a new plant in Villemur-sur-Tarn, strengthened its optronics and night vision just a few kilometers from the old factory, to stay business by acquiring a small, innovative close to its main customer, EADS. The new Brazilian company, Optovac. And Safran 13,500 square meter site, considered “Green continues to form partnerships with & Lean”, was designed to meet the most international research organizations and demanding environmental requirements, laboratories active in areas related to the Group’s and to ensure optimized production, use businesses, while maintaining long-standing of space and workstation ergonomic design. relations with a number of leading technical The 730 employees at this plant, who work schools and universities. on all main aircraft produced by Airbus and Our constant focus on innovation has resulted Eurocopter, enjoy a thoroughly modern in a large number of patent applications, over environment, combining enhanced working 750 filed in 2012, and a total portfolio of nearly conditions and industrial efficiency. 24,000 titles. In 2012 we were ranked third In March 2012, SAMES (Snecma America Engine among French companies in terms of Services) opened a new aircraft engine MRO the number of patents published (according center in Mexico, dedicated to operators in to the ranking published in April 2013 by the Americas. The brand-new buildings, offering the National Institute of Intellectual Property, some 15,000 square meters of floorspace, INPI), and Group company Snecma (Safran) was are located next to two other Safran company ranked among the “Top 100 Global Innovators” in plants, Messier-Bugatti-Dowty and Snecma, 2012 by Thomson Reuters. in the aerospace industrial park at Querétaro.
34 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 35 PRODUCTS & TECHNOLOGIES SAFRAN 2012 LEAN-SIGMA SAFRAN, THE FIRST CAC 40 COMPANY EVENTS A SUCCESS TO RECEIVE ANTI-CORRUPTION CERTIFICATION Safran organized a dozen regional FROM ADIT Lean-Sigma events in 2012, at facilities The effectiveness of Safran’s anti-corruption practices has been in France, Canada, Morocco, the United recognized. In December 2012, we received the anti-corruption Kingdom and China. The main actors certificate from the technology information agency Adit in this initiative – Belts, sponsors, (Agence pour la diffusion de l’information technologique), based managers – met to discuss key issues, on guidelines validated by SCPC (Service central de prévention including Lean Office, Engineering, de la corruption), the corruption prevention department Manufacturing and the Kaizen method. that is part of the French Ministry of Justice. Along with this three-year certificate, the first awarded to a company in the French stock market index CAC 40, Safran is also applying an action plan to further improve its anti-corruption program. 10,000 NEARLY 35,000 EMPLOYEES IMPROVEMENT IDEAS with Lean-Sigma applied in 2012, after being certification (White Belts, submitted through the participative Green Belts, Black Belts innovation initiative. and Master Black Belts). Long-term supplier relations A structured approach At the same time, the participative innovation Excellence in trade compliance In line with our commitment to corporate social to performance improvement initiative has really taken root among all Safran With the creation of the International division responsibility (CSR), Safran has established long- When we launched the Safran+ modernization employees: in 2012, nearly 35,000 improvement back in 2005, Safran clearly announced term relationships of mutual trust with initiative in 2009, it was accompanied by several ideas submitted by employees were applied its commitment to coordinating and supporting our suppliers, and we support their projects designed to shake things up inside within the Group. sales and marketing by companies around the development. Our suppliers’ ability to address the Group. One of these was RTDI (the French world, in compliance with the highest business sustainable development issues plays a decisive initials for research, technology, development Enhancing the competitiveness ethics and standards. The division prevents and role in their selection, on a par with their cost, and production engineering), designed of support functions combats corruption through a network of quality and on-time delivery performance, along to improve our industrial performance over the The identification of potential synergies 75 trade compliance officers, who oversee strict with their expertise and ability to innovate. entire product design and production cycle. has been extended to support functions, with compliance with ethical business practices The “Responsible purchasing” project, deployed Conducted over a period of three years, RTDI the creation of shared services centers (SSC), (including the selection and validation of all in 2012 and 2013, is designed to enhance our identified performance levers which were pooling certain services at Group level to benefit commercial partners, management of gifts, purchasing strategies and practices by raising deployed starting in 2012. One of these levers all companies. These centers are being hospitality, sponsored trips, etc.) the awareness of Safran’s own buyers is the “design to cost” method. It aims to achieve developed wherever the number of employees Since 2010, the International division has and specifiers to the challenges of CSR. technological excellence at the best cost, while makes them cost-effective. This initiative teamed up with Safran Corporate University This project also provides for an evaluation meeting the customer’s expectations in terms is especially well developed in France, where to raise the awareness of Group employees of suppliers in terms of their commitment of performance, functionality, quality and an SSC department has been created, grouping concerned by these issues, through targeted to social responsibilities. on-time delivery. for example payroll services for the employees information and special training sessions. Safran applies the Lean-Sigma approach of all Group companies in France, along with Furthermore, the division organizes an annual to support our continuous improvement drive, accounting, hiring and non-production seminar on business ethics, bringing together using proven tools to optimize processes and purchasing. Based on the same principles, other about 100 employees from all Group companies make them reliable, stable and predictable. In functions have become increasingly centralized, worldwide, including trade compliance officers, 2012, Safran provided Lean-Sigma training including health, safety and environment (HSE), sales, legal and financial Directors, country for over 10,000 employees at different levels, information technology, training, delegates, etc. Through these meetings, including 5,000 White Belts, who are instructed communications and legal affairs. they make sure that their knowledge of issues in the basic principles and objectives, A number of functions in our companies in is up to speed, discuss best practices, and help and 600 Black Belts, who manage Lean-Sigma the United States have also pooled their services, improve Safran’s trade compliance program. projects full-time. A new training program, including finance, legal, fiscal advice, payroll, Safran has also defined a program for export Lean Manager, has been rolled out to help human resources, purchasing and IT. Safran has controls, based on best practices and the managers involved more efficiently direct launched studies to pave the way for shared guaranteeing strict compliance with their teams working on Lean-Sigma projects. services centers in other countries, including all applicable rules and regulations. We now Lean principles are now applied to all areas, China, where some services are already pooled, have a network of more than 200 Export Control with the Lean Office initiative introducing as well as Mexico, Russia, India and the United managers operating throughout the Group. the same methods long used in production Kingdom. to our support functions. The Lean approach is designed to increase productivity, reduce overhead expenses and improve service quality delivered to customers, whether internal or external.
36 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 37 TALENTS GUARANTEEING FUTURE SUCCESS At Safran, the human factor is fundamental. In our high-intensity technology sectors, with product life cycles that often stretch over dozens of years, the innovations we develop today – and the talented people behind these innovations – will guarantee our success in the future. Day after day, Safran moves forward thanks to the people who are united by the pride and passion of working for an enterprise that helps develop concrete solutions to address today’s most pressing economic, social and environmental issues. To make sure our people realize their full potential, Safran has made human resources development a top priority. We deploy an advanced social model, with sustained investment in training, and concrete engagements to foster diversity, social responsibility and environmental friendliness. 7,500 4% 2nd 25% new hires of payroll employee women in 2012 dedicated shareholding in the to training rate in the workforce CAC 40
38 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 39 TALENTS SAFRAN DISCOVERY DAY 2012 MORE THAN 200 SAFRAN “SAFRAN IS RECRUITING Safran’s integration day was held on June 6 at the Le Bourget venue near Paris, AMBASSADORS: A PIVOTAL ROLE ENGINEERS FOR SOME VERY in an atmosphere of discovery, sharing and getting to know each other. IN SCHOOL PARTNERSHIPS IMPORTANT MISSIONS” It brought together some 3,000 newly hired and promoted managers from Safran’s “ambassadors” stay in touch with That was the tagline for an international around the world. The Group’s senior executives, company CEOs and technical their alma maters, participating in seminars advertising campaign focusing on experts participated in roundtables that also featured extensive audience and roundtable discussions, simulated hiring the social contribution of Safran’s participation. This large-scale orientation and integration event had a significant interviews, etc., to develop the Group’s innovative and reliable technologies. impact inside the Group, and garnered major media coverage. recognition and establish direct contacts ATTRACTING For example, thanks to the Arriel with students. This outreach helps them helicopter engine designed by Safran detect the promising youngsters who engineers, Éric, a search & rescue are really stimulated by Safran’s professions AND INTEGRATING worker in the Alps, can continue and technologies. TOP TALENTS helping mountain climbers in difficulty. Achieving technological excellence means being able to count on top talents across the board. Safran invests heavily to recruit the most talented people available, and makes sure they enjoy real career development opportunities. The men and women who join Safran become an integral part of an exciting human and technological adventure, and contribute to our exceptionally dynamic growth.
Significant recruiting needs Safran is recruiting a wide variety of candidates – recent graduates, seasoned engineers and managers, technicians and line workers – to meet emerging challenges. In 2012 the Group hired over 7,500 new employees, including half safran-talent.com, which was totally revamped with classes given by our specialists. Integration in the Group in France, and this pace will not slacken in 2013. to clearly spotlight the Group’s jobs and areas Furthermore, to develop the recognition and New hires at Safran receive sustained support Some 64% of new hires in France are engineers of expertise, and convey a dynamic image 7,500+ knowledge of our professions among students, as they move up the responsibility chain, backed and management staff, with 40% young of Safran’s corporate culture. NEW HIRES IN 2012 Safran helps them develop future career plans by targeted integration measures at both Group graduates. To help young people’s integration throughout their time at school, via visits and company level. A special “Discovery Day” in the workforce and develop their skills, Safran Stronger partnerships with academia to Group plants, roundtable discussions on our was organized in 2012 at the Le Bourget venue invests heavily in training through work-study Safran maintains strong relationships with business sectors and professions, internships, etc. near Paris to welcome some 3,000 new programs and internships. engineering schools and universities offering These partnerships with the world of higher engineers and managers from around the world. post-graduate degrees in our fields, all of which education call on Safran’s network of Corporate Human Resources is also analyzing Developing our employer brand provide the pool of skills needed for the Group’s 4th “ambassadors”, who are in fact former students the deployment of a Group-wide integration Safran has launched various communications development. We continued this approach in PREFERRED EMPLOYER OF FRENCH of these target schools who now work for Group itinerary to ensure that new employees from actions targeting potential candidates to meet 2012 by signing new partnership agreements (1) companies. We have also set up a structure all companies become familiar with all aspects significant recruiting needs, including an with institutes of higher education, expanding ENGINEERING STUDENTS allowing Safran e-ambassadors to contribute of Safran, develop their personal networks employer brand campaign deployed since our network of affiliated schools and universities, to the professional networks LinkedIn and and better understand our career development February 2012. This large-scale campaign now numbering about 20. These agreements Viadeo, establishing privileged relationships opportunities, and mobility and training policies. spotlights a feature that makes Safran stand out: have expanded their scope. For instance, Safran with potential candidates. the societal role played by Safran’s products and works with these institutions well in advance Safran’s proactive approach to developing (1) According to the 27th survey of French engineering and business school students’ preferred employers in 2012, technologies. Ads were run in both daily papers to develop curriculum, guaranteeing very high- 3,182 our employer brand and school relations has by TNS Sofres. and weekly news magazines in France, as well level scientific and technical training and making YOUNG PEOPLE IN WORK-STUDY already borne fruit. We are now ranked fourth as in the trade press, backed by display ads sure courses match the evolving needs among student engineers choosing their in busy venues. Banners on leading employment of industry. PROGRAMS AND 2,951 INTERNS preferred employer(1), and we received 50% and professional networking sites referred Safran also endows chairs at leading engineering more job applications in 2012 than in 2011. candidates to our new recruiting site, and business schools, and offers training courses IN FRANCE IN 2012
40 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 41 TALENTS A CENTRAL CAMPUS FOR SKILLS AND EMPLOYMENT PLANNING LEADERSHIP MODEL SAFRAN CORPORATE Safran has set up Gateway programs to guarantee the The Group launched its Leadership Model in 2012. This model UNIVERSITY employability of our people. These itineraries are designed to describes the management style needed to ensure Safran’s Safran has acquired the land where it is help employees boost their skills to facilitate their adaptation long-term performance and competitiveness, from the building its new university campus. to changing job requirements, or to support a career standpoint of both values and behavior. It defines specific Located in the Paris suburb of Massy, close development goal or job change. behavioral models associated with five key competencies: to Orly airport and easy to reach in – Embarking on a shared vision; general, this 13-hectare campus can – Daring to innovate; welcome up to 600 students at a time. It – Scoring as a team; features an amphitheater, classrooms and – Empowering people; SUPPORTING accommodations for students. – Leading by example. SKILLS DEVELOPMENT In any high-tech company, the ability to bolster everybody’s skills and develop a shared corporate culture is the key to building solid foundations for the future. And that’s why Safran invests 4% of its payroll in training, and continued to develop Safran Corporate University in 2012 as a vector for cultural, technological and organizational transformation.
Developing training Safran Corporate University was founded to support the Group’s development by transmitting the knowledge and skills needed for growth. The university also helps promote a shared corporate culture and values, while directing training efforts towards priority objectives for skills development. Training a Statement of Intent signed by French and by Safran Corporate University, and also increase A network of innovators from different Group programs offered by the university address Brazilian authorities in March 2012. We are also training opportunities for employees. companies and business sectors was created all employees, at every level. A new Talent involved in training initiatives in Morocco, where 37,000 The training courses developed by Safran in 2012. Its role is to expand the innovation Development department was created in 2012, the aviation industry has developed significantly Corporate University will be rounded out by dynamic and accelerate the time to market to strengthen the career management in recent years, with support from the Moroccan EMPLOYEES TOOK TRAINING courses from Cnam, with equivalent credits set for breakthrough technologies. of executives and spotlight forward-looking government and European industry. We COURSES IN 2012 up between the two training programs. managerial excellence. provided extensive support for the creation For instance, Safran employees will be able of an aviation technician training center in to take a specific training program leading to An international, multicultural university Casablanca, inaugurated in May 2011, and we a certificate or degree. A process to validate life Operating across the world, Safran also invests have formed partnerships with local schools and experience, specific to Group employees, is also heavily in training at the international level. universities, including the Moroccan Foundation 1.4 MILLION being studied. The first job sectors to take Safran Corporate University already has for Advanced Science, Innovation and Research, advantage of this partnership are finance, campuses in Beijing and Dallas, two faculties and Al Akhawayn University in Ifrane. TRAINING HOURS IN 2012 process engineering and the supply chain, along that integrate local requirements in their training with Gateway itineraries designed to guarantee courses. Safran Corporate University now Training certificates and degrees, each person’s long-term employability and has training programs in a dozen countries, with validation of life experience career development. courses in French, English or the local language. In France, Safran signed an agreement in 2012 At the same time, the university helps spread with the Conservatoire national des arts et métiers 4% Group-wide networks to enrich skills Safran’s influence among customers and (Cnam), a major player in continuing higher OF PAYROLL DEDICATED Safran is now developing Group-wide skills partners worldwide. education. Cnam will contribute its broad networks alongside its “Experts” network, created Safran is a major player in a project to create expertise in professional training. The three-year TO TRAINING in 2005 to federate employees with solid a French-Brazilian aircraft maintenance training agreement will help strengthen the innovative experience and high-level skills in various center, whose objectives are defined in nature of certain training programs offered scientific and technical disciplines.
42 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 43 TALENTS “WOMEN, INDUSTRY AGREEMENT FOR SAFRAN WINS TWO SAFRAN RECOGNIZED FOR AND DEVELOPMENT” THE EMPLOYMENT OF AWARDS FOR EMPLOYEE PARTICIPATIVE INNOVATION Safran organized a forum in Rabat, Morocco in DISABLED PERSONS SHAREHOLDING POLICY During the Carrefour de l’Innovation March 2012 to share its commitment to women’s Safran signed a Group-wide The federation of associations Participative forum organized training and education in Morocco. The event agreement with all unions of employee shareholders awarded in November 2012 by the association addressed opinion-leaders in the country in April 2012 to support its Grand Prize to Safran in 2012 Innov’acteurs, Sagem’s Fougères plant and employees of Safran in Morocco. The Group the employment of disabled for advances in employee received an award for the maturity boasts a significant presence in Morocco, with persons in France. Running shareholding. In addition, ORAS, of its organization set up to facilitate six companies, more than 2,000 employees for three years, this part of the RH&M group, awarded innovation and continuous (56% women), and a management staff including agreement provides for a Compensation & Benefits trophy improvement. The tools and methods 40% women. the recruitment of more than to Safran for the deployment of an deployed have proved to be DIVERSIFYING 70 disabled employees, and AFFIRMING international employee shareholding especially effective, with an average training for 100 young people operation. of more than ten ideas per person in work-study programs and per year being applied. PROFILES and 65 interns. It also OUR SOCIAL MODEL encompasses strengthened As a responsible corporate citizen that values arrangements for integration Safran’s social model is based on the firm its people, Safran is committed to equal and training, as well conviction that employees are our primary asset. opportunity and diversity in the workplace as support measures They have a clear stake in our performance, – which we consider a major factor driving for career development. through an active policy of employee shareholding performance and innovation. and strengthened social benefits. They are stakeholders in our strategy, based on a constructive labor-management relationship and a dynamic process of participative innovation.
Diversity, a top priority Sharing the fruits of growth Safran has long been committed to fighting Safran has logged steady progress in building discrimination and promoting equal a solid base of social benefits. Through profit- opportunity. Reflecting this approach, in 2008 sharing and incentive measures, we give Safran created a Diversity department as part employees a stake in our success, by equitably of Corporate Human Resources, and then two of the biometrics research team at Morpho, who professional future, while leveraging their vast sharing the fruits of growth. In June 2012, with some 18,000 participants and more than the Participative Innovation Charter with years later signed the Diversity Charter. Our won the Innovation award in September 2012 experience. Safran therefore continued to management and the main unions signed 6.5 million shares subscribed. the association Innov’acteurs – a text enabling actions in this area are based on four primary during the first Women in Industry Awards deploy measures in the Group-wide agreement an amendment to the profit-sharing agreement, At year-end 2012, 80% of the workforce owned French companies to make a concrete objectives: promoting gender equality organized by the business magazine L’Usine in favor of senior employment throughout 2012. applicable to Group employees in France and Safran shares. With employees holding 15% commitment to promoting participative throughout the enterprise; employing seniors; Nouvelle. Furthermore, this agreement was temporarily using a new simplified formula, directly related of the share capital and nearly 24% of voting innovation. hiring disabled persons and maintaining their extended, while awaiting negotiations on to our financial results. Furthermore, in 2012, rights, Safran ranks second among companies employment; and social inclusion. A long-term commitment to integrating the employment of young people and seniors, for the second year in a row, Safran paid a profit- in the French stock market index, CAC 40, in young people slated to begin in 2013 within the scope of sharing bonus to French employees. terms of the size of its employee shareholding. Supporting gender equality Another top priority for Safran is a proactive the French “Generations” bill. In February 2012, management and unions Safran pays particular attention to gender employment policy for young people. In 2012, signed an agreement creating a collective Employees: shaping their own careers and equality in the workplace, backed by a wide for example, the Group started negotiations retirement savings plan, offering Group contributing to corporate strategy range of measures. For example, in 2012 at the European level on the integration of employees in France the possibility In 2012, Safran bolstered measures that agreements were applied at a majority of Group young people in the workforce. The agreement of establishing a supplemental retirement plan guarantee the employability of employees and companies. Safran is a partner in the association covers training, support and recruitment, in line under advantageous conditions. their professional fulfillment. These measures Elles bougent (“Women on the Move”), which with objectives for diversity and gender equality. include training courses open to all employees, aims to promote engineering and technical Safran also continued actions in partnership with 23% Promoting employee shareholding and skills and employment planning designed careers for female high school and college Frateli, an association founded to support high- WOMEN AMONG NEW Safran has long implemented an employee to facilitate mobility and career development. students. Once again, Safran participated in potential students from low-income families, by shareholding policy, one of the pillars of our Safran has also developed a participative a number of awareness-raising actions offering an opportunity to be mentored by top MANAGEMENT HIRES corporate culture. This policy is based on both innovation initiative, applied throughout the organized by the association, including several young employees. permanent structures, such as the matching Group. This initiative allows each employee, visits to Group plants. Safran also renewed shareholder fund, offered within the scope no matter what their position in the enterprise, its partnership in 2012 with the Women’s Forum, Career-long support of a complete employee savings system, and to be recognized as a change agent, based a major international event in Deauville. Employees 50 years and over represent nearly one-time actions, such as the “Leverage 2012” on their innovative ideas and actions. About 30 women from Safran participated in 30% of the Group’s workforce. Safran is fully 1,507 operation, deployed from December 2011 Safran organizes an annual Innovation Awards the discussions and conferences on how committed to maintaining these senior EMPLOYEES WITH to May 2012, enabling employees in competition to recognize employee initiative women see today’s major economic and social employees in their jobs, under conditions 15 countries to acquire Safran shares at preferred in all sectors and at all levels. We reaffirmed our challenges, including Sylvaine Picard, head that give them a positive outlook on their DISABILITIES IN FRANCE rates. This operation proved very popular, commitment to this principle in 2012 by signing
44 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 45 TALENTS SAFRAN HSE CERTIFICATION STRESS PREVENTION POLICY IMPROVED ERGONOMICS The HSE certificates issued by Safran Safran applies a three-pronged stress prevention policy: Safran has identified ergonomics as one of its priority incorporate the requirements of the – A diagnostic, based on a survey performed in conjunction with the University of improvement objectives. There are three main aspects international standards ISO 14001 Liège, the results of which are analyzed to define and implement an action plan. involved: enabling everybody to work under the best and OHSAS 18001, along with additional – Awareness-raising measures for all employees, and training sessions for possible conditions; enhancing occupational safety; standards specific to the Group. Auditors management. improving productivity. The Group hired an ergonomics are trained and qualified by Safran – Detection of and support for employees undergoing occupational stress. specialist in 2012 to evaluate the requirements on a rigorous basis. To ensure their of its companies and set up appropriate solutions. independence, they never operate in their PROTECTING own company, which also helps encourage the spread of best practices. Safran OUR EMPLOYEES’ has asked Bureau Veritas to attest that its internal certification process is equivalent HEALTH AND SAFETY to one provided by a third-party. Safran naturally strives for excellence in health, safety and environmental matters, in line with our values as a responsible corporate citizen and our commitment to sustainable development.
A responsible Health, Safety and Environment policy At Safran we are fully committed to developing a prevention-based culture to efficiently manage our health, safety and environment (HSE) risks, for the benefit of our employees, partners, Improving occupational safety to drive pragmatic and educational, enabling A study of opportunities and an analysis suppliers, customers and all communities long-term industrial performance management staff to evaluate their own degree of the most appropriate methodologies are concerned by our activities, anywhere in Occupational safety is one of Safran’s main 40% of operational expertise, and to develop an already under way to deploy a similar approach the world. The corporate HSE policy, determined concerns, and a primary performance factor. DECREASE IN improvement plan. An internal certification in international facilities, taking into account by the Group’s Chairman and CEO and applied It is backed by solid Group-wide decisions, plus committee issues HSE certificates to Group local characteristics. by the Sustainable Development department, the all-out commitment of corporate ACCIDENTS WITH facilities, attesting to their maturity and reflects a continuous performance improvement management. While Group facilities have compliance with international standards. Controlling the use of chemical substances approach and Safran’s values and commitments: received HSE certification for over a decade LOST DAYS One of Safran’s fundamental objectives is protect the health and safety of the people (based on the ISO 14001 and OHSAS 18001 IN 2012 VS. 2009 Protecting employee health and to efficiently manage and replace dangerous who work for the Group; guarantee the reliability standards), Safran also wanted to reenergize this preventing work-related stress substances. The Group is particularly attentive of our facilities and protect their surroundings; initiative, more clearly targeting its improvement Studies on the prevention of occupational stress to protecting employees who work design, build and distribute products and actions to meet its objective of cutting in half have been carried out at all Group facilities in production units handling these types services that incorporate health, safety and the rate of accidents with lost days over a period in France, in conjunction with the University of substances, and is strongly committed environmental requirements throughout their of five years (2009-2013). The Group therefore 1,500 of Liège in Belgium. Based on these studies, to the deployment of the European directive life cycle. deployed a custom-tailored Safran HSE reference each company has been able to define targeted REACH (Registration, Evaluation, Authorization Safran defines specific HSE targets and areas system, certified by the appropriate authorities. MANAGERS AND action plans, which are now being rolled out. and restriction of Chemical substances). of improvement every year, listed in the It includes all requirements stipulated SENIOR EXECUTIVES Safran has also developed Group-wide dashboards and performance indicators used by in international standards, and also sets specific awareness raising measures for all employees all management staff. Our performance in these internal standards in 30 different areas, including HAVE RECEIVED and training sessions for management staff, areas is controlled by HSE management reviews ergonomics, eco-design, chemical risks, etc. HR managers, personnel representatives in each company, as well as at Group level. These standards are designed to be both OCCUPATIONAL SAFETY and occupational health departments. TRAINING IN FOUR YEARS.
46 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 47 TALENTS SEARCH FOR THE OISEAU SOLIDARITY AT SEA SAFRAN RENEWS PARTNERSHIP SAFRAN BLANC CONTINUES! Safran shared with the IMOCA WITH TALENTS DES CITÉS FOUNDATION FOR In 2011 Safran signed a two-year technical committee the FOSTERING The Talents des cités (“Inner City Talents”) MUSIC RECOGNIZES partnership with the association conclusions of its inquiry into competition recognizes creators of business GUILLAUME VINCENT La recherche de l’Oiseau Blanc (“In search the incident occurring right SOCIAL INCLUSION start-ups in priority neighborhoods, within A pianist prodigy born in of the White Bird”), to find the wreck after the start of the 2012 the scope of a more general urban policy. 1991, Guillaume Vincent won of this legendary French aircraft, piloted Vendée Globe on its Open 60 Four entrepreneurs supported by Safran instant recognition for by Nungesser and Coli in 1927 in an class ocean racer, so that the AND EQUAL won an award this year for creating Prev’QSE, his virtuosity and musical attempt to fly from Paris to New York. lessons learned from this a company specialized in training and sensitivity during concerts SUPPORTING While the searches carried out in problem can benefit all other OPPORTUNITY consulting services concerning vocational in the series Jeunes Talents June 2012 were unfruitful, the project shipbuilders and skippers risks, first aid, safety and the environment. – Premières Armes, organized MEANINGFUL continues to mobilize energies. Safran and improve these 60-foot THROUGH CORPORATE by the Armed Forces Museum is seeking to “find” part of its history, thoroughbred racing boats’ in partnership with Safran. by searching for the plane’s engine, safety and reliability. SPONSORSHIPS a 450-HP Lorraine-Dietrich 12 Eb PHILANTHROPY produced by one of the Group’s Safran sponsors projects that rally the people predecessor companies. Safran’s philanthropy actions reflect the Group’s in the Group and convey our values. commitment to corporate social responsibility. For instance, since 2005 we have sponsored Our partnerships meet two main requirements, an ocean racing program, and since 2011 a sound structure and long-term effectiveness. we have supported the Oiseau Blanc search effort to retrace part of our own history…
Vendée Globe 2012 The early withdrawal of our Safran ocean racer from the Vendée Globe 2012 round-the-world race, due to a technical problem, was a keen disappointment to both skipper Marc Guillemot and the 62,500 employees of Safran. The Group and its people have now supported the skipper and his boat for more than seven years, through Safran Foundation for Integration Safran Foundation for Music organizing a concert to benefit the thick and thin, and they are deeply involved in For the second year in a row the Safran Safran’s commitment to top young classical AFM-Téléthon association to fight muscular this boat sponsorship project, in particular the Foundation for Integration, dedicated to the musicians echoes the technical excellence dystrophy. dozens of engineers who directly work on the social and professional integration of young that underpins our high-tech businesses, Our corporate philanthropy policy extends well boat. The innovative solutions incorporated in employees, students or the general public – people in difficulty, continued to support the and the need to promote young talents in each beyond France, since Safran is committed this Open 60 class monohull ocean racer draw who skippered their own virtual Safran all the 7,924 ambitious SHIFT project (Safran Handicap of the Group’s businesses. to a number of international initiatives: on R&D efforts at different Safran companies, way to the finish line. Innovation Technologie Fauteuil) for the design The Safran Foundation for Music supports – Organization of concerts to promote young and generally aim to reduce weight, a key As part of this initiative, a “serious game” was STUDENTS FROM 158 UNIVERSITIES of innovative wheelchairs, in partnership with exceptional young musicians throughout their virtuosos, in cooperation with the French to boosting the boat’s performance. organized solely for students, which not only PARTICIPATED IN THE SAFRAN the Garches Foundation. This unifying project training and career debuts. It awards an annual embassy in the United States. For example, Safran’s rudder and mainsail rail saw them participating in the virtual Vendée brings together students from two engineering prize, won by the pianist Guillaume Vincent – Support for the Duke Ellington School of the are made of 3D woven carbon composites, Globe, but also asked them to meet a series E-SAILING TEAM GAME. schools (École centrale de Lyon and institut des in 2012. Arts, a public high school in Washington, D.C. while lithium-ion batteries were developed that of challenges that allowed them to discover sciences et techniques des Yvelines), a design – In partnership with the Mexican Ministry store twice the energy of conventional batteries the wide range of Safran’s business sectors school (Strate Collège) and Safran’s own Corporate philanthropy of Education, an operation that will enable for the same weight. and technologies. Up for grabs were over engineers. While the Safran foundation primarily Along with the actions undertaken by its 4,500 children from disadvantaged families to visit 1,000 individual prizes, including VIP tickets operates in France, several high-impact foundations, Safran has confirmed its policy the Papalote Museo del Niño, an interactive Virtual regatta a big hit to the 2013 Paris Air Show for the top ten virtual 8,000+ partnerships have been formed abroad: of forming premium public and private science and technology museum in Mexico City. Our boat sponsorship efforts have helped skippers. Nearly 8,000 students from in Morocco, with the EMA association to support partnerships. For example, we teamed up with spread Safran’s influence for a number of years. 158 universities registered for this contest, LORRAINE-DIETRICH 12 EB schools in disadvantaged areas of Casablanca; the French Ministry of Education to organize In 2012 this project further expanded its scope making it a big hit. It also involved an inter- ENGINES WERE PRODUCED in Brazil, through the International Youth a fourth concert for some 800 students from by being used as a communications channel school competition, with the winners invited Foundation, which supports the integration of priority schools in the Greater Paris area. Safran for recruitment. Despite Safran’s withdrawal to sail on Safran, plus sponsorship for a crew IN THE TWENTIES AND THIRTIES; young people in the professional environment; also partnered the French Senate and Urban soon after the start of the Vendée Globe, the entering the 2013 EDHEC Sailing Cup – the THIS IS THE ENGINE THAT POWERED and in India, through the association Namasté, Ministry for the operation Talents des cités story continued online for participants in the largest student sports event in Europe, in which which helps integrate disadvantaged women in (“Inner City Talents”). Furthermore, we continued Safran e-Sailing Team challenge – whether Safran is an official partner. THE OISEAU BLANC. the work environment. our partnership with the Orchestre de l’Alliance,
48 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 49 GROWTH BENCHMARKS Safran’s performance in 2012 validated our strategic choices, as our businesses posted very dynamic growth. Highly competitive, always on the move, Safran is recording a steady rise in profitability. Our backlog of orders, now equal to nearly four years of production, allows us to look to the future with confidence. And our sound financial health means that we can invest heavily in both research and production facilities to bolster our positions in markets where the strategic and technological choices made today determine success for decades to come. At Safran, we have nurtured the global reach, strong competitive positions and solid shareholding structure needed to ensure sustained growth.
€13.6 62,500 €48.5 ≈12% billion employees billion of revenues in sales worldwide backlog invested of orders in R&D
50 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 51 GOVERNANCE
CORPORATE OFFICERS EXECUTIVE COMMITTEE The Safran Executive Committee comprises the corporate officers and the persons shown below.
Foreground Left to right Jean-Paul Herteman, Vincent Mascré, Philippe Schleicher, Jean-Paul Jainsky, Alain Sauret, Chairman and CEO Chairman and CEO, Chairman and CEO, Chairman and CEO, Chairman and CEO, Aircelle Herakles Morpho Messier-Bugatti-Dowty Left to right Jean-Luc Bérard, Olivier Andriès, Philippe Petitcolin, Pierre Fabre, Dominique-Jean Chertier, Corporate Senior Chairman and CEO, President, Chairman and CEO, Deputy Chief Executive Officer, Vice President, Turbomeca Defense-Security Snecma Corporate Office Human Resources Chairman and CEO, Éric Bachelet, Jean-Pierre Cojan, Ross McInnes, Sagem Jean-Lin Fournereaux, Corporate Senior Executive Vice President, Deputy Chief Executive Officer, Corporate Senior Vice President, Karen Bomba, Strategy Finance Vice President, Research & Technology Chairman and CEO, Marc Ventre, Space Labinal Deputy Chief Executive Officer, Yves Leclère, Bruno Cotté, Operations Executive Vice President, Executive Vice President, Transformation International
52 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 53 GOVERNANCE
BOARD OF DIRECTORS BOARD COMMITTEES The Safran Board of Directors comprises 15 members, including four representatives Three committees prepare the Board’s deliberations of the French government and two employee shareholder representatives. and submit proposals for consideration by the Board. A third of the members are independent directors with expertise and international experience in Safran’s strategic business sectors.
Safran Board Strategy and Audit and Risk Nomination of Directors Major Projects Management and Jean-Paul Herteman, Committee Committee Remuneration Chairman and CEO The Strategy The Audit and Committee Francis Mer, and Major Projects Risk Management The Nomination Vice Chairman Committee issues Committee examines of the Board of Directors and Remuneration opinions and submits financial statements Committee assists Marc Aubry recommendations and provides follow-up the Board in selecting Giovanni Bisignani to the Board of Directors on questions concerning its members and Christophe Burg on the Group’s major the generation and corporate officers, strategic objectives and control of financial and draws up Jean-Lou Chameau the development policy. and accounting data. recommendations Odile Desforges In addition, it oversees concerning the efficiency of Jean-Marc Forneri Committee members: the compensation the company’s internal Christian Halary of corporate officers. Francis Mer control and risk Xavier Lagarde (Chairman), management systems. Committee members: Michel Lucas Giovanni Bisignani, Élisabeth Lulin Committee members: Michel Lucas Christophe Burg, (Chairman), Astrid Milsan Odile Desforges, Jean-Marc Forneri Laure Reinhart (Chairman), Giovanni Bisignani, Xavier Lagarde, Michèle Rousseau Elisabeth Lulin, Christophe Burg, Astrid Milsan, Caroline Astrid Milsan, Francis Mer, Grégoire-Sainte Marie Laure Reinhart. Board advisor Michèle Rousseau. Astrid Milsan.
Board members in front of the Turbomeca (Safran) plant in Bordes, France, alongside corporate officers and Turbomeca management, October 24, 2012.
54 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 55 KEY FIGURES €1.6 RECORD PERFORMANCE, 19% 9.4% billion WITH A SHARP JUMP IN EARNINGS INCREASE INCREASE TOTAL R&D AND CASH FLOW IN CAPITAL IN COMMERCIAL EXPENDITURES EXPENDITURES ENGINE SERVICE Safran’s R&D spending equals Safran is investing in new BUSINESS about 12% of sales. The growth technologies and expanding Sales from services for commercial in this figure is primarily due capacity to keep pace with higher aircraft engines increased 9.4% (in to the development of two production rates and modernize US dollars), driven by the initial aero-engine families: LEAP its industrial facilities. The Group overhauls of the latest CFM56 for single-aisle commercial jets, spent 419 million euros in 2012, an engines. and Silvercrest for business jets. increase of 19%.
1,471 13,560 11,736 Security 1,189 Aerospace 10,760 Propulsion Defense 11% 10%13 560 52% 878 13 560 13 560 +15.5% 2010 +23.7% 2010+55% 2010 27%
Aircraft Equipment
SALES RECURRING OPERATING INCOME NET INCOME – GROUP SHARE (adjusted data, millions of euros) SALES BY BUSINESS SECTOR (adjusted data, millions of euros) (adjusted data, millions of euros) Safran posted adjusted recurring operating income The Group share of adjusted net income jumped 55% Sales for the year increased 15.5% (8.6% on an organic Safran benefitted from its leadership positions in of 1,471 million euros, a rise of 23.7% and equal in 2012 over 2011, reaching 999 million euros, or 2.41 euros basis), mainly reflecting the performance of Safran’s aerospace: sales in the propulsion business rose 14.6%, to 10.8% of adjusted sales. The Group continued per share, compared with 644 million euros and 1.59 euros aviation and security businesses. Sales benefitted from while aircraft equipment sales increased 19.2%. The to improve its competitiveness, in terms of both per share in 2011. higher original equipment sales volumes in aviation, Group’s avionics (Defense) business grew, and sales by the industrial performance and structural costs. a rise in commercial aircraft engine support business, security business jumped nearly 24%, in large part the resilience of our defense business (avionics) through acquisitions. and dynamic growth in the security market (biometric identification, e-documents).
56 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 57 KEY FIGURES 9,943
ANOTHER RECORD YEAR FOR CFMI Firm orders and commitments for the CFM56 48.5 and LEAP engines reached 9,943 at the end of the year; this figure is equal to about seven 43 years of production at current rates.
30 13 560 $1.2 RECORD ORDER BOOK (billions of euros) Safran booked 18.1 billion2010 euros worth of orders in 2012, billion13 560 +13% increasing the order book by 5.5 billion euros to a total of 48.5 billion euros at the end of the year. This figure does not include the future business generated by CFM56 spare parts FIRST SAFRAN ISSUE and services, when supplied on the basis of a Time & Material -€65 IN US2010 PRIVATE BOND contract. The service business will generate significant revenues million MARKET A SUCCESS and margins over the coming decades. In February 2012, Safran issued bonds worth USD 1.2 billion, in particular to refinance recent acquisitions in the United States over a longer period.
OUTLOOK FOR 2013 19% (based on an estimated average exchange rate of USD 1.29/€1.00, and at a hedging rate of USD 1.29/€1.00) Safran forecasts an increase in adjusted sales of about 5%, and a further increase in adjusted recurring operating income, of nearly 15%. Free cash flow should equal nearly 40% of the adjusted recurring operating income. NET DEBT (millions of euros) GE’S REMAINING STAKE Safran generated 564 million euros in free cash flow in 2012, equal to 38% IN MORPHO DETECTION, of the adjusted recurring operating income. The Group’s ability to increase INC. (MDI) ACQUIRED “We will resolutely continue our long-term investments its free cash flow throughout 2012 reduced its debt load. Safran had net FOR 90 MILLION EUROS debt of 932 million euros at December 31, 2012, versus 997 million euros in state-of-the-art technologies and innovative products. a year earlier. This is still a relatively low level of debt, given the Group’s Morpho (Safran) now owns 100% of Morpho Detection, Inc., which signed a five year strategic acquisitions in the Defense and Security sectors, worth nearly non-exclusive indefinite delivery/indefinite We are especially confident that our results will continue 200 million euros, and a dividend payout of 283 million euros. At quantity contract with the US Transportation to grow in 2013 and beyond.” December 31, 2012 Safran had cash and cash equivalents of 2.2 billion Security Administration (TSA) in 2012, worth Jean-Paul Herteman, commenting on the annual results for 2012, on February 21, 2013 euros, as well as confirmed and non-drawn credit facilities for 2.55 billion up to USD 528 million. euros.
58 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 59 SHAREHOLDING THREE MEETINGS WITH SHAREHOLDERS INTRODUCING OUR Along with the traditional Annual General Meeting in Paris, Safran organized PRODUCTION PLANTS two individual shareholder meetings outside of Paris for the first time in 2012, On December 11, 2012, about 15 in Marseille and Strasbourg. Shareholders greatly appreciated these shareholders visited the Messier-Bugatti- BOLSTERING opportunities to discuss the Group’s news, results and strategic development Dowty (Safran) plant in Molsheim, eastern objectives, and meetings will be organized again in 2013. France. This historic site, founded back in 1909, now includes a wheel and brake RELATIONS WITH production facility and a repair center spanning some 25,000 square meters. SHAREHOLDERS Safran organizes a half-dozen visits of this type every year throughout France to enable individual shareholders to discover 36.9% 54.1% the diversity of our businesses. Public Public
CAPITAL SHAREHOLDING STRUCTURE at December 31 30.2% 2008 2012 Changes in the Group’s shareholding structure spotlight French State the increase in its float (publicly-held shares), which has grown 30.2% from 36.9% to 54% in four years, and strengthened the liquidity French State of the Safran share. The significant number of employee 21.2% shareholders, which boosts employee motivation and loyalty, Employees is also a factor in ensuring the Group’s stability. 15.4% 7.4 % 4.3% 0.3% Employees Areva Treasury shares Treasury shares
SAFRAN SHARE PRICE SAFRAN SHARE January 1, 2008 to February 28, 2013 0.96 Safran CAC 40 The Safran share is listed in Compartment A of 160 Euronext Paris, and is 140 €35.08 eligible for Deferred Safran investor relations +150% Payment Service (SRD). DIVIDEND 120 PER SHARE 100 (euros) 2, boulevard du Général-Martial-Valin, Name: SAFRAN 0.62 75724 Paris Cedex 15, France 80 The payment of a dividend ISIN code: FR0000073272 of €0.96/share was submitted 60 0.50 Abbreviation: SAF for a vote by the Annual General Investor and Analyst contact 40 Meeting of Shareholders Phone: + 33 (0)1 40 60 83 53 Index: CAC 40 0.38 on May 28, 2013. This dividend, E-mail: [email protected] 20 which since 2007 corresponds 0 +55% to a payout rate of 40%, also 0.25 Individual shareholder represents an increase of 55% and Shareholders Club contact –20 over 2011. An interim payment E-mail: [email protected] –40 3,723 points of €0.31 per share was paid in -33.7% December 2012, with the balance –60 of €0.65/share to be paid as from 2008 2009 2010 2011 2012 2013 June 6, 2013.
60 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 61 BUSINESS SECTORS
A WORLD LEADER IN AEROSPACE PROPULSION AND AIRCRAFT EQUIPMENT
AEROSPACE PROPULSION AIRCRAFT EQUIPMENT
CIVIL AND MILITARY AIRCRAFT HELICOPTER TURBINE ENGINES SPACE LANDING AND BRAKING SYSTEMS ENGINE SYSTEMS ELECTRICAL SYSTEMS ENGINES AND EQUIPMENT AND ENGINEERING
SINGLE-AISLE COMMERCIAL JETS: with LIGHT/MEDIUM HELICOPTERS: Safran offers two LAUNCHERS: Safran produces the Vulcain®2 and LANDING GEAR: Safran designs, produces and NACELLES AND THRUST REVERSERS: Safran ELECTRICAL INTERCONNECTION SYSTEMS: the CFM56, Safran and partner GE hold world main families of engines for this helicopter class, HM7B cryogenic engines for the main and upper supports landing gear for civil and military fixed provides these items for mainline, regional Safran designs, produces and supports leadership in the market for engines powering Arrius and Arriel, powering a number of civil and stages, respectively, on the Ariane 5 launcher, along and rotary-wing aircraft of all sizes. These systems and business aircraft. It is the sole nacelle systems the installation of electrical wiring harnesses mainline commercial jets (over 100 seats). military helicopters made by Eurocopter, Sikorsky, with the solid rocket boosters (in conjunction with are used on many of today’s most prestigious integrator for the engines on the Airbus A380. and cabinets, especially for Airbus and Boeing. Its successor, LEAP, has already been chosen for the AgustaWestland, Kamov and AVIC. Safran is Avio). It is also developing the new Vinci® upper- aircraft, including the Airbus A320, A350, A380 Working alone or in partnership with GE, Safran is POWER ELECTRONICS AND ELECTRICAL Airbus A320neo, Boeing 737 MAX and Comac C919. developing the Arrano engine for Eurocopter’s new stage engine for the Ariane 5 ME and Ariane 6 and A400M, the Boeing 787 Dreamliner, Rafale, developing nacelles for the LEAP engines powering DISTRIBUTION SYSTEMS: Safran applies REGIONAL AND BUSINESS AIRCRAFT: Safran is X4 helicopter. launchers. Along with Avio, Safran is prime Eurofighter Typhoon, F-18, etc. Safran also designs the Airbus A320neo and Comac C919, and for the all technologies needed for electrical power developing Silvercrest, a new-generation jet engine MEDIUM HELICOPTERS: Safran provides contractor for the P80 solid rocket motor on integrated landing systems, including the landing Silvercrest and GE Passport business jet engines. generation and distribution systems. It will supply for large, long-range business aircraft. Along with the engines for the Eurocopter Tiger and the HAL the first stage of the new Vega light launcher, gear, gear extension and retraction system, wheels POWER TRANSMISSIONS: Safran designs, the electrical distribution systems on the new NPO Saturn, Safran is also prime contractor for (Hindustan Aeronautics Ltd.) Dhruv, and and the Group also provides a number of systems and brakes and other equipment. produces and supports mechanical power Embraer KC-390 transport, and handle complete the SaM146, which powers the Sukhoi Superjet 100 is developing the Ardiden 3 for new-generation and equipment on the second and third stages. WHEELS AND BRAKES: Safran designs, produces transmissions for civil and military fixed and rotary- integration of the electrical system. regional jet. helicopters. SATELLITES: Safran produces Hall effect plasma and supports wheels and carbon brakes, in wing aircraft engines, including the Airbus A320, ENGINEERING: Major players in the aerospace MILITARY AIRCRAFT: Safran produces the HEAVY HELICOPTERS: Working alone or in thrusters for satellites (such as the PPS®1350 for particular for the Airbus A320 and A350 XWB, A330/A340, A350 XWB and A400M, the Boeing 737 and land transport sectors call on Safran’s expertise TP400 turboprop engine (Airbus A400M transport), partnership, Safran makes the Makila and RTM322 Alphasat), as well as plasma propulsion systems, Boeing 737 Next-Generation, 767, 777 and 787. and 777, Rafale, Eurocopter EC175, Gulfstream in electrical systems, aerostructures, mechanical as well as the jet fighter engines M88 (Rafale) turboshaft engines powering heavy helicopters by and is developing a range of thrusters with power G650, etc. systems and safety-critical software. and M53 (Mirage 2000), and the Larzac and Adour Eurocopter (EC225/725, Super Puma), NH Industries ratings from 300 W to 20 kW. Safran also makes engines for training aircraft. (NH90), AgustaWestland (AW101) and Boeing liquid rocket propellants (MMH) and high-precision sensors for satellites. Safran offers a complete range of maintenance, (WAH-64). repair and overhaul (MRO) services for these Safran provides comprehensive local support engines. services for all operators.
No.1 worldwide No.1 worldwide No. 2 worldwide No.1 worldwide No.1 worldwide No.1 worldwide in commercial aircraft in helicopter turbine in cryogenic and solid in landing gear in power in aircraft electrical engines engines rocket propulsion No.1 worldwide transmissions interconnection (mainline jets with over 100 seats, (mainline commercial jets with systems in partnership with GE) in wheels and carbon over 100 seats) brakes No. 4 A world leader worldwide (mainline commercial jets in military aircraft with over 100 seats) in aircraft engine engines nacelles
62 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 63 BUSINESS SECTORS
EUROPEAN LEADER IN OPTRONIC SYSTEMS WORLD LEADER IN BIOMETRIC IDENTIFICATION
DEFENSE SECURITY
OPTRONICS AVIONICS ELECTRONICS AND IDENTIFICATION E-DOCUMENTS DETECTION SAFETY-CRITICAL SOFTWARE
SOLDIER MODERNIZATION: Safran is prime NAVIGATION AND SENSORS: Safran offers a wide ONBOARD ELECTRONICS: Safran supplies and LARGE-SCALE ID SYSTEMS: Safran offers SIM CARDS: Safran supplies SIM cards to EXPLOSIVE DETECTION: Safran applies both contractor for the FELIN integrated equipment range of inertial and hybrid navigation systems supports computers and pc boards used to control biometric ID enrollment and registration solutions, the world’s leading mobile phone operators, computed tomography and X-ray diffraction suite, designed to enhance observation, for submarines, surface vessels, ground combat critical aircraft functions: flight data recording, and is participating in the world’s largest program calling on a global supply chain to deliver technologies, vital to systems capable communications, mobility and support functions vehicles, aircraft, missiles and satellites. engine control (FADEC), flight controls, information of this type, Aadhaar, in India. hundreds of millions of cards every year. of automatically detecting explosives and for infantry soldiers. SEEKERS AND GUIDANCE: Safran provides systems, landing and braking systems, etc. BORDER CONTROL AND ID CHECKS: Safran BANK CARDS: Safran works with leading banks dangerous or illicit substances. Nearly OPTRONICS AND SIGHTS: Safran produces the seekers for the Mistral and MICA IR missiles, These products have been chosen for many designs systems and equipment enabling in Europe, Latin America and Asia. 2,000 of the Group’s explosive detection systems of today’s leading aircraft, including the Airbus are in service worldwide, especially at airports. portable observation systems and equipment, and is developing the seeker and sight for the the biometric identification of preregistered SECURE ID DOCUMENTS: Safran produces highly and is developing solutions for land vehicles, upcoming MMP medium-range missile, under A380 and A400M, Boeing 787, Rafale fighter, NH90 passengers, and also provides police and TRACE DETECTION: Systems by Safran detect and Caracal helicopters, etc. secure personalized ID documents, including ID aircraft and submarines. prime contractor MBDA. Safran is prime contractor government authorities worldwide with cards, passports and visas, driver’s licenses, voter and identify traces of explosives or illicit products, DRONES: Safran produces the Sperwer tactical for the AASM Hammer air-to-ground guided SAFETY-CRITICAL SOFTWARE: Safran develops automated fingerprint identification systems (AFIS). cards, healthcare cards, employee ID cards, etc. using ion mobility spectrometry. These systems, drone system, is developing the Patroller™ system, weapon, already in service on the Rafale fighter. sophisticated safety-critical software, an integral OTHER APPLICATIONS: Safran’s identification fixed, mobile and portable, are deployed in many and applies all enabling technologies for these FLIGHT CONTROL SYSTEMS: The world leader part of the onboard systems made by the Group. technologies are also used in road safety systems different security applications, including border unmanned aerial systems. in flight control systems for helicopters, Safran and secure gaming terminals (lotteries and control, protection of high-value sites and during major events. HIGH-PERFORMANCE OPTICS: Safran is the world is developing some of the systems for Eurocopter’s betting). leader in high-performance optics for space, new-generation X4 helicopter. supplying systems and equipment for the Helios, Safran also provides a wide range of innovative Meteosat and Spot programs, as well as a number services for airlines and other operators, under of scientific satellites. the Cassiopée label.
No.1 in Europe No.1 worldwide No.1 worldwide No.1 worldwide No.1 worldwide No.1 worldwide for optronic systems in helicopter flight in FADEC engine in automated in biometric ID in explosive detection control systems control units fingerprint documents for checked luggage No.1 in Europe (commercial aircraft, in partnership No. 3 with BAE Systems) identification systems, No. 4 for tactical drones worldwide plus biometric facial and iris worldwide A world leader in inertial navigation recognition systems in smart cards in trace detection No.1 worldwide in multibiometric technology
64 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 65 EMPLOYEES
EUROPE France 38,000 United Kingdom 2,100 Belgium 1,500 Germany 1,100 62,500 EMPLOYEES Russia 300 71% Other 1,600 WORLDWIDE of the total workforce Our core markets – aerospace, defense and security – are global. Safran has therefore set up a truly global industrial organization 44,600 to provide local support to all customers, while expanding our reach and underpinning our competitiveness. We remain profoundly attached to our home territory, where two-thirds of our people work. We continue to develop strategic research and 11,000 production capabilities in France, thanks to sustained capital 18% of the total expenditures. workforce 5% of the total NORTH workforce AMERICA 2,500 3,200 United States 5,800 2% Mexico 4,100 of the total Canada 1,100 workforce 4% of the total 1,200 workforce
59,800 62,500 54,300 21% 29% R&D Other +4.6% SOUTH AFRICA ASIA-PACIFIC India 1,500 50% AMERICA & MIDDLE EAST China 900 Production Brazil 850 Morocco 2,100 Singapore 500 Other 350 South Africa 250 Australia 200 TOTAL EMPLOYEES EMPLOYEES United Arab Emirates 100 Other 100 BY JOB TYPE Other 50
66 – SAFRAN BUSINESS AND CORPORATE SOCIAL RESPONSIBILITY REPORT – 67 Graphic design and production: . Document printed by Imprimeries Vincent in Tours (France) on Condat Silk PEFC 300 g and 150 g paper. Photo credits: Front cover Antoine Denoix/Safran – Inside front cover Éric Drouin/Safran – Pierre Soissons/Safran – Bernard Lachaud/Safran – Stephen Antonopoulos/Morpho/Safran – p. 2 Éric Drouin/Safran – p. 4 Arthur Nobre/CAPA Pictures/Safran – p. 5 Gérard Uféras/Safran – p. 6 Corbis – p. 8, 9 Getty Images – p. 10, 11 © Eurocopter/photo Anthony Pecchi – p. 12, 13 Éric Drouin/Safran – p. 14, 15 Jean-Christophe Moreau/Creative Center/Safran – p. 16 Corbis – p. 18 ESA/CNES/Arianespace – Philippe Stroppa/Snecma/Safran – © Eurocopter – p. 19 Eric Drouin/Safran – © MorphoTrust USA/Safran – Frédéric Lert/Safran – © Embraer 2013 – Philippe Stroppa/Snecma/Safran – p. 20 Alexandre Paringaux/Safran – Pierre Soissons/Labinal/ Safran – CNES/ESA/Arianespace – p. 21 Pascal Le Doaré/MBD/Safran – Alexandre Paringaux/Safran – © Morpho Detection/Safran – www.seigrettelafontan.com pour Aéroports de Paris – p. 22 Philippe Stroppa/MBD/Safran – p. 25 Éric Drouin/Safran – Philippe Stroppa/Snecma/Safran – Thomas Garza/Turbomeca/Safran – Éric Drouin/Snecma/Safran – p. 26 © Riad Ameyar/Holoimage – p. 27 Pierre Soissons/Safran – Daniel Linares/Safran – Anne Jollivet/Equivox/Safran – p. 29 Adrien Deneu/Morpho/Safran – Gérard Vouillon/Safran – Guillaume Auboire/Morpho/Safran – p. 31 Sébastien Piramowicz/Morpho/Safran – Gérard Vouillon/Morpho/Safran – Anthony Pecchi/Eurocopter – p. 32 Equivox/Safran – CNES/ESA/Arianespace – p. 33 Stéphane Spach/MBD/Safran – Éric Drouin/Snecma/Safran – p. 34 Pierre Soissons/Labinal/Safran – p. 35 Studio Pons/Safran – Adam Wiseman/CAPA Pictures/Safran – p. 36 Éric Drouin/Snecma/Safran – Stewart Cohen/ CAPA Pictures/Safran – p. 38 Stewart Cohen/CAPA Pictures/Safran – p. 40 Rémy Guillaumot/Safran – p. 41 Bernard Lachaud/Safran – Éric Forterre/Safran – p. 42 Vilgénis/SLA Architecture – p. 43 Adam Wiseman/CAPA Pictures/Safran – Arthur Nobre/CAPA Pictures/Safran – p. 44 Pierre Soissons/Labinal/Safran – p. 45 Jean-François Damois/Creative Center/Safran – p. 46 Adam Wiseman/CAPA Pictures/Safran – p. 47 Arthur Nobre/CAPA Pictures/Safran – p. 48 Jean-Philippe Girault/Safran – François Van Malleghem/DPPI/Safran – p. 49 © Éric Lefeuvre/Safran – Julien Mignot/naïve/Safran – p. 50 Éric Drouin/Safran – p. 52, 53 Gérard Uféras/Safran – p. 54, 55 Rémy Bertrand/Safran – p. 61 Roger Haeffele/Safran – p. 62 Philippe Stroppa/Snecma/Safran – Ricardo Funari/CAPA Pictures/Safran – ESA/CNES/Arianespace – p. 63 Philippe Stroppa/MBD/Safran – Vladimir Borodine/Snecma/Safran – Pierre Soissons/Labinal/Safran – p. 64 Éric Drouin/ Safran – Daniel Linares/Safran – p. 65 Stephen Antonopoulos/Morpho/Safran – Marc Schneidermeier/Morpho/Safran – Guillaume Auboire/Morpho/Safran. SAFRAN 2, boulevard du Général-Martial-Valin – 75724 Paris Cedex 15 – France Phone: +33 (0)1 40 60 80 80 www.safran-group.com