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.