Full-year 2013 Earnings

Transcription

1 Full-year 2013 Earnings / February 20, 2014 / 0 /

2 / 01/ FY 2013 Highlights Jean-Paul HERTEMAN - Chairman & CEO 1 /

3 FY 2013 financial highlights Growing adjusted revenue with strong performance in Aerospace Adjusted recurring operating income at 12.2% of revenue FCF was 40% of adjusted recurring operating income 13, % 14,695 1, % 1, % 712 ( M) FY 12 FY 13 ( M) FY 12* FY 13 ( M) FY 12 FY 13 Higher adjusted net profit (group share) at 2.87 per share Proposed 2013 dividend up 16.7% vs Low net debt level (16% gearing) % 1, % 1.12 Dec. 31, 2012 Dec. 31, 2013 ( M) (157)M ( M) FY 12* FY 13 ( ) FY 12 FY 13 (932) (1,089) * Restated IAS19R 2 /

4 Resolutely pursuing our development strategy Executing on key engine development programmes: LEAP, Silvercrest Major programmes on track, on time and on budget Turbomeca : a dynamic product portfolio Arrius 2R, Arrano, Ardiden 3C/3G Extension to 100% of Turbomeca s ownership RTM322 programme Regrouping of electrical power technologies into Labinal Power Systems (LPS) a world leader in on-board electrical power systems reinforcement of LPS with the acquisition of complementary distribution assets from Eaton Self-funded R&D of 1,299 M, in line with guidance Increase in Propulsion as planned due to ramp-up in LEAP development and 2 nd Silvercrest application Increasing industrial capacity and bringing new technologies into production Industrial capex : 492 million in ,400 hires, 3,600 net job creations in /

5 Executing on key engine development programmes LEAP has 70% market share for future medium-range commercial airliners More than 5,700 orders at end 2013, nearly 6,000 to date LEAP 1A: testing on track September November 2013: FETT test cycle 300 hours, >400 cycles LEAP 1B: preparation for FETT Ground testing to start June 2014 LEAP programme on track commercially, on time and on budget. So far, zero technical surprises Silvercrest Complete propulsion system for Dassault 5X Equips Cessna Citation Longitude Ground testing and preparing for in-flight testing on dedicated flying test bed Target 25-30% market share 2,000+ aircraft (4,000+ Silvercrest engines The most advanced business jet engine for the highest potential market segment, already on 2 platforms 4 /

6 Turbomeca : a dynamic product roadmap Arrius 2R Bell Helicopter and Turbomeca team up on new Small Light Short helicopter First ever collaboration between Turbomeca and Bell Arrano launched at Heli-Expo 2013 For 4-6 ton helicopters Ardiden 3G and Ardiden 3C International collaborations with Kamov, AVIC Engines RTM322 : extension to 100% of Turbomeca s ownership Heavy helicopters are a high-value, growing market segment driven by developing countries (oil & gas, mining) and military Target growth for military applications and accelerated time to market for heavy commercial engines) Annual demand up to 2,500 helicopters ( ) 5 /

7 The More Electric Aircraft an irreversible trend Boeing 737 Airbus A380 Boeing 787 EGTS* Next gen aircraft Pneumatic Hydraulic Mechanical Fuel pump Landing gear Nacelle Wing anti-icing Engine start and controls Brakes Thrust reverser Flight controls Fuel pump Landing gear Nacelle Wing anti-icing Engine start and controls Brakes Thrust reverser Flight controls Fuel pump E-Flight controls E-Landing gear E-Nacelle EGTS Wing anti-icing Engine start and controls Brakes Thrust reverser Electric Cabin equipment Lighting IFE Avionics Cabin equipment Lighting IFE Avionics Cabin equipment Lighting IFE Avionics Electrical equipment A key strategic long term market * The Electric Green Taxiing System allows aircraft to taxi autonomously without use of the main engines 6 /

8 Investing in our future In M ,800M Total R&D effort 1,299M 1,103M Total self-funded R&D 694M 504M Capitalized R&D total R&D effort of 1.8bn Self-financed R&D increased as planned to 1.3bn (8.8% of sales) Ramp up of LEAP development and testing in line with the business plan Development for 2 nd Silvercrest application Split of programs reflects upcoming opportunities c.40%: LEAP (3 applications) and Silvercrest (2 applications) c.30%: A350, helicopter next gen turbines, flight control, infrared matrix, biometric ID engines c.30%: R&T in preparation of the future (mostly next gen engines and electrical technologies) Self-financed R&D to stabilise in 2014 with a lower level of capitalisation Increases in R&T, LEAP (2 engines in test & certification) Decrease in Silvercrest Long term amortization of capitalized R&D remains sustainable at less than 1% of sales 7 /

9 Positive trends in Civil aftermarket Civil aftermarket up 19.2%* - above expectations Recent CFM56 and GE90 engines both contributed strongly Civil aftermarket momentum to continue in 2014 Growth drivers More, higher value shop visits on recent CFM56 Strong increase in GE90 aftermarket after no growth in 2012 Catch-up of deferred maintenance as airlines financial health improves Aftermarket recoupling to airline activity Confirms CFM56 fleet potential for spares revenue to double over Positive global outlook for the airline industry in 2014 according to IATA *In USD Civil aftermarket growth in the low to mid-teens expected in /

10 Defence Optrolead*: signing of an upstream study program (PEA) for the development of a 4 th generation of airborne electro-optical gyrostabilized systems *Equally-owned joint venture between Sagem and Thales MBDA: selection for the development and production of the firing post and infrared seeker on the Medium-Range Missile (MMP) Replacement of France s Milan antitank missiles BELL Helicopter: Sagem s actuators chosen for the future B525 DCNS: 5 submarines have been equipped with 10 optronic masts and periscopes for the Brazilian, Indian and French navies Acquisition of the Swiss company Colibrys SA and of the Integrated Cockpit Solutions activities of Eaton 9 /

11 Scoring commercial successes in Security MorphoDetection: Medium-range explosives detection system New 5-year IDIQ contract for CTX 5800 EDS from the TSA (US) for up to $130M 5-year exclusive contract with CATSA (Canada) for up to $100M Nice Côte d Azur International Airport in Nice, France purchased four high-speed CTX 9800 DSi explosives detection systems MorphoTrust: maintained market leadership in the U.S. Driver license issuance solutions to 42 of 50 states (80% of U.S. driver licences, 60M IDs issued per year); maintained leadership since 2011 Safran acquisition Prime contractor of Universal Enrolment Service (UES) Morpho: maintained leadership in ID Chile program start with first million ID documents issued (10 years contract for provision of passports and ID cards) Renewal of Albania concession for 10 years with extension to e-services 10 /

12 / 02/ FY 2013 Results Ross McINNES - Deputy CEO, CFO 11 /

13 Foreword All figures in this presentation represent Adjusted data Safran s consolidated income statement has been adjusted for the impact of: purchase price allocations with respect to business combinations. Since 2005, this restatement concerns the amortization charged against intangible assets relating to aeronautical programs that were revalued at the time of the Sagem-Snecma merger. With effect from the first-half 2010 interim financial statements, the Group has decided to restate the impact of purchase price allocations for business combinations. In particular, this concerns the amortization of intangible assets recognized at the time of the acquisition, and amortized over extended periods, justified by the length of the Group's business cycles, and also the gain resulting from the remeasurement of the previously held interest in a business combination achieved in stages; the mark-to-market of foreign currency derivatives, in order to better reflect the economic substance of the Group's overall foreign currency risk hedging strategy: revenue net of purchases denominated in foreign currencies is measured using the effective hedged rate, i.e., including the costs of the hedging strategy, the recognition of all mark-to-market changes on foreign currency derivatives relating to future flows is neutralized. Recurring operating income It excludes income and expenses which are largely unpredictable because of their unusual, infrequent and/or material nature such as impairment losses/reversals, capital gains/losses on disposals of operations and other unusual and/or material non operational items. 12 /

14 Fx volatility Continued Fx volatility during FY 2013 Translation effect: foreign currencies translated into Negative impact from $, GBP, BRL and CAD Impact on Revenue and Return on Sales Average spot rate FY 2012 FY 2013 $1.29 $1.33 Transaction effect: mismatch between $ sales and costs is hedged Positive impact from $ Positive impact from other currencies Impact on Profits Hedge rate FY 2012 FY 2013 $1.32 $1.28 Mark-to-market effect 374M on fair value of financial instruments Impact on consolidated statutory income statement Spot rate Dec. 31, June 30, Dec. 31, $1.32 $1.31 $1.38 Diverse impacts on P&L 13 /

15 Consolidated and adjusted income statements FY 2013 reconciliation (In M) Consolidated data Currency hedging Remeasurement of revenue Deferred hedging loss / gain Business combinations Amortization of intangible assets - Sagem/Snecma merger PPA impacts - other business combinations Adjusted data Revenue 14, ,695 Other operating income / expense (13,195) (2) (12,907) Recurring operating income 1, ,788 Other non current operating income / expense (216) (31) Profit (loss) from operations 1, (89) 1,757 Cost of net debt (42) (42) Foreign exchange financial income (loss) 551 (203) (374) - - (26) Other finance costs / income (70) (70) Net finance costs / income 439 (203) (374) - - (138) Income tax expense (650) (52) 52 (540) Income from associates Gain on disposal of Ingenico shares Profit (loss) from continuing operations 1,415 - (251) 98 (37) 1,225 Profit (loss) from discontinuing operations Minority interests (29) - (1) (2) - (32) Parent 1,386 - (252) 96 (37) 1, /

16 FY 2013 profit from operations (In M) FY 2012 (restated) FY 2013 Revenue 13,560 14,695 Recurring operating income % of revenue 1, % 1, % Total one-off items (50) (31) Capital gain (loss) on disposals 1 39 Impairment reversal (charge) (1) (17) Other infrequent & material & non operational items Profit from operations % of revenue (50) (53) 1, % 1, % Includes: Capital gains on sale of Paris office building 16M, Globe Motors 23M; Impairment on a legacy engine programme (15)M; Charge related to past service costs on a new DBP plan (40)M, acquisition & integration charges (10)M 12.2% recurring operating income 15 /

17 FY 2013 income statement (In M ) FY 2012 restated FY 2013 Revenue 13,560 14,695 Recurring operating income % of revenue Profit from operations % of revenue 1, % 1, % 1, % 1, % Net finance (cost) income (154) (138) Income tax expense (254) (540) Income from associates Gain on disposal of Ingenico shares Minority interests (26) (32) Profit group share Basic EPS (in ) * 1, ** Of which cost of debt of (42)M Effective tax rate of 33.4% Corporate tax surcharge in France: tax rate of 38% 2012 tax expense included the favourable impact of the absorption by Safran of subsidiaries which had been involved in loss making activities divested several years ago. * Based on 415,280,826 shares ** Based on 416,292,736 shares Net profit growth of 21.9% 16 /

18 FY 2013 revenue (In M) 13, % 1,118 14, , ,695 Record OEM production rates in aerospace coupled with continued positive trends in civil aerospace aftermarket Strength in avionics and double-digit growth at MorphoTrust Unfavourable currency impact +8.2% organic Negative translation effect (incl. $, GBP, BRL, CAD), particularly affecting Security activities Changes in the scope of consolidation include: Acquisitions: GEPS, RTM322 programme, AB notes, Cassis FY 2012 Organic variation FY 2013 at constant FY 2012 structure and exchange rates Currency impact FY 2013 at constant FY 2012 structure Acquisitions & activities newly consolidated, disposals FY 2013 Divestment: Globe Motors Inc 17 /

19 FY 2013 recurring operating income Main organic profitability drivers (In M) 1, , % 103 1, ,788 Propulsion: increased OE volumes and favourable pricing in civil engines, strongly positive trend in civil aftermarket Positive impact of higher OE production rates on nacelles, thrust reversers, wiring, landing and braking systems Avionics Currency hedging 10.6% RoS +16.2% organic 12.2% RoS Production and overhead costs savings (notably in Equipment and Defence) FY 2012 restated (IAS 19A) Organic variation FY 2013 at constant FY 2012 structure and exchange rates Currency impact FY 2013 at constant FY 2012 structure Acquisitions & activities newly consolidated, disposals FY 2013 Changes in the scope of consolidation include: Acquisitions: GEPS, RTM322 programme, AB notes, Cassis Divestment: Globe Motors Inc 18 /

20 Research & Development (In M) FY 2012 FY 2013 Variation Total R&D (1,594) (1,821) (227) External funding Total self-funded cash R&D (1,103) (1,299) (196) as a % of revenue 8.1% 8.8% 0.7 pt Tax credit Total self-funded cash R&D after tax credit (979) (1,159) (180) Gross capitalized R&D Amortised R&D (68) (76) (8) P&L R&D in recurring EBIT (543) (541) 2 Self-funded cash R&D effort at peak level of 8.8% of sales Ramp up of LEAP development and testing in line with the business plan, 2 nd Silvercrest application Increase of capitalized costs: 190M as a % of revenue 4.0% 3.7% (0.3) pt 19 /

21 FY 2013 results by activity (In M) FY 2013 Propulsion Equipment Defence Security Holding & others Revenue 14,695 7,791 4,121 1,278 1,502 3 Year-over-year growth in % 8.4% 11.2% 11.6% (2.8)% (2.8)% na Recurring operating income 1,788 1, (158) as a % of revenue 12.2% 17.4% 9.2% 6.8% 8.0% na 20 /

22 Aerospace Propulsion (In M) Growing revenue Robust rise in civil OEM deliveries (CFM, high thrust engines) Strong growth in civil aftermarket FY 2012 (restated) FY 2013 Change Organic Change Revenue 7,005 7, % +11.3% Recurring operating income 1,076 1, % % of revenue 15.4% 17.4% +2.0 pts One-off items 1 (14) Profit (loss) from operations 1,077 1,345 % of revenue 15.4% 17.3% EBIT: Excellent profitability Positive impact of better OE volume and unit revenue for civil engines Favourable trend in civil aftermarket (recent CFM56 and GE90) Increased contribution of helicopter turbine support contracts Productivity improvements Positive currency effects 21 /

23 Aircraft Equipment (In M) OE driven revenue growth Increases in OEM production rates (B787, B737; A400M, A330 and A320 programmes; regional jets) favourably impact landing gears, harnessing, nacelle and thrust reversers activities Increasing activity related to the A350 programme Continued momentum for the carbon brakes activity Significant improvement in profitability Favourable volume impact and productivity gains Supportive mix/volume effect of services on auxiliary power gearboxes, nacelles and wheels and brakes. High returns of carbon brakes as a result of a larger installed base and continued air traffic growth Positive currency effect FY 2012 (restated) FY 2013 Change Organic Change Revenue 3,691 4, % +9.8% Recurring operating income % % of revenue 7.7% 9.2% +1.5 pt One-off items (16) (2) Profit (loss) from operations % of revenue 7.3% 9.2% 22 /

24 Defence (In M) Growth in Avionics with improved level of profitability Higher deliveries of seeker kit modules. Solid activity in flight control systems Favourable mix/volume effect on profitability FY 2012 (restated) Softer revenue in Optronics, slightly impacting profits Delivery of the Felin infantry combat system to 4 regiments of the French Army (same as in 2012) First maintenance and upgrade activity on Felin equipment Long-range infrared goggles down compared to 2012 Cost-savings measures mitigated margin pressure FY 2013 Change Organic Change Revenue 1,315 1,278 (2.8)% (2.2)% Recurring operating income % % of revenue 6.0% 6.8% +0.8 pt One-off items - 7 Profit (loss) from operations % of revenue 6.0% 7.4% 23 /

25 Security (In M) FY 2012 (restated) FY 2013 Change Organic Change Revenue 1,546 1,502 (2.8)% (0.5)% Recurring operating income (17.2)% % of revenue 9.4% 8.0% (1.4) pt One-off items (25) (3) Profit (loss) from operations % of revenue 7.8% 7.8% MorphoTrust continues robust growth driven by US Federal activities (Universal Enrollment, FBI, weapons permits); margins under pressure from budgetary restrictions Persistent softness in Morpho s traditional biometric activities due to run-off of export contracts; competitive pressure impacts profitability of new contracts e-documents: regaining traction in Q4 as NFC and LTE technology deliveries commenced; volume declines impacted margins, exacerbated by R&D effort, somewhat compensated by cost reductions Slow growth in detection: strong momentum at year-end with US, Canada and other export deliveries of CTX systems; higher volumes and better mix boosting profits New management taking measures to take full advantage of the outstanding potential 24 /

26 Fx hedging: improved rate for 2014 Approx. 50% of Safran US$ revenue naturally hedged by US$ procurement Estimated exposure needs In US$ bn Hedge portfolio, Feb. 4, 2014 Total: $19bn Higher expected level of net USD exposure for due to strong growth of businesses with exposed USD revenue ~6.0 ~ /$ hedge rate Achieved and 2015 are fully hedged Further increase in 2016 hedging $4.3bn achieved at $1.25 to rise to $4.9bn at $1.25 as long as /$<1.42 up to end of hedging initiated $4.0bn achieved at $1.25 as long as /$<1.42 up to end of 2014 for half and /$<1.40 for the other half Target /

27 Fx hedging: benefiting margins over Estimated impact on recurring operating income of targeted /$ hedge rates /$ hedge rate 1,4 1,35 1,3 1, EBIT impact vs. previous year (in M) 1, , ,1 1, E 2015E 2016E 2017E 0 26 /

28 Free Cash Flow (in M) FY 2012* Restated FY 2013 Adjusted net profit 979 1,193 Depreciation, amortization and provisions Others Cash from operating activities before change in WC 1,702 1,984 Change in WC (85) 155 Capex (tangible assets) (419) (492) Capex (intangible assets)** (634) (935) Free cash flow Of which amortization of tangibles and intangibles for 512M and provisions (net) for 67M Good control over WC requirements in a context of strong increases in production in aerospace markets Increased R&D spending and Capex investments; includes 42M proceeds from sale of an office building in Paris * 2012 is presented in a comparable format to 2013 ** Of which 694M capitalised R&D in 2013 vs 504M capitalised in /

29 Net debt position (in M ) Cash flow from operations equals 1.11x recurring EBIT Cash flow Net debt at from ops Dec 31, 2012 Change in WC 155 R&D and Capex (1,427) Net debt at Dec. 31, 2013 Decreased WC requirements 2012 final dividend ( 0.65/share) and 2013 interim dividend ( 0.48/share) Disposals include 1,984 Dividends* Acquisitions & others 12.57% of Ingenico: 287M Globe Motors: 68M (932) (481) 353 Disposals (741) (1,089) Acquisitions & Others include: GEPS: (301)M Extension to full ownership in the RTM322 programme: (293)M 712M Free Cash Flow * Includes (10)M of dividends to minority interests Safran-Albany JV for LEAP composites (33)M 28 /

30 Gross debt and liquidity Gross debt repayment schedule (Dec. 31, 2013) Gross debt 2,730M Cash & equiv. 1,672M + Debt hedging instruments (31)M Net debt 1,089M USPP - $1.2bn, maturities 2019, 2022 & 2024; subject to 1 covenant (net debt/ebitda <2.5) Committed & undrawn financing resources: 2.55bn; subject to 1 covenant (net debt/ebitda <2.5) Credit line - 950M, maturity Oct Credit line - 1,600M, maturity Dec /

31 Balance sheet highlights (In M ) Dec 31, 2012 (restated) Dec 31, 2013 Goodwill 3,078 3,495 Tangible & Intangible assets 6,476 7,381 Other non current assets Operating Working Capital Net (debt) cash (932) (1,089) Shareholders equity up by 0.8bn OWC decreased by 127M at 763M (5.2% of revenue) Provisions grew slightly Shareholders equity - Group share 5,834 6,636 Minority interests Non current liabilities (excl. net (debt) cash) 1,732 2,082 Provisions 2,887 2,975 Other current liabilities / (assets) net (286) (587) 30 /

32 Customer financial guarantees (In $M) Dec. 31, 2012 Dec. 31, 2013 Total guarantees Estimated value of pledges Net exposure on these guarantees Provisions Stabilization of the total guarantees at the lowest level in the past 25 years 31 /

33 / 03/ Outlook 32 /

34 Equity shareholding As of Dec. 31, 2012 As of Dec. 31, 2013 Public 54.1% French State 30.2% Public 62.8% French State 22.4% Employees 14.7% Treasury shares 0.3% Employees 15.4% Treasury shares 0.1% Free float continued to increase 33 /

35 2013 dividend Dividend per share ( ) Final Dividend distribution ( M) Interim dividend distribution ( M) Total dividend distribution ( M) A proposal for a dividend payment to parent holders of 1.12 at next AGM on May 27, interim dividend already paid in 2013 ( 200M) 0.64 to be paid in 2014 ( 267M) Ex-dividend date: May 29, 2014 Payment date: June 3, /share dividend payment subject to shareholders approval 34 /

36 Estimated impacts of IFRS11 on 2013 accounts IFRS 11 Joint Arrangements is applied starting January 1, performance will be measured against restated figures for 2013 Reclassification of some jointly held activities previously proportionally integrated, henceforth equity associates Estimated impacts are the following: Summary estimated impacts Orders 2013 restatements Order book Approx (800) M Income statement Revenue Slightly more than (300) M Adjusted recurring operating income Net income Slightly less than (10) M No impact Balance sheet Net debt Working capital Approx 130 M higher Approx 20 M lower 35 /

37 2014 key assumptions Estimated IFRS 11 impacts of around (300)M to 2013 revenue and less than (10)M to 2013 adjusted recurring operating income Healthy increase in aerospace OE deliveries Boeing 737, A330, regional jets... Civil aftermarket growth in the low to mid-teens percentage Mainly driven by recent CFM56 engines Stable self-funded R&D level with less capitalisation R&T; helicopter turbines higher; LEAP peaking; Silvercrest lower as peak is passed Stable tangible capex Profitable growth for the security business On-going Safran+ plan to enhance the cost structure and reduce overhead Increased focus on Competitiveness, Expertise and Innovation 36 /

38 FY 2014 outlook Adjusted revenue expected to increase by a percentage in mid single digits* at an estimated average rate of USD 1.30 to the Euro Adjusted recurring operating income expected to increase by a percentage in low double digits* at a hedge rate of USD 1.26 to the Euro Free cash flow expected to represent close to 40% of the adjusted recurring operating income subject to usual uncertainties on the timing of advance payments Strong confidence for the long term CFM franchise is assured for the next decades (aftermarket revenue and successful LEAP transition) Acquisitions reinforce Safran for the long term in helicopters and MEA /$ hedged book provides positive impact on profits *2014 performance will be measured relative to the 2013 accounts restated for the effects of IFRS /

39 / 04/ Questions & Answers 38 /

40 / 05/ Additional information 39 /

41 Amended IAS19 FY 2012 income statement (In M) FY 2012 published Impact of amended IAS19 FY 2012 restated Revenue 13,560-13,560 Recurring operating income % of revenue Profit from operations % of revenue Net finance (cost) income Income tax expense Profit (loss) from discontinued op. Minority interests Share in profit from associates 1, % 1, % (152) (263) - (26) 19 (27) 1, % (27) 1,394 (2) % (154) (254) - (26) 19 The (27)M decrease in recurring operating income results from the discontinuation of the amortisation of actuarial gains and losses and past service costs previously not recognised (Euro 10 million impact) and the direct recognition in 2012 of past service costs relating to agreements entered into in the second half of 2012 (Euro (36) million impact) Profit - group share Basic EPS (in ) (20) (0.05) /

42 FY 2012: R&D by activity (In M) FY 2012 Propulsion Equipment Defence Security Total self-funded cash R&D (1,103) (649) (213) (117) (124) as a % of revenue 8.1% 9.3% 5.8% 8.9% 8.0% Tax credit Total self-funded cash R&D after tax credit (979) (602) (184) (81) (112) Gross capitalized R&D Amortised R&D (68) (25) (32) (8) (3) P&L R&D in recurring EBIT (543) (285) (90) (67) (101) as a % of revenue 4.0% 4.1% 2.4% 5.1% 6.5% 41 /

43 FY 2013: R&D by activity (In M) FY 2013 Propulsion Equipment Defence Security Total self-funded cash R&D (1,299) (790) (254) (126) (129) as a % of revenue 8.8% 10.1% 6.2% 9.9% 8.6% Tax credit Total self-funded cash R&D after tax credit (1,159) (739) (216) (87) (117) Gross capitalized R&D Amortised R&D (76) (24) (36) (10) (6) P&L R&D in recurring EBIT (541) (246) (123) (66) (106) as a % of revenue 3.7% 3.2% 3.0% 5.2% 7.1% 42 /

44 Aerospace OE* / Services revenue split Revenue Adjusted data (in Euro million) Propulsion % of revenue Equipment % of revenue FY 2012 FY 2013 % change OE Services OE Services OE Services 3,718 3,287 4,045 3, % 14.0% 53.1% 46.9% 51.9% 48.1% 2,637 1,054 2,907 1, % 15.2% 71.4% 28.6% 70.5% 29.5% * All revenue except services 43 /

45 Quantities of major aerospace programmes Number of units delivered FY 2012 FY 2013 % CFM56 engines 1,406 1,502 7% High thrust engines % Helicopter engines % M88 engines (23)% TP na A380 nacelles A330 thrust reversers % A320 thrust reversers % Small nacelles (biz & regional jets) % 44 /

46 Affirming our strategy over the electrical energy chain Consolidation of all electrical power activities within Labinal Power Systems Long-term outlook + A world leader in electrical power systems with combined revenues c. 1.4 billion in 2014 Strong installed base & recurring aftermarket revenues Power generation Competitive positioning in aerospace electrical systems + Electrical Power systems + + Acquisition closed in March 2013 Electrical equipment Primary & secondary distribution Capture benefits of closer integration of electrical systems and wiring, with aircraft engines and gearboxes + Wiring Systems integration Lead innovation in the electrification of aircraft equipment + PDMS Acquisition expected to close in H Complete offering in power systems Support & Services 12,000 people in 12 countries Broader offering: higher shipset value 45 /

47 Definition Civil aftermarket (expressed in USD) This non-accounting indicator (non audited) comprises spares and MRO (Maintenance, Repair & Overhaul) revenue for all civil aircraft engines for Snecma and its subsidiaries and reflects the Group s performance in civil aircraft engines aftermarket compared to the market. 46 /

48 47 /