08

benchmarks

at December 31, 2015

Safran posted adjusted sales of €17,414 million in 2015, a year-to-year increase of 13.4% (3.9% on an organic basis). The increase of 2,059 million euros includes a positive exchange rate impact and reflects growth in all Safran businesses.

Estimated reading time:

4 min

1
A new governance structure for Safran

On April 23, 2015, during the Board of Directors meeting following the Annual General Meeting of Shareholders, Philippe Petitcolin was named Chief Executive Officer of Safran, and Ross McInnes was named Chairman of the Board.

2
A global workforce

Over 70,000 employees in more than 60 countries

Americas

14,250

20%
of global workforce

Europe

49,000

70%
of global workforce

Africa
Middle East

2,900

4%
of global workforce

Asia-Pacific

3,950

6%
of global workforce

Europe

49,000


70%
of global workforce

Americas

14,250


20%
of global workforce

Asia-Pacific

3,950


6%
of global workforce

Africa
/Middle East

2,900


4%
of global workforce

 

More than 7,700 new employees joined Safran in 2015, and we created over 1,000 net jobs, including more than 800 in France. This sustained pace of hiring supports the launch and ramp-up of new programs and also renews our skills base.

3
Employees by job type

0%
0%
0%

Other

The breakdown by job type reflects Safran’s broad industrial foundations and the extensive resources dedicated to Research & Development. Our people leverage their excellence and innovative mindsets not only in production and design, but also in support functions.

Production
Other
R&D

4
Sales by business sector

Aerospace Propulsion
Aircraft Equipment
Security
Defense
0%
0%
0%
0%

The aerospace business logged strong growth in 2015, with propulsion climbing 14.3% and aircraft equipment 11.2%.
The commercial engine service business logged strong growth in 2015 (up 18.9% in USD), driven by overhauls of recent CFM56 engines, as well as the GE90, in an environment that is favorable for airlines. Helicopter turbine engines and military aircraft engines also contributed to the overall growth in service business.
Defense sales showed an overall increase of 3.7%, with all defense sectors remaining stable.
The security business recorded a 22.7% increase over 2014. All aspects of this business, identification, smart cards, detection, etc., recorded organic sales growth.

5
STEADY RISE IN PROFITABILITY

Net income (Group share) (adjusted data, millions of euros)

1,482

+0.
0%

The Group share of adjusted net income amounted to 1,482 million euros in 2015 (3.55 euros per share), a rise of 18.8% compared with the 2014 figure of 1,248 million euros (3.00 euros per share).
In addition to the increase in recurring operating income, this figure includes 224 million euros in net financial expenses and a tax expense of 403 million euros. The result also incorporates a post-tax capital gain of 421 million euros from the sale of Ingenico Group shares.

5
STEADY RISE IN PROFITABILITY

Recurring operating income (adjusted data, millions of euros)

2,432

+0.
0%

Adjusted recurring operating income reached 2,432 million euros (14.0% of revenue) an increase of 16.4% compared with the 2014 figure of 2,089 million euros (13.6% of revenue). This increase was driven mainly by growth in aerospace aftermarket activities, and by landing gear and wheels and brakes businesses.

*Restated to reflect impact of IFRS 11.

6
Safran divests stake in Ingenico

Safran divested its entire remaining stake in Ingenico Group in 2015, amounting to 5.5 million shares representing 9.1% of share capital. The sale to Bpifrance, announced on May 19, 2015, was an off-market transaction, followed by the sale of the residual stake by a financial institution on behalf of Safran, concluded on July 29, 2015. Safran received total income of 606 million euros, and booked a capital gain after taxes of 421 million euros.

7
A record backlog of orders

Order book (billions of euros)

68


+0.
0%

Safran booked 18 billion euros worth of orders in 2015, bringing the order book at the end of the year to a record of 68 billion euros, versus 64 billion euros the previous year. This figure does not include the future business to be generated by CFM56 spare parts and services (when supplied on the basis of Time & Material contracts). The service business will generate significant revenues and margins over the coming years.

*Restated to reflect the impact of IFRS 11.

0,
0

orders and commitments
for the LEAP engine in 2015

0

orders and commitments
for the CFM56 engine in 2015

7
A strong, sustained investment in the future

0.
9


billion
euros

in Research & Development expenditures, equal to nearly 12% of sales.
Safran spent 1,356 million euros on self-funded R&D (before the research tax credit), equal to 7.8% of sales.

8
No. 2 in the CAC 40 stock market index for employee shareholding

Capital shareholding structure

Public
French State
Employees
Treasury shares
0.
0%
0.

Public

0%

Public

0.
0%
0%
0.

Following the French government’s sale of 2.6% of Safran’s share capital on December 1, 2015, the State held 15.4% of Safran’s capital at the end of 2015, compared with a 22.0% stake a year earlier. The Safran share therefore enjoys a larger float and better liquidity. The significant employee shareholding, a motivational and loyalty factor for employees, also contributes to Group stability. In compliance with French law, an additional 1.2 million shares held by the French State could subsequently be offered to current and former Safran employees.

9
Safran share included in Euro Stoxx 50 index

 

Four years after the Safran share was included in the French stock market index CAC 40, it also joined the European index Euro Stoxx 50. This latest milestone reflects the Safran share’s positive performance in recent years, and will also enhance the Group’s stock market visibility.

Four years after the Safran share was included in the French stock market index CAC 40, it also joined the European index Euro Stoxx 50. This latest milestone reflects the Safran share’s positive performance in recent years, and will also enhance the Group’s stock market visibility.

10
DIVIDEND PAYMENT

0.
0

per share dividend in 2016

A dividend payment of €1.38/share (an increase of 15% over 2014) will be submitted for a vote by the Annual General Meeting of Shareholders on May 19, 2016. In line with general practice at Safran, the payout rate will be approximately 40% of adjusted net income.