Safran in North America

Management appointments at Safran

Safran in North America — 2013-05-22T17:32:11Z

Paris, May 22, 2013 - Safran has made several management appointments, effective July 1, 2013.

Yves Leclère named Advisor to the Safran Chairman, Jean-Paul Herteman.

Yves Leclère, 63 graduated from Sup'Aéro (1973) and the CPA Paris business school (1982). He started his career with the Group in 1974, joining Messier as head of international partnerships, then economic affairs in 1978. He was head of purchasing at Messier from 1983 to 1988. At that point he was named CEO of Eram, a Snecma subsidiary specialized in landing gear, with responsibility for restructuring this business. In 1992 he was named head of the Messier-Bugatti Wheels & Brakes division, before becoming Chairman and CEO of this company in 1994. In 2006 he was named Executive Vice President of Safran, in charge of the Aircraft Equipment branch, and a member of the Management Board, then in 2011 he was appointed Executive Vice President, Transformation.

Jean-Pierre Cojan named Executive Vice President of Safran, in charge of Strategy and Transformation.

Jean-Pierre Cojan, 59, graduated from the Ecole des Mines de Paris engineering school (1974). He joined Snecma in 1977 as structural design engineer. Starting in 1981 he moved to CFM International (a joint venture with GE) as CFM56 customer manager for military applications. He then returned to Paris in 1985 to take charge of preparations for CFM56 service entry for new customers. In 1988 he was named head of customer support for several major airlines. Jean-Pierre Cojan returned to Snecma in 1990 as head of customer technical support, then director of marketing in 1991. He was named director of the commercial aviation market in 1995, then head of the Commercial Engines division in 2001. In 2007 he was named Chairman and CEO of Aircelle, also a Safran company, then Safran Executive Vice President for Strategy in 2009.

Eric Dalbiès named Vice President of Strategy of Safran.

Eric Dalbiès, 45, holds degrees from the Ecole Polytechnique (1987) and Sup'Aéro (1992) engineering schools. He joined Société Européenne de Propulsion (SEP, now part of Snecma) in 1992, starting as system design engineer with the advanced engines department, then chief engineer for the HM7 and Vinci. In 2005 he was named head of rocket engine programs at Snecma. He moved to fellow Group company Turbomeca in 2005, as head of information technology, before being named deputy to the president and head of the Safran+ improvement initiative in 2008. He added the title of Vice President for Information Technology in 2011.

Olivier Horaist named Deputy Director for European and International Relations (the former International division is now known as the European and International Relations division).

Olivier Horaist, 55, is a graduate of the Ecole Centrale de Lille engineering school (1981). He started his career with Snecma, and has held various positions in processes and manufacturing. In 1992 he was named head of the production support department, then head of the sheet-metal and welded-assemblies unit in 1997. In 2000 he was named general manager of the Corbeil plant, then head of executive management at the company in 2004. From 2005 until being named Chairman and CEO of Hispano-Suiza in 2007, Olivier Horaist was in charge of executive management at Safran.

Within this same division, Jean-Paul Jainsky is named Vice President, reporting to the Executive Vice President for European and International Relations. He will be in charge of new Group-wide projects, especially in Africa.

Jean-Paul Jainsky, 62, graduated from the Arts et Métiers engineering school (1975) and started his career with SAT (Société Anonyme de Télécommunications), where he held several positions in the mechanical manufacturing division, before being named head of production at the Poitiers plant in 1988. He joined the Group in 1994, , being named director of Sagem's Montluçon and Poitiers plants. In 1998 he was named Vice President, in charge of the Security business, then Vice President, Production and Operations in the Automobile division in 2001. Jean-Paul Jainsky was appointed to the Management Committee in 2002, and became head of the Security division. When Sagem Défense Sécurité was created in 2005, he was named Executive Vice President and head of the Security Division, then Chairman and CEO of Sagem Sécurité (which became Morpho) in 2007.

Philippe Petitcolin will be nominated as Chairman and CEO of Morpho during a meeting of the company's Board of Directors, to be held shortly. Karen Bomba will be in charge of the United States operations for Morpho and her job function will be specified in the coming weeks. Philippe Petitcolin retains his position as Chairman of the Board of Sagem.

Philippe Petitcolin, 60, holds a master's degree in mathematics, as well as a degree from the CPA business school. He started his career in 1978 as export manager for the company Europrim, and was subsequently named head of the export zone for Filotex, an Alcatel-Alstom subsidiary. In 1982 he was named aviation sales and marketing director for Chester Cable in the United States. He returned to Filotex in 1984 as export director. In 1988, he joined Labinal as deputy sales & marketing director, subsequently being named director of sales & marketing for the aeronautical systems division. In 1995, he was named managing director of this division. From 1999 to 2001, Philippe Petitcolin was managing director of Labinal's Filtrauto division, while also acting as general manager of the friction materials business following the purchase of Filtrauto by Valeo. In May 2001, he was named CEO of Labinal, and became Chairman and CEO of the company in November 2004. He joined Snecma (Safran) in 2006 as Chairman and CEO, and was subsequently named President, in charge of Safran's Defense and Security businesses, and Chairman and CEO of Sagem in 2011.

Karen Bomba, 48, received a Bachelor of Science in Mechanical Engineering from Rensselaer Polytechnic Institute and a Master of Science in Manufacturing Engineering from UCLA. She began her career at Northrop Corporation's Advanced Systems Division facilities in California as Manufacturing Engineering Manager, She then spent seven years as Business Line Manager for Aircraft Structures, Insulation Products and Carbon-Carbon brakes at Hitco Carbon Composites in Gardena, California. In 2000 she was named Chairman and CEO of Messier-Bugatti USA, a subsidiary of Messier-Bugatti (Safran). In 2008. Karen Bomba joined Zoltek Companies, Inc. as Chief Operating Officer, before retuning to Safran in 2010 as Chairman and CEO of Labinal.

Bruno Even named CEO of Sagem during a meeting of the company's Board of Directors, to be held shortly.

Bruno Even, 45, is a graduate of Ecole Polytechnique (1987) and Sup'Aéro (1992). After holding various positions with the French defense procurement agency DGA and the Ministry of Foreign Affairs, Bruno Even joined Group company Turbomeca in 1999. He was first engine development project manager, then project manager for deployment of the company's new management information system. In January 2006 he was named Vice President, Programs at Turbomeca. From 2009 to this latest appointment he was Executive Vice President for Operator Customers.

Vincent Mascré will be nominated as Chairman and CEO of Messier-Bugatti-Dowty during a meeting of the company's Board of Directors, to be held shortly.

Vincent Mascré, 55, holds a degree from the Ecole Centrale de Paris engineering school (1980), a master's in economic sciences (1980) and a degree from the Insead business school (2002). He joined the Group in 1981 as advanced projects engineer with Snecma. After holding several positions in production and management control, Vincent Mascré was named deputy director of purchasing. He was then appointed general manager of the Gennevilliers plant in 2002, becoming head of Snecma's rotating parts center of industrial excellence in 2006. He held this position until 2008, when he joined Aircelle (Safran) as Executive Vice President. He was named Chairman and CEO of Aircelle in 2009.

Hélène Moreau-Leroy will be nominated as Chairman and CEO of Hispano-Suiza during a meeting of the company's Board of Directors, to be held shortly.

Hélène Moreau-Leroy, 48, graduated from INSA Lyon (1987) and holds an MBA from the University of New England (Australia, 1994). She started her career by holding various management positions in a design department and as international procurement and production manager with major companies such as Thomson and Alstom. In 2003, she joined the Safran Purchasing department as coordinator for forged parts and raw materials. She then moved to Messier-Dowty in 2005 as head of international development of the Supply Chain, before being named Director of the Airbus Business Unit and European Programs in 2008, then Vice President for Programs at Messier-Bugatti-Dowty in 2011.

Alain Sauret will be nominated as Chairman and CEO of Labinal during a meeting of the company's Board of Directors, to be held shortly. Within the scope of the consolidation of the Group's electrical businesses in a single entity, Alain Sauret will be in charge of the planned merger of Labinal and Safran Power.

Alain Sauret, 55, holds degrees from the Arts et Métiers engineering school (1978) and the CPA Paris business school (1999). He started his career with the Group in 1982, at Labinal, where he held several operational positions and participated in the international development of the company's wiring and electrical interconnection systems business. From 2001 to 2005 he was Chief Executive of the Wiring Europe division. In 2006 he was named Executive Vice President of Labinal, also heading the Engineering, Technology and Strategy division. He moved to Safran as Vice President, Production in September 2007, and was then named Chairman and CEO of Messier-Bugatti in 2010, then Chairman and CEO of Messier-Bugatti-Dowty in 2011.

Martin Sion will be nominated as Chairman and CEO of Aircelle during a meeting of the company's Board of Directors, to be held shortly.

Martin Sion, 44, graduated from the Ecole Centrale de Paris engineering school in 1990. He started his career that year with the Société Européenne de Propulsion (SEP, now part of Snecma), where he held the positions of design engineer, combustion department manager, HM7 chief engineer, and head of the combustion component design department. In early 2005 he was named head of engineering for the Snecma Space Engines division, then head of improvement initiatives at Snecma in 2006. In 2009 he took over responsibility for the equipment and accessories center of industrial excellence at Snecma's production division. He was named head of Snecma's Space Engines division in September 2010.

Safran is a leading international high-technology group with three core businesses: Aerospace (propulsion and equipment), Defence and Security. Operating worldwide, the Group has 62,500 employees and generated sales of 13.6 billion euros in 2012. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. The Group invests heavily in Research & Development to meet the requirements of changing markets, including expenditures of 1.6 billion Euros in 2012. Safran is listed on NYSE Euronext Paris and is part of the CAC40 index.

Press Contacts
Catherine MALEK
Tél +33 (0)1 40 60 80 28
catherine.malek@safran.fr

Caroline COUDERT
Tél +33 (0)1 40 60 82 20
caroline.coudert@safran.fr

Safran
Direction de la Communication
2, bd du Général Martial Valin
75724 Paris Cedex 15 – France
www.safran-group.com

Aerosource Inc. receives certification from Brazilian civil aviation authority

Safran in North America — 2013-05-21T21:43:39Z

Safran group company Aerosource Inc. has been granted authorization by the Brazilian civil aviation authority (ANAC) to perform work in compliance with requirements established by Brazilian civil aviation regulations (RBAC) following a comprehensive ANAC audit.

This approval will allow Aerosource to continue aircraft component design and maintenance activities for its Brazilian customers.

“We pursued ANAC approval at the request of our growing Brazilian customer base and look forward to continuing our relationships by providing the great service for which we have become known,” said Robert Rist, Aerosource President.

Aerosource Quality Manager Alan Ramos coordinated the approval process, which began in September 2012. During activity last year, Ramos also became the first Aerosource employee to be certified Six Sigma Green Belt for projects focusing on quality controls and manufacturing processes as part of the Safran+ initiative.

The ANAC authorization follows awarding of the ram air turbine system on Brazilian aircraft manufacturer Embraer's KC-390 military transport and aerial refueling jet to Aerosource – in conjunction with a contract announced between its Hispano-Suiza (Safran) parent company and Embraer in November 2011.

Aerosource is a New Jersey-based subsidiary of Hispano-Suiza, a member of the Safran group of companies. Aerosource is the original equipment manufacturer (OEM) for the DC-10 and MD-11 air-driven generators and voltage regulators as well as various ram air turbines (RAT) with military applications.

Aerosource's Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) certified repair station specializes in ram air turbines, air driven generators, integrated drive generators, APU generators and various hydraulic components.

Safran's business unit Labinal celebrates new site in Denton, Texas

Safran in North America — 2013-05-16T20:50:07Z

Labinal (Safran) reconfirmed its commitment to the North American market this month with the inauguration a new company facility in Denton, Texas, during a ceremony attended by Labinal CEO Karen Bomba, Labinal North America Vice President and General Manager Jorge Ortega, local officials and representatives from major aerospace companies including Boeing, Bell Helicopter and Lockheed Martin.

Jorge Ortega, Vice President and General Manager of Labinal North America, speaks during this month's inauguration of the new Labinal (Safran) facility in Denton, Texas.

Safran's investment in renovating an existing building for this new 130,000 square-foot site doubles Labinal's footprint from its previous location and will sustain the business unit's production of wire harnesses for customers such as Boeing, Sikorsky and Bell Helicopter, as well as house its North American headquarters.

“This move to a larger and upgraded facility provides a perfect example of Safran's industrial strategy of preserving skills and providing room for improvement and growth through investment in its existing locations,” said Bomba. “Labinal has a truly global workforce and we remain committed to our operations in North America, where almost half of our work force is based.”

“Our main priority for our move was to have no impact on our customers,” explained Ortega. “We will continue to aggressively pursue innovation and productivity targets to stay competitive and partner with our customers.”

Labinal, a world leader in electrical wiring solutions for the aerospace market, employs 700 workers in the facility – designed to include green initiatives such as occupancy sensors in offices and meeting rooms, reduced water consumption, automatic controlling of production area lighting, high-efficiency light fixtures, building insulation, and an energy-management system. In addition, space has been identified at the site for future growth opportunities.

Labinal (Safran) employees celebrate the inauguration of the 130,000-square-foot building in Denton, which employs 700 workers.

A search to solve “one of history's great aviation mysteries” will resume with Safran's backing

Safran in North America — 2013-05-10T14:44:19Z

A new search for the legendary French aircraft L'Oiseau Blanc (the White Bird), which was lost in 1927 during a daring transatlantic crossing attempt between New York and Paris, will be conducted this month in a Safran-backed effort to determine the fate of this pioneering flight and its two pilots.

Peter Lengyel, Safran USA CEO & President (at left) and Bernard Decré, president of the La Recherche de L'Oiseau Blanc organization, with a scale model of the aircraft used by Charles Nungesser and François Coli in their transatlantic crossing attempt.

The renewed campaign, coordinated by the organization “La Recherche de L'Oiseau Blanc” (The Search for the White Bird), hopes to locate remains of the aircraft in an area where aviators Charles Nungesser and François Coli are believed to have crashed off the coast of Saint-Pierre-et-Miquelon near Newfoundland.

Safran's involvement in this effort is linked to the L'Oiseau Blanc's 450-hp. Lorraine 12 Eb engine, which was produced by Lorraine-Dietrich – a predecessor company to today's Safran group.

“Lorraine-Dietrich is our historical forbearer,” explained Safran USA CEO & President Peter Lengyel at a commemorative event organized this week on the 86th anniversary of the White Bird's takeoff. “That engine was exceptional for its time, and it may have survived the test of time, which is why Safran is honored to participate in the efforts to determine what happened to two veteran pilots who were both brave and audacious.”

The attempt of Nungesser and Coli began from Le Bourget Airport near Paris a dozen days before Charles Lindbergh's transatlantic crossing in the opposite direction, but the two French pilots never arrived for their planned water landing in New York harbor.

Based on extensive research by Bernard Decré, president of the La Recherche de L'Oiseau Blanc organization, it is believed the aircraft went down in dense fog near Saint-Pierre-et-Miquelon after poor weather forced Nungesser and Coli off their planned flight-path over Newfoundland.

Safran signed a two-year partnership agreement in 2012 with La Recherche de L'Oiseau Blanc, providing technical and financial resources to search for the aircraft's wreckage. The relationship with Safran has enabled Decré to rent more sophisticated equipment for the search, including a higher-power magnetometer, a multi-beam sonar, and a winch compatible with a 350-meter-long cable.

“The destiny of Nungesser and Coli is a strange and fabulous story, which remains one of the biggest mysteries of aviation history,” Decré said in comments during this week's commemorative event, held at the French Embassy in Washington, D.C. “My thanks go to Safran for its valuable support, which has enabled me to be better equipped as we continue our efforts again this year.”

The latest attempt to locate wreckage of the White Bird is scheduled to begin on May 15 and continue through June 7. During this period, a special tribute will be made to L'Oiseau Blanc's flight when Safran Chairman and CEO Jean-Paul Herteman joins Decre and Charles Lindbergh's grandson to drop flowers in the bay of Saint-Pierre-et-Miquelon.

With the support of Safran and others, Decré said he hopes to find a trace of L'Oiseau Blanc and change the legacy of Nungesser and Coli from “lost at sea” to being “the pioneers who crossed the Atlantic.”

Morpho Detection hosts U.S. Congressional leader from California

Safran in North America — 2013-05-02T19:53:00Z

U.S. Congressman Mike Honda (CA-17) was welcomed today during a visit to the Newark, California facility of Morpho Detection, which is a subsidiary of the Safran group's high-technology company Morpho.

Rep. Honda (at left) was provided a tour of the production area for Morpho Detection's CTX, which is the most widely deployed automated explosives detection system in the world with nearly 2,000 units assembled.

Morpho Detection's Newark offices and manufacturing site houses the Morpho Computed Tomography (CT) center of excellence research and development lab – where some of the most widely deployed CT-based solutions to screen checked baggage for explosive material and other threats are developed and manufactured, including the CTX™ automated explosives detection system. As part of his visit, Rep. Honda met with company employees and viewed the CTX production area.

“As a member of the House Appropriations Committee and my own Blue Ribbon Task Force on Aviation Security, I know firsthand both the fiscal challenges we face as a nation and the importance of investing in advanced technology to ensure the safety of the traveling public in the future,” he said during comments earlier today.

As a global leader in hold baggage explosives detection systems and explosives trace detectors, Morpho Detection's solutions are deployed at airport checkpoints, checked baggage and air cargo screening facilities, military installations, critical infrastructure and secure locations around the world.

“Morpho Detection thanks Congressman Honda for being here today and his long-standing support of local businesses,” said Brad Buswell, President and CEO of Morpho Detection, Inc. “Morpho Detection has been developing advanced explosives detection solutions for more than 20 years. We look forward to continuing our work with Congressman Honda to ensure our district remains a global hub for innovation and technology.”

A “family photo” with the employees of Morpho Detection's Newark facility was taken to mark Rep. Honda's visit on May 2.

Innovative Europe in action: TECH800 demonstration for future helicopter turboshaft engine

Safran in North America — 2013-04-26T16:02:45Z

Brussels, April 26, 2013 – The official celebration of the first rotation of TECH800 turboshaft demonstrator took place on Friday 26 April, in Pau (France), in the presence of Siim Kallas, Commissioner for Transport and Vice-President of the European Commission, Eric Dautriat, Executive Director of Clean Sky, Jean-Paul Herteman, Chairman and CEO of Safran and Olivier Andries, Chairman and CEO of Turbomeca.

TECH800 demonstrator has been developed in cooperation with 34 partners from ten European countries including 18 SMEs and 12 universities and research centres. The technologies to be demonstrated in TECH800 will deliver reduced emissions in-line with the goals of the Clean Sky programme.

An innovative core engine demonstrator has been designed, manufactured and tested by Turbomeca for future helicopter turboshaft applications in the 800kW power class. Key technologies are related to the compressor architecture and performance, the combustion chamber enabling lower emissions, the turbine operating at a very elevated temperature and a high efficiency power turbine. This demonstrator offers a double digit benefit in terms of fuel consumption and CO2 emissions compared to the year 2000 state of the art, as well as breakthrough in noise attenuation, weight (composite, Titanium Aluminide components), and control system (fuel pumps, electric actuators...).

This event paves the way to a series of demonstrators on engines, aircraft, and helicopters as well as on systems and eco-designed parts, scheduled between 2013 and 2015. If successful, these technologies will be integrated in future products beyond 2016, in line with the needs of the European aeronautics industry.

The Clean Sky Joint Technology Initiative is Europe's largest aeronautics research programme ever with a budget of Euro 1,600 million (50% EU / 50% Industry) on 7 years. It is dedicated to the demonstration of new technologies of the civil aircraft market, aiming at a dramatic reduction of CO2, noise and NОx footprints. TECH800 is one of the six engine demonstrators dedicated to propulsion in Clean Sky.

Siim Kallas, Commissioner for Transport, European Commission remarked: “The public-private partnership of Clean Sky proves today that both sectors can produce the engines of the future; this partnership will bring research projects closer to their marketing and, through that, it will allow the European aircraft industry to maintain its position as a worldwide leader.”

Jean-Paul Herteman, Chairman and CEO of Safran added: “The first spooling up of the TECH800 engine represents a major milestone. I hope that this success is the first in a long series, and that it will further energize the European aviation industry's efforts to spur innovation. Europe's position in the world of 2050 will depend on how ambitious we are today in terms of research and innovation.”

Eric Dautriat, Executive Director of Clean Sky concluded: “Clean Sky was set up to bring significant technology changes regarding the environment impact of aviation. Today's demonstration shows that we are on track to meet our objectives.”

Background note to editors

Clean Sky is the largest European aeronautics research programme ever, with a €1.6billion budged over seven years, of which half is contributed by the European Commission in cash and half by the European aeronautics industry, in kind. This public-private partnership aims at developing cutting-edge technology to manufacture cleaner and quieter aircraft in order to establish an innovative and competitive Air Transport.

For more information: www.cleansky.eu
Press contact: Maria-Fernanda Fau, Communication Officer
Tel: +32 -2-221 81 59, maria-fernanda.fau@cleansky.eu

For more information: www.safran-group.com / Follow @SAFRAN on Twitter
Press contact: Catherine Malek, Press & Social Media Director
Tel: +33 (0)1 40 60 80 28, catherine.malek@safran.fr

Turbomeca (Safran) is the leading helicopter engine manufacturer, and has produced 70,000 turbines based on its own designs since the company was founded. Offering the widest range of engines in the world and dedicated to 2,500 customers in 155 countries, Turbomeca provides a proximity service thanks to its 17 sites, 28 Certified Maintenance Centers, 18 Repair & Overhaul Centers, and 90 Field representatives and Field technicians. Microturbo, the subsidiary of Turbomeca, is the European leader in turbojet engines for missiles, drones and auxiliary power units.

For more information: www.turbomeca.com
Press contact: Bettina Frey, VP, Communications,
Tel: +33(0)5 59 90 96 23, bettina.frey@turbomeca.fr
Press contact: Chantal Reiss, External Communications Manager
Tel: +33 (0)5 59 90 96 40, chantal.reiss@turbomeca.fr

Safran enters into a definitive agreement for the purchase of the Rolls-Royce share of the joint RTM322 helicopter engine programme

Safran in North America — 2013-04-23T20:11:52Z

Paris, April 23, 2013 - Safran (NYSE Euronext Paris: SAF) today announced that it has reached an agreement with Rolls-Royce to acquire Rolls-Royce's 50% share in their joint RTM322 helicopter engine programme. Upon closing, Turbomeca (Safran's world leading helicopter engine business) will assume global responsibility for the design, production, product support and services for the RTM322 engine, a 2,100-2,600 shp engine family equipping the Apache, EH101 and NH90 helicopters. Rolls-Royce will provide full support during a transition phase enabling progressive transfer of all their activities to Turbomeca under this programme.

Strategic rationale

The RTM322 is a priority programme for Turbomeca and the company is committed to the continued technical and commercial development of this programme to improve its global performance, as well as to investments to serve the market in the long term. The agreement also covers the aftermarket business opportunity (spares and MRO services - maintenance, repair, overhaul) related to the existing fleet, cumulating nearly one million equivalent flying hours to date.

This transaction will enable Turbomeca autonomously to further innovate and develop new engines, to the benefit of its customers in the more powerful 3,000 shp and beyond helicopter engine segment (segment in which Turbomeca is not present at the moment). Several new heavy helicopter programmes are currently being planned or developed by various aircraft manufacturers worldwide for which Turbomeca will be able to provide future state-of-the-art and efficient propulsion solutions, in particular in the high power segment.

In the next 15 years, Turbomeca aims to supply about 3,500 engines, on existing military platforms as well as future civilian and military platforms in the 8-13 tons range, with continuous requirement for higher engine power.

Financial aspects and terms of the transaction

The revenue related to the Rolls-Royce share of RTM322 amounts to approximately Euro 85 million per annum, a majority of which is generated by services. Upon closing, Turbomeca will assume leadership of the RTM322 programme, including the critical roles of supporting the existing fleet of helicopter engines and developing aftermarket and export opportunities. Turbomeca will derive increasing synergies with the 50% of the programme it already owns by streamlining the organization and processes and progressively taking full responsibility over the production and MRO services with the full support of Rolls-Royce. After this transition period, Safran expects the benefits of owning the entire programme - including synergies and new commercial opportunities - to represent an additional contribution to operating income of over Euro 30 million per annum.

The cash consideration for the transaction amounts to Euro 293 million. Apart from Rolls-Royce's 50% share in the RTM322 programme, the transaction also includes the intellectual property rights (IPR) related to this programme as well as Rolls-Royce's 50% share in the RRTM (Rolls-Royce-Turbomeca) joint-venture. The Adour engine programme cooperation between Rolls-Royce and Turbomeca, which powers the Hawk and Jaguar aircraft, is unaffected by this transaction, as are the other helicopter engine programmes that Rolls-Royce and Turbomeca manage independently.

The transaction, which is expected to close before year end, is subject to regulatory approvals and satisfaction of other customary closing conditions.

Safran is a leading international high-technology group with three core businesses: Aerospace (propulsion and equipment), Defence and Security. Operating worldwide, the Group has 62,500 employees and generated sales of 13.6 billion euros in 2012. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. The Group invests heavily in Research & Development to meet the requirements of changing markets, including expenditures of 1.6 billion Euros in 2012. Safran is listed on NYSE Euronext Paris and is part of the CAC40 index.

Press
Catherine Malek
Tel : +33 (0)1 40 60 80 28
Email:catherine.malek@safran.fr

Investor Relations
Pascal Bantegnie
Tel : +33 (0)1 40 60 80 45
Email :pascal.bantegnie@safran.fr

Peter Campbell
Tel :+33 (0)1 40 60 35 96
Email :peter.campbell@safran.fr

Safran
2, bd du Général Martial Valin
75724 Paris Cedex 15 - France

Safran reports 9.5% revenue growth in first-quarter 2013 driven by strong civil aviation business

Safran in North America — 2013-04-23T19:47:19Z

Full-year 2013 revenue outlook upgraded

All revenue figures in this press release represent adjusted[1] revenue. Please refer to definitions contained in the Notes on page 6 of this press release.

Key figures for the first quarter of 2013

First-quarter 2013 adjusted revenue was Euro 3,404 million, up 9.5% year-on-year, or up 9.6% on an organic basis.

Solid revenue growth contribution from Aerospace activities, both in OE deliveries and aftermarket. Sales in Defence were resilient. Positive dynamics in Security.

Civil aftermarket[2] up 10.0% in USD terms, driven by first overhaul of recent CFM56 and resumption of growth in widebody engines.

Full-year 2013 revenue outlook is upgraded further to first quarter revenue dynamics and the integration of Goodrich Electrical Power Systems (GEPS) from April 1, 2013: Safran expects adjusted revenue to increase by a percentage in the mid-to-high single digits (previously 5%). Adjusted recurring operating income should grow by a percentage in the mid-teens. Free cash flow is expected to represent about 40% of adjusted recurring operating income.

Key business highlights for the first quarter of 2013

The Narita International Airport Corporation of Japan purchased an additional 13 high-speed CTX-9800 explosives detection systems for hold baggage screening. Morpho's systems are the most widely deployed in the world, with nearly 2,000 in service.

CFM: AviancaTaca (Colombia) selected LEAP engines to power 33 A320neo aircraft, in addition to CFM56 engines for 18 A320ceo and signed a 15-year RPFH agreement. Ryanair committed to purchase 175 single source CFM56-powered Boeing 737-800. China Aircraft Leasing Company (CALC) selected CFM56 engines for 25 A320ceo.

Turbomeca unveiled “Arrano”, the brand new 1,100 shp engine designed to power 4-to-6 ton helicopters. In July 2012, Eurocopter announced that its new-generation X4 helicopter will be the first platform to be powered by the Arrano engine. Turbomeca also introduced the Arrius 2B2 Plus engine variant for Eurocopter EC135T3 helicopter.

Safran completed the acquisition of Goodrich Electrical Power Systems (GEPS) for Euro 300 million, creating a world leader in on-board electrical power systems.

Safran reduced its stake in Ingenico by placing in the market 12.57% of Ingenico's share capital for proceeds of Euro 287 million. The resulting after-tax profit for Safran is Euro 131 million was recorded in the first quarter 2013 accounts. Safran will remain a significant shareholder, retaining 10.2% of Ingenico's share capital and 16.6% of voting rights.

Paris, April 23, 2013 - Safran (NYSE Euronext Paris: SAF) today reported its revenue for the first quarter of 2013.

Executive commentary

Chairman and CEO Jean-Paul Herteman commented:

“Safran recorded solid revenue growth in the first quarter, notably in aerospace with continued and robust OE production growth and solid aftermarket momentum. Since the beginning of the year, our global civil aftermarket performed satisfactorily with 10% growth over an already strong first quarter of 2012. Based on growth in the first-quarter of 9.5% and the contribution of the newly-acquired Goodrich business, we upgrade our full-year revenue guidance for 2013 and confirm our renewed high confidence in our outlook for 2014 and beyond. ”

First-Quarter 2013 Revenue

Solid growth in revenue. For first-quarter 2013, Safran's revenue was Euro 3,404 million, compared to Euro 3,108 million in the same period a year ago, a 9.5% year-on-year increase (9.6% organic growth).

First-quarter 2013 revenue increased by Euro 296 million on a reported basis. On an organic basis, revenue increased by Euro 298 million as a result of good momentum in Aerospace, both on OE volumes and aftermarket activity.

Organic revenue was determined by applying constant exchange rates and by including the revenue in 2013 of acquired activities only for the comparable periods to the period in 2012 for which they are included in 2012 reported revenue. Hence, the following calculations were applied:

The slight unfavourable currency impact on revenue of Euro (3) million for first-quarter 2013 reflected a negative translation effect on revenue notably generated in USD, GBP and BRL , mitigated by a positive transaction impact in USD with a significant improvement in the Group's hedged rate (USD 1.29 to the Euro vs. USD 1.32 in the year-ago period).

2013 Outlook

The full-year 2013 revenue outlook is upgraded further to first-quarter revenue dynamics and the integration of Goodrich Electrical Power Systems business from April 1, 2013.

Revenue to increase by a percentage in the mid-to-high single digits (previously 5%) at an estimated average rate of USD 1.29 to the Euro.

Adjusted recurring operating income to increase by a percentage in the mid-teens at a hedged rate of USD 1.29 to the Euro.

Free cash flow to represent about 40% of adjusted recurring operating income taking into account the expected increase in capex and R&D to cope with rising production rates and new business opportunities.

The underlying assumptions for full-year 2013 outlook are unchanged:

Healthy increase in aerospace OE deliveries
Civil aftermarket increase in the high single digits
Incremental R&D cash effort of around Euro 200 million (vs. 2012)
Increase in tangible capex of around Euro 200 million (vs. 2012)
Continued margin improvement in Equipment
Stable profitability in Defence
Profitable growth for the Security business
Continued benefits from the on-going Safran+ plan to enhance the cost structure and reduce overhead.

Currency hedges

The Group has finalised its hedging for 2013 to 2014. Hedging for 2015 is almost completed with USD 4.4 billion achieved at USD 1.25 to rise to USD 4.8 billion at USD 1.25 as long as €/$<1.40 up to end 2013. Hedging for 2016 has been increased to USD 1.7 billion at USD 1.25 to rise to USD 4.1 billion at USD 1.25 as long as €/$<1.39 up to end 2014. At April 15, 2013, the firm hedge book amounted to USD 15.2 billion.

Hedged rates are unchanged at:

2013: USD 1.29 to the Euro
2014: USD 1.28 to the Euro
2015: targeted hedged rate at USD 1.26 to the Euro
2016: targeted hedged rate at or below USD 1.26 to the Euro

Shareholding structure

On March 27, 2013 the French State finalised the sale of 13 million shares in Safran, representing 3.12% of the Group's capital, via accelerated book-building reserved for qualified investors. Consequently, its holding in the Group fell from 30.2% to 27.08% (26.3% of voting rights).

Article 11 of the 1986 privatization law provides that in the event of the sale on the stock market of stakes in listed companies, shares must be offered to employees and former employees. Therefore, 1,444,444 shares will be offered by the French State to employees of Safran in the near term.

Business commentary

- Aerospace Propulsion

First-quarter 2013 revenue grew by 15.5% to Euro 1,831 million (15.3% on an organic basis) compared to revenue in the year-ago period of Euro 1,585 million. The increase in revenue was primarily driven by strong growth in civil original equipment and spares, both for CFM56 and high-thrust engines. The strength of helicopter engine deliveries activity also contributed to revenue growth. Military revenue (original equipment and spares) was strongly up compared to an unusually soft first-quarter 2012 for the Rafale engine activity, and now benefitting from initial A400M engine deliveries. Space & missile propulsion revenue was flattish in the first-quarter.

OEM CFM56 engine deliveries at 390 units were up by 3% compared to the same period a year ago. In the first quarter, total commitments and firm orders for CFM56 and LEAP amounted to 473 engines. The global backlog for these engines stands at about 7 years of production at current rates and notably contains orders and commitments for more than 4,500 next-generation LEAP engines.

In the first-quarter 2013, civil aftermarket revenue grew by 10.0% in USD terms, driven by first overhauls of recent CFM56 and GE90 engines. Individual quarters can include significant variation induced by comparison basis and variability in airline behaviour. Overall service revenue in Aerospace Propulsion grew by 11.3% in Euro terms and represents a 48.0% share of revenue. Military engines aftermarket reported a 2-digit revenue growth compared to a soft comparison base.

- Aircraft Equipment

The Aircraft Equipment activity reported first-quarter 2013 revenue of Euro 924 million, up 4.6% (4.8% on an organic basis), compared to Euro 883 million in the year-ago period. The increase in revenue was primarily attributable to the landing gear business, with higher deliveries notably on Boeing 787, A330 and A320 programs coupled with a growing MRO activity. The nacelle business recorded a soft revenue increase. Indeed, the increase in service contracts and OE deliveries on A330 thrust reversers was partly mitigated by lower A380 nacelles deliveries in the first-quarter 2013 (28 units compared to 32 nacelles in the year-ago period), as well as lower deliveries of small nacelles for business and regional jets. The electrical harnessing activity saw a good performance driven by a production ramp up in its product lines, notably the Boeing 787 and A350 programs. In the first-quarter 2013, overall service revenue in Aircraft Equipment grew by 7.0% driven by higher aftermarket activities, notably in nacelles and auxiliary power transmission, and its share of Aircraft Equipment revenue slightly grew to 28.0% of total sales.

- Defence

First-quarter 2013 revenue was broadly flat at Euro 304 million (down 1.0% compared to Euro 307 million in the previous year or down 0.7% on an organic basis). The resilient performance was mainly driven by solid revenue growth in the avionics activity, notably in Flight Control Systems and guidance activities. This trend was partially offset by softer revenue in Optronics given the tough year-over-year comparison base for the long-range infra-red goggles on export markets, notably as a consequence of U.S. military budget contraction. Safran Electronics benefitted from the increasing activity of its digital engine control system (FADEC) for the LEAP engine.

- Security

The Security activity reported first-quarter 2013 revenue of Euro 344 million, up 3.6% compared to the year-ago period. On an organic basis, it was up 4.8% driven by renewed momentum in biometric identity solutions with additional billings in countries such as Egypt and Kenya which suffered from some delays in the latter part of 2012. The activity also benefitted from the initial sales of biometric terminals in India. MorphoTrust had a strong quarter driven by the sale of consumables. e-Documents saw a temporary decline in sales compared to a strong quarter last year, due notably to a change in legislation in the Indian telecom market and a slowdown of the banking Brazilian market which completed its full EMV Eurocard, Mastercard, Visa) migration in 2012. Detection recorded significant new orders in the quarter that should lead to some acceleration in revenue during the year, starting from a flattish first quarter 2013 due to low Trace volumes and unfavourable mix on Explosive Detection Systems.

Subsequent events

Safran today announced the signing of a definitive agreement for the purchase of the Rolls-Royce share of their RTM322 helicopter engine programme. A separate press release was published with more details on the transaction.

Upcoming events

Annual Shareholders Meeting May 28, 2013 Capital Market Day (CMD'13) June 16, 2013 H1 2013 results July 26, 2013 Q3 2013 revenue October 24, 2013

Key figures

Notes

[1] Adjusted data

To reflect the Group's actual economic performance and enable it to be monitored and benchmarked against competitors, Safran prepares an adjusted income statement alongside its consolidated financial statements.

Particularly, Safran recognizes, all changes in the fair value of its foreign currency derivatives in “financial income (loss)”, in accordance with the provisions of IAS 39 applicable to transactions not qualifying for hedge accounting.

Accordingly, Safran's consolidated income statement is adjusted for the impact in financial income (loss) of 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 hedging rate, i.e., including the costs of the hedging strategy;

the recognition of the mark-to market of unsettled hedging instruments at the closing date is neutralized.

First-quarter 2013 reconciliation between consolidated revenue and adjusted revenue.

[2] 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.

Press
Catherine Malek
Tel : +33 (0)1 40 60 80 28
Email:catherine.malek@safran.fr

Investor Relations
Pascal Bantegnie
Tel : +33 (0)1 40 60 80 45
Email :pascal.bantegnie@safran.fr

Peter Campbell
Tel :+33 (0)1 40 60 35 96
Email :peter.campbell@safran.fr

Safran
2, bd du Général Martial Valin
75724 Paris Cedex 15 - France

Messier-Bugatti-Dowty expands its Walton wheels and carbon brakes facility

Safran in North America — 2013-04-23T16:23:00Z

Walton, Kentucky, April 23, 2013 - Messier-Bugatti-Dowty (Safran) announced today the expansion of its wheels and carbon brakes facility in Walton, KY.

The expansion will add more than 40% surface to the existing carbon brake production facility footprint. This capacity has been added to accommodate the significant increase in the plant's production volumes and refurbishment activities of carbon brake disks for the commercial and military aircraft industry. This $50 million investment is the facility's sixth expansion since its opening in 1999.

With over 50% market share for commercial jets seating more than 100 passengers, Messier-Bugatti-Dowty is the world leader in carbon brakes. The company has launched a major program to expand its carbon production footprint, and the Walton expansion supports this growth.

Alain Sauret, Chairman and CEO of Messier-Bugatti-Dowty said, “We are very pleased today to inaugurate the facility expansion in Walton. The plant is of one our core wheels and brakes manufacturing facilities, fully dedicated to North American military and commercial programs. Our proven technological solutions, backed by first-class manufacturing facilities such as Walton, have enabled us to secure our world leading position in carbon brakes, and gain significant market share in North America.”

Pat Haywood, CEO of Messier-Bugatti USA, added “I would like to thank all team members, both at Walton and in France, for their contributions to enable this very important project to be completed on-time and within budget. In addition, I would like to thank the business community of Northern Kentucky, the equipment suppliers and the companies involved in construction that enabled the achievement of this objective.”

“We're excited to see further growth at Messier-Bugatti USA in Northern Kentucky with this $50 million investment,” said Kentucky Governor Steve Beshear. “It is remarkable that Messier-Bugatti has enjoyed six expansions since 1999, which is a real testament to the business climate in Kentucky and the world class quality of the company.”

Work on the new expansion began in December 2011, including the progressive installation of four state-of-the-art furnaces to handle the 50% increase of production volumes over the coming years.

The Walton facility supports leading North American programs such as Boeing 737, 777 and 787, as well as military programs such as C-17 and KC 135. The capacity expansion should generate more than 10% growth in headcount.

Messier-Bugatti-Dowty (Safran group), is the world leader in aircraft landing and braking systems. Company capabilities encompass the full life cycle of our products, ranging from design and manufacture to in-service support, repair and overhaul. Messier-Bugatti-Dowty is a partner to 30 leading commercial, military, business and regional airframers, and supports more than 23,000 aircraft making over 40,000 landings every day. The company employs 6,800 staff working in locations across Europe, North America and Asia.

Messier-Bugatti USA is located in Walton, Kentucky, and employs 225 staff. Activities include the production and refurbishment of carbon brake disks. The plant was designated as one of the “Best Places to Work in Kentucky” in 2009 and 2010, followed by distinctions in 2012 and 2013 as one of the “Healthiest Employers of the Greater Cincinnati area”.

Safran USA, Inc, is a wholly- owned subsidiary of the Safran group, a global leader in aerospace, defense and security. The group's U.S. industrial footprint comprises 31 companies and joint ventures, which bring together the resources of nearly 7,000 employees across 58 locations in 22 states.

Safran USA
Michelle Lyle
Tel : +1-703-797-9662
michelle.lyle@safranusa.com

Messier-Bugatti-Dowty
Alison Joly
Tel: +33 (0)1 46 29 18 22
alison.joly@safranmbd.com

New maintenance agreement highlights Safran participation at MRO Americas

Safran in North America — 2013-04-22T18:15:41Z

Safran's active presence at MRO Americas 2013 included a contract signed by Messier-Bugatti-Dowty (Safran) with American low-cost carrier Allegiant, covering maintenance operations on the airline's Airbus A320 Family aircraft.

Messier-Bugatti-Dowty (Safran) signed a maintenance contract with American lost-cost carrier Allegiant at MRO Americas 2013. From right to left, Jean Souetre, Vice President of Sales & Marketing for Messier-Bugatti-Dowty's Wheels and Brakes Division, marks the agreement with Kris Bauer, Senior Vice President of Operations for Allegiant.

Under the agreement inked April 18, Messier-Bugatti-Dowty – the world leader in aircraft landing and breaking systems – will handle maintenance on the wheels and carbon brakes on Allegiant's Airbus A319 and A320 jetliners.

Safran showcased its MRO (maintenance, repair and overhaul) capabilities on a 54-square-meter booth with Aircelle, Hispano-Suiza and its Safran Power division, Messier-Bugatti-Dowty, and Snecma displaying some of their key products – including thrust reversers, electrical systems and nose landing gear from an Airbus A320.

“Safran has decades of expertise in aviation services and performs maintenance, repair and overhaul for all of its products,” said Peter Lengyel, President and CEO of Safran USA. “Our MRO facilities are strategically placed in major aviation hubs, close to our customers, so we can provide immediate and reliable MRO and retrofit services on both civil and military platforms. As a service provider to leasing companies and all the major and regional airlines, Safran is continuously looking to optimize its operations and grow its services network to best serve the North American market.”

Representatives of Aerosource, Labinal, Safran Engineering Services, Safran USA, Safran Power, Technofan, Sagem Avionics Inc., Snecma America Engine Services (SAMES), Turbomeca and A-Pro also attended MRO Americas 2013.

MRO Americas 2013 is the world's largest maintenance event dedicated to leaders in the civil aviation and defense MRO industry and was held April 16-18 in Atlanta, Georgia. There were some 650 exhibitors at the three-day conference.