FIRST-HALF 2019 EARNINGS

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FIRST-HALF 2019 EARNINGS


> FORWARD-LOOKING STATEMENTS

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involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those included in such statements. These statements or

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similar words, phrases or expressions. Many of these risks and uncertainties relate to factors that are beyond Safran’s control. Therefore, investors and shareholders should not place undue reliance

on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: uncertainties related in particular to the

economic, financial, competitive, tax or regulatory environment; the risks that the new businesses will not be integrated successfully or that the combined company will not realize estimated cost

savings and synergies; Safran’s ability to successfully implement and complete its plans and strategies and to meet its targets; the benefits from Safran’s plans and strategies being less than

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comparable to similarly titled information from other companies

Disclaimer

2 Safran / H1 2019 earnings / September 5, 2019


Safran / H1 2019 earnings / September 5, 20193

H1 2019 HIGHLIGHTS

Philippe PETITCOLIN - CEO

1


H1 2019 overview


Operations

Strong sales organic growth

CFM56-LEAP transition on track. New orders and commitments for more than 1,150 LEAP

engines, along with long-term services agreement, announced during 2019 Paris Air Show

Reorganization of the Equipment businesses, reflecting ex-Zodiac Aerospace integration

Finance

Significant increase in profitability across all divisions

2019 outlook raised for revenue and recurring operating income. Updated FCF conversion

rate based on an assumption of return to service for Boeing 737MAX in Q4

New strategic partnerships

Safran and MTU Aero Engines join forces for the next-generation European fighter engine

Daher, Airbus and Safran team-up to develop EcoPulseTM, a distributed hybrid propulsion

aircraft demonstrator

LEAP-1A at Paris Air Show

Next-generation European fighter


H1 2019 financial highlights


Adjusted revenue(1) growth of 27.3%Strong organic growth of 14.2%

H1 18 H1 19

(€M)

9,506

12,102

Adjusted recurring operating income(1) growth of 35.9%

H1 18 H1 19

(€M)

1,386

1,883

Strong free cash flow generation at €1,177M

H1 18 H1 19

(€M)

1,177

Net debt position

12/31/2018 06/30/2019

(3,269)

(€M)

(3,970)

1/1/2019

(incl. IFRS16)

(3,798)

+27.3% +35.9%

820+43.5%

Adjusted net profit(1) (group share)

H1 18 H1 19

(€M)

932

1,353

+45.2%2.17

Basic earnings per share (group share)

H1 18 H1 19

(€)

3.13

(1) See slide 14

for bridge with

consolidated

figures

To be noted:

Safran H1 2018

earnings includes

four months of

earnings from

Aerosystems and

Aircraft Interiors+44.2%

+14.2%

org

+34.6%

org


0

50

100

150

200

250

300

350

400

450

500

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

6

CFM56-LEAP transition update

LEAP strong commercial success

1,573 orders and commitments logged in H1 2019

Total backlog (orders and commitments) of 15,997 engines at July 31, 2019

61% market share on A320neo family at July 31, 2019

LEAP production ramp-up

861 LEAP delivered in H1 2019 compared to 438 engines in H1 2018

LEAP-1A: 44 airlines are operating 454 aircraft powered by LEAP-1A engines totaling

over 3.3 million flight hours so far

LEAP-1B: 54 airlines were operating 389 aircraft powered by LEAP-1B engines totaling

over 1.7 million flight hours until March 13, 2019

Production cost reduction program on going

CFM56 engines demand ramping down as planned

258 units delivered in H1 2019 compared with 591 units in 2018

1 billion engine flight hours for the CFM56

LEAP ramp-up (deliveries)


2016 2017 2018 2019

LEAP final assembly



H1 2019 business highlights (1/2)

Propulsion

Good momentum continues for the civil aftermarket indicator: +10.2% (in $), supported by

spare parts sales of CFM56 latest generation

New certifications for Helicopter turbines: Arrano-1A (powering the Airbus Helicopters H160) by

EASA; Arriel 2H (powering the Avic AC312E) by Civil Aviation Administration of China

Aircraft Equipment, Defense and Aerosystems

Nacelles: Delivery of the 1,000th nacelle system for the A320neo; continuing ramp up : +108

units vs. H1 2018

Landing systems: successful flight tests of the first Safran & Michelin connected aircraft tire,

PresSense

Electrical systems: signature of several contracts (incl. Electrical wiring contract for Airbus

Helicopters H160; Electrical harnesses contract for the 777X and renewed collaboration on the

787 Dreamliner); Saab chooses Safran's Auxiliary Power System for the Boeing T-X military

training aircraft

Defense:

> Patroller tactical drone undertakes qualification test flights

> Support services for the Royal Australian Navy's Infrared Search and Track (IRST) VAMPIR

systems.

MRO on CFM56

787 wire harness



H1 2019 business highlights (2/2)

Aircraft Interiors

Cabin:

> A US private jet company to supply their 175 Cessna Longitude aircraft with Safran ovens

> A major Middle East airline to equip their 787 & A320 with Safran inserts

> Mitsubishi SpaceJet Family to incorporate Safran full scale integrated interiors (galleys,

lavatories, overhead bins, passenger service units, sidewalls, ceiling panels)

Seats:

> First delivery of a “Cirrus NG” business seat order for 12 A350 in April

> First delivery of a "S-Lounge" business seat order for 75 Boeing 777X in May

> First delivery of a “Fusio" business seat order for 12 Boeing 777-300ER in May

> First delivery of an “Optima Prime” business seat order for 10 A350 in July

Passenger Solutions:

> 1st 787 IFE contract for Line Fit installation from a major Middle Eastern Airlines. Since then,

two other RAVE IFE 787 Line Fit contracts secured from two different customers

> 1st A350 RAVE IFE system delivered to a Chinese Airline operator

> Sustained Aftermarket business supported by sales of Air Management’s Health Monitoring

Products and Water & Waste Sales to the Military

NUVO Series, suite of galley

electrical inserts

IFE and Z300 Seats


Complete the LEAP ramp-up and deliver on 2019 commitments

in an uncertain context

Continue to manage a large installed fleet of civil engines and

ensure the transition towards Rate Per Flight Hour (RPFH)

contracts

Leverage on the Aerosystems portfolio to strengthen our

equipment positions

Continuing recovery work for Aircraft Interiors

Maintain innovation and operational excellence across all

divisions

Key priorities


Carbon brakes aftermarket



H1 2019 RESULTS

Bernard DELPIT – Group CFO

2


Foreword


(1) See slide 14 for bridge with consolidated and adjusted income statements

Adjusted data

All revenue figures in this presentation represent adjusted data(1) (except

where noted). 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 aircraft programs revalued at the time of the Sagem-Snecma

merger. With effect from the first half 2010 interim financial statements, the

Group decided to restate:> the impact of purchase price allocations for business combinations, particularly

amortization and depreciation charged against intangible assets and property,

plant and equipment recognized or remeasured at the time of the transaction and

amortized or depreciated over extended periods due to the length of the Group’s

business cycles and the impact of remeasuring inventories, as well as

> gains on remeasuring any previously held equity interests in the event of step

acquisitions or asset contributions to joint ventures;

Safran has also applied these restatements to the acquisition of Zodiac

Aerospace with effect from 2018

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

> all mark-to-market changes on instruments hedging future cash flows are

neutralized

The resulting changes in deferred tax have also been adjusted.

Consolidation of Zodiac Aerospace

Aerosystems and Aircraft Interiors (former Zodiac Aerospace

activities) are fully consolidated in Safran’s financial statements

starting March 1, 2018.

Safran H1 2019 results include six months of revenue from

Aerosystems and Aircraft Interiors.

New presentation of segment information as of June 30, 2019.

Organic growth

Organic variations were determined by excluding the effect of

changes in scope of consolidation (notably the contribution of

Aerosystems and Aircraft Interiors in January and February 2019) and

the impact of foreign currency variations.

Recurring operating income

Operating income before capital gains or losses on disposals /impact

of changes of control, impairment charges, transaction and integration

costs.

2019 Outlook

2019 outlook is established considering the application of the new

IFRS16 standard.


FX (1/2)


Translation effect: foreign currencies translated into €

Positive impact mainly from USD

Impact on Revenues and Return on Sales

Transaction effect: mismatch between $ sales and € costs is hedged

Mark-to-Market effect

€353M gain on fair value of financial instruments in consolidated accounts

H1 2018 H1 2019

$1.21 $1.13

H1 2018 H1 2019

$1.18 $1.18

06/30/2018 12/31/2018 06/30/2019

$1.17 $1.15 $1.14

Average spot rate

Hedge rate

Spot rate at close


8.9 9.4 9.3 8.9

6.0

0.3 0.9

3.5

2018 2019e 2020e 2021e 2022e

FX (2/2) - $28.9bn hedging portfolio (August 23, 2019)

13

Average annual exposure estimated at $9.4bn to $10.0bn going

forward reflecting the growth of USD-exposed businesses2019

$9.4bn is hedged at a target rate of $1.18

o Knock out options barriers set at various levels between $1.17 and

$1.31 with maturities up to end 2019

2020

Firm coverage of $9.3bn achieved through forward sales and

knock out options to rise to $9.6bn at a target rate between

$1.16 and $1.18


$1.32 with maturities up to mid 2020

2021

Firm coverage of $8.9bn achieved through knock out options

to rise to $9.8bn at a target rate between $1.15 and $1.18


$1.33 with maturities up to mid-2020

2022

Firm coverage of $6.0bn achieved through knock out options

to rise to $9.5bn at a target rate between $1.15 and $1.18

o Knock out options barriers set between $1.20 and $1.25 with maturities

up to mid-2020

€/$ hedge

rate target1.18 1.18 1.16-1.18 1.15-1.18 1.15-1.18


(in $Bn)


Consolidated and adjusted income statements


H1 2019 reconciliation (In €M) Consolidated data

Currency hedging Business combinations

Adjusted

dataRe-measurement of

revenue

(1)

Deferred hedging

(loss)/gain

(2)

Amortization

of intangible assets -

Sagem/Snecma merger

(3)

PPA impacts - other

business

combinations

(4)

Revenue 12,315 (213) 12,102

Other operating income and expenses (10,502) (2) 25 176 (10,303)

Share in profit from joint ventures 64 20 84

Recurring operating income 1,877 (215) 25 196 1,883

Other non-recurring operating income and expenses 32 32

Profit (loss) from operations 1,909 (215) 0 25 196 1,915

Cost of debt (21) (21)

Foreign exchange gains (losses) 150 215 (353) 12

Other financial income and expense (23) (23)

Financial income (loss) 106 215 (353) (32)

Income tax expense (550) 113 (8) (51) (496)

Profit (loss) from continuing operations 1,465 (240) 17 145 1,387

Attributable to non-controlling interests (33) (1) (34)

Attributable to owners of the parent 1,432 (240) 16 145 1,353

(1) Remeasurement of foreign-currency denominated revenue net of purchases (by currency) at the hedged rate (including premiums on unwound options) through the reclassification of changes in the fair value of

instruments hedging cash flows recognized in profit or loss for the period.

(2) Changes in the fair value of instruments hedging future cash flows that will be recognized in profit or loss in future periods (negative €353 million excluding tax), and the impact of taking into account hedges when

measuring provisions for losses on completion (zero at June 30, 2019).

(3) Cancelation of amortization/impairment of intangible assets relating to the remeasurement of aircraft programs resulting from the application of IFRS 3 to the Sagem-Snecma merger.

(4) Cancellation of the impact of remeasuring assets at the time of the Zodiac Aerospace acquisition for €156 million excluding deferred tax and cancellation of amortization/impairment of assets identified during other

business combinations.


H1 2019 income statement


(In €M) H1 2018 H1 2019

Revenue 9,506 12,102

Other recurring operating income and expenses (8,202) (10,303)

Share in profit from joint ventures 82 84


% of revenue

1,386

14.6%

1,883

15.6%

Total one-off items (26) 32

Profit from operations

% of revenue

1,360

14.3%

1,915

15.8%

Net financial income (expense) (114) (32)

Income tax expense (272) (496)

Profit for the period 974 1,387

Profit for the period attributable to non-controlling interests (42) (34)

Profit attributable to owners of the parent 932 1,353

EPS (basic in €) 2.17* 3.13**

EPS (diluted in €) 2.11*** 3.09****

* Based on the weighted average number of shares of

428,935,570 as of June 30, 2018

** Based on the weighted average number of shares

of 432,218,259 as of June 30, 2019

*** Based on the weighted average number of shares

after dilution of 441,222,853 as of June 30, 2018

**** Based on the weighted average number of shares

after dilution of 437,834,002 as of June 30, 2019

Mainly capital gains on a building

disposal

Apparent tax rate of 26.3%

Of which cost of debt of €(21)M


1,346 10,852

9,506

410

840 12,102

+14.2%

H1 2019 revenue


Organic growth H1 2019 at H1

2018 scope

and exchange

rates

Currency

impact

Changes in

scope

H1 2019 at

H1 2018

scope

11,262

+27.3%

H1 2019H1 2018

Organic growth: +14.2%

Propulsion: +19.0%

Aircraft Equipment, Defense &

Aerosystems: +8.6%

Aircraft Interiors: +11.9%

Currency impact: €410M

Positive translation impact mainly from the

strengthening of the USD versus the Euro

in H1 2019

Changes in scope: €840M

Contribution of €781M from former Zodiac

Aerospace activities (2 months)

Taking into account ElectroMechanical

Systems previously a part of Rockwell

Collins (€59M)

In €M


480 1,866

1,386

(18)

35 1,883

H1 2019 recurring operating income


Variation

excluding

currency impact

and changes in

scope

H1 2019 at H1

2018 scope

and exchange

rates

Currency

impact

Changes in

scope

H1 2019 at

H1 2018

scope

1,848

+35.9%

H1 2019H1 2018

Main organic drivers

Positive volume effect in all activities, both

from OE (ramp up of new programs, M88

deliveries) and services (civil aftermarket)

Productivity gains and cost reductions

Negative impact of the CFM56-LEAP

transition on profitability

Higher R&D impact in P&L as planned

Scope

Contribution from former Zodiac

Aerospace activities (€40M) and

ElectroMechanical Systems activities

In €M

+34.6%


Research & Development


(In €M) H1 2018 H1 2019 Change

Total R&D (726) (851) (125)

R&D sold to customers 161 200 39

R&D expenses (565) (651) (86)

as a % of revenue 5.9% 5.4% (0.5)pt

Tax credit 72 83 11

R&D expenses after tax credit (493) (568) (75)

Gross capitalized R&D 139 152 13

Amortisation and depreciation of R&D (104) (144) (40)

P&L R&D in recurring operating income (458) (560) (102)

as a % of revenue 4.8% 4.6% (0.2)pt

R&D expenses

€(651)M in H1 2019

Increase mainly related to Zodiac

Aerospace (6 months vs 4 months in

2018)

Gross capitalized R&D

€152M in H1 2019 up €13M compared to

H1 2018

P&L R&D in recurring operating

income

€(560)M in H1 2019

Increase mainly driven by the

consolidation of Zodiac Aerospace (2

months)

R&D in P&L remains rather stable as a %

of sales (4.6% in H1 2019 vs. 4.8% in H1

2018)


H1 2019 results by activity


(In €M) H1 2019Aerospace

Propulsion

Aircraft

Equipment,

Defense &

Aerosystems

Aircraft

Interiors

Holding

& others

Revenue 12,102 5,902 4,553 1,640 7

Year-over-year growth in % 27.3% 22.8% 22.7% 67.3% na

Year-over-year organic growth in % 14.2% 19.0% 8.6% 11.9% na

Recurring operating

income1,883 1,227 588 85 (17)

as a % of revenue 15.6% 20.8% 12.9% 5.2% na

Recurring operating margin variation

(vs H1 2018)+1.0pt +1.8pt +1.0pt +1.9pt na


Aerospace Propulsion


(In €M) H1 2018 H1 2019 ChangeOrganic

Change

Revenue 4,805 5,902 22.8% 19.0%

Recurring operating income 915 1,227 34.1%

% of revenue 19.0% 20.8% +1.8pt

One-off items (1) -

Profit (loss) from operations 914 1,227

% of revenue 19.0% 20.8%

Revenue

Higher volumes of narrowbody engines (CFM56 and LEAP): +8.7% to 1,119 units driven by LEAP ramp up (+423 deliveries) partially offset

by CFM56 progressive ramp down (-333 deliveries)

Positive contribution of military OE sales notably driven by higher volumes of M88 deliveries

Growth in services sales thanks to civil aftermarket (+10.2% in $) and military and helicopter turbines maintenance activities


Positive drivers: civil aftermarket; military activities (OE and services); helicopter turbines maintenance activities

Headwind of €(107)M on profitability from the CFM56-LEAP transition in H1 2019 vs. H1 2018


Aircraft Equipment, Defense and Aerosystems



Change

Revenue 3,711 4,553 22.7% 8.6%

Recurring operating income 442 588 33.0%

% of revenue 11.9% 12.9% +1.0pt

One-off items 5 (1)

Profit (loss) from operations 447 587

% of revenue 12.1% 12.9%

Revenue

OE (+7.6% org): higher volumes of nacelles for LEAP-1A powered A320neo grew by 108 units to 280 nacelles in H1 2019. Continuing ramp up of

A330neo nacelles deliveries (51 units) whereas A380 nacelles was a headwind. Growth also supported by the ramp up of the wiring and landing gear

deliveries for the Boeing 787 program

Services (+10.9% org.): growth mainly driven by nacelles as well as landing gear support activities and the growing contribution of carbon brakes.

Defense and Aerosytems support activities also contributed positively


Higher volumes (notably in services)

Cost reduction and productivity actions

Partially offset by higher R&D impact on P&L


Aircraft Interiors


Revenue

OE (+10.2% org.): growth mainly coming from business seats programs, toilets and floor to floor activities for Cabin and Connected Cabin for Passenger

Solutions

Services (+16.8% org.): mainly driven by Seats aftermarket activities


Positive organic growth for all activities

Cabin: higher volumes (notably in services) and benefits of cost reduction and productivity actions

Seats: growth mainly coming from services

Passenger Solutions: cost reduction and productivity actions for Water & Waste and IFE


Change

Revenue 980 1,640 67.3% 11.9%

Recurring operating income 32 85 165.6%

% of revenue 3.3% 5.2% +1.9pt

One-off items (2) (1)

Profit (loss) from operations 30 84

% of revenue 3.1% 5.1%


H1 2019 Free Cash Flow


(in €M) H1 2018 H1 2019

Recurring operating income 1,386 1,883

One-off items (26) 32

Amortization, provisions and depreciation (excl. financial) 449 517

EBITDA 1,809 2,432

Income tax and non cash items (90) 162

Cash from operating activities before change in WC 1,719 2,594

Change in WC (299) (863)

Cash from operating activities after change in WC 1,420 1,731

Capex (tangible assets) (387) (332)

Capex (intangible assets)* (213) (222)

Free cash flow 820 1,177

Increase of working capital

requirements in the context of the

ramp-up of new programs

Of which

• Amortization €513M

• Provisions €(17)M

• Depreciation €21M

* Of which €139M capitalised R&D in H1 2018 vs €152M capitalised in H1 2019

Stability of Capex spendings;

exceptional cash-in from the

disposal of a building

34% increase in EBITDA, driven

by strong organic growth and

margin improvements in all

businesses

Including H1 2019 regularisations

on tax paid in H2 2018 in France


Net debt position


IFRS16 impact

> €(529)M of liabilities in net debt

position, corresponding to the

value of the rents still to be paid

2018 dividend of €1.82 per share

to parent holders

> €785M entirely paid in May

2019

Share buybacks

> Repurchased a total amount of

€458M worth of shares during

H1 2019

> Between July 1st, and August

30, 2019, execution of a new

tranche of €400M worth of

shares

> To date, the 2017 program is

executed for a total of €2.08bn

(a 90% completion rate)

(3,798)

(529)

2,594(554)

(815)

(76)

(in €M)

(3,269)

Dividends(1)

Net debt at Dec 31, 2018

Cash flowfrom ops

Share buybacks

Net debt atJune 30, 2019

Changein WC

R&Dand

Capex

€1,177M Free Cash Flow(1) Includes €(30)M of dividends to minority interests

(863)

(401)

3,044(721)

(3,970)

(1,290)

3,098

(4,536)

(522)

2,000

(458)

IFRS16 impact Others

Net debt at Jan 1, 2019


Balance sheet highlights as of June 30, 2019


(In €M) Dec 31, 2018June 30,

2019

Goodwill

Tangible & Intangible assets and right of use

Investments in joint ventures and associates

Other non current assets

Operating Working Capital

Net cash (debt)

5,173

14,211

2,253

811

(2,131)

(3,269)

5,182

14,611

2,253

736

(1,243)

(3,970)

Shareholders’ equity - Group share

Minority interests

Non current liabilities (excl. net cash (debt))

Provisions

Other current liabilities / (assets) net

11,955

346

2,249

2,777

(279)

12,116

347

2,143

2,875

88



2019 OUTLOOK

Philippe PETITCOLIN - CEO

3


2019 key assumptions adjusted


2019 outlook is based notably on the following assumptions:

Increase in aerospace OE deliveries and notably of military engines;

Civil aftermarket growth around 10% (previously in the high single digits);

Transition CFM56 – LEAP: overall negative impact on Propulsion adjusted recurring operating income variation in the

range Euro 50 to 100 million:

> Lower CFM56 OE volumes;

> Negative margin on LEAP deliveries.

Aircraft Interiors: 2019 to show stronger organic revenue growth. Continuing improvement of recurring operating

income margin;

Increase of R&D expenses in the range of Euro 150 to 200 million. Negative impact on recurring operating income

after activation and amortisation of capitalized R&D;

Increase in tangible investments.

2019 outlook is established considering the full application of the new IFRS16 standard. As reminder IFRS16 main impacts are:

- Euro (529) million impact of liabilities that are included in net debt position and that represent discounted future lease payments on the 2019 opening balance

sheet;

- Euro 47 million impact on cash from operations in H1 2019 and Euro (47) million impact on cash from financing activities in H1 2019.


FY 2019 guidance revised upwards for revenue and recurring operating income;

FCF refined in a context of uncertainty


Safran raises its FY 2019 revenue and recurring operating income outlook:

At an estimated average spot rate of $1.13 to the Euro in 2019, adjusted revenue is expected to grow by around 15% in 2019

compared with 2018 (previously in the range 7% to 9%). On an organic basis, based on our assumption for LEAP-1B deliveries

to Boeing, adjusted revenue is expected to grow by around 10% (previously by around 5%).

Adjusted recurring operating income is expected to grow comfortably above 20% (previously in the low teens) at a hedged

rate of USD 1.18 to the Euro.

Safran refines its free cash flow outlook:

From June 30, 2019, Safran revises the free cash flow impact of the Boeing 737MAX situation to approximately €(300)M per

quarter to reflect the decrease of pre-payments for future deliveries.

Based on an assumption of return to service for Boeing 737MAX in Q4 2019, free cash flow is expected to be in the range 50%

to 55% of adjusted recurring operating income (previously around 55%) as recurring operating income outlook is raised.

In case of a grounding of the Boeing 737MAX until the end of 2019, free cash flow to adjusted recurring operating income should be

below 50%. Current Boeing 737Max grounding’s impact on Safran free cash flow and any extension in 2019 is a deferral in cash

collection and should reverse in the following quarters.

2019 guidance is established considering the full application of the new IFRS16 standard and is based on continuing operations (Aerospace propulsion;

Aircraft Equipment, Defense & Aerosystems; Aircraft Interiors ; Holding & Others) at the Group’s scope as of January 1, 2019.



Q&A

4



APPENDIX

5


Segment information restated in line with the new organization


* Operating segments correspond to the organization of subsidiaries around tier-one operating companies

** Accounted for using the equity method at 50%


2018 segment information restated in line with the new organization (1/2)


Revenue

(in € millions)Aerospace

Propulsion

Aircraft Equipment,

Defense and

Aerosystems

Aircraft InteriorsHolding company and

otherTotal adjusted data

Q1 2018 revenue 2,319 1,641 256 6 4,222

Q2 2018 revenue 2,486 2,070 724 4 5,284

Q3 2018 revenue 2,524 2,052 769 3 5,348

Q4 2018 revenue 3,250 2,179 762 5 6,196

H1 2018


Propulsion

Aircraft Equipment,

Defense and

Aerosystems



Revenue 4,805 3,711 980 10 9,506

Recurring operating income 915 442 32 (3) 1,386

% of revenue 19.0% 11.9% 3.3% N/A 14.6%

Free cash flow 687 103 (30) 60 820

FY 2018


Propulsion

Aircraft Equipment,

Defense and

Aerosystems



Revenue 10,579 7,942 2,511 18 21,050

Recurring operating income 2,030 992 81 (80) 3,023

% of revenue 19.2% 12.5% 3.2% N/A 14.4%

Free cash flow 1,418 406 (67) 24 1,781


2018 segment information restated in line with the new organization (2/2)


FY 2018


Propulsion

Aircraft Equipment,

Defense and

Aerosystems

Aircraft Interiors Total

R&D expenses (546) (502) (178) (1,226)

% of revenue 5.2% 6.3% 7.1% 5.8%

Research tax credit 62 86 3 151

R&D expenses after tax credit (484) (416) (175) (1,075)

Gross capitalized R&D 103 172 45 320

Amortization and depreciation of R&D (106) (99) (13) (218)

Impact on recurring operating income (487) (343) (143) (973)

% of revenue 4.6% 4.3% 5.7% 4.6%


2019 segment information restated in line with the new organization


Revenue


Propulsion

Aircraft Equipment,

Defense and

Aerosystems



Q1 2019 revenue 2,771 2,201 806 3 5,781

Q2 2019 revenue 3,131 2,352 834 4 6,321


Shareholding status 06/30/19 (versus 12/31/18)


Voting rights as of December 31, 2018

Number of exercisable voting rights: 522,668,418

French State

18.4%

Public

71.0%

Employees

10.6%

Equity as of December 31, 2018

Number of shares: 435,767,951

French State

11.0%

Public

81.8%

Employees

6.9%

Treasury shares

0.3%

Voting rights as of June 30, 2019

Number of exercisable voting rights: 537,232,526

Equity as of June 30, 2019

Number of shares: 435,782,157

French State

17.9%

Public

71.0%

Employees

11.1%

French State

11.0%

Public

80.9%

Employees

6.9%

Treasury shares

1.2%


H1 2019: Research & Development by activity



Propulsion

Aircraft

Equipment,

Defense and

Aerosystems

Aircraft

Interiors

R&D expenses (651) (265) (274) (112)

as a % of revenue 5.4% 4.5% 6.0% 6.8%

Tax credit 83 32 47 4

R&D expenses after tax credit (568) (233) (227) (108)


Amortised R&D (144) (55) (82) (7)

P&L R&D in recurring operating income (560) (244) (231) (85)

as a % of revenue 4.6% 4.1% 5.1% 5.2%


H1 2018: Research & Development by activity



Propulsion

Aircraft

Equipment,

Defense and

Aerosystems

Aircraft

Interiors

R&D expenses (565) (261) (234) (70)

as a % of revenue 5.9% 5.4% 6.3% 7.1%

Tax credit 72 30 41 1

R&D expenses after tax credit (493) (231) (193) (69)


Amortised R&D (104) (53) (42) (9)

P&L R&D in recurring operating income (458) (242) (155) (61)

as a % of revenue 4.8% 5.0% 4.2% 6.2%


OE / Services revenue split


Revenue

Adjusted data(in Euro million)

H1 2018 H1 2019 % change

OE Services OE Services OE Services

Propulsion

% of revenue

2,076

43.2%

2,729

56.8%

2,492

42.2%

3,410

57.8%20.0% 25.0%

Equipment, Defense &

Aerosystems

% of revenue

2,531

68.2%

1,180

31.8%

3,084

67.7%

1,469

32.3%21.8% 24.5%

Aircraft Interiors

% of revenue

721 (1)

73.6%

259

26.4%

1,193 (1)

72.7%

447

27.3%65.5% 72.6%

(1) Retrofit is included in OE

To be noted: H1 2018 revenue includes four months of revenue from Aerosystems and Aircraft Interiors


Quantities of major aerospace programs


Number of units delivered

H1 2018

(March to

June)

H1 2019

Lavatories A350 241 400

Spaceflex V2 A320 (lavatories + galleys) 178 197

Business class seats 1,495 2,537

Emergency slides A320 1,296 2,398

Primary power distribution system 787 296 561

Number of units delivered H1 2018 H1 2019 %

LEAP engines 438 861 97%

CFM56 engines 591 258 (56)%

High thrust engines 201 234 16%

Helicopter engines 335 335 -

M88 engines 4 22 x4.5

787 landing gear sets 74 84 14%

A350 landing gear sets 40 41 2%

A380 nacelles 20 12 (40)%

A330neo nacelles 0 51 n/s

A320neo nacelles 172 280 63%

A320 thrust reversers 176 105 (40)%

Small nacelles (biz & regional jets) 309 304 (2)%


<1 year 1 to 5 years >5 years

€2,577M

€3,704M

€195M

Gross debt and liquidity


Gross debt repayment schedule(June 30, 2019)

Gross

debt

€6,476M (1)

Cash & equiv.

€2,470M

+

Debt hedging

instruments €36M

Net debt

€3,970M

Committed & undrawn financing resource:

Credit line - €2.52Bn, maturity Dec. 2022 – no covenant

The floating rate notes of €500M issued in June 2017 was repaid

at maturity in June 2019

The USD 155 million 7-year tranche of the USD 1.2Bn 2012 US

Private Placement was repaid at maturity in February 2019

(1) Incl. an IFRS16 impact of €(529)M


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 Safran Aircraft Engines and its subsidiaries and reflects the Group’s performance in civil aircraft engines

aftermarket compared to the market.


In order to better reflect the current economic performance, this subtotal named “recurring operating income” 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.

Free cash flow

Free cash flow represents cash flow from operating activities less any disbursements relating to acquisitions of property, plant and

equipment and intangible assets.



Documents

FIRST-HALF 2019 EARNINGS