Safran Sa · EURONEXT:SAF
Safran Sa — Q3 2017 Earnings Presentation
24 slides from Safran Sa's earnings presentation, Oct 27, 2017
Slide 1: Third-Quarter and First Nine Months 2017 Revenue
THIRD-QUARTER AND FIRST NINE MONTHS 2017 REVENUE This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 2: Disclaimer
Disclaimer > IMPORTANT ADDITIONAL INFORMATION This document is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an offer to purchase or the solicitation of an offer to sell any securities or the solicitation of any vote or approval i
Slide 3: Q3 2017 Highlights
1 Q3 2017 HIGHLIGHTS Philippe PETITCOLIN - CEO 3 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 4: Revenue highlights
Revenue highlights Q3 revenue (€M) 9m revenue (€M) 3,815 11,504 11,853 3,517 +8.5% +3.0% +5.1% +11.3% organic* organic* Q3 2016 Q3 2017 9m 2016 9m 2017 Q3 revenue 9m revenue organic* growth higher than annual guidance Strong organic* growth of 11.3%. From July 1, 2016, the space launcher busines
Slide 5: Update on LEAP program
Update on LEAP program Executing on production ramp-up 257 LEAP delivered in 9 months 2017 compared to 33 engines in 9 months 2016 > Beginning of LEAP-1B production ramp up: 88 deliveries > Continuing ramp up of LEAP-1A production: 169 deliveries LEAP-1A In operations at 16 airlines with more th
Slide 6: Q3 2017 business highlights
Q3 2017 business highlights CFM56 production ramping down in line with assembly rates at airframers 366 CFM56 engines deliveries in Q3-17 (down from 407 in Q3-16) and 1 076 in 9 months 2017 (down from 1 293 in 9 months 2016) Helicopter turbines Presentation of the brand-new Aneto high-power engi
Slide 7: Q3 2017 business highlights
Q3 2017 business highlights First flight of A330neo Safran supplies the nacelle, landing gear, wheels and carbon brakes*, cabling and electrical systems. Signature of major carbon brakes contracts A330neo Including United Airlines, Ethiopian and GOL for Boeing 737 NG and MAX fleets and Interjet
Slide 8: Q3 and 9M 2017 Revenue
2 Q3 AND 9M 2017 REVENUE Bernard DELPIT – Group CFO 8 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 9: Foreword
Foreword All revenue figures in this presentation represent adjusted revenue(1). The disposal of Safran Identity & Security was completed in the first half of 2017. In application of IFRS 5, comparisons to revenues in 2016 exclude these businesses from the first half of 2017 and the first nine month
Slide 10: Foreign exchange effects
Foreign exchange effects Average spot rate Translation effect: foreign currencies translated into € Q3 2016 Q3 2017 $1.12 $1.17 Negative impact mainly from USD in Q3 Average spot rate Impact on Revenues and Return on Sales 9m 2016 9m 2017 $1.12 $1.11 Hedge rate Transaction effect: mismatch betwe
Slide 11: Q3 2017 revenue
Q3 2017 revenue (in M€) +8.5% Organic growth: +11.3% 398 3,915 (103) 3,812 3 3,815 Currency impact: (2.9)% 3,517 Negative translation effect on non-Euro revenues, principally USD Scope: ns 11.3% Q3 2016 Organic Q3 2017 at Currency Q3 2017 Changes in Q3 2017 variation Q3 2016 scope impact at Q3 201
Slide 12: 9m 2017 revenue (continuing operations)
9m 2017 revenue (continuing operations) (in M€) +3.0% Organic growth: +5.1% 587 12,091 58 12,149 (296) 11,853 11,504 Currency impact: ns Scope: (2.6)% Contribution of Safran’ space launcher activities to ArianeGroup starting July +5.1% 1, 2016: €(312)M in H1 2016 9m 2016 Organic 9m 2017 at Currenc
Slide 13: Q3 2017 revenue by activity
Q3 2017 revenue by activity Growth drivers Aerospace propulsion : > OE revenue growth of 13.3% notably thanks to increasing volumes of LEAP (110 units delivered in Q3-17 versus 22 in Q3-2016) and M88 deliveries (12 deliveries of which 4 for export contracts versus Adjusted data Change Change Q3 20
Slide 14: 9m 2017 revenue by activity
9m 2017 revenue by activity Growth drivers Aerospace propulsion : +4.9% (organic basis) > Services up 8.6%, driven by strong civil aftermarket (+10.4% in USD) Adjusted data Change Change > OE: increased volumes for LEAP (257 LEAP deliveries in 9m 9m 2016 9m 2017 (in Euro million) reported organic
Slide 15: FX Hedging: $15.9bn hedge portfolio
FX Hedging: $15.9bn hedge portfolio* (October 19, 2017) 2018 Yearly exposure: $7.5bn to $8.0bn Increasing level of net USD exposure for 2017-20 in line with the Fully hedged at 1.18 growth of businesses with exposed USD revenue 2019 $2.9bn achieved through forward sales and 2017 & 2018 fully hed
Slide 16: FY 2017 Outlook
3 FY 2017 OUTLOOK Philippe PETITCOLIN - CEO 16 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 17: Full-year 2017 outlook
Full-year 2017 outlook Safran raises its expectation for 2017 adjusted revenue on a full-year basis: Reported adjusted revenue to grow above 3% at an estimated average rate of USD 1.10 to the Euro (previously +2 to 3%). Excluding the effect of the equity accounting of ArianeGroup from July 1, 2016
Slide 18: Q&A
4 Q&A 18 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 19: Additional Information
5 ADDITIONAL INFORMATION 19 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran
Slide 20: Q3 2017 and 9m 2017 consolidated and adjusted revenue
Q3 2017 and 9m 2017 consolidated and adjusted revenue Hedge accounting Business combinations Q3 2017 Consolidated Amortization of PPA impacts - Adjusted revenue revenue Re-measurement Deferred hedging (In Euro million) intangible assets other business of revenue gain (loss) - Sagem/Snecma combinatio
Slide 21: Aerospace OE / Services split
Aerospace OE / Services split Reported change of Propulsion OE revenue From July 1, 2016, the space launcher business no longer contributes to Aerospace propulsion OE revenue whereas it had done so in 2016 (Euro 312 million in H1 2016). Excluding space activities in 2016, Propulsion OE revenue gre
Slide 22: Quantities of major aerospace programs
Quantities of major aerospace programs Q3 2016 Q3 2017 % 9m 2016 9m 2017 % Number of units delivered CFM56 engines 407 366 (10)% 1,293 1,076 (17)% LEAP engines 22 110 n/a 33 257 n/a High thrust engines 148 115 (22%) 515 371 (28%) Helicopter engines 136 130 (4)% 485 444 (8)% M88 engines - 12 n/a 9 24
Slide 23: Definition
Definition Civil aftermarket (expressed in USD) This unaudited performance indicator comprises spares and MRO (Maintenance, Repair & Overhaul) revenue for all civil aircraft engines for Safran Aircraft Engines and its subsidiaries only and reflects the Group's performance in civil aircraft engines
Slide 24: 24 Safran / Q3 2017 revenue / October 27, 2017
24 Safran / Q3 2017 revenue / October 27, 2017 This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran