Safran Sa · EURONEXT:SAF
Safran Sa — Safran Sa Ord — FY2024 Earnings Presentation
32 slides from Safran Sa's earnings presentation, Feb 14, 2025
Slide 1: FY 2024 Results
FY 2024 RESULTS February 14, 2025 Olivier ANDRIES Chief Executive Officer Pascal BANTEGNIE Chief Financial Officer
Slide 2: Disclaimer & foreword
Disclaimer & foreword FORWARD-LOOKING STATEMENTS This document contains forward-looking statements relating to Safran, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could
Slide 3: Key highlights
Key highlights ▪ 2024 revenues, profits and cash reaching record levels • Strong aftermarket activity across the board o Civil aftermarket +24.9% (in $) • Relentless focus on operational excellence o Operating margin improved by 150 bps o Profitability reached on Aircraft Interiors, Safran Seats bre
Slide 4: FY 2024 financial performance
FY 2024 financial performance Adjusted recurring operating Adjusted revenue(1) income(1) and margin(2) In €M In €M 4,119 27,317 +17.8% +30.1% 3,166 23,199 15.1% 13.6% +150bps FY 2023 FY 2024 FY 2023 FY 2024 Free cash flow Dividend (3) In €M 3,189 In € 2.90 2,945 +32% 2.20 FY 2023 FY 2024 FY 2023 FY
Slide 5: Latest business highlights
Latest business highlights Infrared multifunction binoculars ENGINeUS 100 certification for the Bundeswehr LEAP-1A new HPT blade certification A321 XLR First Commercial Flight with a LEAP-1A Commercial wins with Singapore and Egypt Navy 5 SAFRAN - FY 2024 Results / February 14, 2025 This document an
Slide 6: Sustainability highlights
Sustainability highlights TECHNOLOGICAL HIGHLIGHTS • Ground tests of the first liquid hydrogen-fueled turbine engine for light aviation with Turbotech and Air Liquide (BeautHyFuel project) • Completion of the EcoPulse flight test campaign with Daher and Airbus, showcasing the potential of distribute
Slide 7: FY 2024 Results
FY 2024 RESULTS / S SAFRAN
Slide 8: Consolidated and adjusted income statements
Consolidated and adjusted income statements Change in Mark-to-Market of instruments hedging future cash flows CURRENCY HEDGING BUSINESS COMBINATIONS Consolidated Adjusted FY 2024 reconciliation (In €M) data Re-measurement Deferred hedging Amortization of intangible PPA impacts – other data assets of
Slide 9: Estimated net exposure ($bn)
FX Estimated net exposure(2) ($bn) ▪ 2025 hedge rate set at $1.12 14 14 14 14 12.4 ▪ $54.7bn hedge book(1) as of Dec. 2024 ($54.0bn as of September 2024) Spot rate €/$ 2023 2024 Average spot rate 1.08 1.08 2024 2025e 2026e 2027e 2028e December 31st rate 1.11 1.04 €/$ hedge rate target 1.12 1.12 1.12
Slide 10: FY 2024 income statement
FY 2024 income statement (In €M) FY 2023 FY 2024 Revenue 23,199 27,317 Other recurring operating income and expenses (20,155) (23,357) Share in profit from joint ventures 122 159 Including Roxel +€83M Recurring operating income 3,166 4,119 others €(76)M including restructuring and M&A % of revenue t
Slide 11: FY 2024 revenue
FY 2024 revenue (In €M) ▪ Organic: +17.1% • Strong growth in OE (+17.2%) 17.8% • Services up across the board (+17.0%) 27,169 27,317 ▪ Currency: +0.1% 802 1,120 12 136 1,043 • €/$ spot rate: 1.08 in 2024 (1.08 in 2023) 23,199 1,005 ▪ Scope: +0.6% • Cargo and Catering divestment (May 2023) Organic •
Slide 12: FY 2024 recurring operating income
FY 2024 recurring operating income (In €M) 30.1% ▪ Recurring operating income up 30.1% 856 4,022 82 15 4,119 3,166 ▪ Operating margin up by 150 bps 15.1% 13.6% ▪ Main drivers Organic Growth in services, notably civil 27.0% engines aftermarket OE volume, price Operational excellence FY 2023 FY
Slide 13: Propulsion
Propulsion ▪ Civil engines (In €M) 2023 2024 Change Organic Change • OE deliveries o 1,407 LEAP, down 10% vs. 2023, volume more than offset by customer mix and price Revenue 11,876 13,652 15.0% 15.0% o High-thrust engines: 195 units (up 5 units vs. 2023) Recurring operating income 2,390 2,819 429 OE
Slide 14: Equipment & Defense
Equipment & Defense ▪ Equipment (In €M) 2023 2024 Change Organic Change • Strong growth in services in all activities • OE volumes up Revenue 8,835 10,618 20.2% 17.7% o Nacelles (G700 entry into service in H1, A320neo) o Electrical systems (787 and A320neo) Recurring operating income 992 1,298 306 O
Slide 15: Aircraft Interiors
Aircraft Interiors ▪ Strong organic revenue growth (In €M) 2023 2023 Change Organic Change • Dynamic widebody market and good momentum for cabin retrofit Revenue 2,477 3,037 22.6% 25.2% ▪ Cabin Recurring operating income (116) 27 143 OE: 24.5% • Robust level of services in Cabin, notably in Galleys
Slide 16: FY 2024 Free Cash Flow
FY 2024 Free Cash Flow (In €M) 2023 2024 Recurring operating income 3,166 4,119 One-off items (511) 6 Amortization at €1,107M (+6% YoY) Amortization, provisions and depreciation (excl. financial) 1,491 1,292 lower level of depreciation at €(18)M and provisions at €203M EBITDA 4,146 5,417 Income tax
Slide 17: FY 2024 net cash evolution
FY 2024 net cash evolution (In €M) S&P: A-, stable outlook €3,189M Free Cash Flow 4,725 7 (1,543) Change in WC (970) Net cash R&D (1,320) at Dec 31, 2024 and Capex 961 (304) Net cash (192) 1,738 Dividends(1) at Dec 31, 2023 M&A Others(3) 374 Shares Early redemption repurchase(2) OCEANE 2027 Net Cash
Slide 18: Shareholder returns
Shareholder returns ▪ Dividend up 32% ▪ Share repurchase programs • Safran will propose to its shareholders’ vote a dividend per • c. €1.3bn of shares repurchased in 2024 (c. 6.5m shares) share of €2.90 for fiscal year 2024, paid in 2025(1) o 2.1m shares for finalizing the 2028 OCEANEs hedging o 0.7
Slide 19: FY 2025 Outlook
FY 2025 OUTLOOK ; y S SAFRAN
Slide 20: FY 2025 outlook
FY 2025 outlook At current perimeter (excluding Collins), adjusted data, €/$ spot rate of 1.10 and hedge rate of 1.12 Preliminary outlook Outlook (CMD’24, December 5, 2024) (February 14, 2025) Revenues up around 10% up around 10% Recurring operating income €4.7 – 4.8bn €4.8 – 4.9bn €2.8 – 3.0bn €3.0
Slide 21: FY 2025 key priorities
FY 2025 key priorities ▪ Manage ramp-up in OE deliveries ▪ Keep airline customers flying ▪ Ensure smooth CFM56 / LEAP aftermarket transition ▪ Close Collins' actuation and flight control activity acquisition ▪ Accelerate pace of investment for decarbonization ▪ Focus on earnings and cash growth traj
Slide 22: Appendix
APPENDIX S SAFRAN
Slide 23: Number of products delivered on major aerospace programs
Number of products delivered on major aerospace programs Number of units delivered 2023 2024 Units % Number of units delivered 2023 2024 Units % LEAP engines 1,570 1,407 (163) (10)% A320neo landing gear sets 581 601 20 3% CFM56 engines 52 60 8 15% A320neo nacelles 579 622 43 7% High thrust engines 1
Slide 24: OE / Services revenue split
OE / Services revenue split REVENUE 2023 2024 Adjusted data (in €M) OE Services OE Services Propulsion 4,565 7,311 5,222 8,430 % of revenue 38.4% 61.6% 38.3% 61.7% Equipment & Defense 5,368 3,467 6,478 4,140 % of revenue 60.8% 39.2% 61.0% 39.0% Aircraft Interiors (1) 1,597 880 1,916 1,121 % of reven
Slide 25: FY 2024: Research & Development
FY 2024: Research & Development (In €M) 2023 2024 Change Total R&D (1,818) (1,980) (162) ▪ R&D expenses +11% at €1,348M in 2024 R&D sold to customers 602 632 30 ▪ R&T self-funded expenses at €671M (€598M in 2023) up 12%, focused on decarbonization (RISE program) R&D expenses (1,216) (1,348) (132) ▪
Slide 26: FY 2024: Research & Development by activity
FY 2024: Research & Development by activity Equipment & Aircraft (In €M) 2024 Propulsion Defense Interiors R&D expenses (1,348) (644) (511) (193) as a % of revenue 4.9% 4.7% 4.8% 6.4% Tax credit 178 74 99 5 R&D expenses after tax credit (1,170) (570) (412) (188) Gross capitalized R&D 325 110 121 94
Slide 27: Balance sheet as of December 31, 2024
Balance sheet as of December 31, 2024 (In €M) Dec 31, 2023 Dec 31, 2024 Goodwill 4,706 4,937 Tangible & Intangible assets and right of use 12,533 13,229 Investments in joint ventures and associates 1,928 1,894 Other non current assets 2,126 3,429 Operating Working Capital (3,450) (3,327) Net cash (d
Slide 28: Liquidity as of December 31, 2024
Liquidity as of December 31, 2024 ▪ Cash and cash equivalent of €6,514 million December 31, 2024 ▪ Net cash positive Undrawn revolving credit facility €2,000M ▪ In 2024, Safran reimbursed: ▪ $505 million of USPP Gross debt ▪ €200 million of Euro Private Placement €4,776M Cash & equiv. €6,514M ▪ Safr
Slide 29: New Civil Aftermarket indicators
New Civil Aftermarket indicators (y/y USD revenue growth) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY24 Civil aftermarket 27.3% 32.3% 20.4% 21.1% 24.9% (as published) Spare parts 13.4% 22.8% 11.4% 26.0% 16.5% Services 55.6% 53.4% 39.1% 11.8% 38.0% 29 SAFRAN - FY 2024 Results / February 14, 2025 This document
Slide 30: Definitions (1/2)
Definitions (1/2) ▪ Civil aftermarket (expressed in $) ▪ 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 aircraf
Slide 31: Definitions (2/2)
Definitions (2/2) ▪ Recurring operating income ▪ 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
Slide 32: Powered by Trust
POWERED BY TRUST