Safran Sa · EURONEXT:SAF
Safran Sa — Q3 2011 Earnings Presentation
20 slides from Safran Sa's earnings presentation, Oct 21, 2011
Slide 1: Third-Quarter 2011 Revenue
THIRD-QUARTER 2011 REVENUE Jean-Paul Herteman - Chairman & CEO Ross McInnes - Deputy CEO, CFO / October 21, 2011 / 0 / Q3 REVENUE 2011 / OCTOBER 21, 2011 / Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’auto
Slide 2: CFMI LEAP selected on 3 programs
CFMI LEAP selected on 3 programs Exclusive supplier Boeing 737 MAX è 1,800 aircraft ordered to date Dual source (engines selected on 1,300 aircraft to date) è CFM 80% market share to date (> 2,000 engines) Airbus A320neo è Addressable OE market over 10-15 years ≥ 6,000 aircraft (assuming 50% market
Slide 3: Update on MorphoTrust
Update on MorphoTrust è New organisation in place § CEO (Robert Eckel) Passports, IDs § Proxy Board (expected end of October) HIIDE è Integration team operational § Annual run-rate cost synergies of $30M within 18-24 months, of which headquarter closure (Stamford, CT) PIER 3D Face è Expected 2011 pr
Slide 4: Q3 2011 business highlights
Q3 2011 business highlights è Trading conditions remained solid in an uncertain +5.2% economic environment 2,728 2,593 è Soft areas well identified and temporary è Negative Fx translation (US$, GBP, CAD) (€M) Q3 2010 Q3 2011 è External growth (MorphoTrust, SME, Labinal Salisbury) 3 / Q3 REVENUE 2011
Slide 5: Aerospace OE
Aerospace OE CFM56 engines Q3 2010 Q3 2011 Change è Increased share of 2nd generation CFM engines in fleet Total installed base 20,570 21,814 6.0% future flow of high value services Share of 2nd gen. engines 55% 59% +4pts è 434 new engine orders in Q3 2011 Number of deliveries 1. CFM56 engines 294 3
Slide 6: Aerospace services
Aerospace services è Propulsion § CFM spares’ trends continuing although comparison base changing: Services* revenue Q3 2010 Q3 2011 Change Q3 up +4.3% vs. Q3 2010; (in Euro million) § Continued strong 2-digit growth in Aerospace Propulsion 711 693 (2.5)% high thrust widebody engine spares Services
Slide 7: Q3 2011 Financials
/01/ Q3 2011 Financials 6 / Q3 REVENUE 2011 / OCTOBER 21, 2011 / Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
Slide 8: Foreword
Foreword All revenue figures in this presentation represent Adjusted revenue (see Additional information for bridge with consolidated revenue) To reflect the Group’s actual economic performance and enable it to be monitored and benchmarked against competitors, Safran prepares an adjusted income stat
Slide 9: Fx volatility
Fx volatility è Continued Fx volatility during Q3 2011 n Translation effect: foreign currencies translated into € Average spot rate ⇒ Negative impact from $, CAD and GBP Q3 2010 Q3 2011 ⇒ Impact on Revenue and Return on Sales $ 1.29 $ 1.41 n Transaction effect: mismatch between $ sales and € costs i
Slide 10: Q3 2011 revenue
Q3 2011 revenue (In €M) + 5.2% 118 2,728 110 2,703 (93) 2,593 2,610 + 4.2% organic Q3 2010 Organic Q3 2011 Currency Q3 2011 Acquisitions & Q3 2011 variation at constant impact at Q3 2010 activities newly Q3 2010 perimeter (spot rate) perimeter consolidated and exchange rate 9 / Q3 REVENUE 2011 / OCT
Slide 11: Q3 2011 revenue
Q3 2011 revenue è Positive impacts Change Change § Positive civil aftermarket and Q3 2010 Q3 2011 original equipment dynamics Adjusted data reported organic (in Euro million) in Propulsion Aerospace propulsion 1,329 1,459 9.8% 8.7% § Equipment (A380, regional jets, civil services) Aircraft equipment
Slide 12: Fx: securing hedge rates
Fx: securing hedge rates Appx. 50% of Safran’ USD revenue naturally hedged by USD procurement è Hedge rates locked- in for 2011 to 2014 Hedge portfolio, Oct. 20, 2011 n 2012: $4.5bn achieved at Total: $14.6bn $1.33 to rise to $4.7bn as long as €/$<1.65 for most Estimated exposure needs of 2011 In US
Slide 13: Conclusion
/02/ Conclusion 12 / Q3 REVENUE 2011 / OCTOBER 21, 2011 / Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
Slide 14: Equity shareholding
Equity shareholding As of Dec. 31, 2010 As of Sept. 30, 2011 Public French State Public French State 47.6% 30.2% 50.3% 30.2% Areva Areva 2.0% 1.5% Treasury Treasury shares Employees shares Employees 4.2% 16.0% 1.9% 16.1% Safran entered the CAC40 index on Sept. 19 13 / Q3 REVENUE 2011 / OCTOBER 21, 2
Slide 15: 2011 outlook is confirmed
2011 outlook is confirmed è This outlook now includes: § the expected pro rata contribution of L-1 Identity Solutions (now MorphoTrust) § the cost of the employee profit-sharing bonus (~€25M) Revenue è Increase in the mid to high single digits Recurring operating è Progression should be comfortably
Slide 16: Additional information
/03/ Additional information 15 / Q3 REVENUE 2011 / OCTOBER 21, 2011 / Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.
Slide 17: Employee profit-sharing bonus
Employee profit-sharing bonus è New French legislation applicable in 2011 to companies whose dividends paid in the current year increased vs. the average of two previous years è Agreement to pay a €500 bonus for each eligible employee è Finalising a structure which would offer employees at French en
Slide 18: 9M 2011 revenue
9M 2011 revenue Change Change 9m 2010 9m 2011 Adjusted data reported organic (in Euro million) Aerospace propulsion 4,092 4,436 8.4% 6.9% Aircraft equipment 2,070 2,201 6.3% 7.0% Defence 838 875 4.4% 5.0% Security 758 826 9.0% 4.2% Others 32 12 na na Total revenue 7,790 8,350 7.2% 6.2% 17 / Q3 REVEN
Slide 19: Q3 & 9M 2011 consolidated and adjusted revenue
Q3 & 9M 2011 consolidated and adjusted revenue Hedge accounting Business combinations Q3 2011 Amortization of Adjusted Consolidated Re- Deferred PPA impacts - intangible consolidated (In Euro million) income statement measurement of hedging other business income statement assets - revenue gain (loss
Slide 20: 19 / Q3 REVENUE 2011 / OCTOBER 21, 2011 /
19 / Q3 REVENUE 2011 / OCTOBER 21, 2011 / Ce document et les informations qu’il contient sont la propriété de Safran. Ils ne doivent pas être copiés ni communiqués à un tiers sans l’autorisation préalable et écrite de Safran.