Safran Sa · EURONEXT:SAF
Safran Sa — Merger or Acquisition (July 2023)
16 slides from Safran Sa's merger presentation, Jul 21, 2023
Slide 1: Safran to acquire Collins Aerospace's actuation and flight control business
Safran to acquire Collins Aerospace’s actuation and flight control business July 21, 2023
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This document contains forward-looking statements relating to Safran, its existing actuation business (“SAB”), Collins Aerospace’s actuation and flight control business (“CAFCB”) and the combined SAB and CAFCB businesses (“SACAFCB”) which do not refer to histori
Slide 3: Contemplated transaction highlights
Safran to acquire Collins Aerospace’s actuation and flight control business – Contemplated transaction highlights ▪ A leading global provider of hydraulic and electro-mechanical actuation & flight control systems ▪ ~$1.5 billion sales / ~$130 million EBITDA in 2024E1 Acquisition of the actuation and
Slide 4: Contemplated transaction highlights (cont'd)
Safran to acquire Collins Aerospace’s actuation and flight control business – Contemplated transaction highlights (cont’d) ▪ Cash acquisition for $1.8 billion (<65% of Safran 2023E FCF) Transaction terms ▪ Implied transaction multiple of ~14x 2024E EBITDA pre-cost synergies (~10x post run-rate cost
Slide 5: Collins Aerospace's actuation and flight control business at a glance
Collins Aerospace’s actuation and flight control business at a glance Overview Key figures (pre-synergies) ▪ Leading provider of hydraulic, electro-hydraulic and electro- mechanical actuation and flight control systems for commercial ~$1.5 billion ~$130 million & military aircraft, helicopters and p
Slide 6: A unique opportunity for Safran to become a global leader with end-to-end actuation systems
A unique opportunity for Safran to become a global leader with end-to-end actuation systems Highly complementary product offerings creating a leading player (~$1.8 billion combined actuation sales 2024E) 1 with end-to-end product portfolio Synergetic exposure across commercial, military aircraft and
Slide 7: A comprehensive set of actuation and flight control products
1/2 A comprehensive set of actuation and flight control products Commercial Helicopter High Lift Power Drive Engine Valve Main Rotor Power Control Blade Fold Actuator Rudder Transmission Flap Lever Unit (“PDU”) Actuators Module Wing Tip Brake Actuation Shafts Tail Rotor Trimmable Actuator Horizontal
Slide 8: Hybrid and full electric actuation to increase on next-gen aircraft
3 Hybrid and full electric actuation to increase on next-gen aircraft Actuation systems segment Actuation market value Current generation Next generation Long-term <10% ~50% >90% Electric actuation content Electric actuation content Electric actuation content 2020 2025 2030 2035 2040 2040+ Source: S
Slide 9: Significant addition of electro-hydraulic and electro-mechanical actuation capabilities position Safran well for next-gen aircraft
3 Significant addition of electro-hydraulic and electro-mechanical actuation capabilities position Safran well for next-gen aircraft Significant % of sales on high-runners (A320neo, A220, A350 and 787) Collins Aerospace’s actuation and flight control business’ main platform positions Platforms with
Slide 10: Strong increase in scale and exposure to recurring aftermarket revenue streams
4 Strong increase in scale and exposure to recurring aftermarket revenue streams Collins Aerospace’s Safran Actuation Combined businesses actuation and flight control business Aftermarket Aftermarket Aftermarket ~25% ~40% ~37% OE OE OE ~60% ~63% ~75% ~$0.3 billion ~$1.5 billion ~$1.8 billion Sales 2
Slide 11: Compelling value creation supported by cost synergy potential
5 Compelling value creation supported by cost synergy potential Total cost synergies EBITDA impact ~$50m ▪ Scale effect on procurement Short-medium term ▪ R&D complementarity cost synergies ▪ Internalization of sourcing / production 2025E 2026E 2027E 2028E Expected one-off pre-tax integration costs
Slide 12: Conclusion
Conclusion Become a global leader in mission critical actuation and flight control (ATA27) Position for next-gen technologies and platforms Strong value creation potential for shareholders 12 Safran | Safran to acquire Collins Aerospace’s actuation and flight control business This document and the i
Slide 13: Q&A
Q&A 13 Safran | Safran to acquire Collins Aerospace’s actuation and flight control business 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 14: Appendix
Appendix
Slide 15: Overview of Collins Aerospace's actuation and flight control business
Overview of Collins Aerospace’s actuation and flight control business ▪ Primary flight controls systems govern the aircraft’s pitch, roll and yaw by moving the ailerons, elevators and rudders Primary Flight ▪ Key products include fixed-wing primary flight controls along with spoiler and trimmable ho
Slide 16: Overview of Collins Aerospace's actuation and flight control business production sites
Overview of Collins Aerospace’s actuation and flight control business production sites 8 production sites Wolverhampton Banbury Wolverhampton, UK Turin Banbury, UK Luserna Vernon, France Saint Ouen, France Turin, Italy Brugherio Brugherio, Italy Luserna, Italy St. Ouen Vernon Bandung Bandung, Indone