Safran Sa · EURONEXT:SAF
Safran Sa — Safran Sa Ord — H1 2025 Earnings Presentation
27 slides from Safran Sa's earnings presentation, Jul 31, 2025
Slide 1: H1 2025 Results
H1 2025 RESULTS July 31, 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: H1 2025 key highlights
H1 2025 key highlights In €M ▪ Robust market environment In €M Adjusted revenue Adjusted recurring operating income and margin • Paris Air Show highlighted strong market dynamics +13.2% 14,769 +27% 2,510 • Planned increase in defense budgets 13,047 +13.2% 1,974 • Improvement of the supply chain org.
Slide 4: Civil business highlights
Civil business highlights Ryanair purchases 30 LEAP-1B spare engines THE Room FX business class seats for ANA Safran and Saft to co-develop a high-voltage R&T project on hybrid-electric propulsion battery system for aviation electrification launched with Daher, Collins, and Ascendance 4 SAFRAN - H1
Slide 5: Defense business highlights
Defense business highlights Planned increase in defense budgets • NATO: target 5% GDP by 2035 • France: additional €10bn in 2 years • Including India, Middle East, S.E. Asia… Raising production capacity • Increasing Rafale rate to support export • Turbojet missile engines: rate 3x M88 T-REX for futu
Slide 6: H1 2025 RESULTS
SAFRAN Ss ~ Lf a5 e>5 ND | = WJ —_ 0
Slide 7: 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 H1 2025 reconciliation (In €M) data Re-measurement Deferred hedging Amortization of intangible PPA impacts – other data assets of
Slide 8: Estimated net exposure ($bn)
FX Estimated net exposure(2) ($bn) ▪ 2025 hedge rate set at $1.12 14 14 14 14 14 ▪ $55bn hedge book(1) as of June 2025 ($54.1bn as of March 2025) Spot rate 2025e 2026e 2027e 2028e 2029e €/$ hedge €/$ H1’24 H1’25 rate target 1,12 1,12 1,12 1,12 n.d. Average spot rate 1.08 1.09 June 30th rate 1.07 1.1
Slide 9: H1 2025 revenue and recurring operating income
H1 2025 revenue and recurring operating income Revenue Recurring operating income In €M itle+13.2% In €M +27.2% 2,497 19 2,510 1,723 111 523 14,770 (112) 14,769 (6) 13,047 1,974 17.0% 15.1% +13.2% org. +26.5% org. H1 2024 Organic H1 2025 Currency Change H1 2025 H1 2024 Organic H1 2025 Currency Chang
Slide 10: H1 2025 income statement
H1 2025 income statement (In €M) H1 2024 H1 2025 Revenue 13,047 14,769 Other recurring operating income and expenses (11,135) (12,335) Share in profit from joint ventures 62 76 Recurring operating income 1,974 2,510 Including impairment charge for one program, restructuring and M&A transactions cost
Slide 11: Propulsion
Propulsion Organic ▪ Civil engines (In €M) H1 2024 H1 2025 Change Change • Strong aftermarket revenue Revenue 6,461 7,541 16.7% 16.9% o Spare parts up 21.6% in $ (18.6% in Q2) driven primarily by CFM56, as well as high-thrust engines and LEAP Recurring operating income 1,285 1,758 473 o Services up
Slide 12: Equipment & Defense
Equipment & Defense Organic (In €M) H1 2024 H1 2025 Change ▪ Equipment Change • Aftermarket services increased across the board, especially Revenue 5,170 5,609 8.5% 8.0% in landing systems, nacelles, avionics and electrical systems • OE volumes up on A320neo and 787 landing gears Recurring operating
Slide 13: Aircraft Interiors
Aircraft Interiors Organic (In €M) H1 2024 H1 2025 Change ▪ Positive momentum both in OE and services Change Revenue 1,411 1,616 14.5% 15.5% ▪ Cabin • Services up across the board Recurring operating income 10 27 17 • OE volumes growth driven by 737MAX galleys, with slightly % of revenue 0.7% 1.7% 1
Slide 14: H1 2025 Free Cash Flow
H1 2025 Free Cash Flow (In €M) H1 2024 H1 2025 Recurring operating income 1,974 2,510 Amortization at €570M, depreciation at €166M One-off items (24) (37) and provisions at €(50)M Amortization, provisions and depreciation (excl. financial) 571 686 EBITDA 2,521 3,159 EBITDA + 25% Income tax and non c
Slide 15: H1 2025 net cash evolution
H1 2025 net cash evolution (In €M) €1,834M Free Cash Flow 2,790 (168) (788) Early redemption S&P: A-, stable outlook (1,269) Change OCEANE 2028 in WC R&D (707) 673 (133) 1,738 Capex (267) 1,869 Dividends(1) M&A Cash flow Shares Others(3) from ops repurchase(2) Net cash Net Cash Dec. Cash flow from C
Slide 16: FY 2025 Outlook
FY 2025 OUTLOOK
Slide 17: Acquisition of actuation and flight control activities from Collins
Acquisition of actuation and flight control activities from Collins ▪ A new global leader in actuation and flight control systems • Strong positions on both mature and growing platforms • 60% commercial / 25% military / 15% helicopters • 40% of revenues in aftermarket ▪ Safety & mission critical bus
Slide 18: FY 2025 outlook raised (excluding tariffs and Collins)
FY 2025 outlook raised (excluding tariffs and Collins) At current perimeter (excluding Collins), adjusted data, €/$ spot rate of 1.10 and hedge rate of 1.12 February 2025 April 2025 July 2025 Revenue up around 10% up around 10% up low-teens Recurring operating €4.8 – 4.9bn €4.8 – 4.9bn €5.0 – 5.1bn
Slide 19: Appendix
APPENDIX S SAFRAN
Slide 20: Number of products delivered on major aerospace programs
Number of products delivered on major aerospace programs YoY change YoY change Number of units delivered H1'24 H1'25 Number of units delivered H1'24 H1'25 Units % Units % LEAP engines 664 729 65 10% A320 landing gear sets 304 320 16 5% CFM56 engines 28 26 (2) (7)% A320neo nacelles 297 307 10 3% High
Slide 21: OE / Services revenue split
OE / Services revenue split REVENUE H1 2024 H1 2025 Adjusted data (in €M) OE Services OE Services Propulsion 2,431 4,030 2,623 4,918 % of revenue 37.6% 62.4% 34.8% 65.2% Equipment & Defense 3,152 2,018 3,364 2,245 % of revenue 61.0% 39.0% 60.0% 40.0% Aircraft Interiors(1) 880 531 1,000 616 % of reve
Slide 22: H1 2025: Research & Development
H1 2025: Research & Development (In M€) H1 2024 H1 2025 Change Total R&D (936) (967) (31) R&D sold to customers 290 318 28 R&D expenses stable at €649M in H1 2025. R&D expenses (646) (649) (3) • R&T self-funded expenses at €307M, mainly towards decarbonization (RISE technology development program) a
Slide 23: H1 2025: Research & Development by activity
H1 2025: Research & Development by activity Equipment & Aircraft (In €M) H1 2025 Propulsion Defense Interiors R&D expenses (649) (291) (268) (90) as a % of revenue 4.4% 3.9% 4.8% 5.6% Tax credit 92 39 50 3 R&D expenses after tax credit (557) (253) (218) (87) Gross capitalized R&D 159 50 69 40 Amorti
Slide 24: Balance sheet as of June 30, 2025
Balance sheet as of June 30, 2025 (In €M) Dec 31, 2024 June 30, 2025 Goodwill 4,937 4,864 Tangible & Intangible assets and right of use 13,229 13,328 Investments in joint ventures and associates 1,894 1,861 Other non current assets 3,429 1,065 Operating Working Capital (3,327) (3,566) Net cash (debt
Slide 25: Liquidity as of June 30, 2025
Liquidity as of June 30, 2025 ▪ Cash and cash equivalent of €6,707 million June 30, 2025 Undrawn revolving credit facility €2,000M ▪ Net cash positive ▪ 2028 OCEANEs’ early redemption Gross debt • Soft call on April 1, 2025 of the 2028 OCEANEs (€730M €4,838M Cash & equiv. convertible bonds issued in
Slide 26: Definitions
Definitions ▪ Spare parts (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Spare parts” revenue (in USD terms) for all civil aircraft engines (CFM56, LEAP, high-thrust engines) ▪ Services (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Services” rev
Slide 27: Powered by Trust
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