INTEGRATED REPORT 2019 - Safran group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2019 INTEGRATED REPORT
CONTENTS
SAFRAN ECOSYSTEM
p. 01 p. 10
AT A GLANCE
STRATEGY AND
p. 02 EDITORIAL p. 18
BUSINESS MODEL
GROUP RISK
p. 04 p. 40
PROFILE MANAGEMENT
CORPORATE
p. 42
GOVERNANCE
PERFORMANCE
p. 50
AND VALUE CREATION
S A F R A N AT A G L A N C E
2019 KEY FIGURES
3 2
rd Global aerospace nd
Global aerospace
group, excluding
equipment supplier*
airframers*
€24,640 million €3,820 million €2,665 million
REVENUE (1)
RECURRING OPERATING PROFIT(1)
up 17.1% (up 9.3% on organic INCOME(1) (Group share)
basis) on 2018 up 26.4% (up 24.6% up 34.5% on 2018
on organic basis) on 2018
€1,983 million €4,114 million €695 million €1,725 million 95,443
FREE CASH FLOW NET DEBT ACQUISITIONS OF TOTAL R&D EMPLOYEES
up 11.3% on 2018 PROPERTY, PLANT (including customer- (at December 31,
AND EQUIPMENT(2) funded R&D) 2019)
OUR ACTIVITIES
AEROSPACE AIRCRAFT EQUIPMENT/ AIRCRAFT
PROPULSION DEFENSE/AEROSYSTEMS INTERIORS
BREAKDOWN OF REVENUE (1) BY SEGMENT
€12,045 million €9,256 million €3,321 million
BREAKDOWN OF RECURRING OPERATING INCOME (1) BY SEGMENT
€2,485 million €1,209 million €188 million
BREAKDOWN OF RECURRING OPERATING MARGIN (1) BY SEGMENT
20.6% 13.1% 5.7%
* Classification criteria: revenue – Source: Safran.
(1) Adjusted data. See page 90 of the 2019 Universal Registration Document for a reconciliation of the consolidated income statement
with the adjusted income statement and a breakdown of the adjustment.
(2) Net of the cash inflow from the disposal of a tertiary property complex in the Paris region.
1 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T
EDITORIAL
M E SSAG E F R OM T H E C H A IR MA N
O F T HE BOA R D OF D IR EC TOR S
AND T HE C HI E F EX EC U T IV E OF F IC ER
ROSS McINNES
Chairman of the Board of Directors
PHILIPPE PETITCOLIN
Chief Executive Officer
Faced with the health crisis posed
by the coronavirus (Covid-19)
epidemic, Safran is taking every
possible measure to help slow
the spread of the virus and protect
the health of its employees.
At the same time, it is making
continued industrial operations
for its customers a priority.
Safran is in robust shape, and
the commitment of its 95,000
employees is unfaltering.
In 2019, the Group showed once
again that the trust of its customers,
partners and shareholders is
well-founded.
Safran strengthened its position
as the number-three aerospace group
(excluding airframers)(1) worldwide,
with revenue increasing by 17.1% on
a reported basis (9.3% organically)
to reach €24.6 million, and recurring
operating income coming in at
€3.8 billion, of which 51.9% was
converted into free cash flow.
Despite the complications arising
from the grounding of the
Boeing 737 MAX, all of the Group’s
business areas turned in solid
performances.
Deliveries ramped up (especially
the LEAP® engine, which shipped
1,736 units), products and services
met market success, and the seats
and cabins businesses brought in
from Zodiac Aerospace picked up,
Ross McInnes
driven by convergence of our
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 2
Thanks to the commitment
of our employees, proven
innovation and operational
excellence, Safran designs,
builds and supports high-tech
solutions to contribute to a safer,
more sustainable world,
where air transport is more
environmentally friendly,
comfortable and accessible.
We also apply our skills
to develop solutions that meet
strategic needs, such as defense
and access to space.
methods and the development
of a common culture, further
enhancing Safran’s consistency
and efficiency.
The space and defense sectors also
had a fruitful year, with progress on
the Ariane 6 program and prime
contractorship on the engine
demonstrator program for the
next-generation European fighter
aircraft, in partnership with Philippe Petitcolin
MTU Aero Engines. Such
developments ensure sustained
front-runner positioning for Safran
in the decades to come. Safran is geared up to leading high-tech solutions to contribute to
the way towards decarbonization a safer, more sustainable world,
By honing competitive performance of the aerospace industry. where air transport is more
across all Group divisions, we faced With positions in all aircraft-system environmentally friendly, comfortable
up well to fierce market conditions, segments, and energy systems in and accessible. We also apply our
and proved our capabilities for particular, we can tackle this issue skills to develop solutions that meet
adaptation. from many different technological strategic needs, such as defense and
In 2019, Safran also began angles. Some 75% of Safran’s R&T access to space."
a managerial transition with budget goes to direct or indirect
In 2020, against the backdrop
the Board of Directors appointing measures for reducing the
of the Covid-19 epidemic, Safran
Olivier Andriès to serve as Chief environmental impact of air transport.
will continue to draw strength from
Executive Officer from January 2021. Safran’s low-carbon project also
its adaptability, workforce dedication
includes an ambitious program
There has been a considerable and robust business model to tackle
to shrink the carbon footprint
shift in Safran’s international balance the difficulties and continue to seek
of its processes.
in recent years. More than half of lasting value creation that is shared
the Group’s workforce is now based This absolute priority, embedded fairly among all its stakeholders.
outside France. With close contact in our core purpose(2) ("raison d'être"),
We would like to thank you for
to markets and leading-edge ensures that economic performance
your loyalty and hope you enjoy
expertise, we can respond promptly is rooted in Group-wide values:
reading this report.
and precisely to ever-changing "Thanks to the commitment of
demand. our employees, proven innovation Regards,
Acutely aware of the major challenge and operational excellence, Safran
represented by climate change, designs, builds and supports Ross McInnes and Philippe Petitcolin
(1) Classification criteria: revenue – Source: Safran.
(2) The wording of the core purpose is not set out in Safran's bylaws.
3 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T
GROUP PROFILE
SA F RA N :
A CO M PRE H EN S IV E OF F E R IN G
Present in all aircraft components, Safran strives to build the future of the global
aerospace sector and be the preferred partner of airframers and airlines.
Avionics Cabin interiors Power &
Inertial navigation systems In-flight entertainment data wiring
Flight data and connectivity
acquisition units Cabin lighting
Auxiliary
Cockpit Oxygen power
Electric flight
• Control systems systems units (APUs)
control
• Panels & displays
actuators
• Seats
Galleys & equipment Engines Evacuation slides
Engine control & life rafts
systems (FADEC)
Lavatories, water Exterior Power generation
Landing gear & waste systems lighting & distribution
Landing & braking
control systems Nacelles Fuel & inerting Anti-icing
Wheels & carbon brakes Power transmission systems systems & de-icing
LEADERSHIP POSITIONS IN OUR MAIN BUSINESS SEGMENTS
NO.
WORLDWIDE(1):
1 AEROSPACE
PROPULSION
AIRCRAFT EQUIPMENT/
DEFENSE/AEROSYSTEMS
AIRCRAFT INTERIORS
Safran is a global leader in its main
markets. In a favorable context for engines for landing gear for lateral partition
shaped by an expected twofold for 100+ seater panels, carts,
commercial aircraft(2) for wheels and carbon containers and cabin
increase in air traffic over the coming brakes for 100+ seater interiors for regional
twenty years and the introduction of aircraft and business
new generations of aircraft, the for helicopter turbine aviation
engines for electrical wiring
Group will leverage its aerospace-
and defense-focused portfolio and for helicopter flight for onboard water
tier-one supplier position to capture controls and waste
management
strong growth in its business
for evacuation slides systems
segments. and oxygen systems
(1) Source: Safran.
(2) With GE Aviation, within the CFM International joint venture.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 4
GROUP PROFILE
A BALANCED PORTFOLIO ACROSS THE AEROSPACE
AND DEFENSE SECTOR
Breakdown of revenue
by segment (adjusted) AI
R CR
37.6%
(in %) €9,256 MILLION
A ND
FT A
44,231
A
Landing
EQ ERO
and braking EMPLOYEES
systems
ON
UIP SYSTEMS
Engine
ACE PROPULSI
systems and
MEN
Civil aviation equipment
77% Electrical
T, DEFENSE
systems and
engineering
solutions
Electronics
and defense
Aerosystems
OSP
Helicopter
turbines Cabins
13%
R
48.9% 13.5%
Seats
E
Military Passenger
A
aviation Solutions
€12,045 MILLION 10% €3,321 MILLION
26,632 T 22,118
C R AF S
EMPLOYEES AIR R EMPLOYEES
RI O
INTE
Safran products have common features that contribute to the resilience of its business model: position as
a tier-one supplier to airframers and airlines; high technology content and high demand, whether in original
equipment sales or aftersales services.
A full-fledged engine manufacturer(1), Safran offers a wide range of aircraft To ensure passenger safety and
Safran supplies airframers with equipment including landing and enhance their comfort, Safran
engines for commercial aircraft, braking systems, nacelles, electrical develops cabin interiors (overhead
military aircraft, regional transport systems and related engineering bins, lavatories, galley and catering
aircraft, business jets and helicopters. solutions. equipment, etc.), passenger and
To increase cost efficiency and share crew seats, water and waste
Defense: Safran provides solutions
risks, the world’s leading engine management systems, in-flight
and services in optronics, avionics,
manufacturers develop their engine entertainment systems (RAVE™),
navigation systems, tactical drones,
programs in partnership. Safran has and interior refits for commercial
electronics and critical software
primarily partnered with GE Aviation aircraft. Safran’s aircraft interiors
for civil and defense markets.
since the 1970s, when they set up business addresses both airframers
the 50-50 joint venture CFM Aerosystems: Safran is one of the (under the SFE(2) model) and airline
International, which develops world’s leading players in aircraft companies (BFE(3) model).
the CFM56® and LEAP® engines. safety systems (evacuation slides,
This partnership has been extended oxygen masks, etc.), cockpit systems
through to 2040. Safran also and fluid management systems (fuel,
contributes to access to space pneumatic and hydraulic circuits).
through its 50% stake in the
ArianeGroup joint venture, prime
contractor for the Ariane 5 and
Ariane 6 launchers.
(1) A full-fledged engine manufacturer is present in all engine components and all propulsion market segments.
(2) Supplier Furnished Equipment: equipment specified and purchased by the airframer.
(3) Buyer Furnished Equipment: equipment specified and purchased by the airline.
5 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T
GROUP PROFILE
A LE A D IN G
G LO B A L P LAY E R
Since its creation in 2005, Safran has expanded internationally.
With over 95,000 employees in 27 countries, the Group has extended
its footprint beyond its European base and is now present in North
and South America, Africa, the Middle East, Asia and Oceania.
AMERICAS
29%
27,585 EMPLOYEES
72 27 8
Leveraging its global footprint,
the Group establishes strong
and sustainable relationships
with the majority of aerospace
players and airlines, reflecting its
desire to promptly deliver local
services to customers.
Geographic spread
of employees and sites
Percentage of employees
% of employees in the total Group workforce
Number of sites(1)
R&D and Service and Commercial and
production maintenance administrative activities
activities activities
(1) Each site corresponds to a legal entity covering one or more tertiary, production, service or maintenance sites.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 6
GROUP PROFILE
EUROPE
FRANCE (excl. France)
48% 11%
45,198 EMPLOYEES 10,668 EMPLOYEES
66 14 19 26 8 3
ASIA
OCEANIA
5%
AFRICA 5,137 EMPLOYEES
MIDDLE EAST
9 7 2
7%
6,855 EMPLOYEES
9 3 1
7 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T
GROUP PROFILE
A LOOK B AC K
AT OU R H ISTORY
With a rich history spanning over 100 years,
Safran has made high technology its hallmark.
1 9 0 5 TRENDS IN THE SAFRAN SHARE PRICE AND THE EURO
Société des Moteurs Gnome STOXX 50 INDEX (in %) (May 11, 2005 to March 25, 2020)
is founded in the Paris suburb
of Gennevilliers. Gnome rotary
engines become the standard 1,000
for planes around the world.
1 9 1 2 SAFRAN: +430.61%
Creation of Société des
Moteurs Le Rhône, Gnome’s EURO STOXX 50: -5.74%
main competitor before being
taken over by its rival.
800
1 9 2 4
Creation of Société d’Applications
Générales d’Électricité et de
Mécanique (Sagem), that will
mainly manufacture cameras
and artillery equipment and
go on to design the world’s
first infrared guidance system 600
for air-to-air missiles.
2 0 0 8
1 9 4 5
Extension
Gnome & Rhône is nationalized
of the partnership
and renamed Snecma
with GE Aviation
(Société Nationale d’Étude
until 2040.
et de Construction
de Moteurs d’Aviation).
400
1 9 4 5 - 2 0 0 2
Several aerospace companies 2 0 0 5
join Snecma: Hispano-Suiza, Safran is formed
a specialist in power transmission from the merger of
for aircraft engines, followed Snecma and Sagem.
by Messier-Hispano-Bugatti,
a specialist in landing gear.
200
In 2000, wiring specialist
Labinal and its helicopter
engine manufacturer subsidiary
Turbomeca join Snecma.
In 2002, nacelles specialist
Hurel‑Dubois joins Snecma.
1 9 7 4 0
Snecma becomes a civil aircraft
engine manufacturer through
a cooperation agreement with
GE Aviation for the manufacture
of the CFM56 engine.
Trends in the Safran share price since May 2005
-200
5
6
9
8
7
10
0
0
0
0
0
20
20
20
20
20
20
1/
1/
1/
1/
1/
1/
1
0
0
0
0
0
5/
1/
1/
1/
1/
1/
0
0
0
0
0
0
0
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 8 GROUP PROFILE
OWNERSHIP STRUCTURE
(in %) 2 0 1 8
Share capital at December 31, 2019 Takeover and merger
Number of shares: 427,234,155 of Zodiac Aerospace
by Safran. Rebranding
under the Safran name
6.8 0.6 of all former Zodiac
Aerospace businesses.
Employees Treasury shares
11.2
French
State
81.4
Free float 2 0 1 7
Business
combination
agreement between
Safran and Zodiac
Aerospace. Disposal
of the detection,
identity and security
businesses.
2 0 1 6
Inclusion of “Safran”
in the corporate name of
all its subsidiaries.
Creation of ArianeGroup
with Airbus.
2 0 1 3
Acquisition of Goodrich’s
electrical systems
business.
2 0 2 0
Worldwide
stock-market
downturn resulting
from coronavirus
(Covid-19) epidemic.
Trends in the EURO STOXX 50 index since May 2005
20
14
16
19
18
13
15
12
17
11
0
20
20
20
20
20
20
20
20
20
/2
1/
1/
1/
1/
1/
1/
1/
1/
1/
25
0
0
0
0
0
0
0
0
0
3/
1/
1/
1/
1/
1/
1/
1/
1/
1/
0
0
0
0
0
0
0
0
0
0
9 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TECOSYSTEM
CO N ST RUC TIV E R ELAT ION S H IP S
W I T H O UR STA K E H OLD ER S
To contribute to a safer, more sustainable world, where air transport
is more environmentally friendly, comfortable and accessible,
Safran develops relationships with all stakeholders
and incorporates their concerns into its business model.
N ITY CIV
M MU I LS
O O
C CI
SS
ET
E
N
Y
SI
BU
FS TAKEHOL
P O D
ER
EMPLOYEE REP ES &
MA
S
TNERS
E M P L
R
O
A
YE
R
P
ESE
L IC
NT
UB
A
P
TIV
ES
FIN
ANC ITY
IAL COMMUN
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 1 0ECOSYSTEM
BUSINESS COMMUNITY PUBLIC PARTNERS CIVIL SOCIETY
Customers Government bodies Academia, local community,
(airframers, airlines, etc.) and local authorities associations/Non-Governmental
European and Organizations (NGOs)
Suppliers and sub-contractors
international bodies
Partners
(industrial companies, Certification authorities
research laboratories, etc.) Main expectations
Youth training, on-site environmental
Main expectations measures, absence of noise pollution,
effective management of social
Main expectations Ethical business conduct, internal and environmental challenges
and external Corporate Social in the value chain.
Customers: reliability and efficiency
Responsibility commitments.
of products, with related services.
Safe products that comply Group contribution
Suppliers and subcontractors: with international standards.
relationships rooted in reciprocal Renewed commitment in favor of
long-term commitments. apprenticeships and the employment
Group contribution areas where the Group is present,
Partners: pursuit of continuous Systematic communication sustained R&D to prepare for the
innovation and control over of the business ethics culture future of the aerospace industry
intellectual property for these to all our employees and and the development of new
innovations. suppliers, sustained R&D products and equipment.
and quality of our products Implementation of a climate strategy,
Group contribution at the highest level. notably to reduce greenhouse gas
Operational excellence, emissions from the Group’s products.
relationship of trust renewed
with each generation of aircraft,
reliable products that create value
(increased availability, operating
gains, weight reduction, etc.).
Prompt payment terms.
Team work on a daily basis,
with suppliers and sub-contractors,
to deliver the best to our customers
at competitive prices.
Organizational agility and ability EMPLOYEES FINANCIAL COMMUNITY
to form long-standing industrial AND EMPLOYEE Institutional investors, individual
and commercial partnerships. REPRESENTATIVES shareholders and employee
shareholders, financial analysts,
non-financial rating agencies
Main expectations
Compensation consistent with
individual commitment and Group Main expectations
results; motivating career paths; Transparency in the management of
skills development; commitment the company, compliance with our
to workplace health and safety and financial commitments, the long‑term
the environment; and compliance strategy and its implementation and
with international labor conventions.
consideration of corporate social
responsibility (CSR) criteria.
Group contribution
Employees trained throughout Group contribution
their career, steadily decreasing
accident rates, profit sharing, Accurate, precise and fair information
payment of an exceptional bonus accessible to the financial community,
in 2019 (in France) to stimulate regular presentation of the Group’s
purchasing power, calm and multi-year objectives at Capital
constructive labor relations, Markets Days, availability for the
development of employee entire financial and non-financial
dialogue at a global level. community.
1 1 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TECOSYSTEM
OU R C S R (1)
CO M MIT MEN TS
Safran is intent on fully undertaking its corporate social responsibility,
given its leading market position, international profile,
and responsibility as an employer of more than 95,000 people.
SAFRAN’S CSR APPROACH IS AN INTEGRAL PART
OF ITS CORE PURPOSE
Corporate social responsibility, challenges, for which the materiality These challenges were submitted
an integral part of Safran’s business matrix was updated in 2019. to more than 600 internal
model, is built on the three strategic This update was an opportunity stakeholders, including employees
assets of sustainable innovation, for Safran to invite representative of all Group companies at sites
operational excellence and input from internal and external worldwide, as well as to a panel
responsible conduct, the aim being stakeholders, with a view to taking of 70 external stakeholders.
to create increasing, lasting value these findings on board. Stakeholder Nine priority challenges for Safran
and fulfill responsibilities input was elicited on 37 challenges (shown below) were identified,
to all concerned. identified by an in-depth analysis with a similar consensus both
Safran’s CSR approach factors of international standards across internally and externally.
in the Group’s non-financial the aerospace sector.
MATERIALITY MATRIX OF NON-FINANCIAL CHALLENGES
THE NINE PRIORITY CHALLENGES FOR STAKEHOLDERS APPEAR IN THE CIRCLE AT THE TOP RIGHT.
Quality of life at work Anti-corruption and business ethics
High
Skills development, support for research Attractiveness, recruitment of talent
Carbon impact of production methods Innovation and eco-design
Quality, safety and sustainability of supplies
Workplace gender equality Reduction of emissions
from products and services
Importance for Safran’s external stakeholders
Quality of supplier relationships
Duty of care and respect for human rights
CSR performance Technological
of the supply chain change Customer
satisfaction
Integration of CSR into governance structure
Health and safety in the workplace
Adaptation to the effects of climate change Skills development
and talent retention
Diversity and inclusion
Quality and safety of products
Control of site emissions and services
Intellectual property
Responsible use
of natural resources Quality of governance
Socioeconomic development Security of personal data and goods
in local communities Waste management and recycling
Responsible use
of products and services Employee experience
Export and customs control
Protection of biodiversity Social dialogue
Responsible tax policy Compensation, benefits and social protection
Personal
data protection Quality and transparency
of financial and non-financial information
Social and philanthropic
initiatives
Low
Low High
Importance for Safran employees
GOVERNANCE HUMAN CAPITAL INDUSTRIAL PRODUCTION PRODUCTS AND SERVICES SOCIETY
(1) Corporate Social Responsibility.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 1 2ECOSYSTEM
SAFRAN’S CONTRIBUTION ON THE UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
Safran contributes to work on meeting the United Nations Sustainable Development Goals for 2030,
through its CSR policy and with support from its stakeholders. Its commitments cover 12 of the 17 goals in particular,
corresponding to the action taken by the Group consistent with its operations and the nine priority challenges
in its materiality matrix.
Safran applies a health, safety and Safran pursues an active policy on
environmental (HSE) policy based employment for people with disabilities,
on guidelines covering all employees under its 2018-2022 disability agreement.
at all sites. Comprising 30 standards, People with disabilities accounted for
these guidelines are used to audit 5.1% of the overall workforce in 2019
HSE performance, which is rated bronze, (France agreement scope)(2).
silver or gold, according to the level of
HSE maturity reached. Objective for 2025: Safran’s low-carbon project sets a
100% of sites with gold rating. trajectory on reducing greenhouse gas
emissions linked to its production methods.
Safran promotes the professional Targets for 2025 are an 8% reduction in
integration of young people: 11.6%(1) direct (Scope 1) emissions and an
of recruitment across Europe in 2019 18% reduction in indirect (Scope 2)
related to interns, work-study program emissions compared with 2018.
participants and PhD students. Initiatives
and partnerships are run with educational Safran sees the transition to sustainable
establishments in all Safran’s host countries. aviation as an absolute priority, and
operates a climate strategy designed to
Safran sees gender equality at work as bring down product-related and site-related
a driving force in business transformation, greenhouse gas emissions. Furthermore, its
and this means developing a more inclusive policy has always been to ensure maximum
corporate culture, enhancing employment protection of its sites against natural,
attractiveness for women and increasing the technological and environmental risks.
proportion of women in executive positions.
In 2019, Safran obtained renewal of the Through its health, safety and environment
GEEIS (Gender Equality European & policy, Safran is committed to preventing
International Standard) label and took and minimizing pollution potentially
on ambitious objectives for 2023. caused by its activities.
Safran pays close attention to water,
discharge and waste treatment at its sites.
Sites that implement chemical processes
In 2012, Safran became the first CAC 40
such as surface treatments have brought
company to obtain “anti-corruption”
in a specific organization for treating
certification from the French Agency for
discharge.
the Diffusion of Technological Information
(ADIT). This certification, renewed in 2017
Safran signed a global framework for a three-year period, attests to the
agreement on working conditions, robustness of Safran’s anti-corruption
CSR and sustainable development in 2017. program group-wide, with requirements as
It also operates a duty of care plan for strict as those of international standards.
suppliers and subcontractors on matters of
health, safety, the environment and human
Safran develops many partnerships with
rights. Signing Safran’s Responsible
the business community, the financial
Purchasing Charter is one of the first
community, associations, the academic
commitments undertaken by all suppliers.
world and public partners to advance and
share its knowledge and operations and
Around 75% of Safran’s R&T budget goes their implementation.
to direct or indirect measures on reducing
the environmental impact of air transport.
In 2019, Safran filed more than 1,200 initial
patent requests worldwide. NB: T
he figures in the icons above correspond to the numbering of
the United Nations Sustainable Development Goals.
(1) P ercentage of European workforce.
(2) E xcluding Safran Aerosystems, Safran Passenger Solutions,
Safran Seats, Safran Cabin.
1 3 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TECOSYSTEM
O UR MA R K ETS
The global commercial aircraft fleet (36 passengers and more)
and passenger traffic are expected to double in the next 20 years,
excluding consideration of the impact of the coronavirus (Covid-19) epidemic.
CIVIL AVIATION
Several factors contribute to High growth in air traffic proved same period. In addition, airframers
this momentum: resilient against previous global Airbus and Boeing report very
t he increasing popularity of air economic crises (in 2001 and 2008), high order backlogs of 7,482 and
travel spurred by falling prices; but may suffer sudden fluctuation in 5,406, respectively, at the end of
the event of a local or global health December 2019. We see the same
ressure on capacity, with load
p
factors reaching new highs in the trend in the aftermarket, with strong
crisis such as SARS and Covid-19.
majority of airlines; growth driven by the increasing
Estimates point to a total of around in-service fleet size and longer
emand in regions enjoying strong
d 39,400 new planes over the next aircraft service lifespans.
economic growth (in particular
20 years. This dynamic is especially Furthermore, aircraft interior
China, South-East Asia and India),
pronounced in the short- and refurbishment requirements are
and renewal of the existing fleet
(mainly in North America and medium-haul aircraft segment, which accelerating, with several retrofit
Europe). expects 23,500 new planes over the cycles in an aircraft’s lifespan.
CIVIL AVIATION TRAFFIC, GLOBAL PROJECTIONS
These long-term projections do not take into account the impact of the coronavirus (Covid-19) epidemic.
2019
21,000 84.1%
+3.8% +4.0% 82.3%
18,000
Global Global
15,000 aircraft capacity aircraft traffic
(measured in ASK) (measured in RPK)
12,000 until 2039 until 2039
Expected twofold
9,000
62.8% increase in air traffic
6,000
3,000
Air traffic
increased by 2.5x
0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
RPK: Revenue passenger kilometers, in billions (= number
Global aircraft capacity (ASK) of occupied seats multiplied by the total distance
Global air traffic (RPK) traveled by the global fleet).
ASK: Available seat kilometers, in billions (= number
Load factor of available seats multiplied by the distance traveled
by the global fleet).
Source: Safran Aircraft Engines.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 1 4ECOSYSTEM
DEFENSE BUSINESS AVIATION
AND HELICOPTERS
The business aviation market
is stable. At the end of 2019, there
were around 21,900 business aircraft
in service. The helicopter market is
restructuring, after several years
marked by the crisis faced by players
in the oil and oil‑related sectors.
Some 50,000 helicopters were in
service worldwide in 2019.
After several years of downward this means more than €500 million
trends, defense budgets are now budgeted through to 2021, and plans
increasing steadily across the globe, to mobilize over €35 billion in
in a context marked by several areas community funding for defense and
of armed conflict and geopolitical space initiatives from 2021 to 2027,
tension. including €13 billion broken down as
In Europe, defense initiatives have €4.1 billion for R&T and €8.9 billion
been boosted with the launch of for R&D.
projects such as the European
Defense Industrial Development
Programme (EDIDP), for 2019-2020,
and the European Defense Fund
(EDF), from 2021. In financial terms,
FOCUS ON SAFRAN’S
MILITARY ACTIVITIES
Over and above the electronic
activities of Safran Electronics
& Defense, all Group subsidiaries
are present in the military sector,
which accounts for approximately
16% of Group revenue. Products
notably include the M88 engines
powering the Rafale, military
helicopter turbines, TP400 engines
powering the A400M transport
plane, electrical wiring for the
Rafale, landing gear, tactical drones
and auxiliary power units (APUs).
Safran also supplies deterrent
equipment.
1 5 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TECOSYSTEM
A E ROS PAC E IN D U ST RY
T RAN S F OR MAT ION
Safran operates in a changing industrial landscape.
RAPID CHANGES 1
Long-term environmental challenges
CO2, NOx, noise, etc.
Growing global competition 6 2 Technological upheaval
Newcomers (startups, Towards hybrid and electric aircraft
emerging markets, etc.)
3 Aviation safety: under closer scrutiny
by regulators and the public
Equipment manufacturer
alliances, supply base
consolidation 5
4 Airframer consolidation
and repositioning
1 2
LONG-TERM TECHNOLOGICAL UPHEAVAL
ENVIRONMENTAL
CHALLENGES
Innovation has been an essential New areas of innovation in short-,
element of the aerospace sector medium- and long-haul aviation
from the outset. Today’s aircraft are have appeared: digital (big data,
Climate change is prompting a
five times more fuel efficient than artificial intelligence), connectivity,
systemic transformation in civil
their counterparts in the 1950s, autonomy, hybrid and/or electric
aviation. The need for a response
mainly thanks to improved engines. propulsion, distributed propulsion,
consistent with the magnitude and
In addition, numerous innovations materials, processes, sustainable
urgency of the global environmental
have driven considerable progress fuels, hydrogen, etc. These
issue raises substantial social and
in aircraft safety, making civil aviation innovations pave the way for new
political expectations in all sectors
one of the safest means of transport engine architectures, new concepts,
(pages 22 to 25).
in the world. new production methods, new
services, new players and new uses
(particularly VTOL(1)).
(1) VTOL: Vertical Take-Off and Landing aircraft.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 1 6ECOSYSTEM
3 4
AVIATION SAFETY, AIRFRAMER
UNDER CLOSE SCRUTINY CONSOLIDATION AND
BY REGULATORS AND THE PUBLIC REPOSITIONING
Aviation safety is a fundamental us of the absolute need to take
collective challenge taken up by all every possible measure to ensure
Safran Group companies. that this does not happen again.
For Safran, this is an absolute priority Strong and legitimate public concern,
and an unwavering commitment to addressing industry players and
customers, passengers, pilots and regulatory authorities, is bringing
crews. Though air transport is today about closer scrutiny on aviation
one of the safest means of transport safety by certification authorities
in the world, the two Boeing 737 MAX throughout the aircraft life cycle.
accidents, in 2018 and 2019, remind
Since 2017, airframers have
consolidated around the well-
established duopoly: transfer of
Bombardier’s residual interest in
the A220 program (former “C Series”)
to Airbus in February 2020 and the
alliance currently under negotiation
between Boeing and Embraer.
In addition, new players are
continuing to emerge, particularly
in China and Russia.
Airframers are also considering
a change in their business scope,
bringing certain activities back
in-house and increasing their
range of services.
5 6
EQUIPMENT GROWING GLOBAL
MANUFACTURER COMPETITION
ALLIANCES,
SUPPLY-BASE
Newcomers have appeared among For airlines, the sector is marked
CONSOLIDATION the equipment manufacturers, by strong growth for Middle Eastern
attracted by the strong sector and South East Asian companies.
Encouraged by airframers and growth. The ramp-up of low cost players
airlines, suppliers and equipment Airframers are furthermore subject is also significant in short- and
manufacturers in the supply chain to intense competition and put medium-haul transport. Lastly,
have also been consolidated, with substantial pressure on their investors, finance companies and
major operations including the equipment manufacturers to reduce aircraft leasing companies are
2018 acquisition of Zodiac Aerospace prices, with major cost reduction becoming major players in
by Safran and the more recent programs. Certain key materials the aviation ecosystem.
merger underway between Collins are also rare resources worldwide
Aerospace and Raytheon, following (titanium, rare earths, etc.) and
on from the Rockwell-Collins their supply can be disrupted
acquisition of B/E Aerospace. by geopolitical and trade tensions.
1 7 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TS T R AT E G Y A N D B U S I N E S S M O D E L
O UR A MB IT ION S
The major trends in the ecosystem described above
suggest sector growth, with a focus on safety,
competitive performance, and technological
and environmental challenges.
Safran aims to become the world’s •c overage of all sub-segments of By focusing both on operating
leading aircraft equipment supplier the aerospace and defense sector excellence and the investment
within the next 15 years. To achieve (regional aircraft, short-medium needed to lead in state-of-the-art
this goal, the Group draws in haul, long haul, business jets, technology, the Group is ideally
particular on: helicopters, military aircraft), placed to reach a new milestone in
a business model building on: to reduce sensitivity to variations business growth and value creation.
• products with business cycles in business cycles;
of different maturities (from just two absolute priorities: climate
a few years for an aircraft seat change and aviation safety;
up to 40 years for an engine); a
clear strategy drawing upon
• service and aftermarket three key Safran assets: sustainable
businesses (including spare parts innovation, operating excellence
and long-term contracts), and responsible conduct.
that now generate nearly half
of its revenue. These services
ensure recurring revenue streams,
margins with smooth time-
spreads, and improved visibility;
AEROSPACE PROPULSION
Consolidate the position of full‑fledged
engine manufacturer(1)
Prepare the propulsion technologies
of the future
Profit from growth in service activities
thanks to a large operation base
of civil engines
AIRCRAFT EQUIPMENT/
DEFENSE/AEROSYSTEMS
Become the world’s leading
aircraft equipment supplier
A CLEAR
Be the leader in equipment
for more electrical aircraft ROADMAP
Capitalize on Defense niche businesses
Capitalize on leading global
positions in aerosystems
AIRCRAFT INTERIORS
Restore the operational excellence
and competitiveness of this new activity
Propose innovative solutions
for our customers
Return to world-class
financial performance
(1) Safran is present in all engine components and all segments of the propulsion market.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 1 8S T R AT E G Y A N D B U S I N E S S M O D E L
ILLUSTRATION OF OUR AMBITIONS
IN THE MEDIUM-HAUL SEGMENT,
THROUGH THE CFM56-LEAP TRANSITION
In this segment, which represents 60% of global aircraft deliveries, CFM International has a market share
of around 80% thanks to 40 years of commercial success.
Long-term prospects contracts for a number of years, the CFM56 is the biggest commercial
The propulsion business generates in response to customer demand. success in the history of civil aviation:
significant service activities, mainly These contracts now apply to the every two seconds, a CFM56 engine
comprising the sale of spare parts LEAP engine. Aftermarket services takes off somewhere in the world.
and maintenance, repair and overhaul for this engine will gradually take It will continue to generate service
services (MRO). With the increasing over from the CFM56 engine activities for Safran over the next
size of the engine fleet in service, from 2025. 20 years, with a peak expected
Safran has substantial growth around 2025.
A large CFM56 fleet in service
potential. The Group has been
With an in-operation base(1) of over
developing long-term service
31,800 engines at the end of 2019,
ECONOMIC LIFE CYCLE CFM56 IN-OPERATION BASE(1)
OF AN AIRCRAFT ENGINE PROGRAM 35,000
Services and aftersales 33,000
(incl. spare parts 31,000
and long-term
contracts) 29,000
27,000 31,802
Entry 25,000 CFM56
into service 23,000 End-2019
and first 21,000
deliveries
19,000
17,000
Initial sales 40 years+ 15,000
(original equipment)
20 8
9
10
14
12
18
13
15
16
19
17
11
0
0
20
20
20
20
20
20
20
20
20
20
20
Development
and testing
* Weighted average annual growth rate
CFM56 (-5B/-7B) FLEET BY NUMBER OF SHOP VISITS PERFORMED
~ 20%
No shop visit ~ 45% with no
performed shop visit
with no
1 shop visit 2020 e shop visit 2025 e
performed ~ 23,000 ~ 20,000
More than
~ 40% engines engines
2 shop visits with
performed 1 shop visit ~ 50%
with
Source: CFM data 1 shop visit
LEAP, following through Highly innovative, the LEAP engine LEAP-1A for the Airbus A320neo,
on the CFM56 success story reduces fuel consumption by 15% which came into service in
The CFM56’s successor, the new relative to the last generation of August 2016 (60.5% market share(2));
LEAP engine, is already a commercial CFM56 engines. At the end of LEAP-1B for the Boeing 737 MAX,
success. Produced since 2016, December 2019, the LEAP engine which came into service in
its ramp-up is the steepest ever had a record order backlog of May 2017 (100% market share);
known in the aerospace industry: 15,614 engines, including 1,968 orders
L
EAP-1C for the COMAC C919
1,736 LEAP engines were delivered registered in 2019.
(China, exclusive Western source).
in 2019 (compared to 1,118 in 2018). It has been selected for three aircraft:
(1) In-operation base is equal to engines delivered less engines dismantled or scrapped.
(2) Firm orders at January 31, 2020.
1 9 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TS T R AT E G Y A N D B U S I N E S S M O D E L
CREATE VALUE FOR ALL OUR
TRENDS IN THE
A FAST-GROWING LONG-TERM AVIATION SAFETY TECHNOLOGICAL
MARKET ENVIRONMENTAL Under closer and legitimate UPHEAVAL
Passenger demand expected CHALLENGES scrutiny by regulators Shift to hybrid and electric
to double in 20 years. Limiting CO2 and and the public. propulsion, additive
NOx emissions and noise. manufacturing, composite
materials, big data, AI, etc.
OUR RESOURCES(1) OUR BUSINESS MODEL
HUMAN CAPITAL
•M ore than 95,000 employees
in 27 countries
• 4% of payroll spent on training
• 14,880 recruitments in 2019
• Recognized governance OUR BUSINESS INNOVATION,
MODEL DESIGN
INTELLECTUAL CAPITAL
• €1.7 billion total R&D expenditure
• Approximately 1,200 PhD graduates
• 16% of Group employees 2019
in R&D (including R&T) R&D expenditure:
€1.7 billion
INDUSTRIAL CAPITAL
•2 74 sites in the world serving
our customers
• €695 million(2) in industrial investments
• Structuring alliances and
partnerships, including the
CFM International joint venture
formed with GE Aviation in 1974 A BALANCED
and renewed until 2040
BUSINESS
FINANCIAL CAPITAL PORTFOLIO
•A full order backlog
•A growing base in operation
(up approximately 5.6% annually
for short- and medium-haul engines)
• One of the strongest financial
positions in the industry
• A stable shareholder base
(employees, French State,
French industrial families, long-term
institutional investors)
• A strong financial structure
(net debt/EBITDA(3) of 0.86)
• A foreign exchange risk hedging
policy providing visibility TWO ABSOLUTE PRIORITIES
SOCIAL AND
ENVIRONMENTAL CAPITAL
•7 5% of our R&T investment focused
on reducing our environmental
footprint
• Training in responsible purchasing
and good conduct charter Climate Aviation
change safety
(page 22) (page 26)
(1) All figures refer to 2019 except where noted.
(2) Net of the cash inflow from the disposal of a tertiary property complex in the Paris region.
(3) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is equal to a company’s profits before deduction of loan
interest, taxes and duties and charges to depreciation, amortization and provisions on fixed assets.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 2 0S T R AT E G Y A N D B U S I N E S S M O D E L
STAKEHOLDERS
AEROSPACE INDUSTRY
AIRFRAMER EQUIPMENT MANUFACTURER GROWING
CONSOLIDATION ALLIANCES, SUPPLY BASE GLOBAL COMPETITION
AND REPOSITIONING CONSOLIDATION With newcomers,
new markets and new uses.
SERVING OUR CUSTOMERS OUR IMPACTS(1)
HUMAN CAPITAL
• A favorable and attractive
social model: profit-sharing, incentive
schemes, employee share ownership
and employee savings funds
INITIAL SALES SERVICES • 43% of employees are Company
(original equipment) AND AFTERMARKET shareholders and together hold
6.8% of the share capital
INTELLECTUAL CAPITAL
• 42,000 intellectual property titles
2019 revenue: 2019 revenue:
€13.9 billion €10.7 billion
56% 44% INDUSTRIAL CAPITAL
• €250 million of synergies expected
in 2022, following the acquisition
of Zodiac Aerospace
• A robust supply chain enabling
the ramp‑up of LEAP production
(dual active source for all specific
Product lifetime (illustrative(4)) engine parts)
FINANCIAL CAPITAL
Aerospace
•O rganic adjusted revenue growth
Propulsion
of 9.3% vs. 2018
Aircraft • Recurring operating margin of 15.5%,
Equipment, up 110 basis points on 2018
Defense and • A disciplined M&A policy
Aerosystems • EBIT to FCF conversion rate of 51.9%
• 16.54% annual growth in TSR(5)
Aircraft from 2005 to 2019
Interiors • Stock market performance
(up 431% from May 11, 2005
to March 25, 2020)
0 5 10 15 20 25 30 35 40
years
SOCIAL AND
ENVIRONMENTAL CAPITAL
• LEAP: -15% CO2 emissions
THREE ASSETS and -50% NOx emissions
• RESPONSIBLE SUPPLIER RELATIONS
Label
• 1st CAC 40 company certified
1 2 3 “anti‑corruption” by the ADIT(6)
SUSTAINABLE OPERATIONAL RESPONSIBLE
INNOVATION EXCELLENCE CONDUCT
(page 28) (page 32) (page 36)
(4) Aircraft engines have an average service life of 20 years in civil aviation and 35 years in military aviation. Aircraft equipment has an
average service life ranging from two years for carbon brakes to 35 years for wiring. Aircraft interiors have an average service life
ranging from five years for business-class seats to ten years for economy-class seats.
(5) TSR: Total Shareholder Return corresponds to dividends plus the change in the share price.
(6) French Agency for the Diffusion of Technological Information (Agence pour la diffusion de l’information technologique – ADIT).
2 1 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TS T R AT E G Y A N D B U S I N E S S M O D E L
SA F RA N A N D T H E C LIMAT E
PRIORITY
NO. 1
C HAN G E C H A LLEN G E
Climate change sets a major and systemic challenge for civil aviation.
Safran’s climate strategy addresses the challenge by offering
customers innovative solutions at a competitive cost.
With its position in most aircraft-system segments,
and all energy systems in particular, Safran makes climate change
a central part of its technological solutions.
AN AMBITIOUS COMMITMENT FOR THE AVIATION SECTOR
AND SAFRAN’S VISION TO ACHIEVE IT
The goal of a 90% reduction
in CO2 emissions per
Impact
of new passenger kilometer by 2050
No technologies will be reachable through:
action
Millions of metric tons of CO2
Better Renew
infrastructure
use global fleet with
new-generation aircraft
Improved 40%
operating
and engines
efficiency
Introduce
Carbon- Additional
technologies disruptive
neutral
growth and biofuels technologies
Improve
-90% 10 to 20% air traffic management
-50%
-50% and operations
for CO2
emissions Incorporate
40% sustainable
fuels
2005 2010 2020e 2030e 2040e 2050e … while also reducing
other pollution (noise,
NOx, particles, etc.).
Air transport accounts for 2% Ambition:
of global CO2 emissions from human low-carbon aviation by 2030-2035,
activities. With air traffic expected towards carbon neutrality
to double over the next 20 years, by 2050 THE SAFRAN COMMITMENT
the transition to sustainable aviation At the 2019 Paris Air Show
The aviation sector commitments
is an absolute priority for Safran. Chief Technology Officers
are consistent with the Paris (CTOs) of seven of the world’s
In 2008, the aviation sector took up Agreement on keeping global major aviation manufacturers(3),
a voluntary commitment on achieving temperature rise below two including Safran, made this
carbon neutrality by 2050 (ATAG)(1), degrees centigrade. Our objective statement:
by halving net fleet emissions by is achievable and should involve "As industry CTOs we are
2050 compared to 2005 to bring committed to driving the
all players in the sector (industry,
a 90% reduction in average emissions sustainability of aviation.
airlines, air traffic control, airports, We believe in this industry
per passenger kilometer across the government authorities). and its role in making our
worldwide fleet, taking into account world a brighter and safer
the expected growth in air traffic(2). place. We also strongly believe
we have an approach to make
aviation sustainable and play
an even bigger role in
(1) ATAG: Air Transport Action Group. our global community."
(2) Annual growth of around 4% is expected, bringing a 3.5 times increase in air traffic
from 2005 to 2050.
(3) Airbus, Boeing, Dassault Aviation, GE Aviation, Rolls-Royce, Safran, United Technologies
Corporation.
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 2 2S T R AT E G Y A N D B U S I N E S S M O D E L
SAFRAN’S CLIMATE STRATEGY
Safran intends to lead the way towards decarbonization of the aviation sector, through a climate strategy taking
two focuses: reduction in CO2 emissions from its production methods, and, what constitutes its essential mission,
reduction in CO2 emissions from its products.
REDUCTION IN CO₂ EMISSIONS FROM ITS PRODUCTION METHODS
Safran takes a committed and ambitious stance on reducing the carbon footprint of its production methods (referred
to as Scope 1, Scope 2 and Scope 3 emissions in the GHG Protocol(1)), through its low-carbon project.
Safran’s low-carbon project
Safran’s targets to reduce Some of the assets employed to
Safran’s Health, Safety and
CO2 emissions across its production meet our objectives are as follows:
Environment Department has been
methods by 2025 (compared
running the Group’s low-carbon r educing sites’ energy
with 2018 levels: 218,906 t CO2eq.
project since late 2018, and a steering consumption, chiefly by improving
for Scope 1 and 374,691 t CO2eq.
committee comprising several the energy efficiency of buildings;
for Scope 2).
members of the Safran Executive eveloping breakthrough solutions
d
Committee has been formed. for heat generation at our sites,
In addition, a dedicated organization by conversions such as replacing
has been set up, with the Scope 1 gas boilers with biomass boilers;
appointment of project leaders Direct hoosing low-carbon energy
c
-8%
in each of the Group’s tier-one emissions
sources, as with electricity suppliers
companies, and identification of
in Mexico, with the signing of
“business line” liaison officers.
a solar power energy contract.
The first phase of this project involves
reducing direct and indirect emissions Scope 2
from energy consumption in our Indirect
emissions
production methods:
irect energy-related emissions
d -18%
(referred to as Scope 1 emissions)
include emissions from LPG
(butane, propane), natural gas,
home heating oil, diesel fuel,
heavy fuel oil, aviation fuel and
refrigerants;
indirect energy-related emissions
(referred to as Scope 2 emissions)
THE EUROPEAN CO2 EMISSIONS QUOTA SYSTEM (EU ETS(2))
include emissions from purchased
electricity, steam, heat and cold. EU ETS, introduced in 2005, framework for 2021-2030 was
The second project phase, launched was the world’s first international reviewed in early 2018 to meet
in early 2020, concerns Safran’s emissions trading system. the emissions reduction objectives
It today stands as the largest under the 2030 climate action
indirect emissions (referred to as
global mechanism for trading and energy framework and under
Scope 3 emissions): from logistics emission rights, representing more the EU contribution to meeting
operations, purchases of goods and than three quarters of international the 2015 Paris Agreement.
services, and employee travel. carbon emission trading. EU ETS only applies to three
A ceiling is set to limit total of the more than 150 sites
Work here will enable us to reduce emissions of certain greenhouse that Safran has in Europe:
gases from sites covered by the Gennevilliers, Villaroche and
CO2 emissions while optimizing our
system. This ceiling is gradually Villeurbanne. The emissions
competitiveness.
reduced to bring down the generated by these three Safran
overall emissions volume. sites have never required the
Under the ceiling level, companies purchase of CO2 quotas. In addition,
are granted or can purchase Safran is examining alternative
emission quotas, which they energy solutions that would enable
can trade with other companies it to no longer use “licenses
according to their respective to pollute” for the Gennevilliers
needs. The EU ETS legislative and Villaroche sites by 2025.
(1) Greenhouse Gas Protocol.
(2) European Union Emission Trading System.
2 3 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TS T R AT E G Y A N D B U S I N E S S M O D E L
SAFRAN’S CLIMATE STRATEGY
REDUCTION IN CO₂ EMISSIONS FROM ITS PRODUCTS
Because the production of an aircraft accounts for only a small percentage of its emissions over its life cycle,
Safran considers that its first challenge is to reduce CO2 emissions from its products (referred to as Scope 3 emissions
in the GHG Protocol).
2030
2020 - 2050(2)
2035(2)
“Skip
a generation”(3):
Ultra-efficient • Future aircraft
conventional with carbon-
TOWARDS CARBON propulsion free energy
• Long-haul Public policies aircraft and Public policies source
NEUTRALITY & regulations increased use of & regulations
BY 2050(1) • Short- and sustainable fuels
medium-haul • Green synthetic
• Small electric fuel and/or
aircraft/Hybrid liquid
• Regional hydrogen
regional aircraft
• Helicopters Technologies Technologies
• New short- • Ultra-high
range mobility power density
solutions batteries
100% LOW-CARBON TOWARDS
KEROSENE CARBON
NEUTRALITY(1)
NOT JUST
ONE BUT
SEVERAL
SOLUTIONS
Rather than one single
solution, there will be
a series of measures,
at different timeframes,
ULTRA-OPTIMIZED SUSTAINABLE FUELS HYBRID PROPULSION
addressing specific market
THERMAL PROPULSION AND ELECTRIFICATION
segments and usages: short-,
medium- and long-haul
aircraft, helicopters, business FLIGHTS OVER 1,000 KM
jets and new air mobility.
FLIGHTS UNDER 1,000 KM
(1) In-flight emissions & emissions/capture related to fuel production close to zero by 2050.
(2) Target date for aircraft in service.
(3) New aircraft release bringing twice the usual next-generation gain (15%).
S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R T I 2 4S T R AT E G Y A N D B U S I N E S S M O D E L
ELECTRIFICATION Safran is actively involved in Given the current performance of
& HYBRIDIZATION: all-electric and hybrid propulsion electrical power systems (especially
SOLUTION FOR SHORT systems addressing applications as regards battery energy density),
in new short-haul aviation solutions Safran considers the prospect
DISTANCES
such as lightweight urban, suburban of an all-electric medium- and
or even regional transport (VTOL(1) long-haul aircraft to be unrealistic
or STOL(2) vehicles). for the time being.
Since flights longer than 1,000 km account for 50% of journeys and close to 80% of emissions, the priority
is on reducing emissions in the medium- and long-haul segment, which will remain predominantly thermal-powered
from 2030 to 2050.
SUSTAINABLE FUELS: This primarily involves solving the ULTRA-OPTIMIZED
A WORKABLE issue of the lifespan of seals and THERMAL PROPULSION:
SOLUTION FOR pumps for fuel systems and TOWARDS NEW-
THE NEAR FUTURE ensuring optimum combustion GENERATION AIRCRAFT
performance.
The only way to achieve an Safran has a major role to play in
immediate reduction in aircraft • E-fuels produced using low- the arrival, by 2035 at the latest,
carbon footprint is by using kerosene carbon electricity, water and CO2 of new low-carbon aircraft around
alternatives in the form of fuels that (such as the e-kerosene produced 30% more energy efficient than
have a lower carbon profile across by power-to-liquid technologies) the present-day fleet. Engine
the life cycle and do not, in offset biomass needs to improve advancements are an instrumental
the production process, entail emission reduction rates. factor here.
competition with other uses In the field of non-drop-in The challenge is summed up in a
(food crops in particular). sustainable fuels, if biofuel volumes phrase: “skip a generation”. Safran
are insufficient and power-to-liquid and GE are working on the successor
s a supplier of engines and fuel
A
processes fail to live up to their to the LEAP engine, which is
system equipment, Safran is
promises, Safran is also examining expected to offer a consumption
working on making the field
the breakthrough option of saving at least equal to the reduction
of drop-in sustainable fuels(3)
achieved by LEAP compared to
as wide as possible: cryogenic fuels such as liquid
the CFM56. Work also includes
•B
iomass-derived alternatives, or hydrogen, with a longer
lightweight design technologies
biofuels, are the only immediately R&T horizon and a step-by-step
for aircraft systems and cabin
available option, though the investment approach.
interiors, and electrification for new,
incorporation of biofuel in aircraft Sustainable fuels should make a ultra-efficient aircraft architectures.
fuel remains very low worldwide substantial contribution to short-term The objective will require the search
(0.1% currently). Safran is solutions. This will require the for breakthrough technologies
targeting the development development of production and (for example, “open rotor”
of technologies enabling engines distribution processes capable of engines) which imply a profound
to go above the present-day reducing the cost of this type of fuel, transformation of aircraft and
technical threshold of a 50% which is today two to three times their architecture. This requires
biofuel-kerosene mix. more expensive than kerosene. the active involvement of airframers.
If kerosene is eventually to be phased out entirely, this will also require
OPTIMIZING THE MASS work on reducing the fuel consumption of fleets in service. Among other
things, this will mean continuing to phase in new-generation aircraft such as
& EFFICIENCY the A320neo and the Boeing 737 MAX.
OF AIRCRAFT With its extensive product portfolio in aircraft equipment and interiors,
Safran is ideally placed to come up with solutions in areas such as operating
IN SERVICE efficiency improvement, electrical system optimization and lightweight
equipment design, with new cabin interior materials for example.
(1) VTOL: Vertical Take-Off and Landing aircraft.
(2) STOL: Short Take-Off and Landing aircraft.
(3) Drop-in fuels are fuels that can replace all or some of conventional kerosene without any operational impact,
i.e., without requiring modification to infrastructures (at airports, for example) or to aircraft or engines, whether existing or under
development.
2 5 I S A F R A N 2 0 1 9 I N T E G R AT E D R E P O R TYou can also read
