Security

Transcription

Security

CMD’13
/ June 16, 2013 /
1/
CMD’13 / JUNE 16, 2013 /
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.
Welcome
/ June 16, 2013 /
2/
CMD’13
Q3
REVENUE
/ JUNE2011
16, 2013
/ OCTOBER
/
21, 2011 /
Agenda
2:00
 Welcome
2:05 - 2:30
 CEO
perspective
2:30 - 3:50
 Civil
engines
3:50 - 4:10
 Break
4:10 - 5:20
 Electrical
5:20 - 6:20
 Security
6:20 - 6:50
 Financial
6:50 - 7:00
 Conclusion
7:00
 Dinner
3/
aircraft
review
cocktail
CMD’13 / JUNE 16, 2013 /
Speakers
JP.Herteman
M.Ventre
R.McInnes
Chairman & CEO
Deputy CEO, Operations
Deputy CEO, CFO
Civil
engines
P.Fabre
O.Andries
F.Planaud
G.Doukhan
Chairman & CEO
Snecma
Chairman & CEO
Turbomeca
EVP Commercial Engines
Snecma
VP Material Services
Snecma
Electrical
aircraft
Q&A
C.Plumb
O.Savin
O.Le Merrer
JP.Cojan
A.Sauret
MD Safran Power
UK & USA
EVP EGTS International
EVP, Wheels & Brakes
Messier-Bugatti-Dowty
EVP, Strategy
& Transformation
Chairman & CEO
Messier-Bugatti-Dowty
Q&A
Security
4/
Ph.Petitcolin
T.Chenevier
Chairman & CEO Morpho
VP Products & Markets,
Morpho Identification
B.Cotté
EVP, International
CMD’13 / JUNE 16, 2013 /
Safe Harbor Statement

These documents contain forward-looking statements. All statements other than statements
of historical fact in this presentation, including, without limitation, those regarding our financial
position, business strategy, management plans and objectives for future operations, are forwardlooking statements. These forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause our actual results, performance or
achievements, or industry results, to be materially different from those expressed or implied by
these forward-looking statements. These forward-looking statements are based on numerous
assumptions regarding our present and future business strategies and the environment in which
we expect to operate in the future. Important factors that could cause our actual results,
performance or achievements to differ materially from those in the forward-looking statements
include, among other factors:






the cyclical nature of the aviation market;
the effects of exceptional and unpredictable events;
the impact of changes in competition;
fluctuations in exchange rates;
our ability to maintain high levels of technology.
Forward-looking statements speak only as of the date of this presentation and we expressly
disclaim any obligation or undertaking to release any update or revisions to any forward-looking
statements in this presentation as a result of any change in our expectations or any change in
events, conditions or circumstances on which these forward-looking statements are based.
5/
CMD’13 / JUNE 16, 2013 /
Definitions
All figures in this presentation represent Adjusted data
Safran’s consolidated income statement has been adjusted for the impact of:

purchase price allocations with respect to material business combinations. Since 2005, this
restatement concerns the amortization charged against intangible assets relating to aeronautical
programs that were revalued at the time of the Sagem-Snecma merger. With effect from the firsthalf 2010 interim financial statements, the Group has decided to restate the impact of purchase
price allocations for all material business combinations (and not only those relating to the SagemSnecma merger). In particular, this concerns the amortization of intangible assets recognized at
the time of the acquisition, and amortized over extended periods, justified by the length of the
Group's business cycles;

the mark-to-market of foreign currency derivatives, in order to better reflect the economic
substance of the Group's overall foreign currency risk hedging strategy:


revenue net of purchases denominated in foreign currencies is measured using the effective hedging rate, i.e.,
including the costs of the hedging strategy,
the recognition of all mark-to-market changes on non-settled hedging instruments at the closing date is neutralized,
including the “ineffective” portion, given that the Group's hedging strategy includes optional hedging instruments and
optimization measures combined with highly volatile market inputs used to mark to market.
Recurring operating income

It excludes income and expenses which are largely unpredictable because of their unusual,
infrequent and/or material nature such as: impairment losses/reversals, capital gains/losses on
disposals of operations and other unusual and/or material non operational items).
6/
CMD’13 / JUNE 16, 2013 /
7/
Video clip
Safran highlights
8/
Safran: executing
our strategy
Jean-Paul Herteman - Chairman & CEO
/ June 16, 2013 /
9 / Q3 REVENUE 2011 / OCTOBER 21, 2011 /
Resolutely pursuing our development strategy
2007
2013
 Reposition
 Manage
the Group
crisis
 Invest
innovation
industrial
capacity
CFM56
replacement
 Deliver
GE partnership
 Manage
 Boost
 Increase
 Prepare
 Renew
2020
OE growth
 Grow
services
 Deliver
in Security
Accelerate growth and deliver
10 / CMD’13 / JUNE 16, 2013 /
LEAP
in Security
Selective M&A aiming at profitable growth
Aerospace
Electrical Power Systems
RTM322 programme
2009
2010
2011
2013
2012
Colombia/Peru
Divestment
of 12.57% stake
HLP
Europe
Security
11 / CMD’13 / JUNE 16, 2013 /
2008-2011: built a security franchise
Dutch government printing office
Strong lever to win new ID deals: Albania, Chili, Mauritania, Kenya…
Renewed contract for all travel documents in the Netherlands
Achieved industrial synergies
Motorola biometric activities
Provided increased US footprint in the AFIS domain (notably with FBI)
Strong technical synergy between Printrak (architecture) and Morpho (biometric engine)
Achieved significant revenue synergies
HLP
General Electric detection systems
Acquisition of technology and strong US installed base generating recurring revenues
Positions Morpho for technology upgrade in Europe (regulatory implementation delayed to 2014)
Highest contribution margin within Morpho
Biometric access solutions, secure credentialing and enrolment services
Proxy structure operational; full costs synergies in 2013 ($30M target)
Renewed driving licence contracts (still covering 80% of US drivers) generating recurring revenues
Financial performance below expectations initially due to protracted authorization period but now
firmly on track to meet initial targets and growth opportunities thanks to non-government businesses
MorphoTrust (L-1 ID under proxy) current momentum provides
confidence to achieve expected performance in 2013
12 /
CMD’13 / JUNE 16, 2013 /
Ingenico: supporting development strategy
while creating value for Safran shareholders
 Sagem acquired Ascom, a Swiss secure payment company, in 2002
for €23M
 Sagem Monetel profitably grew this business through 2008 (CAGR 15%)
differentiating through a defence electronics technology and then
contributed it to Ingenico in exchange for a 21% stake (book value of ~€200M)
 Based on Sagem Monetel technology and Ingenico global footprint:



Sales doubled in 5 years (€568M in 2007 to €1,206M in 2012)
EBITDA margin grew from 15% to 18.5% over the same period
R&D centre in Valence grew its staff by 50% in 5 years
 Ingenico share price grew from €14 to €45 at end 2012
 Ambitious 2016 roadmap: €1.8bn revenue and 20%+ EBITDA margin
 Safran sold 12.57% of its 22.8% stake in March 2013 for €287M
 Safran remains a strategic shareholder with 10.3% stake and 16.7%
voting rights
Value x25 in 10 years
What differentiation in security technology can bring
13 /
Established global, world-class high-tech Security
business
Biometric ID
Security - Revenue (€M)
N°1 worldwide in
Automated Fingerprint
Identification Systems
(AFIS) & iris/face recognition
2000
1,546
x3
1,249
e-Documents
1,041
Over 800 million cards
produced every year used for
passports, ID cards, driving
licenses, and banking cards
904
1000
622
695
Detection
N°1 worldwide in Explosive
Detection Systems (EDS)
for Hold Baggage
0
2007
2008
2009
2010
2011 2012
€1.5bn revenue and 7,700 employees
14 /
(of which 2,200 in the U.S.)
CMD’13 / JUNE 16, 2013 /
2010-today: complementary add-ons in aerospace
SNPE Matériaux Energétiques
Created a world leader in solid propulsion combined with Safran SPS assets
Provides very long term visibility and benefits from customer funding
On-going synergies
Electrical wiring systems
Extended customer presence in the US (civil/military, aircraft/helicopters)
Fully integrated into Labinal and producing high returns
Electrical Power Systems
RTM322 programme
Goodrich electrical power systems
Creating a European-based world leader in aerospace electrical power systems
Strong installed base and recurring aftermarket revenue
RTM322 engine programme
Safran announced the signing of a definitive agreement for the purchase of the
Rolls-Royce share of their RTM322 helicopter engine programme
Closing expected before year end 2013
Investing in core aerospace: engines and electrical systems
15 /
CMD’13 / JUNE 16, 2013 /
Safran: strategy delivering results
 Revenue
 Recurring
(€bn)
EBIT
(€M)
(% of sales)
2000
15
+31%
13
20,0%
13.6
6%
2
1
+
1500
11.7
11
10.3
10.5
1000
500
7
5
2009
15,0%
1189
10.8
9
2008
1,471
2010
2011
2012
878
652
698
6.3%
6.7%
2008
2009
10.1%
10.8%
10,0%
8.2%
5,0%
0
0,0%
2010
2011
Operating profit more than doubled in 5 years
16 / CMD’13 / JUNE 16, 2013 /
2012
Improving margins
Adjusted recurring operating margin (in %)
Equipment
(*) Excludes A400M loss at completion
17 / CMD’13 / JUNE 16, 2013 /
20%
18%
16%
10.1%10.8%
14%
8.2%
12%
10% 6.3% 6.7%
8%
6%
4%
2%
0%
…
20
15
E
20%
18%
12.3%11.3%
16%
14%
9.5%
9.4%
12%
10% 5.3%
8%
6%
4%
2%
0%
…
20
15
E
…
20
15
E
20
08
20
09
*
20
10
20
11
20
12
20%
18%
16%
14%
12%
6.2%
10%
8% 4.0%4.1% 4.4% 4.6%
6%
4%
2%
0%
Group
20
08
20
09
20
10
20
11
20
12
Security
20
08
20
09
20
10
20
11
20
12
Defence
20%
18%
16%
14%
12%
7.8%
6.5%
10%
4.5%
8%
6% 2.1% 2.6%
4%
2%
0%
…
20
15
E
…
20
15
E
20
08
20
09
20
10
20
11
20
12
20%
14.9%15.7%
18%
16%
11.1%11.8%
14% 10.1%
12%
10%
8%
6%
4%
2%
0%
20
08
20
09
20
10
20
11
20
12
Propulsion
CFM56: strong prospects until 2025 and beyond
CFM56 spare parts revenue to peak by around 2025E
CFM56 active installed fleet to peak by 2017E
at ~26,400 engines (~31,000 deliveries)
18 / CMD’13 / JUNE 16, 2013 /
LEAP: a gradual build up starting in 2016
14 000
12 000
~10,000 LEAP engines by 2025E
10 000
LEAP services revenue should reflect
Rate Per Flight Hour contracts
with smoother progressive revenue flows,
depending on contract terms
8 000
6 000
4 000
~3,000 LEAP engines by 2020E
2 000
0
LEAP engines
Global services revenue
19 / CMD’13 / JUNE 16, 2013 /
Optimising the organisation
 Consolidation
of the Group's electrical activities within a single
industrial entity (Labinal, Safran Power, GEPS)
 Single industrial entity for a successful strategic breakthrough in the market
for "more electric" aircraft
 Creation
of a Corporate Research Center
 ~300 scientists & high level engineers to focus on key research, including
materials, sensors, advanced propulsion and energetics, electrical and
electronic systems
 Advancement
of 12 key operational managers
 Safran University Top Executives trainees reach key manager positions at 45
20 / CMD’13 / JUNE 16, 2013 /
Attract and retain talents - the Safran way
 Target candidates to meet significant
recruitment needs



Employer brand campaign
Partnerships with engineering schools and
universities
Launch of safran-talents.com
 Aid integration of new hires


Investment in work-study programs
& internships
Targeted integration measures at Group
and company level
 26,000 people (40% of the total) will
have joined Safran over 2011-13E


21,000 from direct recruitments
5,000 from acquired companies
21 / CMD’13 / JUNE 16, 2013 /
More diversified and international equity shareholding
As of Dec. 31, 2007
Public*
40.5%
As of May 31, 2013
French State
30.4%
Public**
57.8%
French State
27.1%
Areva
Treasury
shares
1.4%
7.4%
Employees
Employees
20.3%
* Public: 2/3rd France, 1/3rd International
Treasury
shares
15.0%
0.1%
** Public: 40% US, 30% UK, <30% France, others
Increasing & globalising free float
22 / CMD’13 / JUNE 16, 2013 /
Creating value for shareholders
Share price evolution since September 2007
Safran +134%
(€41.5)
CAC -32%
(3,864 pts)
(As of June 10, 2013)
23 / CMD’13 / JUNE 16, 2013 /
2013 outlook and 2015 view
2013 outlook is confirmed
 Adjusted revenue expected to increase by a percentage in the mid
to high single digits
 Adjusted recurring operating income expected to increase
by a percentage in the mid-teens
 Free cash flow expected to represent about 40% of the adjusted
recurring operating income
2015 view



Organic adjusted revenue above €15bn
Adjusted recurring operating margin heading to the mid-teens
Free cash flow generation trending to 50% of adjusted recurring
operating income

Cash: dividend distribution to shareholders
24 / CMD’13 / JUNE 16, 2013 /
There’s more to come!

Despite uncertainties of current macro economic environment,
Safran has great prospects building on solid achievements and
keeps singularly high level of visibility on its short and long term
perspectives

Demand for air transport will continue to grow ahead of GDP

Reaping the benefits of 30 years of investment (CFM)

Investing for the next 30 years, locked into successful programs

Security: satisfying growing demand through technology
25 / CMD’13 / JUNE 16, 2013 /
26 /

Security

Transcription

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