2 0 2 4 IN T E R IM
F IN A NCI A L
R E P OR T

CONTENTS

DECLARATION BY THE PERSONRESPONSIBLE

1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9

3

INTERIM 2024 ACTIVITY REPORT

4

Foreword
First-half 2024 results based on adjusted data
Business commentaryFirst-half 2024 results basedon consolidated data
Balance sheet and cash flow
Currency hedging
Portfolio review
Full-year 2024 outlook
Related-party transactions
Bonds convertible into new Safran shares
and/or exchangeable for existing Safran shares

4
6
8
9
11
12
13
13
13
14

2

3
4

INTERIM FINANCIAL STATEMENTS

15

Consolidated income statement
Consolidated statement of comprehensive
incomeConsolidated statement of changes
in shareholders’ equity
Consolidated balance sheet
Consolidated statement of cash flows
Notes to the Group condensed interim
consolidated financial statements

15

20

STATUTORY AUDITORS’ REVIEW REPORT

56

Statutory Auditors’ review report on the interim
financial information

56

CORPORATE GOVERNANCE

57

Annual General Meeting of May 23, 2024 –Dividend payment of €2.20 per share
Membership structure of the Board of Directors
and its standing committees“The forecasts and forward-looking statements described in this document
are based on the data, assumptions and estimates considered asreasonable by the Group as at the date of this document. These data,assumptions and estimates may evolve or change as a result of
uncertainties related in particular to the economic, financial, competitive,
tax or regulatory environment. The occurrence of one or more of therisks described in the Universal Registration Document may also havean impact on the business, financial position, results and prospects of
the Group and thus affect its ability to achieve such forecasts andforward-looking statements. The Group therefore neither makes any
commitment, nor provides any assurance as to the achievement of theforecasts and forward-looking statements described in this document.”

The Interim Financial
Report is available on
the website atwww.safran-group.com

16
17
18
19

57
57

DECLARATION BY THE PERSONRESPONSIBLE
Assembly of LEAP engine modules“I certify that, to the best of my knowledge, the condensed interim consolidated financial statements have been prepared inaccordance with the applicable accounting standards, and give a true and fair view of the assets and liabilities, and of the financial
position and results of the Company and all its consolidated subsidiaries, and that the accompanying interim activity reportprovides a true and fair view of the main events of the first six months of the year, their impact on the condensed interim
consolidated financial statements and the significant transactions with related parties, and also describes the main risks anduncertainties for the next six months.”
Paris, July 31, 2024
Chief Executive
Olivier Andriès

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

3

1

INTERIM 2024 ACTIVITY REPORT

Integrating the nacelle on the LEAP 1-A engine powering the A320neo

FOREWORD
To reflect the Group’s actual economic performance and enable
it to be monitored and benchmarked against competitors,
Safran prepares an adjusted income statement in addition toits consolidated financial statements.
Readers are reminded that Safran:◼ is the result of the May 11, 2005 merger of Sagem SA andSnecma, accounted for in accordance with IFRS 3, “Business
Combinations” in its consolidated financial statements;◼ recognizes, as of July 1, 2005, all changes in the fair valueof its foreign currency derivatives in “Financial income(loss)”, in accordance with the provisions of IFRS 9
applicable to transactions not qualifying for hedge accounting(see Note 3.f of the 2023 Universal Registration Document).
Accordingly, Safran’s consolidated income statement has beenadjusted for the impact of:◼ purchaseprice allocations with respect to businesscombinations. Since 2005, this restatement concerns theamortization charged against intangible assets relating
to aircraft programs remeasured at the time of the
Sagem–Snecma merger. With effect from the first-half 2010
interim financial statements, the Group decided to restate:● the impact of purchase price allocations for businesscombinations, particularly amortization and depreciation

4

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

charged against intangible assets and property, plant andequipment recognized or remeasured at the time of thetransaction and amortized or depreciated over extended
periods due to the length of the Group’s business cycles,
and the impact of remeasuring inventories, as well as,● gains on remeasuring any previously held equity interestsin the event of step acquisitions or asset contributions
to joint ventures;◼ 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 hedged rate, i.e., including
the costs of the hedging strategy,● all mark-to-market changes on instruments hedging future
cash flows are neutralized.
The resulting changes in deferred tax have also been adjusted.

INTERIM 2024 ACTIVITY REPORT
Foreword

1

Reconciliation of the consolidated income statement with the adjusted income statement
The impact of these adjustments on first-half 2024 income statement items is as follows:

Currency hedges(in € millions)

Business combinationsFirst-half 2024
Deferred
Amortization of PPA impacts consolidated Remeasurement
hedging
intangible assets - other business First-half 2024
(1)
(2)
data
of revenue gain/loss Sagem-Snecma merger(3) combinations(4) adjusted data

Revenue

13,204

(157)

-

-

-

13,047

Other operating income and expenses(11,287)

(4)

1

21

134

(11,135)

Share in profit from joint ventures

Recurring operating income

51

-

-

-

11

62

1,968

(161)

1

21

145

1,974

Other non-recurring operating income and expenses

(24)

-

-

-

-

(24)

Profit from operations

1,944

(161)

1

21

145

1,950

Cost of net debt
Foreign exchange gain/loss
Other financial income and expense

Financial income (loss)

84

-

-

-

-

84

(1,961)

161

1,681

-

-

(119)

1

-

-

-

-

1

(1,876)

161

1,681

-

-

(34)

Income tax benefit (expense)

38

(434)

(5)

(34)

(435)

Profit for the period

106

-

1,248

16

111

1,481

Profit (loss) for the period attributable
to non-controlling interests

(49)

-

-

-

-

(49)

57

-

1,248

1,248

111

1,432

PROFIT FOR THE PERIOD ATTRIBUTABLETO OWNERS OF THE PARENT
(1)
(2)
(3)
(4)

Remeasurement of foreign-currency denominated revenue net of purchases (by currency) at the hedged rate (including premiums on unwoundoptions) through the reclassification of changes in the fair value of instruments hedging cash flows recognized in profit or loss for the period.
Changes in the fair value of instruments hedging future cash flows that will be recognized in profit or loss in future periods (a positive€1,681 million excluding tax), and the impact of taking into account hedges when measuring provisions for losses on completion(a positive €1 million at June 30, 2024).
Cancellation of amortization/impairment of intangible assets relating to the remeasurement of aircraft programs resulting from theapplication of IFRS 3 to the Sagem SA-Snecma merger.
Cancellation of the impact of remeasuring assets at the time of the Zodiac Aerospace acquisition for €91 million excluding deferred
tax and cancellation of amortization/impairment of assets identified during other business combinations.

Readers are reminded that the condensed interim consolidated
financial statements are subject to review by the Group’s
Statutory Auditors. The condensed interim consolidated financial
statements include the revenue and operating profit indicators
set out in the adjusted data in Note 5, “Segment information”.

Adjusted financial data other than the data provided in Note 5,“Segment information” are subject to the verification
procedures applicable to all of the information provided in
the interim report.

The impact of these adjustments in first-half 2023 was as follows:

Currency hedges(in € millions)

Revenue
Other recurring operating income and expenses
Share in profit from joint ventures

Recurring operating income

Business combinationsFirst-half 2023
Deferred
Amortization of PPA impacts consolidated Remeasurement
hedging
intangible assets - other business First-half 2023
(1)
(2)
data
of revenue gain/loss Sagem-Snecma merger(3) combinations(4) adjusted data
11,129

(184)

-

-

-

10,945(9,772)

14

(5)

19

135

(9,609)

49

-

-

-

12

61

1,406

(170)

(5)

19

147

1,397

Other non-recurring operating income and expenses

(57)

-

-

-

-

(57)

Profit from operations

1,349

(170)

(5)

19

147

1,340

Cost of net debt

42

-

-

-

-

42

1,123

170

(1,272)

-

-

21

-

-

-

-

-

-

Financial income

1,165

170

(1,272)--

63

Income tax expense

(609)

-

329

(5)

(33)

(318)

Profit for the period

1,905

-

(948)

14

114

1,085

Profit (loss) for the period attributable
to non-controlling interests

(42)

-

-

-

-

(42)

PROFIT FOR THE PERIOD ATTRIBUTABLETO OWNERS OF THE PARENT

1,863

-

(948)

14

114

1,043

Foreign exchange gain/loss
Other financial income and expense

(1)
(2)
(3)
(4)

Remeasurement of foreign-currency denominated revenue net of purchases (by currency) at the hedged rate (including premiums on unwoundoptions) through the reclassification of changes in the fair value of instruments hedging cash flows recognized in profit or loss for the period.
Changes in the fair value of instruments hedging future cash flows that will be recognized in profit or loss in future periods(a negative €1,272 million excluding tax), and the impact of taking into account hedges when measuring provisions for losses oncompletion (a negative €5 million at June 30, 2023).
Cancellation of amortization/impairment of intangible assets relating to the remeasurement of aircraft programs resulting from theapplication of IFRS 3 to the Sagem SA-Snecma merger.
Cancellation of the impact of remeasuring assets at the time of the Zodiac Aerospace acquisition for €104 million excluding deferred
tax and cancellation of amortization/impairment of assets identified during other business combinations.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

5

1

INTERIM 2024 ACTIVITY REPORTFirst-half 2024 results based on adjusted data

1.1

FIRST-HALF 2024 RESULTS BASED ON ADJUSTED DATA

All figures concerning the first-half income statement and commented in sections 1.1 and 1.2 represent adjusted data, except when
noted otherwise. Comments on the interim consolidated income statement are provided in section 1.3 of this document.

Adjusted interim income statement(in € millions)

Revenue
Other income

First-half 2023
adjusted data

First-half 2024
adjusted data

10,945

13,047

226

208

Income from operations

11,171

13,255

Change in inventories of finished goods and work-in-progress

707

871

Capitalized production

214

235

Raw materials and consumables used

(6,696)(7,819)Personnel costs(3,363)(3,939)

Taxes

(173)

(194)

Depreciation, amortization and increase in provisions, net of use

(460)

(614)

Asset impairment

(104)

57

40

60

Other operating income and expenses
Share in profit from joint ventures

Recurring operating income

61

62

1,397

1,974

Other non-recurring operating income and expenses

(57)

(24)

Profit from operations

1,340

1,950

Cost of net debt

42

84

Foreign exchange gains (loss)

21

(119)

Other financial income and expense

Financial income (loss)

-

1

63

(34)

Profit before tax

1,403

1,916

Income tax expense

(318)

(435)

PROFIT FOR THE PERIOD

1,085

1,481

1,043

1,432

42

49

Basic earnings per share

2.48

3.37

Diluted earnings per share

2.40

3.27

Attributable to:◼ owners of the parent◼ non-controlling interests

Earnings per share attributable to owners of the parent (in €)6

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM 2024 ACTIVITY REPORTFirst-half 2024: Strong sales, operating income and margin growth, full-year guidance confirmed

1

FIRST-HALF 2024: STRONG SALES, OPERATING INCOME AND MARGIN GROWTH,
FULL-YEAR GUIDANCE CONFIRMED
Adjusted revenue
First-half 2024 revenue stood at €13,047 million, up by 19.2% compared to first-half 2023 (+18.7% on an organic basis). Change
in scope was €48 million(1). Currency impact was €6 million, with an average €/$ spot rate of 1.08 in first-half 2024 (1.08 in
first‑half 2023). €/$ hedge rate in first-half 2024 stood at 1.12 (1.13 in first-half 2023).

Research & Development
Total R&D, including R&D sold to customers, reached €936 million,
compared with €862 million in first-half 2023.
Self-funded R&D expenses before tax credits were up 12% at€646 million in first-half 2024 including:◼ Development expenses at €313 million (€313 million in

first‑half 2023);

towards decarbonization through the RISE (Revolutionary
Innovation for Sustainable Engines) technology development
program.
The impact on recurring operating income of expensed R&D
was €547 million (€473 million in first-half 2023), with both
higher capitalized R&D and related amortization, representing
4.2% of sales (4.3% of sales in first-half 2023).

◼ Research & Technology (R&T) self-funded expenses at€333 million (€262 million in first-half 2023) mainly geared

Adjusted recurring operating income
In first-half 2024, recurring operating income reached€1,974 million, representing a substantial increase of 41%(+39% organic). This robust performance was due to growthin services across the board and to OE ramp-up in Equipment& Defense and Aircraft Interiors. It includes scope changes of€(1) million and a favorable currency impact of €35 million.
Operating margin stood at 15.1% of sales, up 2.3pts (12.8% in
first-half 2023).

Other non-recurring operating income and expenses

First-half 2023

First-half 2024

Adjusted recurring operating income

1,397

1,974

% of revenue

12.8%

15.1%

Total non-recurring items

(57)

(24)

(in € millions)

Capital gain (loss) on asset disposal
Impairment reversal (charge)
Other infrequent & material non-operational items

(1)

-

(35)

(10)

(21)

(14)

ADJUSTED RECURRING OPERATING INCOME

1,340

1,950

% of revenue

12.2%

14.9%

Adjusted profit for the period attributable to owners of the parent
In first-half 2024, non-recurring items were €(24) million, mainly
impairment charges for one program and restructuring costs.
Net income was up by 37% at €1,432 million in first-half 2024
(basic EPS of €3.37 and diluted EPS of €3.27), compared with
€1,043 million in first-half 2023 (basic EPS of €2.48 anddiluted EPS of €2.40).

This includes:◼ financial expense of €(34) million, including positive financial

interest of €84 million (returns on cash investments exceed
cost of debt) and €(119) million exchange revaluation of
positions in the balance sheet;◼ tax expense of €(435) million (22.7% apparent tax rate).

The reconciliation between the first-half 2024 consolidated
income statement and the adjusted income statement isprovided on page 5 of this report.

(1) Divestment of Cargo & Catering in May 2023. Acquisition of Thales Aeronautical Electrical Systems activities in October 2023
and Air Liquide aeronautical oxygen and nitrogen activities in February 2024.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

7

1

INTERIM 2024 ACTIVITY REPORTBusiness commentary

1.2

BUSINESS COMMENTARYFirst-half 2024 key figures
Segment breakdown of adjusted revenue
Segment breakdown of adjusted revenue% changein scope% changecurrency% changeorganic

13.8%-(0.2)%

14.0%

26.1%

2.7%

0.3%

23.1%

(5.3)%-

26.6%

First-half 2023

First-half 2024

Propulsion

5,677

6,461

Equipment & Defense

4,100

5,170

Aircraft Interiors

1,163

1,411

21.3%

(in € millions)

Holding company & Others

TOTAL GROUP% change

5

5

-

-

-

-

10,945

13,04719.2%%

0.4%

0.1%

18.7%

Segment breakdown of adjusted recurring operating income
Segment breakdown of adjusted recurring operating income

First-half 2023

First-half 2024

% change

Propulsion

1,051

1,285

22.3%

% of revenue

18.5%

19.9%

(in € millions)

Equipment & Defense

466

657

% of revenue

11.4%

12.7%

Aircraft Interiors

(100)

10

% of revenue(8.6)%

0.7%

41.0%
110.0%

Holding company & Others

(20)

22

n/s

TOTAL GROUP

1,397

1,974

41.3%

% of revenue

12.8%

15.1%

Adjusted revenue by quarter
2024 adjusted revenue by quarter

First-quarter 2024

Second-quarter 2024

First-half 2024

Propulsion

3,097

3,364

6,461

Equipment & Defense

2,444

2,726

5,170

676

735

1,411

3

2

5

6,220

6,827

13,047(in € millions)

Aircraft Interiors
Holding company & Others

TOTAL GROUP

Segment operations review
Propulsion
Propulsion was up by 14.0%. Supported by strong air traffic
momentum, civil aftermarket (in USD) increased by 29.9%(32.3% in second-quarter 2024). This growth is attributable to
CFM56 spare parts sales but also to CFM rate per flight hour
(RPFH) contracts, notably for LEAP (with no profit recognition).
High-thrust engine activities also grew thanks to both spareparts and RPFH contracts. 664 LEAP engines were delivered
compared to 785 in first-half 2023, down 15% (297 units insecond-quarter 2024 down 29.1%), due to persisting issues
within the supply chain.
Military engine revenues decreased year-over-year reflecting
planned lower M88 deliveries partially offset by a higher levelof services.

8

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Finally, helicopter engine revenue growth was led by OE,
thanks to higher turbine deliveries (notably Arrius and Arriel).
Services saw a moderate increase, primarily driven by MRO
activities and per flight hour contracts. Ongoing supply chain
constraints affected both OE deliveries and spare parts.
Propulsion recurring operating income reached €1,285 million,
up by 22% (+21% organic). Operating margin stood at 19.9%,
up by 1.4pts, supported by strong civil aftermarket activity
benefitting from higher spare parts sales for CFM56.
The anticipated decrease in M88 engine deliveries had an
unfavorable impact on recurring operating income. Helicopter
engines recurring operating income remained steady infirst‑half 2024.

INTERIM 2024 ACTIVITY REPORTFirst-half 2024 results based on consolidated data

Equipment & Defense

Aircraft Interiors

Equipment & Defense saw a solid 23.1% increase supportedby all businesses, notably defense and landing systems
activities.

Aircraft Interiors was up by 26.6% (albeit 14% below 2019 level),a significant growth demonstrating the appetite of airlines
for cabin retrofit.

Fueled by the continuous increase in air traffic and the
widebody market recovery, aftermarket services were up by
18%, with growth across all activities, notably in landing
systems and nacelles as well as for defense including sighting
and navigation systems.

Aftermarket activities were particularly dynamic in both
Cabin (mainly spare parts) and Seats (notably with Asian andUS airlines), driven by the recovery of the widebody market
and the positive momentum in air traffic.

OE sales registered a 27% increase with higher volumes in
nacelles (G700 entry into service, A320neo), landing gears(787, A320neo), electrical systems (787, A320neo) as well as
in Avionics (FADEC for LEAP), despite supply chain
constraints. In defense activities, the substantial growth was
primarily led by guidance systems, optronics and onboard
systems.
Equipment & Defense recurring operating income stood at€657 million, up 41% (+35% organic). At 12.7% of sales,
operating margin increased by 1.3pts. The strong recurring
operating income upswing was mainly attributable to higher
OE volumes, in particular for Defense activities and to a lesser
extent nacelles as well as growth in services, notably landing
gear and carbon brakes. OE for Aerosystems had a positive
contribution thanks to Fluid and Fuel systems.

1.3

1

OE sales growth is primarily attributed to Seats with thestrong growth of Business class seat deliveries (750 units infirst-half 2024 vs. 436 in first-half 2023).
Aircraft Interiors posted a positive recurring operating incomeof €10 million, representing a substantial improvement of€110 million from first-half 2023.
Cabin’s performance was supported by a good level of activity
in services and to a lesser extent in OE deliveries.
Seats strongly improved in first-half 2024 notably thanks tothe contribution from services and higher volume. Ongoing
efforts in the industrialization process continued to yieldpositive results in OE activities.
Additionally, Safran Passenger Innovations made a positive
contribution to recurring operating income, largely due toin‑flight entertainment (IFE) products.

FIRST-HALF 2024 RESULTS BASED ON CONSOLIDATED DATA(in € millions)

Revenue
Other recurring operating income and expenses
Share in profit from joint ventures

Recurring operating income

First-half 2023

First-half 2024

11,12913,204(9,772)(11,287)

49

51

1,406

1,968

Other non-recurring operating income and expenses

(57)

(24)

Profit from operations

1,349

1,944

Financial income (loss)

1,165(1,876)

Profit before tax

2,514

68

Income tax benefit (expense)

(609)

38

Profit from continuing operations

1,905

106

Profit from discontinued operations and disposal gain--

Profit (loss) for the period attributable to non-controlling interests

(42)

(49)

PROFIT FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT

1,863

57

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

9

1

INTERIM 2024 ACTIVITY REPORTFirst-half 2024 results based on consolidated data

Consolidated revenue
For first-half 2024, consolidated revenue was €13,204 million,
compared to €11,129 million in the same period a year ago.
The difference between adjusted revenue and consolidated
revenue is due to the exclusion of foreign currency derivatives
from the adjusted figures. Neutralizing the impact of foreign
currency hedging increased first-half consolidated revenueby €157 million in 2024 and by €184 million in 2023. The
year‑on-year change in the impact of foreign currency hedging
on revenue results from movements in average exchange

rates with regard to the effective hedged rates for the periodon the portion of foreign-currency denominated flows hedgedby the Group. For example, the hedged EUR/USD rate forfirst-half 2024 was 1.12 against an average rate of 1.0810,
which explains why netting out the effect of foreign currency
hedging results in a consolidated revenue figure that is higher
than adjusted revenue.
Year-on-year changes in revenue by operating segment are
analyzed above (see sections 1.1 and 1.2).

Consolidated recurring operating income
Recurring operating income came in at €1,968 million forfirst‑half 2024, compared to €1,406 million for first-half 2023.
The difference between recurring operating income and adjusted
recurring operating income, which came in at €1,974 million,
results in particular from:◼ amortization charged against intangible assets measured

when allocating the purchase price for business combinations,representing €(166) million for first-half 2024 (versus€(166) million for first-half 2023);◼ a €160 million positive impact resulting from foreign

currency transactions (compared to a €170 million positive
impact for first-half 2023), including the remeasurement offoreign-currency denominated revenue (a €157 million
positive impact) and of “Other recurring operating income
and expenses” (a €34 million positive impact).
Changes in recurring operating income, excluding the impactof adjusting items, are analyzed above (see sections 1.1 and 1.2).

Consolidated profit from operations
Profit from operations came in at €1,944 million for first-half 2024,
compared to €1,349 million for first-half 2023.

Changes in profit from operations in adjusted data as well as
the non-recurring items are analyzed above (see section 1.1).

Profit from operations includes recurring operating income of€1,968 million (versus €1,406 million for first-half 2023) and a
non-recurring expense of €24 million (versus an expense of€57 million for first-half 2023).

Consolidated financial income (loss)
The Group reported a consolidated financial loss of €1,876 million
for first-half 2024, compared to financial income of €1,165 million
for first-half 2023.
The financial loss for the period mainly comprises a €1,681 million
loss on foreign currency hedging instruments, a €255 million
foreign exchange loss and €25 million in net foreign exchange
losses on provisions.
In first-half 2024, the €1,681 million loss on foreign currency
hedging instruments reflects changes in the fair value of these

instruments attributable to operating cash flows that will berecognized in profit or loss in future periods.
The fair value of the portfolio reflects the immediate liquidation
value of the portfolio at the closing rate for the half year
(USD 1.0695 to €1) compared with the average rate of theportfolio. The change in the fair value is theoretical for theGroup, as currency hedges are unwound when future dollar
inflows are received.

Income tax benefit (expense)
The Group reported an income tax benefit of €38 million forfirst-half 2024, compared to an income tax expense of€609 million for first-half 2023.

A projected income tax rate of 25.83% was used to calculate theeffective tax rate applicable to French entities in first-half 2024.
For the United States, the rate is 23.5%.

Group tax is calculated by using the projected annual rates ineach of the Group’s tax jurisdictions, adjusted for the main
permanent differences identified.

Consolidated profit for the period
The Group reported consolidated profit of €106 million for first-half 2024, compared to profit of €1,905 million for first-half 2023.

10

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM 2024 ACTIVITY REPORT
Balance sheet and cash flow

1.4

1

BALANCE SHEET AND CASH FLOW

Consolidated balance sheet
Assets(in € millions)

Dec. 31, 2023

June 30, 2024

Goodwill

4,706

4,687

Tangible & Intangible assets

11,951

12,330Investments in joint ventures and associates

1,928

1,923

Right of use

582

659

Other non-current assets

2,126

3,240

Derivatives assets

1,577

1,690

Inventories and WIP

7,903

9,344

Contracts costs

753

855

Trade and other receivables

9,417

9,558

Contracts assets

2,157

2,290

Cash and cash equivalents

6,676

5,699

Other current assets

692

740

50,46853,015

Dec. 31, 2023

June 30, 2024

12,088

11,727

Provisions

2,611

2,786

Borrowings subject to sp. conditions

292

287

Interest bearing liabilities

6,299

4,804

Derivatives liabilities

4,743

6,527

Other non-current liabilities

1,055

1,387

Trade and other payables

8,097

8,923

Contracts liabilities

15,02915,749TOTAL ASSETS

Equity and liabilities(in € millions)
EquityOther current liabilities
TOTAL EQUITY & LIABILITIES

254

825

50,46853,0152 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

11

1

INTERIM 2024 ACTIVITY REPORT
Currency hedging

Cash flow highlights(in € millions)

Recurring operating income

First-half 2023

Full-year 2023

First-half 2024

1,406

3,309

1,968

Other non-recurring operating income and expenses

(57)

(511)

(24)

Depreciation, amortization, provisions (excluding financial)

759

1,780

723

2,108

4,578

2,667

Income tax and non-cash items(126)(1,066)(307)

Cash flow from operations

1,982

3,512

2,360
(140)

EBITDA

Changes in working capital

81

758

Capex (tangible assets)

(100)

(823)

(93)

Capex (intangible assets)

(348)

(179)

(512)

Capitalization of R&D

(152)

(323)

(152)

Free cash flow

1,463

2,945

1,463

Dividends paid

(583)

(583)

(965)

Divestments/acquisitions and others(1,157)(2,002)23

NET CHANGE IN CASH AND CASH EQUIVALENTS

(277)

360

521

14

14

374

(263)

374

895

Net cash/(Net debt) at beginning of period

Net cash/(Net debt) at end of period

Free cash flow
Free cash flow of €1,463 million was driven by the increase in
cash flow from operations unfavorably impacted by working
capital change and higher capital expenditures of €(757) million(€(600) million in first-half 2023) directed notably towards
OE and MRO production capacity and low carbon initiatives.
The negative impact of the change in working capital(€(140) million) reflects inventory level build-up (OE deliveries
lower than expected across the board, notably LEAP), partly
offset by customer advance payments (Rafale).

Net debt and financing
As of June 30, 2024, Safran’s balance sheet exhibits an€895 million net cash position (vs. net cash of €374 million as
at December 31, 2023), as a result of a strong free cash flow
generation, partially offset by dividend payment (of which€911 million to shareholders of the parent company) and€560 million of share repurchases.

1.5

Cash and cash equivalents stood at €5,699 million, downfrom €6,676 million at the end of December 2023.
On February 9, 2024, Safran reimbursed with cash-in-hand the$505 million matured last tranche of USPP notes issued in 2012.
On April 11, 2024, Safran also reimbursed with cash-in-handthe €200 million Euro Private Placement issued in 2014.
On April 19, 2024, Safran extended by one more year thematurity of its revolving credit facility of €2 billion to May 4, 2029.
As of June 30, 2024, the credit line remains undrawn.
On June 28, 2024, Safran proceeded with the early redemptionof its bonds convertible into shares initially due May 15, 2027.
In that respect, Safran delivered 9,314,153 existing treasury
shares to bondholders who exercised their conversion rights(i.e., 98% of the bonds) and paid €20 million in cash. This soft
call had a €961 million positive impact on net debt and nodilutive impact on existing shareholders.

CURRENCY HEDGING

The hedge book amounts to $54.4 billion in June 2024,
compared to $51.7 billion in March 2024.
◼ 2024 is hedged: the targeted hedge rate is $1.12, for an

estimated net exposure of $12.0 billion.

◼ 2025 to 2027 are hedged: the targeted hedge rate between$1.12 and $1.14, for an estimated net annual exposure of$13.0 billion.
◼ 2028 is partially hedged: $9.3 billion is hedged out of an

estimated net exposure of $13.0 billion.

12

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM 2024 ACTIVITY REPORT
Related-party transactions

1.6

PORTFOLIO REVIEW

Collins Aerospace’s actuation and flight control business

Preligens◼ In June 2024, Safran was informed by the Italian government

On July 16, 2024, Safran signed an agreement for the acquisitionof Preligens shares, a leader in artificial intelligence (AI) foraerospace and defense, for an enterprise value of €220 million.

of its decision to ultimately approve the sale to Safran ofMicrotecnica S.r.l (the Italian assets).
◼ In the United Kingdom, the Secretary of State in the Cabinet

Office has reviewed the notification made under the
National Security and Investment Act and has informed
Safran that he will take no further action in relation to the
proposed acquisition. This constitutes an unconditional
clearance.
◼ The completion of the acquisition of Collins Aerospace’s

actuation and flight control business remains subject toobtaining other regulatory approvals, particularly with regard
to merger control and customary closing conditions.

1.7

1

The company develops complex algorithms and software
to analyze and automatically detect and identify objects ofmilitary interest, notably using commercial and government
satellite images.
Completion of this proposed acquisition remains subject toforeign investment approval. The closing is expected in thethird quarter of 2024.

FULL-YEAR 2024 OUTLOOK

Safran confirms its 2024 outlook and expects to achieve forfull-year 2024 (at constant scope of consolidation, adjusted
data):◼ Revenue around €27.4 billion;◼ Recurring operating income close to €4.0 billion;◼ Free cash flow around €3.0 billion, subject to schedule ofsome advance payments.

This outlook is based notably, but not exclusively, on thefollowing assumptions, of which two are updated:◼ LEAP engine deliveries: flat to 5% compared to 2023

(previously up by 10-15%);◼ Civilaftermarket revenue (in USD): up mid-twenties(previously up by around 20%);◼ €/$ spot rate of 1.10;◼ €/$ hedge rate of 1.12.

The main risk factor remains the supply chain production
capabilities.

1.8

RELATED-PARTY TRANSACTIONS

Readers are invited to refer to section 2, Note 24 of this report and sections 7.1.4 and 8.2.3 of the 2023 Universal Registration
Document filed with the French financial markets authority (Autorité des marchés financiers – AMF) on March 28, 2024 under
number D.24-0208.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

13

1

INTERIM 2024 ACTIVITY REPORT
Bonds convertible into new Safran shares and/or exchangeable for existing Safran shares

1.9

BONDS CONVERTIBLE INTO NEW SAFRAN SHARES AND/OR EXCHANGEABLEFOR EXISTING SAFRAN SHARES

Bonds convertible into new Safran shares and/or exchangeable
for existing Safran shares, due May 15, 2027 (2027 OCEANEs)
Adjustment to the 2027 OCEANE bond conversion ratio
As a reminder, on May 15, 2020, Safran issued 7,391,665
bonds (the “Initial Bonds”) convertible into new shares and/or exchangeable for existing shares, due May 15, 2027
(2027 OCEANEs). On October 12, 2020, Safran carried out atap issue of 1,847,916 bonds (the “New Bonds”) convertible
into new shares and/or exchangeable for existing shares.
The New Bonds carried the same terms and conditions as theInitial Bonds, with the exception of the issue price. They were
fungible with the Initial Bonds, with which they formed asingle 2027 OCEANE series. The background, terms andconditions, purpose and impact of the 2027 OCEANE bondissues are presented in section 7.2.3.2, section 3.1, Note 23.dand section 3.3, Note 3.9 of the 2023 Universal Registration
Document, and section 2, Note 18 of this interim financial
report. The reports of the Board of Directors and the
Statutory Auditors on the 2027 OCEANEs are presented in
section 8.4 of the 2020 Universal Registration Document.
At the Annual General Meeting of May 23, 2024, theshareholders approved a dividend payment of €2.20 per
share. The ex-dividend date was May 28, 2024 and the record
date was May 29, 2024. Consequently, and in accordancewith the terms and conditions of the 2027 OCEANEs, the2027 OCEANE conversion ratio – previously 1.019 Safranshares for 1 OCEANE bond – was adjusted to 1.029 Safranshares for 1 OCEANE bond, effective May 30, 2024. Readers
are also invited to refer to section 2, Note 18, “Consolidated
shareholders’ equity” of this report.

Conversion or early redemption of 2027 OCEANE bonds
On May 29, 2024, Safran announced that it would redeem all
2027 OCEANE bonds outstanding on June 28, 2024 ahead ofterm on that date. Bondholders had the option of requesting
the exercise of their conversion right pursuant to the terms
and conditions of the 2027 OCEANE bonds until the seventh
trading day (exclusive) preceding the early redemption date,i.e., until June 19, 2024 (exclusive).

14

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

At the early redemption date, 9,058,762 of the 9,239,581 total
2027 OCEANE bonds issued had been tendered for conversion,
giving rise to the delivery of 9,314,154 existing shares. The
180,819 bonds still outstanding were redeemed at par plus
interest accrued since the most recent coupon payment date,i.e., €108.34416 per bond.
At June 30, 2024, there were therefore no outstanding 2027
OCEANE bonds.

Bonds convertible into new Safran shares and/or exchangeable
for existing Safran shares, due April 1, 2028 (2028 OCEANEs)
Adjustment of the 2028 OCEANE bond conversion ratio
As a reminder, on June 14, 2021, Safran issued 4,035,601 bonds
convertible into new shares and/or exchangeable for existing
shares, due April 1, 2028 (2028 OCEANEs). The background,terms and conditions, purpose and impact of the 2028 OCEANE
bond issues are presented in section 3.1, Note 23.d, section 3.3,
Note 3.9 and section 7.2.3.2 of the 2023 Universal Registration
Document, and section 2, Note 18 of this interim financial
report. The reports of the Board of Directors and the Statutory
Auditors on the 2028 OCEANEs are presented in section 8.4of the 2021 Universal Registration Document.
At the Annual General Meeting of May 23, 2024, theshareholders approved a dividend payment of €2.20 per
share. The ex-dividend date was May 28, 2024 and the record
date was May 29, 2024. Consequently and in accordancewith the terms and conditions of the 2028 OCÉANEs, the2028 OCEANE conversion ratio – previously 1.003 Safranshares for 1 OCEANE bond – was adjusted to 1.009 Safranshares for 1 OCEANE bond, effective May 30, 2023. Readers
are also invited to refer to section 2, Note 18, “Consolidated
shareholders’ equity” of this report.
At June 30, 2024, all of the 4,035,601 2028 OCEANEs issued
were still outstanding.
In the event that Safran decided to provide only new shares upon
the exercise of the conversion rights for all the 2028 OCEANEs,
the maximum dilution as estimated based on the Company’s
capital and the 2028 OCEANE conversion ratio at June 30, 2024
would be 0.95%.

2

INTERIM FINANCIAL STATEMENTS

Checking seekers with a binocular microscope

The Board of Directors’ meeting of July 30, 2024 adopted and authorized the publication of Safran’s consolidated financial
statements and adjusted income statement for the six-month period ended June 30, 2024.

CONSOLIDATED INCOME STATEMENT
Note

First-half 2023

First-half 2024

Revenue

6

11,12913,204

Other income

7

226

208

11,355

13,412

Change in inventories of finished goods and work-in-progress

707

867

Capitalized production

214

235

(in € millions)

Income from operations

Raw materials and consumables used

7

(6,706)(7,822)

Personnel costs

7(3,367)(3,932)

Taxes

(173)

(194)
(765)

Depreciation, amortization and increase in provisions, net of use

7

(609)

Asset impairment

7

(104)

56

Other recurring operating income and expenses

7

40

60

Share in profit from joint ventures

16

Recurring operating income
Other non-recurring operating income and expenses

7

Profit from operations
Cost of net debt
Foreign exchange gain (loss)
Other financial income and expense

Financial income (loss)

51
1,968

(57)

(24)

1,349

1,944

42

84

1,123

(1,961)

-

1

8

1,165

(1,876)

2,514

68

9

(609)

38

1,905

106

Profit before tax
Income tax benefit (expense)

49
1,406

PROFIT FOR THE PERIOD
Attributable to:◼ owners of the parent

1,863

57

42

49

Basic earnings per share

4.43

0.13

Diluted earnings per share

4.29

0.13

◼ non-controlling interests

Earnings per share attributable to owners of the parent (in €)10

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN

15

2

INTERIM FINANCIAL STATEMENTS
Consolidated statement of comprehensive income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
NoteFirst-half 2023

First-half 2024

1,905

106

Items to be reclassified to profit

(76)

182

Translation adjustments

(57)

155

Remeasurement of hedging instruments

(8)

(3)

2

1

(in € millions)

Profit for the period

OTHER COMPREHENSIVE INCOME

Income tax related to components of other comprehensive income
to be reclassified to profit
Share in other comprehensive income (expense) of equity-accounted companies
to be reclassified to profit (net of tax)

(13)

29

Items not to be reclassified to profit

16

15

57

Actuarial gains and losses on post-employment benefits

1976

Income tax related to components of other comprehensive income
not to be reclassified to profit

(5)

(19)

Share in other comprehensive income of equity-accounted companies
not to be reclassified to profit (net of tax)

1-

Other comprehensive income (expense) for the period

(61)

239

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,844

345

1,802

293

42

52

Attributable to:◼ owners of the parent◼ non-controlling interests

In first-half 2024, other comprehensive income relating totranslation adjustments includes €155 million in translation
gains (€52 million in translation losses in first-half 2023)
arising in the period on foreign operations.
In first-half 2024, other comprehensive income resulting fromthe remeasurement of hedging instruments includes negative
fair value adjustments totaling €3 million (negative fair value
adjustments of €8 million in first-half 2023) relating to cash
flow hedges of interest payments on senior unsecured notes(i) as of the end of first-quarter 2019 and (ii) as of July 2020.
The outstanding balance of the ongoing cash flow hedging
reserve is a negative €2 million (see the consolidated statementof changes in shareholders’ equity).

Other comprehensive income relating to equity-accounted
companies (net of tax) includes (see Note 16, “Investments inequity-accounted companies”): €29 million in foreign exchange
gains (losses of €13 million in first-half 2023) arising in the
period on foreign joint ventures.
In accordance with the amended IAS 19, changes in actuarial
gains and losses are shown in “Other comprehensive income”
and are not subsequently reclassified to profit.
The discount rates used to calculate post-employment benefit
obligations are determined by reference to the yield on private
investment-grade bonds (AA), using the Iboxx index. The main
discount rate assumptions used to calculate post-employment
benefit obligations at the dates shown were revised as follows:

Dec. 31, 2022

June 30, 2023

Dec. 31, 2023

Eurozone

3.70%

3.60%

3.20%

June 30, 2024
3.70%

UK

4.70%

5.25%

4.50%

5.20%

The inflation rate assumption used to calculate obligations in the United Kingdom was as follows:

UK inflation rate

16

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Dec. 31, 2022

June 30, 2023

Dec. 31, 2023

June 30, 2024

3.25%

3.25%

3.00%

3.20%

INTERIM FINANCIAL STATEMENTS
Consolidated statement of changes in shareholders’ equity

2

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY(in € millions)

Actuarial
gains andConsolidated
lossesAdditional
Remeasurement
reserves
on postSharepaid-in Treasuryof hedging Translation and retained employment
capitalcapital shares
instruments adjustments
earnings
benefits

At December 31, 2022

85

4,688

(310)

23

668

7,658

Comprehensive income(expense) for the period

-

-

-

(8)

(70)

-

20

Acquisitions/disposalsof treasury shares

-

-

(933)

-

-

5

Dividends

-

-

-

-

-

(564)

Other movements,
including appropriationof profit

-

-

-

-

-

4,688 (1,243)15

At June 30, 2023

85

Profit(loss)
for theperiod(208) (2,459)

Equityattributableto owners
Nonof the controlling
Other
parent interests

Total

266

10,411455 10,866

1,863(3)(1)

1,802

42

1,844

-

-

-

(928)

-

(928)

-

-

-

(564)

(19)

(583)

(2,459)

-

2,459

23(2)

23

(1)

22

598

4,640

(188)

1,863

286

10,744477

11,221

Comprehensive income(expense) for the period

-

-

-

(14)

(98)

-

(100)

1,581

27

1,396

33

1,429

Acquisitions/disposalsof treasury shares

-

-

(605)

-

-

-

-

-

-

(605)

-

(605)

Dividends

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

42

42

1

43

4,688 (1,848)

1

500

4,640

(288)

3,444

355

11,577-75

57 (18)(1)

293

Other movements,
including appropriationof profit-

At December 31, 2023

85

Comprehensive income(expense) for the period

-

-

-

(3)

182

Acquisitions/disposalsof treasury shares

-

-

(512)

-

-

(44)

-

-

-

(556)

-

(556)

Dividends

-

-

-

-

-

(911)

-

-

-

(911)

(54)

(965)

Treasury sharesdelivered throughconversion of 2027
OCEANE bonds

-

-

1,201

-

-

(177)

-

-

-

1,024

-

1,024

Share buybackcommitments

-

-

-

-

-

(250)

-

-

-

(250)

-

(250)

Other movements,
including appropriationof profit

-

-

-

-

-

3,444

- (3,444)

41(2)

41

-

41

4,688 (1,159)

(2)

682

6,702

378

11,218509

11,727AT JUNE 30, 2024

(1)

(2)

85

(213)

57

511 12,088
52

345

Other comprehensive income (expense) for first-half 2024 (attributable to owners of the parent) includes a negative tax impact of€18 million, of which a negative €19 million arising on actuarial gains and losses and a positive €1 million on foreign exchange differences(a negative impact of €5 million and a positive impact of €2 million, respectively, in first-half 2023).
Including a share-based payment expense (IFRS 2) net of tax amounting to €40 million in first-half 2024 (€24 million in first-half 2023).

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN17

2

INTERIM FINANCIAL STATEMENTS
Consolidated balance sheet

CONSOLIDATED BALANCE SHEET
AssetsNote

Dec. 31, 2023

June 30, 2024

Goodwill

11

4,706

4,687

Intangible assets

12

7,830

7,968

Property, plant and equipment

13

4,121

4,362

Right-of-use assets

14

582

659

Non-current financial assets

15

997

1,212

Investments in equity-accounted companies

16

1,928

1,923

Non-current derivatives (positive fair value)

23

-

-

1,122

2,024

(in € millions)Deferred tax assets
Other non-current financial assets

Non-current assets

7

4

21,293

22,839Current financial assets

15

270

225

Current derivatives (positive fair value)

23

1,577

1,690

7,903

9,344

Inventories and work-in-progress
Contract costs

753

855

Trade and other receivables

9,417

9,558

Contract assets

2,157

2,290

Tax assets

422

515

6,676

5,699

Current assets

29,17530,176TOTAL ASSETS

50,46853,015

Dec. 31, 2023

June 30, 2024

Cash and cash equivalents

17

Equity and liabilities(in € millions)

Note

Share capital

18

85

85

Consolidated reserves and retained earnings

18

8,048

11,076

Profit for the period

3,444

57

Equity attributable to owners of the parent

11,577

11,218Non-controlling interests
Total equity

509

12,088

11,727
1,704

Provisions

19

1,547

Borrowings subject to specific conditions

20

292

287

Non-current interest-bearing financial liabilities

21

4,691

3,786

Non-current derivatives (negative fair value)

23

Deferred tax liabilities
Other non-current financial liabilities

22

Non-current liabilities

8

8

1,022

1,387

33

-

7,593

7,172
1,082

Provisions

19

1,064

Current interest-bearing financial liabilities

21

1,608

1,018

Trade and other payables

8,097

8,923

Contract liabilities

15,02915,749Tax liabilities

18

511

Current derivatives (negative fair value)

23

Other current financial liabilities

22

104

433

4,735

6,519

150

392

Current liabilities

30,787

34,116TOTAL EQUITY AND LIABILITIES

50,46853,015SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Consolidated statement of cash flows

2

CONSOLIDATED STATEMENT OF CASH FLOWS
Note First-half 2023 First-half 2024

(in € millions)

I. CASH FLOW FROM OPERATING ACTIVITIESProfit attributable to owners of the parent

1,863

57

Depreciation, amortization, impairment and provisions(1)

752

766

Share in profit/loss from equity-accounted companies (net of dividends received)

16

(39)

(37)

Change in fair value of currency and interest rate derivatives(2)23(1,260)1,680

Capital gains and losses on asset disposals

2

(13)

Profit attributable to non-controlling interests

42

49

Other(3)

622

(142)

Cash flow from operations, before change in working capital

1,982

2,360

Change in inventories and work-in-progress(1,019)(1,297)

Change in operating receivables and payables

153

731

Change in contract costs

(79)

(84)

Change in contract assets and liabilities

1,144

585

Change in other receivables and payables

(118)

(75)

Change in working capital

Total I

81

(140)

2,063

2,220

(152)

(152)

II. CASH FLOW USED IN INVESTING ACTIVITIESCapitalization of R&D expenditure(4)12

Payments for the purchase of intangible assets, net(5)

(100)

(93)

Payments for the purchase of property, plant and equipment, net(6)

(348)

(512)

Payments for the acquisition of investments or businesses, net

(104)

(189)

Proceeds arising from the sale of investments or businesses, net

154

18

(265)

(57)

Proceeds (payments) arising from the sale (acquisition) of investments and loans, net(7)Other movements

-

-

(815)

(985)

Change in share capital – owners of the parent

2-

Change in share capital – non-controlling interests

-

-

18.b

(931)

(574)

Repayment of borrowings and long-term debt(8)

21

(243)

(744)

Increase in borrowings

21

9

11

Change in repayable advances

20

(6)

(9)

Total II

III. CASH FLOW USED IN FINANCING ACTIVITIESAcquisitions and disposals of treasury shares

Change in short-term borrowings
Dividends and interim dividends paid to owners of the parent

21

(37)

49

18.e

(564)

(911)

Dividends paid to non-controlling interests

Total III
Effect of changes in foreign exchange rates
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(1)
(2)
(3)

(4)
(5)

(6)

(7)
(8)

(54)
(2,232)

Total IV

1

20

I+II+III+IV

(540)

(977)

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(19)(1,789)

17

6,687

6,676

6,147

5,699

(540)

(977)

Including in first-half 2024: depreciation and amortization for €692 million (€653 million in first-half 2023), impairment charges for€37 million (€136 million in first‑half 2023) and provision charges for €111 million (provision reversals for €37 million in first-half 2023).
Including in first-half 2024: a negative €1,673 million arising on currency derivatives (a positive €1,257 million in first-half 2023)(see Note 23, “Management of market risks and derivatives”).
Including in first-half 2024: cancellation of a €38 million tax expense (€609 million tax expense in first-half 2023), €157 million in taxes
paid (€31 million in first-half 2023), €64 million in interest paid (€74 million in first-half 2023), and €136 million in interest received(€102 million in first-half 2023).
Including in first-half 2024: negative €1 million (negative €3 million at June 30, 2023).
Including in first-half 2024: €66 million in disbursements for acquisitions of intangible assets (€56 million in first-half 2023), €1 million inproceeds from disposals (€4 million in first-half 2023), changes in amounts payable on acquisitions of non-current assets representing
a negative €31 million (a negative €52 million in first-half 2023), and changes in amounts receivable on disposals of non-current assets
representing a positive €3 million (a positive €4 million in first-half 2023).
Including in first-half 2024: €510 million in disbursements for acquisitions of property, plant and equipment (€353 million in first-half 2023),
changes in amounts payable on acquisitions of non-current assets representing a negative €5 million (a positive €1 million in first-half 2023),€4 million in proceeds from disposals (€4 million in first-half 2023), and changes in amounts receivable on disposals of non-current
assets representing a negative €1 million (nil in first-half 2023).
Including in first-half 2023: an outflow of €200 million relating to investments that do not qualify as cash and cash equivalents.
Including in first-half 2024: an outflow of €200 million relating to the redemption of the Euro private placement and an outflow of€448 million relating to the redemption of the final tranche of the 2012 USPP (€180 million outflow relating to the redemption of thesecond tranche of the 2012 USPP in first-half 2023).

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19

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INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTES TO THE GROUP CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTSNOTE 1

Financial impacts of climate change

21

NOTE 2

Accounting policies

22

NOTE 3Main sources of estimates

NOTE 4

Scope of consolidation

NOTE 5

Segment information

NOTE 6

Revenue

NOTE 7SAFRAN

Investments in equity-accounted
companies

39

NOTE 17

Cash and cash equivalents

41

23

NOTE 18

Consolidated shareholders’ equity

41

26

NOTE 19

Provisions

45

28

NOTE 20

Borrowings subject to specificconditions

45

Interest-bearing financial liabilities

46

Other current and non-current
financial liabilities

49

Management of market risks
and derivatives

49

Related parties

52

Off-balance sheet commitments
and contingent liabilities

53

30

NOTE 21

Breakdown of the other main
components of profit from operations

31

NOTE 8Financial income

33

NOTE 9

Income tax

33

NOTE 10

Earnings per share

34

NOTE 22
NOTE 23
NOTE 24

NOTE 11

Goodwill

34

NOTE 12Intangible assets

35

NOTE 13

Property, plant and equipment

36

NOTE 26

Disputes and litigation

55

NOTE 14

Leases37

NOTE 27

Subsequent events

55

Current and non-current
financial assets

38

NOTE 15

20

NOTE 162024 I NTER I M FINANC IAL REP O RT

NOTE 25

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Safran (2, boulevard du Général Martial-Valin – 75724 Paris
Cedex 15, France) is a société anonyme (joint-stock
corporation) incorporated in France and permanently listedon Compartment A of the Euronext Paris Eurolist market.
The condensed interim consolidated financial statements reflect
the accounting position of Safran SA and the subsidiaries
that it controls, directly or indirectly and jointly or exclusively,
as well as entities over which it exercises significant influence(the “Group”).

2

The condensed interim consolidated financial statements andaccompanying notes are drawn up in euros and all amounts
are rounded to the nearest million unless otherwise stated.
Rounding to the nearest million euros may, in some cases,
result in insignificant differences in the totals, subtotals andpercentages shown in the tables.
The Board of Directors’ meeting of July 30, 2024 adopted
and authorized for issue the 2024 condensed interim
consolidated financial statements.

The accounting rules and methods applied by the Group inaccordance with international financial reporting standards
are presented in Note 2, “Accounting policies”.

NOTE 1 FINANCIAL IMPACTS OF CLIMATE CHANGE
The decarbonization of air transport is Safran’s main climate
challenge. The 2015 Paris Climate Agreement set the goalof capping the increase in the Earth’s average temperature
at 2°C, or even 1.5°C, by the end of the century compared with
pre-industrial levels. Safran is fully committed to this objective
and has set itself the following targets in this regard:◼ reducing emissions from its operations (Scopes 1 and 2) by

30% by 2025 and by 50.4% by 2030 compared to a 2018baseline;◼ reducing emissions related to the use of its products(Scope 3 product use) by 42.5% per seat-kilometer by 2035
compared with 2018, or an average of 2.5% per year,
thereby contributing to achieving net zero emissions forthe aviation sector by 2050;◼ reducing emissions related to employee travel (Scope 3

business travel and commuting) by 50% by 2030 comparedwith 2018;◼ mobilizing its 400 main suppliers in meeting the commitments

under the Paris Agreement.
In early 2023, the independent Science-Based Targets initiative(SBTi) validated the first two greenhouse gas (GHG) emissions
reduction targets set by Safran, showing they are alignedwith the goals of the Paris Agreement adopted at COP21 inDecember 2015.
Climate change-related challenges are reflected in the Group’s
financial statements.
At the reporting date, the Group does not consider that its
commitments in relation to the transition to a low-carbon
economy have a material impact on its financial statements,
with the exception of its R&T expenditure.

Measurement of assets
The air traffic growth assumptions used by management in
the Group’s medium-term business plan and strategy (3.2%
growth in average annual revenue passenger kilometers [RPK]over the next 20 years) take into account environmentrelated constraints in different regions (impact of the use ofsustainable fuels and of higher taxes on ticket prices, changes

in consumer behavior owing to increased environmental
concerns – especially in Europe, a decline in business travel,
and the occurrence of periods of extreme weather) that could
slow down air traffic growth.
The 2.5% perpetual growth rate used to determine the terminal
value of cash-generating units (see Note 11, “Goodwill”) is
therefore lower than the market assumptions used by the Group.
The depreciation periods of the main programs take into
account decarbonization initiatives.

Property, plant and equipment –Sustainable investments and otherexpenses relating to the climate
and protecting the environment
Safran is continuing to implement its strategy of producing
solar energy at its French sites to reduce their carbon footprint.
By the end of 2025, 17 of its French sites will be equippedwith photovoltaic panels.
The Group is rolling out the same initiative in the rest of theworld, with PV installation projects completed in various
countries (Morocco, Belgium, the United Kingdom, China,
Thailand, Singapore, Australia, Mexico, Tunisia, India, Malaysia
and Poland).
The power purchase agreements (PPA) have been analyzed
to determine the appropriate accounting treatment, and havebeen recognized either as property, plant and equipment oras binding commitments to purchase energy and services
associated with the power generation facilities.
Safran has also set up virtual power purchase agreements(VPPA) to help decarbonize its electricity consumption. Aftersigning a contract in the US at the end of 2023, Safran signed
a new VPPA in Malaysia in February 2024, scheduled to comeon stream at the end of 2025 (see Note 23, “Management ofmarket risks and derivatives”).
The depreciation periods of the main assets take into accountdecarbonization initiatives and have not been revised.

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INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Financial assets
Safran Corporate Ventures, Safran's investment subsidiary, is
stepping up its investments in line with the Group's strategic
priorities, including decarbonization.
Its investments are mainly in startups developing disruptive
technologies.
After investing in 2022 in German startup Ineratec, specialized
in technologies for the development and production ofcarbon-neutral synthetic fuels, in February 2024, Safran
Corporate Ventures invested in US startup Avnos, which isdeveloping a technology to capture CO2 from ambient air
while reducing energy consumption and using zero water.
At the end of June 2024, Safran Corporate Ventures
participated in a funding round to support startup Estuaire
in further developing its flight data analysis platform to help
airlines and airports minimize CO2 and non-CO2 emissions in a
cost-effective way.
Safran has committed to investing in an investment fundspecializing in carbon offsetting, generating both a financial
return and voluntary carbon credits. It will invest USD 25 million,
with the initiatives planned in this area expected to generate
a reduction of almost 900 ktCO2 over 15 years.
The first call for funds is slated for 2024. At June 30, 2024, thisinvestment was classified as an off-balance sheet commitment.

Group’s research into innovative propulsion systems for the
next generation of single-aisle commercial aircraft, marking amajor step forward in Safran’s roadmap towards achievingcarbon free air transportation by 2050.
On May 4, 2022 Safran set up a €2 billion revolving credit
facility (RCF), with an original maturity of May 2027. Following
the exercise of the two one-year extension options, the maturity
has been extended to May 2029.
The financial terms and conditions of the liquidity line areindexed to the achievement by the Group of two sustainable
development criteria: CO2 emissions (Scopes 1 and 2) and the
proportion of women among senior executives.

Research and Technology
The R&T priorities set by Safran are fully in line with thepriorities defined in the French recovery plan, which has set a
goal of developing a low-carbon aircraft by 2035.
Over 85% of self-funded R&T spend has been allocated toenvironmental efficiency.
Gross R&T costs represented approximately €426 million in
first-half 2024, mainly invested in projects aiming to develop
key technologies for carbon-free aviation.

Compensation policy
Liabilities and commitments received
On March 4, 2021, Safran signed a €500 million loan agreementwith the European Investment Bank (EIB), which was drawn
down in full on February 21, 2022 for ten years (maturing in
February 2032). The loan is being used to finance some of the

In recent years, the Group's commitment to carbon neutrality
has been reinforced by the inclusion of CSR objectives in thecriteria used to determine executive long-term compensationand new profit-sharing agreements.

NOTE 2 ACCOUNTING POLICIESThe consolidated financial statements of Safran and its
subsidiaries have been prepared in accordance with theInternational Financial Reporting Standards (IFRS) publishedby the International Accounting Standards Board (IASB) andadopted by the European Union at the date the condensed
interim consolidated financial statements were approvedby the Board of Directors. They include standards approvedby the IASB, namely IFRS, International Accounting Standards(IAS), and interpretations issued by the IFRS Interpretations
Committee (IFRS IC) or its predecessor, the Standing
Interpretations Committee (SIC).
The condensed interim consolidated financial statements at
June 30, 2024 have been prepared in accordance with IAS 34,“Interim Financial Reporting” and with all the standards andinterpretations adopted by the European Union and applicableto accounting periods beginning on or after January 1, 2024.
In preparing these condensed interim consolidated financial
statements at June 30, 2024, Safran applied the same accounting
rules and methods as those applied in the preparation of
its consolidated financial statements for the year ended
December 31, 2023 (see section 3.1, Note 2 of the 2023
Universal Registration Document), except as regards the

22

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

specific requirements of IAS 34 (use of projected annual rates
in calculating the Group’s income tax, adjusted for the main
permanent differences) and the changes described below.

Changes in accounting policies
New IFRS standards, amendments andinterpretations effective as of January 1, 2024
◼ Amendments to IAS 1, “Presentation of Financial Statements”– Classification of Liabilities as Current and Non-current
and Non-current Liabilities with Covenants.
◼ Amendments to IFRS 16, “Leases” – Lease Liability in a Saleand Leaseback.
◼ Amendments to IAS 7, “Statement of Cash Flows” andIFRS 7, “Financial Instruments: Disclosures” – Supplier Finance
Arrangements.
The standards, amendments and interpretations effective forreporting periods beginning on or after January 1, 2024
do not have a material impact on the Group’s consolidated
financial statements.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

New published IFRS standards,
amendments and interpretations early
adopted by the Group as of January 1, 2024
None.

2

Standards, amendments and interpretations
not adopted by the European Union
as of June 30, 2024 or not yet effective
as of January 1, 2024
◼ Amendments to IAS 21, “The Effects of Changes in Foreign

Exchange Rates” – Lack of Exchangeability.
◼ IFRS 18, “Presentation and Disclosure in Financial Statements”.
◼ IFRS19, “Subsidiaries
Disclosures”.

without

PublicAccountability:◼ Amendments to IFRS 9 and IFRS 7, “Amendments to theClassification and Measurement of Financial Instruments”.

NOTE 3 MAIN SOURCES OF ESTIMATES
The preparation of consolidated financial statements inaccordance with the International Financial ReportingStandards (IFRS) described above requires management tomake certain estimates and assumptions that affect thereported amounts of consolidated assets, liabilities, income
and expenses.
The assumptions used vary from one business to the next, but
are considered reasonable and realistic in all cases. The
resulting estimates are based on the Group’s past experienceand factor in the economic conditions prevailing at the end of
the reporting period and any information available as of thedate of preparation of the financial statements, in particularof a contractual or commercial nature.
Estimates and underlying assumptions are reviewed on an
ongoing basis. They take into account the direct and indirectconsequences of the situation in Ukraine and the sanctions
imposed on Russia and Belarus.
When unforeseen developments in events and circumstances
occur, particularly as regards global economic trends and theGroup’s own business environment, actual results may differ
from these estimates. In such cases, the assumptions and,
where appropriate, the reported amounts of assets andliabilities concerned are adjusted accordingly.

total cash flows under programs and contracts represent
management’s best estimate of the rights and obligations
expected to derive from the program or contract.
The assumptions applied and resulting estimates used forprograms and contracts cover periods that are sometimes
very long (up to several decades), and take into account thetechnological, commercial and contractual constraints as wellas the impacts of the climate strategy of each such programand contract.
These estimates primarily draw on assumptions about thevolumes, output and selling prices of products sold andassociated production costs, including inflation assumptions.
They also draw on exchange rates for foreign-currency
denominated sales and purchases as well as normal risks anduncertainties in respect of forecast cost overruns and, fordiscounted future cash flows, the discount rate adopted foreach program and contract.

The Group also tests its sensitivity to changes in the assumptions
underlying its main estimates in order to analyze the impact ofvolatility and lack of visibility in the global economic environment
and particularly in certain Group segments. These analyses are
regularly reviewed by management.

The Group’s volume assumptions are prepared internally foreach market in which Group companies are present (e.g.,commercial, business and military aviation, helicopters, etc.).
For short-term estimates, these assumptions are based on
available inputs (programs, orders, etc.), while external inputs(publications, airframer press releases, IATA announcements,
market surveys, etc.) are used for estimates covering the
medium to long term. The assumptions are regularly revised,particularly those used for short-term estimates, in order toreflect the latest developments in the Group’s programs, andall assumptions used for medium- to long-term forecasts arevalidated by management at least once a year.

The main accounting policies which require the use of estimates
are described below.

Cash flow forecasts, which may or may not be discounted, areused to determine the following:◼ impairment of non-current assets: goodwill and assetsa) Estimates relating to programs
and contracts
The main material estimates used by the Group to prepare its
financial statements relate to forecasts of future cash flows
under programs and contracts (business plans). Forecast future

allocated to programs (aircraft programs, development
expenditure and property, plant and equipment usedin production) are tested for impairment as described in
section 3.1, Note 3.m of the 2023 Universal Registration
Document. The recoverable amount of these assets isgenerally determined using cash flow forecasts;

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN23

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements◼ capitalization of development expenditures: the conditions

for capitalizing development expenditure are set out insection 3.1, Note 3.j of the 2023 Universal Registration
Document. Determining whether future economic benefits
are expected to flow to the Group is instrumental indeciding whether project costs can be capitalized. This
analysis is carried out based on future cash flow forecasts.
The Group also uses estimates when determining theuseful life of its projects;◼ profit (loss) on completion of contracts accounted for on

Any changes in estimates and assumptions underlying cash flow
forecasts for programs and contracts could have a material
impact on the Group’s future earnings and/or the amounts
reported in its balance sheet. Consequently, the sensitivityof key estimates and assumptions to such changes issystematically tested and the results of these tests reviewed
by management on a regular basis.

b) Provisions

a percentage-of-completion basis: the Group accounts forcontracts on a percentage-of-completion basis (cost-to-cost
method). Under this method, revenue is recognized basedon the percentage of work completed, calculated byreference to the costs incurred. This method requires anestimate of results on completion using future cash flow
forecasts that take into account contractual indexes andcommitments as well as other factors inherent to thecontract based on historical and/or forecast data. Thismethod also requires an estimate of the contract’s stageof completion.

Provisions reflect management’s best estimates using available
information, past experience and, in some cases, estimatesby independent experts.

Estimates of maintenance costs can incorporate uncertainties.
Assumptions are updated in line with technical milestones
and with the experience acquired in terms of maintenancecosts.

Contractual provisions relating to performance warranties
given by the Group take into account factors such as thefrequency and estimated cost of repairs. The value of thesecommitments may be based on a statistical assessment.

When the total costs that are necessary to cover theGroup’s risks and obligations under the contract are likely
to exceed total contract revenue, the expected loss (i) is
recognized within provisions for losses on completion or(ii) leads to the write-down of contract fulfillment costs(if any) and to the subsequent recognition of a provision forlosses on completion for the remaining amount of the loss;

Provisions relating to financial guarantees given by the Groupare based on the estimated value of the underlying assets,
the probability that the customers concerned will default,
and, where appropriate, the discount rate applied to cash flows.

◼ timing of revenue recognition: the recognition of revenue

under certain contracts is based on delivery volume
assumptions. These assumptions therefore influence thetiming of revenue recognition;◼ variable consideration: the transaction price may becomprised of both a fixed amount and a variable amount.
This variable amount may, in particular, depend on volume
assumptions which therefore require the use of estimates;

When estimating provisions relating to the Group’s contractual
commitments on timeframes and technical specifications inconnection with the development phase, the general stage ofdevelopment of each of the Group’s programs is taken into
account, particularly as regards any changes made to
specifications during the development phase. Contractually
defined liability limits are also taken into account.

The costs and penalties actually incurred or paid may differ
significantly from these initial estimates when the obligations
unwind, and this may have a material impact on the Group’s
future earnings.
At the date of this report, the Group has no informationsuggesting that these inputs are not appropriate taken as awhole.
Provisions for restructuring costs represent the best estimateof the costs at the end of the reporting period.

◼ losses arising on delivery commitments: sales contracts(or combinations of contracts) may be onerous. For all
sales contracts or combinations of contracts, the Groupestimates the volume of goods to be delivered as well as
spare parts and services directly related to the delivery
commitment, which may be contractual or highly probable.
Accordingly, the Group recognizes a provision for losses
arising on delivery commitments when the combination ofcontracts is onerous, and a loss is likely to be incurred.
It uses estimates, notably as regards the volume of goods
to be produced and delivered under the sales contracts or
combinations of contracts, as well as the volume of directly
related spare parts and services, projected production
costs and the expected economic benefits;◼ repayable advances: the forecast repayment of advances

received from public bodies is based on revenue fromfuture sales of engines, equipment and spare parts, as
appropriate. As a result, the forecasts are closely related
to the business plans prepared by the operating divisions.

24

SAFRAN

2024 I NTER I M FINANC IAL REP O RTc) Post-employment benefits
The Group uses statistical data and other forward-looking inputs
to determine assets and liabilities relating to post-employment
benefits. These inputs include actuarial assumptions such as
the discount rate, salary increase rate, retirement age, andemployee turnover and mortality. Actuarial calculations
are performed by independent actuaries. At the date of
preparation of the consolidated financial statements, theGroup considers that the assumptions used to measure its
commitments are appropriate and justified.
However, if circumstances or actuarial assumptions – especiallythe discount rate – prove significantly different from actual
experience, the amount of post-employment liabilities shownin the balance sheet could change significantly, along withequity.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statementsd) Trade receivables, contract assets
and other receivables
The Group estimates any collection risks based on commercial
information, prevailing economic trends, and information
concerning the solvency of each customer, in order todetermine any necessary write-downs on a case-by-casebasis. These write-downs are in addition to any allowances
recognized for expected losses, which are calculated on acollective basis for all customers except major customers
deemed low risk and the government.
The specific nature of any receivables from government-backed
entities is taken into account when determining bad debt riskfor each receivable and therefore when estimating theamount of any impairment loss.

e) Allocation of the cost of businesscombinations
Business combinations are recorded using the acquisition(purchase) method. Identifiable assets acquired and liabilities
and contingent liabilities assumed are measured at fair value
at the date control is acquired.
One of the most important areas in which estimates are usedin accounting for a business combination concerns thecalculation of the fair value of assets acquired and liabilities
assumed, and the underlying assumptions applied. The fairvalue of certain items acquired in a business combination can bemeasured reliably, for example property, plant and equipmentusing market prices. However, the fair value of other items
such as intangible assets or contingent liabilities may prove
more difficult to establish. These complex measurements areusually performed by independent experts based on a seriesof assumptions. These experts are generally required toestimate the impact of future events that are uncertain at thedate of the combination.

2

The Group’s management takes stock of any outstanding
proceedings and monitors their progress on a regular basis.
It also decides whether to book a provision or adjust theamount of any existing provision if events arise during theproceedings that require a reassessment of the risk involved.
The Group consults legal experts both within and outside theGroup in estimating the risk and determining the costs that
may be incurred.
The decision to book a provision in respect of a given risk andthe amount of any such provisions are based on an assessmentof the risk associated with each individual case, management’s
estimate of the likelihood that an unfavorable decision will be
issued in the proceedings in question, and the Group’s ability
to estimate the amount of the provision reliably.

g) Recurring operating income (loss)
To make the Group’s operating performance more transparent,
it includes an intermediate operating indicator known as“Recurring operating income (loss)” in its reporting.
This sub-total includes the share of profit from joint ventures
accounted for under the equity method, since all joint
ventures are involved in businesses directly related to the Group’s
core activities.
This sub-total excludes income and expenses which arelargely unpredictable because of their unusual, infrequent
and/or material nature, such as:◼ impairment losses recognized against goodwill, impairment

losses or reversals of impairment losses recognized against
intangible assets relating to programs, projects or productfamilies as a result of an event that substantially alters the
economic profitability of such programs, projects or productfamilies (e.g., significant decrease in forecast volumes,
difficulties encountered during the development phase,
renegotiated sales agreements, changes in the production
process, etc.), including for equity-accounted companies;◼ capital gains and losses on disposals of operations;f) Disputes and litigation
Certain Group subsidiaries may be party to regulatory, legal
or arbitration proceedings which, because of their inherent
uncertainty, could have a material impact on the Group’s
financial position (see Note 26, “Disputes and litigation”).

◼ gains on remeasuring any previously held equity interestsin the event of step acquisitions or asset contributions tojoint ventures;◼ other unusual and/or material items not directly related to theGroup’s ordinary operations, in particular restructuring costs.

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INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTE 4 SCOPE OF CONSOLIDATION
Main changes in the scopeof consolidation in 2024
Acquisitions

Acquisition of Air Liquide’s aeronautical oxygenand nitrogen activities
On February 27, 2024, Safran finalized the acquisition of
Aerospace & Defense Oxygen System SAS (ADOS), combining
Air Liquide's oxygen and nitrogen aerospace technology activities.

The acquisition was fully consolidated (100%) by Safran in its
financial statements as from March 1, 2024 within the Aircraft
Equipment, Defense and Aerosystems segment.
Since their consolidation, these activities have contributed€23 million to consolidated revenue and €4 million to profit
from operations.
The purchase price allocation is currently underway, withthe assistance of our external experts. This resulted in therecognition of provisional goodwill for €29 million.

This acquisition rounds out Safran Aerosystems’ range of
products. In particular, acquiring Air Liquide’s on-board oxygen
generation systems (OBOGS) would see Safran Aerosystems
become a leading player through systems integration.
The provisional allocation of the purchase price is as follows:

Fair value at acquisition date(in € millions)Non-current assets

27

Inventories

23

Other current and non-current assets and liabilities

7

Cash and cash equivalents

2

Borrowings(9)

ADOS net assets

50

Purchase price of shares

79

Provisional goodwill

29

Transactions in progress

Acquisition of Collins Aerospace's actuationand flight control business
Safran announced on July 21, 2023, the contemplatedacquisition of Collins Aerospace’s high-technology actuationand flight control activities, which are mission critical forcommercial & military aircraft and helicopters by cash offer
based on a USD 1.8 billion enterprise value.
The business has around 3,700 employees across eightfacilities in Europe (France, Italy and the United Kingdom)
and in Asia, and also benefits from MRO and engineering
capabilities. It is expected to generate annual revenue ofapproximately USD 1.5 billion.
On November 20, 2023, Safran was informed of the Italian
government's decision to exercise its “Golden Power“, thus
opposing the sale to Safran of Microtecnica S.r.l, the company
holding the assets located in Italy.
On June 6, 2024, Safran was informed of the Italian government's
decision to approve the sale to Safran of Microtecnica S.r.l,
the company holding the assets located in Italy. The Groupmade a number of commitments, compatible with the targeted
objectives of this acquisition, which address the concerns
expressed in the initial Italian decree of November 16, 2023
and provide adequate safeguards of Italian national interests.

26

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Furthermore, in the UK, the Secretary of State has reviewed
the notification made under the National Security andInvestment Act and has informed Safran that he will take nofurther action in relation to the proposed acquisition. This
constitutes an unconditional clearance.
The completion of this proposed acquisition remains subject
to obtaining other regulatory approvals, particularly withregard to merger control and to customary closing conditions.

Main changes in the scopeof consolidation in 2023
Disposals

Disposal of Safran Cabin Catering and Safran Cabin Cargo
The Safran Cabin Catering and Safran Cabin Cargobusinesses, which were classified as assets held for sale at
December 31, 2022, were sold on May 31, 2023.
The capital loss on the disposal was recognized in non-recurring
operating income in the amount of €10 million, taking into
account the final contingent consideration in the second halfof the year (see Note 7, “Breakdown of the other main
components of profit from operations”).

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Acquisitions

Acquisition of Aubert & Duval
On April 28, 2023, AD Holding, owned equally by Airbus,
Safran and Tikehau Ace Capital, completed the acquisition of
Aubert & Duval from the Eramet group.

2

At December 31, 2023, the purchase price allocation wasunderway, with the assistance of our external experts. The
preliminary allocation of the purchase price to the assets
acquired and liabilities assumed as measured at fair value
generated provisional goodwill of zero.
This goodwill was confirmed during the first half of 2024.

The final allocation of the purchase price is as follows:(in € millions)

Fair value at acquisition dateNon-current assets

96

Inventories

526

Trade receivables

66

Other assets

37

Provisions(178)

Trade payables(282)

Other liabilities(132)

Net debt

45

Aubert & Duval net assets – Group share (100%)

176

Share of Aubert & Duval net assets excluding goodwill (33.33%)

58

Purchase price (Safran share 33.33%)

58

Goodwill

Acquisition of Thales’ aeronautical electrical systems business
On October 2, 2023, Safran completed the acquisition of
100% of Thales's aeronautical electrical systems business,
which covers electric conversion, power generation andmotors for civil and military aircraft.
This acquisition included Thales Avionics Electrical Systems
and Thales Avionics Electrical Motors in France, with sites at
Chatou, Meru and Conflans-Ste Honorine. It also included the
support, maintenance and production activities for aeronauticalelectrical equipment in Orlando (US) and Singapore.
Control of the business activities in France has been transferred.
Control of the business activities in the US and Singapore willbe transferred at the end of a transition period, during which-

the necessary certification approvals will be obtained. The
price paid in advance for these activities was recorded within
financial assets for €26.1 million.
At December 31, 2023, the preliminary allocation of thepurchase price to the assets and liabilities measured at fairvalue generated provisional goodwill of €109 million.
During the first half of 2024, the Group continued to workwith its experts on the allocation of the purchase price of these
activities in accordance with IFRS 3, “Business Combinations“.
Following the purchase price allocation, goodwill was recognizedin an amount of €27 million at June 30, 2024.

The allocation of the purchase price is as follows:(in € millions)

Fair value at acquisition date

Intangible assets

199

Property, plant and equipment, and right-of-use assets

38

Inventories

63

Other current and non-current assets and liabilities(182)

Net debt

5

Deferred tax liabilities(24)

Net assets

99

Purchase price of shares

126

Goodwill

27

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SAFRAN27

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INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTE 5 SEGMENT INFORMATION
Segments presented
In accordance with IFRS 8, “Operating Segments”, segment
information reflects Safran’s different businesses.
The Group’s operating segments reflect the organization ofsubsidiaries around tier-one entities (“consolidation sub-groups”).
For monitoring purposes, Safran has three operating segments
which are organized based on the type of products andservices they sell and the markets they serve.

Aerospace Propulsion
The Group designs, develops, produces and markets propulsion
and mechanical power transmission systems for commercial
aircraft, military transport, training and combat aircraft, civil
and military helicopters, and drones. This segment also
includes maintenance, repair and overhaul (MRO) activities
and the sale of spare parts.

Aircraft Equipment, Defenseand Aerosystems
Safran covers the full life cycle of systems and equipment forcivil and military aircraft and helicopters.
The Group is involved in landing gear and brakes, nacelles
and reversers, avionics (flight controls and onboard
information systems), security systems (evacuation slides andoxygen masks), onboard computers and fuel systems.
It also operates at the different phases of the electrical cycle
and provides electrical power management systems andassociated engineering services.
It includes all activities serving the naval and land defense
markets, including optronic equipment and sights, navigationequipment and sensors, modernized infantry, and drones.
This segment also includes maintenance, repair and overhaul(MRO) activities and the sale of spare parts.

Aircraft Interiors
The Aircraft Interiors business includes all operations related
to the buyer-furnished equipment (BFE) market, whose direct
customers are mostly airline companies. The Group designs,
develops, manufactures and markets, for example, aircraft
seats for passengers (First, Business and Economy Class) andcrew, as well as cabin equipment, overhead bins, class dividers,passenger service units, cabin interior solutions, chilling systems,
galleys, and electrical inserts and trolleys.
This segment also includes complex cabin equipment andpassenger comfort-focused solutions such as water distribution,
lavatories, air systems, and in-flight entertainment andconnectivity (IFEC).

Holding company and other
In “Holding company and other”, the Group includes SafranSA’s activities and holding companies in various countries.

28

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Business segment
performance indicators
To make it easier to track and compare its operating andfinancial performance, the Group prepares an adjusted income
statement in addition to its consolidated financial statements
and presents key indicators in its management report, defined
as follows:◼ adjusted revenue corresponds to revenue adjusted forthe revaluation by currency of revenue net of purchases inforeign currencies at the hedged rate, incorporating theexchange rate effectively obtained over the period underhedging strategies and including premiums on settled options;◼ adjusted recurring operating income (ROI) corresponds

to recurring operating income adjusted for (i) entries
recorded in connection with business combinations (impactof asset remeasurements and the depreciation, amortizationand impairment of assets measured as part of the purchaseprice allocation in accordance with IFRS 3), (ii) the impactof the mark-to-market of foreign currency derivatives inorder to better reflect the economic substance of the Group's
overall foreign currency risk hedging strategy (revenue netof purchases in foreign currencies is therefore valued at
the exchange rate effectively obtained over the period,
including the cost of implementing the hedging strategy);◼ adjusted profit corresponds to consolidated profit for theperiod attributable to owners of the parent adjusted forthe above-mentioned items and for the neutralization of all
mark-to-market changes on foreign currency derivatives
hedging future cash flows.
The resulting changes in deferred tax have also been adjusted.
Segment information presented in the tables on page 8 isincluded within the information presented to the Chief Executive
Officer who – in accordance with the Group’s governancestructure – has been designated as the “Chief Operating
Decision Maker” for the assessment of the performance ofbusiness segments and the allocation of resources between
the different businesses.
The assessment of each business segment’s performance by
the Chief Executive Officer is based on adjusted contribution
figures as explained in the Foreword (see page 4).
Data for each business segment are prepared in accordancewith the same accounting principles as those used for the
consolidated financial statements (see section 3.1, Note 2 ofthe 2023 Universal Registration Document), except for therestatements made in respect of adjusted data (see Foreword,
page 4).
Inter-segment sales are performed on an arm’s length basis.
Free cash flow represents cash flow from operating activities
less any disbursements relating to acquisitions of property,
plant and equipment and intangible assets.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

Quantified segment information for 2023 and 2024 is presented below:

Segment information
At June 30, 2024

(in € millions)

Aircraft
Equipment,
Aerospace Defense andPropulsion Aerosystems

Aircraft
Interiors

Total
operatingsegments

Holdingcompanyand otherTotaladjusteddata

Impacts of
Total
Currencybusiness consolidated
hedges combinations
data

Revenue

6,461

5,170

1,411

13,042

5

13,047

157-

13,204

Recurring operating income

1,285

657

10

1,952

22

1,974

160

(166)

1,968

Other non-recurring operating
income and expenses

1

(12)

(9)

(20)

(4)

(24)

-

-

(24)

Profit from operations

1,286

645

1

1,932

18

1,950

160

(166)

1,944

Free cash flow

1,355

105

(135)

1,325

138

1,463

-

-

1,463

Aircraft
Equipment,
Aerospace Defense andPropulsion Aerosystems

Aircraft
Interiors

Total
operatingsegments

Holdingcompanyand otherTotaladjusteddata

At June 30, 2023

(in € millions)

Impacts of
Total
Currencybusiness consolidated
hedges combinations
data

Revenue

5,677

4,100

1,163

10,940

5

10,945

184-

11,129Recurring operating income (loss)

1,051

466

(100)

1,417

(20)

1,397

175

(166)

1,406

Other non-recurring operating
income and expenses

(5)

(7)

(38)

(50)

(7)

(57)

-

-

(57)

Profit (loss) from operations

1,046

459

(138)

1,367

(27)

1,340

175

(166)

1,349

Free cash flow

1,498

(42)

(192)

1,264

199

1,463

-

-

1,463

Revenue (adjusted data)(in € millions)First-half 2023

First-half 2024

AEROSPACE PROPULSION
Original equipment and related products and services

2,244

2,274

Services

3,292

4,030

Sales of studies

68

88

Other

73

69

5,677

6,461

Original equipment and related products and services

2,251

2,952

Services

1,674

2,018

Sales of studies

121

139

Other

54

61

4,100

5,170

Original equipment and related products and services

754

862

Services

400

531

Sales of studies

9

18

Other

-

-

1,163

1,411

5

5

Sub-total

AIRCRAFT EQUIPMENT, DEFENSE AND AEROSYSTEMS

Sub-total

AIRCRAFT INTERIORS

Sub-total

HOLDING COMPANY AND OTHER
Sales of studies and other

Sub-total
TOTAL

5

5

10,945

13,0472 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN29

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Information by geographic area
First-half 2024
Africa &Middle East

Total
adjusted
data
13,047(in € millions)

EuropeFrance (excl. France)

Americas

Asia and
Oceania

Revenue by location of customers

2,493

3,030

4,365

2,019

1,140

19%

23%

34%

15%

9%

%
(1)

(1)

Total
Currency consolidated
hedgesdata
157

13,204

Revenue in the United States amounted to €3,445 million, representing 26% of total Group revenue.

First-half 2023
Africa &Middle East

Total
adjusted
data
10,945(in € millions)

EuropeFrance (excl. France)

Americas

Asia and
Oceania

Revenue by location of customers

2,270

2,651

3,911

1,283

830

21%

24%

36%

11%

8%

%

Total
Currency consolidated
hedgesdata
184

11,129NOTE 6 Revenue
Breakdown of revenue by businessFirst-half 2024

(in € millions)Aerospace
Propulsion

Aircraft
Equipment,
Defense andAerosystems

Aircraft Interiors

Holding company
and other

Total

DESCRIPTION OF PRODUCTS/SERVICES
Sales of original equipment and other equipment

2,317

2,970

863

-

6,150

Services

4,107

2,030

532

-

6,669

Sales of studies

90

140

18

1

249

Other

70

61

1

4

136

6,584

5,201

1,414

5

13,204

At a point in time

5,201

4,623

1,402

5

11,231

Over time

1,383

578

12

-

1,973

TOTAL REVENUE

6,584

5,201

1,414

5

13,204

Aerospace
Propulsion

Aircraft
Equipment,
Defense andAerosystems

Aircraft Interiors

Holding company
and other

Total

Sales of original equipment and other equipment

2,291

2,265

755

-

5,311

Services

3,359

1,683

403

-

5,445

Sales of studies

70

122

8

1

201

Other

97

67

4

4

172

5,817

4,137

1,170

5

11,129At a point in time

4,742

3,636

1,160

5

9,543

Over time

1,075

501

10

-

1,586

TOTAL REVENUE

5,817

4,137

1,170

5

11,129TOTAL REVENUETIMING OF REVENUE RECOGNITIONFirst-half 2023

(in € millions)

DESCRIPTION OF PRODUCTS/SERVICESTOTAL REVENUETIMING OF REVENUE RECOGNITION30

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Revenue is broken down into four categories which bestreflect the Group’s main businesses:

Sales of original equipment
and other equipment
These sales reflect quantities delivered under contracts oraircraft, helicopter and defense programs as well as contractual
financing received from customers to develop these products.

Services, which include deliveries of spareparts and maintenance contracts
These sales are contingent on repairs and maintenancerequested by airline or helicopter companies and correspondto services and volumes that are less predictable since they
depend on the condition of fleets.

2

Sales of studies, research and development
Contracts are drawn up for all such development work, which
represents separate performance obligations. This category
relates to specific work carried out for a given project or program.

Miscellaneous activities, which
are included in “Other”.
In terms of revenue recognition, it should be noted for eachof the business segments that:
Most revenue within the Group is recognized “at a point in time”.
Revenue recognized on a percentage-of-completion basis(“over time”) mainly concerns service and after-sales support
contracts in the Propulsion segment and aerospace activities
in the Aircraft Equipment, Defense and Aerosystems segment.
Revenue from contract-related activities accounted for as
an overall performance obligation is also recognized on apercentage-of-completion basis.

NOTE 7 Breakdown of the other main components of profit from operations
Other income(in € millions)First-half 2023

First-half 2024

Research tax credit

77

88

Other operating subsidies(1)

136

100

Other operating income

13

20

226

208

First-half 2023

First-half 2024

(2,526)(2,953)

Bought-in goods

(95)

(117)

Changes in inventories

312

426

Contract costs

79

85(2,607)(2,800)OTHER INCOME(1)

Including €93 million in research and technology subsidies in first-half 2024 (€128 million in first-half 2023).

Raw materials and consumables used
This caption breaks down as follows for the period:(in € millions)
Raw materials, supplies and otherSub-contracting
Purchases not held in inventory

(355)

(380)

External service expenses(1,514)(2,083)(6,706)(7,822)

RAW MATERIALS AND CONSUMABLES USED

Personnel costs
First-half 2023

First-half 2024

Wages and salaries(2,167)(2,493)Social security contributions

(830)

(973)

Statutory employee profit-sharing

(96)

(125)

Optional employee profit-sharing

(98)

(107)

Additional contributions

(44)

(49)

Corporate social contribution

(44)

(69)

Other employee costs

(88)

(116)

PERSONNEL COSTS(3,367)(3,932)(in € millions)

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN31

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Depreciation, amortization and increase in provisions, net of use
First-half 2023

First-half 2024

◼ intangible assets

(322)

(341)

◼ property, plant and equipment

(279)

(291)

◼ right-of-use assets

(52)

(60)

(653)

(692)

(in € millions)

NET DEPRECIATION AND AMORTIZATION EXPENSE

Total net depreciation and amortization expense(1)Net reversals from provisions
DEPRECIATION, AMORTIZATION AND INCREASE IN PROVISIONS, NET OF USE
(1)

44

(73)

(609)

(765)

Of which depreciation and amortization of assets measured at fair value at the time of the Sagem SA-Snecma merger: €21 million in
first-half 2024 and €19 million in first-half 2023; during the acquisition of the former Zodiac Aerospace: €91 million in first-half 2024
and €104 million in first-half 2023; and during other acquisitions: €43 million in first-half 2024 and €31 million in first-half 2023.

Asset impairment
Impairment expense

Reversals

First-half 2023

First-half 2024

First-half 2023

Intangible assets, property, plant and equipment, and right-of-use assets

(2)

(1)

8

1

Financial assets

(2)

-

1

2

(in € millions)First-half 2024

Contract costs

(13)

-

-

9

Inventories and work-in-progress

(213)

(298)

142

372

Receivables

(60)

(43)

35

14

-

-

-

-

(290)

(342)

186

398

First-half 2023

First-half 2024

Contract assets

ASSET IMPAIRMENTOther recurring operating income and expenses(in € millions)
Capital gains and losses on asset disposals(5)2Royalties, patents and licenses

(4)

(9)

Losses on irrecoverable receivables

(6)

(1)

Other operating income and expenses

55

68

OTHER RECURRING OPERATING INCOME AND EXPENSES

40

60First-half 2023

First-half 2024

Other non-recurring operating income and expenses(in € millions)
Capital gains and losses on asset disposals
Asset impairment net of reversals

(1)

-

(35)

(10)

Other non-recurring items

(21)

(14)

OTHER NON-RECURRING OPERATING INCOME AND EXPENSES

(57)

(24)

The write-down of €10 million taken against an intangible
asset in first-half 2024 concerns an aircraft program in the
Aircraft Equipment, Defense and Aerosystems segment.

Other non-recurring items, representing an expense of €14 million,
relate to:◼ restructuring costs including adaptation plans and costs

relating to site closures totaling €8 million;◼ transaction and integration costs totaling €6 million.

32

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 8 FINANCIAL INCOME
First-half 2023

First-half 2024

Financial expense on interest-bearing financial liabilities

(61)

(57)

Financial income on cash and cash equivalents

103

141

Cost of net debt

42

84

Gain (loss) on foreign currency hedging instruments

1,272(1,681)

Foreign exchange gain (loss)

(162)

(255)

(in € millions)

Net foreign exchange gain (loss) on provisions

Foreign exchange gain (loss)

13

(25)

1,123

(1,961)Gain (loss) on interest rate hedging instruments-

1

Capital gain (loss) on financial asset disposals(1)9Change in the fair value of assets at fair value through profit or loss

6

3

Dividends received-

1

Interest component of IAS 19 expense

(9)

(9)

Impact of unwinding the discount

(1)

(1)

Other

5

(3)

Other financial income and expense-

1

FINANCIAL INCOME (LOSS)

1,165(1,876)◼ Of which financial expense(234)(2,031)◼ Of which financial income

1,399

155

In first-half 2024, the €1,681 million loss on foreign currency
hedging instruments reflects changes in the fair value ofthese instruments attributable to operating cash flows thatwill be recognized in profit or loss in future periods.
The fair value of the portfolio reflects the immediate liquidation
value of the portfolio at the closing rate for the period(USD 1.0695 to €1) compared with the average rate of theportfolio. The change in the fair value is theoretical for theGroup, as currency hedges are unwound when future dollar
inflows are received.

The €255 million foreign exchange loss includes:◼ a €161 million foreign exchange loss, reflecting the loss on

unwinding currency derivatives hedging operating cash
flows recognized in profit or loss in the period. This foreignexchange loss represents the difference between the EUR/USD
exchange rate guaranteed by the currency derivatives
unwound in the period (USD 1.12 to €1) and the actual EUR/USD
exchange rate observed during the period;◼ a net foreign exchange loss of €94 million primarily

attributable to the remeasurement of monetary items at
the closing exchange rate.
Net foreign exchange losses amounting to €25 million on
provisions carried in USD were recorded in the Propulsion
segment and result from the impact of fluctuations in the
EUR/USD exchange rate between the start of the period(USD 1.0855 to €1 at December 31, 2023) and the end of theperiod (USD 1.0695 to €1 at June 30, 2024) on the opening
amount of the provision.

NOTE 9 INCOME TAXGroup tax (current and deferred) is calculated by using the
projected annual rates in each of the Group’s tax jurisdictions,adjusted for the main permanent differences identified.
A projected income tax rate of 25.83% was used to calculate theeffective tax rate applicable to French entities in first-half 2024.

In first-half 2024, changes in the fair value of outstanding currency
derivatives generated deferred tax income of €440 million.
In first-half 2023, changes in the fair value of outstanding
currency derivatives generated a deferred tax expense of€323 million.

The tax income in first-half 2024 amounts to €38 million.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN33

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTE 10 EARNINGS PER SHARE
IndexFirst-half 2023

First-half 2024

Profit for the period attributable to owners of the parent

(a)

1,863

57

Diluted profit for the period attributable to owners of the parent

(a)

1,863

58

Total number of shares(b)427,260,541

427,260,541

Number of treasury shares held(c)9,635,407

6,881,845(d)=(b-c)

417,625,134

420,378,696

Weighted average number of shares (excluding treasury shares)(d’)

420,447,865

424,913,983

Potentially dilutive ordinary shares(e)

14,086,486

12,866,187(f)=(d’+e)434,534,351

437,780,170

Basic earnings per share(1)(g)=(a*1 million)/(d’)

4.43

0.13

Diluted earnings per share(1)(h)=(a'*1million)/(f)

4.29

0.13

NUMERATOR (in € millions)

DENOMINATOR (in shares)

Number of shares excluding treasury shares

Weighted average number of shares after dilution

RATIO: EARNINGS PER SHARE (in €)(1)

In accordance with IAS 33, when basic earnings per share are negative, basic and diluted earnings per share are identical.

Basic earnings per share are calculated by dividing profit
attributable to equity holders of the Company by theweighted average number of shares outstanding during theperiod. Treasury shares are not considered as outstanding
shares and therefore reduce the number of shares used to
calculate earnings per share.

At June 30, 2024, the only potentially dilutive instruments for
the Group are the bonds convertible into new shares and/or
exchangeable for existing shares (2021-2028 OCEANEs: see
Note 18.d, “Convertible bond issues”) and the free share grant(see Note 18.c, “Share-based payment”).

Diluted earnings per share are calculated by adjusting theweighted average number of shares outstanding for theeffects of dilutive options and other dilutive potential shares.

NOTE 11 GOODWILL
Goodwill breaks down as follows:(in € millions)Price adjustments
and allocation to
identifiable assets
Impairment
and liabilities(2)Effect of changes
in foreignexchange rates
and other

June 30, 2024
Net

Safran Aircraft Engines

392

Safran Helicopter Engines

306

-

-

-

-

306

47

-

-

-

-

47

1

-

-

-

-

1

Safran Electronics & Defense

613

-

-

-

-

613

Safran Nacelles

213

-

-

-

-

213

Safran Engineering Services

74

-

-

-

-

74

Safran Electrical & Power

811

-

-

(82)

9

738

Safran Aero Boosters
Other Propulsion

392

Safran Landing Systems

190

-

-

-

-

190

Safran Aerosystems

725

29

-

-

-

754

Safran Seats

588

-

-

-

-

588

Safran Cabin

746

-

-

-

25

771

GOODWILL

4,706

29

-

(82)

34

4,687

(1)
(2)

34

ChangesDec. 31, 2023
in scope of
Net consolidation(1)The acquisition of ADOS resulted in the recognition of provisional goodwill for €29 million (see Note 4, “Scope of consolidation”).
The allocation of the purchase price of Thales Avionics Electrical Systems led to an €82 million reduction in goodwill for the
Safran Electrical & Power CGU (see Note 4, “Scope of consolidation”).

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

At June 30, 2024, Safran reviewed its cash-generating units(CGUs) for any internal or external indications of impairment.
Although certain supply chain tensions persist, the Group did
not identify any indications of impairment, except for the
Safran Seats CGU.
In first-half 2024, the Safran Seats CGU reported earnings
from operations close to break-even but deviated from its
cash generation trajectory due to delays in production andcertification. An impairment test was therefore carried out.

◼ the projections take into account general economic data,

specific inflation rates for each geographic area, a USD
exchange rate based on available market information andmid- to long-term macroeconomic assumptions;◼ the growth rate used to calculate the terminal value wasset at 2.5% (2.5% in 2023);◼ the benchmark post-tax discount rate used is 8.5% (8.5% in2023) and is applied to post-tax cash flows;◼ the hedged USD exchange rates adopted for 2024-2027

are between USD 1.12 and USD 1.14 to €1. This exchange
rate assumption takes into account the available foreign
currency hedging portfolio (see Note 23, “Management ofmarket risks and derivatives”). For an intermediate period
covering the three years following the medium-term businessplan, a rate of 1.20 – corresponding to the best estimate of
Safran’s hedging ability for that period – is adopted. A rateof 1.25 is adopted thereafter.

Gaps between actual figures and the annual budget identified
in first-half 2024 were analyzed using the information available
to date.
With no new medium-term business plan available atJune 30, 2024, cash flows were revised to take into accountthese delays.
The cash generation contingencies taken into account in the
cash flow forecasts under the 2023 impairment tests weremaintained in order to cover risks in executing turnaround plans.

Based on this test, the recoverable amount of the
Safran Seats CGU is equivalent to its net asset value,
including the goodwill balances recorded in Group assets.

The measurement method used to determine the value in useof the CGU was consistent with that used at December 31, 2023.

Sensitivity to the following changes in main assumptions wastested:The value in use of the CGU at June 30, 2024 was determinedbased on the following assumptions:◼ a 5% increase or decrease in the EUR/USD exchange rate;◼ expected future cash flows are determined over a period◼ a 0.5% decrease in the perpetual growth rate.

consistent with the useful life of the assets in each CGU,
estimated at 10 years;◼ the projections are drawn from the medium-term businessplan, as prepared in the second half of 2023 for the next
four years, and for the following six years are based on thebest estimate of the long-term scenario. They take into
account orders and delivery schedules, airframers’ production
rates, IATA forecasts, the impacts of decarbonization andany other available information;2◼ a 0.5% increase in the benchmark discount rate;

The worst-case scenario would be a 0.5% increase in the
discount rate, leading to the recognition of impairment before
tax of €115 million against the value of the Safran Seats CGU.
At December 31, 2023, impairment had been recognized in
the financial statements against goodwill allocated to the
Safran Seats CGU in an amount of €177 million.
At December 31, 2023, an impairment loss of €150 million wasrecognized for the Safran Cabin CGU. The turnaround planfor the business is in line with the 2024 budget, with noindications of impairment at June 30, 2024.

NOTE 12 INTANGIBLE ASSETS
Other intangible assets break down as follows:

Dec. 31, 2023

June 30, 2024

(in € millions)Gross

Amortization/
impairment

Net

Gross

Amortization/
impairment

Net

Aircraft programs

2,325(1,953)

372

2,325

(1,987)338

Development expenditure

7,528(3,605)

3,923

7,724

(3,770)3,954

Commercial agreements

913

(297)

616

916

(316)

600

Software

831

(738)

93

876

(757)

119

Trademarks(1)

721

-

721

721

-

721

Commercial relationships

1,924

(847)

1,077

2,105

(924)

1,181

Technology

1,264

(828)

436

1,323

(885)

438

Other

984

(392)

592

1,025

(408)

617

16,490(8,660)7,830

17,015(9,047)

7,968

OTHER INTANGIBLE ASSETS(1)

As trademarks are not amortized, they are tested for impairment based on their respective CGUs.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN35

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Movements in other intangible assets break down as follows:(in € millions)

Other intangible assets at Dec. 31, 2023

Gross

Amortization/
impairment

Net

16,490(8,660)7,830

Capitalization of R&D expenditure(1)

152

-

152

Capitalization of other intangible assets

34

-

34

Acquisitions of other intangible assets

32

-

32

Disposals and retirements

(7)

4

(3)

Amortization

-

(341)

(341)

Impairment losses recognized in profit or loss

-

(9)

(9)

Reclassifications

12

-

12

227

-

227

Changes in scope of consolidation
Foreign exchange differences

OTHER INTANGIBLE ASSETS AT JUNE 30, 2024
(1)

75

(41)

34

17,015(9,047)

7,968

Including €1 million in capitalized interest on R&D expenditure at June 30, 2024 (€3 million at June 30, 2023).

Research and development expenditure recognized in recurring
operating income for the period totaled €728 million
including amortization (€678 million in first-half 2023). This
amount does not include the research tax credit or otheroperating subsidies recognized in the income statement
within “Other income” (see Note 7, “Breakdown of the othermain components of profit from operations”).
Amortization recognized in the period includes €150 million
relating to the remeasurement of intangible assets inconnection with business combinations.
The impairment tests carried out at June 30, 2024 on assets
allocated to programs, projects or product families werebased on the approach described in Note 2.m, section 3.1of the 2023 Universal Registration Document.

Expected future cash flows were updated to reflect the latest
information available at the reporting date. An 8.5% discountrate was used, plus a risk premium depending on the
programs tested.
As a result of the impairment tests carried out at June 30, 2024,
an intangible asset relating to an aircraft program was written
down by €10 million. The write-down was recognized in
non‑recurring operating income.
As a result of the impairment tests carried out at June 30, 2023,
intangible assets relating to various aircraft programs were
written down by €35 million, mainly due to sanctions in Russia.
The write-down was recognized in non-recurring operating
income.

NOTE 13 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment break down as follows:

Dec. 31, 2023

36

June 30, 2024

(in € millions)

Gross

Depreciation/
impairment

Net

Gross

Depreciation/
impairment

Net

Land

230

-

230

232

-

232

Buildings

2,398(1,367)

1,031

2,455

(1,429)1,026

Technical facilities, equipment and tooling

6,993(5,121)

1,872

7,273

(5,305)

1,968

Assets in progress, advances

766

(44)

722

891

(43)

848

Site development and preparation costs

89

(52)

37

92

(55)

37

Buildings on land owned by third parties

90

(48)

42

93

(50)

43

Computer hardware and other equipment

751

(564)

187

799

(591)

208

PROPERTY, PLANT AND EQUIPMENT

11,317(7,196)

4,121

11,835(7,473)

4,362

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

Movements in property, plant and equipment break down as follows:(in € millions)

Gross

Depreciation/
impairment

Net

Property, plant and equipment at Dec. 31, 2023

11,317(7,196)

4,121

50

-

50

Additions

460

-

460

Disposals and retirements

(35)

32

(3)

-

(291)

(291)

Internally produced assets

Depreciation(1)Reclassifications

(25)

9

(16)

Changes in scope of consolidation

21

(1)

20

Foreign exchange differences

47

(26)

21

11,835(7,473)

4,362

PROPERTY, PLANT AND EQUIPMENT AT JUNE 30, 2024
(1)

Including a negative €5 million relating to the remeasurement of property, plant and equipment within the scope of the acquisition of
the former Zodiac Aerospace.

NOTE 14 LEASESa) Right-of-use assets
Right-of-use assets break down as follows:

Dec. 31, 2023

June 30, 2024

(in € millions)

Gross

Depreciation/
impairment

Net

Gross

Depreciation/
impairment

Net

Right-of-use assets relating to property

934

(367)

567

1,021

(410)

611

Right-of-use assets relating to transport
equipment

13

(5)

8

16

(5)

11

Right-of-use assets relating to other assets

21

(14)

7

51

(14)

37

968

(386)

582

1,088

(429)

659

(in € millions)

Gross

Depreciation/
impairment

Net

Right-of-use assets at Dec. 31, 2023

968

(386)

582
129

RIGHT-OF-USE ASSETS

Movements in right-of-use assets break down as follows:

Increases

129-

Disposals and retirements

(22)

19

(3)

-

(60)

(60)

Reclassifications

(1)

-

(1)

Changes in scope of consolidation

8

-

8

Foreign exchange differences

6

(2)

4

1,088

(429)

659

Depreciation

RIGHT-OF-USE ASSETS AT JUNE 30, 2024b) Lease liabilities
The maturity of lease liabilities can be analyzed as follows at June 30, 2024:(in € millions)

Dec. 31, 2023

June 30, 2024

Maturing in:◼ 1 year or less
◼ More than 1 year and less than 5 years

111

121

296

345

◼ Beyond 5 years

173

193

TOTAL

580

659

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2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statementsc) Lease items presented
in the income statementd) Lease items presented
in the cash flow statement

In first-half 2024, rental expenses recognized in “Profit fromoperations” (see Note 7, “Breakdown of the other main
components of profit from operations”) under “External service
expenses” totaled €90 million. These expenses have not been
restated due to the application of the practical expedientsallowed under IFRS 16 (exemption for short-term leases,
leases of low-value assets or licensing agreements, such as
for IT equipment).

In first-half 2024, disbursements under leases recognized in
the cash flow statement and relating to the repayment oflease liabilities represented €67 million and are shown within“Cash flow used in financing activities”. They are increased by
payments of interest on lease liabilities, which are included
within “Cash flow from operating activities”.

Interest expense on lease liabilities recognized in “Financial
income (loss)” under “Cost of net debt” amounted to €6 million
in first-half 2024 (see Note 8, “Financial income (loss)”).

NOTE 15 CURRENT AND NON-CURRENT FINANCIAL ASSETS
Financial assets include:

Dec. 31, 2023
(in € millions)

Gross

Impairment

Net

960

(76)

884

Non-consolidated investments
Other financial assets

June 30, 2024
Gross

Impairment

1,055

(76)

383

FINANCIAL ASSETS
Equity investments in non-consolidated companies are classified
at fair value through profit or loss.
Other financial assets are measured at amortized cost.

Net
458

1,267

979
1,437

The Group reviewed the value of its other financial assets inorder to determine whether any items needed to be written
down based on available information.

Other financial assets
Other financial assets break down as follows:

Dec. 31, 2023

June 30, 2024

Loans to non-consolidated companies

142

206

Loans to employees

33

35

Deposits and guarantees

21

23

Investments that do not qualify as cash and cash equivalents

415

415

Other

273

300

OTHER FINANCIAL ASSETS

884

979

◼ Non-current

614

754

◼ Current

270

225

(in € millions)

Loans to non-consolidated companies correspond to revolving credit agreements.
The table below shows movements in other financial assets:(in € millions)

Other financial assets at Dec. 31, 2023

85

Decrease(28)

Effect of changes in foreign exchange rates

2

Reclassifications

38

Changes in scope of consolidation(2)

OTHER FINANCIAL ASSETS AT JUNE 30, 2024

979

The fair value of other financial assets approximates their carrying amount.

38

884

Increase

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 16 INVESTMENTS IN EQUITY-ACCOUNTED COMPANIESThe Group’s share in the net equity of equity-accounted companies breaks down as follows:(in € millions)

Dec. 31, 2023

June 30, 2024

ArianeGroup

1,240

1,202

Other joint ventures

688

721

1,928

1,923

INVESTMENTS IN EQUITY-ACCOUNTED COMPANIESMovements in this caption during the period break down as follows:(in € millions)

Investments in equity-accounted companies at Dec. 31, 2023

1,928

Share in profit (loss) from ArianeGroup(38)

Share in profit from other joint ventures

89

Dividends received from joint ventures(14)

Foreign exchange differences

33

Other movements(1)(75)

INVESTMENTS IN EQUITY-ACCOUNTED COMPANIES AT JUNE 30, 2024

1,923

(1)

Mainly related to the elimination of the share in intragroup transactions.

The Group’s off-balance sheet commitments with joint ventures
are described in Note 24, “Related parties”.
The Group has interests in the following joint ventures which
are accounted for using the equity method. The breakdownby operating segment is as follows:

Aircraft Equipment, Defense and Aerosystems:◼ Fadec International LLC: digital engine control systems;◼ HMS Laser: holding company and its subsidiary CILAS:

manufacture of military lasers;◼ Lynred: manufacture of infrared detectors;

Aerospace Propulsion:◼ Safran Martin-Baker France: manufacture of ejectable seating;◼ CFM Materials LP: sale of used CFM56 parts;◼ SAIFEI: electrical wiring;◼ Shannon Engine Support Ltd: leasing of CFM56 and LEAP

◼ Xi’an Cea Safran Landing Systems Co., Ltd: landing gearengines, modules, equipment and tooling to airline companies;◼ Initium Aerospace: design and manufacture of auxiliary

power units;◼ ArianeGroup and its subsidiaries: space launchers andmilitary activities;◼ AD Holding and its subsidiaries: specialty steels andsuperalloys;

maintenance;◼ A-Pro: repair of landing gear for regional and business jets.

Aircraft Interiors:◼ EZ Air Interior Ltd: cabin interiors.

ArianeGroup is the Group’s sole material joint venture.

◼ Roxel SAS: holding company;◼ Roxel France SA: motors for tactical missiles;◼ Roxel Ltd: motors for tactical missiles.

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2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Financial information for ArianeGroup can be summarized as follows:

Dec. 31, 2023

(in € millions)

June 30, 2024

Non-current assets

1,667

1,629

Current assets

7,362

8,004

of which: cash and cash equivalents
Non-current liabilitiesof which: non-current financial liabilities

1,219

1,068

(1,116)(1,093)

(334)

(323)

(8,155)(8,841)

(85)

(61)

16

21

Net assets of ArianeGroup (excl. goodwill and PPA) – Attributable to owners of the parent(based on a 100% interest)

(226)

(280)

Equity share in net assets of ArianeGroup (excl. goodwill and PPA) (based on a 50% interest)

(113)

(140)

Purchase price allocation, net of deferred taxes

179

168

Safran equity share – Net assets of ArianeGroup

66

28

Goodwill

1,174

1,174

CARRYING AMOUNT OF INVESTMENT IN ARIANEGROUP

1,240

1,202

First-half 2023

First-half 2024

(9)

(54)

Current liabilitiesof which: current financial liabilities
Non-controlling interests(in € millions)

Profit (loss) for the period attributable to ArianeGroup
Other comprehensive income

1

0

(8)

(53)

Safran equity share – Profit (loss) for the period

(4)

(27)

Amortization of purchase price allocation, net of deferred taxes

(12)

(11)

Safran equity share – Profit (loss) of ArianeGroup

(16)

(38)

Total comprehensive income (expense) attributable to ArianeGroup

Safran equity share – Other comprehensive income

SAFRAN EQUITY SHARE – COMPREHENSIVE INCOME (EXPENSE) OF ARIANEGROUP

-

-

(16)

(38)

ArianeGroup did not pay any dividends in first-half 2024.

Based on this test, no write-down was recognized.

The inaugural flight of its Ariane 6 launcher took place on
July 9, 2024.

The Group analyzed the sensitivity of the investments to a
0.5% increase in the benchmark discount rate used (i.e., a rateof 9%). Under this assumption, the recoverable amount of theinvestments would be slightly above their carrying amount in
the Group’s consolidated financial statements.

The impairment test on the equity-accounted investments was
updated at June 30, 2024, using the information available atthat date.
The growth rate used to calculate the terminal value was set
at 2%, unchanged from 2023. The benchmark discount rateused was 8.5%.

The contribution of other joint ventures to the Group’s comprehensive income was as follows:First-half 2023

First-half 2024

Profit for the period

65

89

Other comprehensive income (expense)

(12)

29

TOTAL COMPREHENSIVE INCOME

53

118

(in € millions)40

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 17 CASH AND CASH EQUIVALENTS
The main types of investments used by Safran are summarized in the table below:

Dec. 31, 2023

(in € millions)
Money-market funds and marketable securities(1)Term deposits

June 30, 2024

842

1,397

4,108

2,992

Sight deposits

1,726

1,310

CASH AND CASH EQUIVALENTS

6,676

5,699

(1)

Including €97 million in money-market funds at June 30, 2024 (€92 million at December 31, 2023).

Money-market funds are classified within Level 1 of the IFRS 13 fair value hierarchy.
Term deposits at June 30, 2024 include €1,050 million in investments falling within the scope of master agreements governing thesubscription of OTC derivatives with bank counterparties (see section 3.1, Note 22 of the 2023 Universal Registration Document).
The table below presents changes in cash and cash equivalents:(in € millions)

Cash and cash equivalents at Dec. 31, 2023

6,676

Movements during the period(1,002)

Changes in scope of consolidation5

Foreign exchange differences

20

CASH AND CASH EQUIVALENTS AT JUNE 30, 2024

5,699

NOTE 18 CONSOLIDATED SHAREHOLDERS’ EQUITYa) Share capital
At June 30, 2024, Safran’s share capital amounted to €85,452,108.20, comprising 427,260,541 fully paid-up shares with a parvalue of €0.20 each, all in the same class.
Safran’s equity does not include any equity instruments issued other than its shares.

b) Breakdown of share capital and voting rights
Changes in the breakdown of share capital and voting rights are as follows:

December 31, 2023
Shareholders

Number of shares% share capital

Number of
voting rights(1)Free float% voting rights(1)339,335,048

79.42%

380,742,136

72.11%

French State

47,983,131

11.23%

95,966,262

18.18%

Employees(2)26,208,937

6.13%

51,256,826

9.71%

Treasury shares

13,733,425

3.22%

-

-

SHARE CAPITAL

427,260,541

100.00%527,965,224

100.00%(1)(2)

Exercisable voting rights.
Employee shareholding within the meaning of Article L.225-102 of the French Commercial Code (Code de commerce).

June 30, 2024
Shareholders

Number of shares% share capital

Number of
voting rights(1)% voting rights(1)Free float

346,062,878

81.00%

389,496,924

72.72%

French State

49,050,846

11.48%

97,033,977

18.12%

Employees(2)25,264,972

5.91%

49,055,621

9.16%

6,881,845

1.61%

-

-

427,260,541

100.00%535,586,522

100.00%Treasury shares

SHARE CAPITAL(1)(2)

Exercisable voting rights.
Employee shareholding within the meaning of Article L.225-102 of the French Commercial Code (Code de commerce).

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2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Each share carries entitlement to one vote. Shares held inregistered form for over two years have double voting rights.
The 6,881,845 treasury shares have no voting rights.

Treasury shares
The number of treasury shares
December 31, 2023 following:has

decreased

since◼ the purchase of 2,128,201 shares in connection with theimplementation of a new share buyback program aimed atneutralizing the potential dilutive effect of convertible
bonds (2028 OCEANEs);◼ the delivery of 9,314,154 shares in respect of the conversionof 2027 OCEANE convertible bonds;◼ the purchase of 727,600 shares in connection with theimplementation of a share buyback program for allocationor sale to employees or corporate officers of Group
companies;◼ the delivery of 438,438 shares under employee shareholding

plans;◼ the acquisition of 45,211 shares under the Group’s liquidity

agreement, net of shares purchased.
At June 30, 2024, Safran held 6,881,845 of its own shares.
The Annual General Meeting has authorized the Board of
Directors to buy and sell shares in the Company in accordancewith the applicable laws and regulations.
An authorization granted by the Annual General Meeting ofMay 23, 2024 and valid for 18 months set the maximum
purchase price at €300 per share, thereby superseding theauthorization granted by the Annual General Meeting ofMay 25, 2023.

Liquidity agreement:
In February 2019, Safran entered into a new liquidity
agreement with Oddo BHF SCA for a period of 12 months,
automatically renewable from year to year.
Under this liquidity agreement, in the first half of 2024 Safran:◼ purchased 520,295 shares for €95 million; and◼ sold 475,084 shares for €85 million.

At June 30, 2024, 139,642 treasury shares were held inconnection with the liquidity agreement.

Share buyback tranches:
Agreement with an investment services provider dated
January 12, 2024 to buy back its own shares
Maximum total purchase price under this tranche: €450 million.
Period: from January 16, 2024 to March 1, 2024 at the latest.
Purpose of the tranche: allocation or sale to employees or
corporate officers of Safran or Safran Group companies andhedging of debt securities carrying rights to shares.
Number of shares bought back under the tranche: 828,201 shares.

42

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Total purchase price for the tranche: €140 million.
Partial completion of the tranche after the share priceexceeded the maximum buyback price of €175 per share set
by the Annual General Meeting of May 25, 2023.

Agreement with an investment services provider dated
May 29, 2024 to buy back its own shares
Maximum total purchase price under this tranche: €420 million.
Period: from May 30, 2024 to June 26, 2024 at the latest.
Purpose of the tranche: allocation or sale to employees or
corporate officers of Safran or Safran Group companies andhedging of debt securities carrying rights to shares (convertible
bonds maturing in 2028).
Number of shares bought back under the tranche: 2,027,600
shares.
At the time of its 2023 first-half results, Safran had announced
the launch of a €1 billion share buyback program with a view
to subsequently reducing its capital.
On June 28, 2024, Safran entered into an agreement with aninvestment services provider for the first tranche of thisbuyback of shares earmarked for cancellation. This first tranche
for up to €250 million will therefore run from July 1, 2024 to
September 13, 2024 at the latest.
Safran recognized this €250 million contractual obligation as
a deduction from shareholders' equity, with a matching entry
to other financial liabilities (see Note 22, “Other current andnon-current financial liabilities”).

c) Share-based payment
Performance shares
The Board of Directors periodically grants performance
shares to Group employees and corporate officers.
The plans set up are considered equity-settled under IFRS 2,
as they are settled in shares.
The vesting of these performance shares is subject to theachievement of internal and external performance conditions,which are assessed over three full consecutive fiscal years,
including the year in which the performance shares are granted.
In addition, the shares will only vest if the beneficiaries still
form part of the Group at the vesting date (see section 6.6.5.2of the 2023 Universal Registration Document).
The rights to the free shares were measured at fair value atthe grant date. The Black & Scholes model was used to model
the fair value of the free shares subject to the performance
condition linked to trends in the Safran share price over thethree-year vesting period. In accordance with IFRS 2, the fairvalue measurement takes into account the opportunity costof not receiving dividends during the vesting period.
Safran periodically reviews the number of free shares to bedelivered in light of the continuing service conditions andinternal and external performance conditions.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

In the Group's consolidated financial statements, the payroll
cost relating to plans not yet fully vested is recognizedagainst equity on a straight-line basis over the vesting period(i.e., 36 months). The expense is determined on the basis ofprevious valuations and revised assumptions concerninginternal conditions and the number of shares still outstanding.

2

The Group set up a performance share plan on March 21, 2024
covering 436,816 shares. Shares under this plan will only vest
if certain internal and external performance conditions aremet, as assessed over three fiscal years, and provided thebeneficiaries still form part of the Group at the vesting date.

Key details of outstanding performance share plans at June 30, 2024 are shown below:

2022 performance 2023 performance 2024 performance
sharessharessharesShareholder authorization

May 26, 2021

May 25, 2023

Grant date by the Board of Directors

March 24, 2022 March 23, 2023

May 26, 2021

March 21, 2024

Vesting date

March 25, 2025 March 23, 2026 March 23, 2027

Share price at the grant date

€104.56€134.70

964

1,127

942

Number of performance shares granted

784,171799,866

436,816

Number of shares canceled or forfeited(39,302)(22,913)(870)(1,920)--742,949

776,953435,946

Number of beneficiaries at the grant date

Number of shares delivered

NUMBER OF PERFORMANCE SHARES OUTSTANDING AT JUNE 30, 2024

€206.65

The share-based payment expense for these performance
share plans, recognized within personnel costs under“Other employee costs”, totaled €33 million in first-half 2024(€28.1 million in first-half 2023).

The rights to the free shares were measured at fair value atthe grant date. The value of the shares at the grant date was
reduced by the estimated present value of the future
dividends that will not be paid to employees during thevesting period.

Free share grant

As the plan is paid out in the form of equity instruments, thetotal cost of the plan is calculated and fixed at the grant date.

In accordance with the authorization granted by the Annual
General Meeting of May 25, 2023, the Board of Directors
decided at its meeting on the same date to grant freeCompany shares to Safran Group employees.
Under the grant, employees of Group companies worldwide
and on the payroll at February 25, 2023, i.e., 85,519 employees,
each received 10 shares.
The shares granted are subject to a two-year vesting period.
They do not include any specific performance conditions,other than beneficiaries forming part of the Group during thevesting period (continuing service condition).
All the free shares granted by Safran will be equity-settled,
except in countries where regulatory, tax or labor conditions
do not allow for free share grants. In such countries, plan
beneficiaries (1,384 employees outside France identified at
the grant date) will receive a cash amount valued at the
average price of the Safran share over the 20 trading days
preceding the delivery date of the shares.

The number of instruments that Safran expects to deliver tobeneficiaries includes the impact of employee turnover.
As the vesting of the free shares is subject to a continuing
service condition, the payroll cost is recognized on a straight-line
basis over the vesting period (i.e., 24 months), with anoffsetting entry in equity. Safran will periodically review thenumber of free shares to be delivered according to employee
turnover assumptions. Where appropriate, the impact ofrevised estimates will be reflected in the income statement.
The expense recognized in respect of these shares, included
within personnel costs under “Other employee costs“, totaled€21 million in first-half 2024.

Terms and conditions of the free share grant
Date of the Annual General Meeting

FranceInternational

May 25, 2023

May 25, 2023

Grant date(1)May 25, 2023

May 25, 2023

Vesting date(2)May 28, 2025

May 28, 2025

45,95439,565

Estimated number of beneficiaries at the grant date
Number of shares per employee

10

10

Total number of shares approved at the grant date

459,540

395,650

Probable number of shares to be delivered including impact of employee turnover

391,495

232,150

Share price at the grant date€137.14€137.14

Fair value of the shares at the grant date(3)€134.04€134.04

(1)
(2)
(3)

Date of the Board of Directors’ decision to grant the shares.
The shares will vest subject to the beneficiary forming part of the Group at the vesting date.
The fair value of the shares is determined on the basis of the share price at the grant date, as adjusted for dividends expected during
the vesting period.

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INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statementsd) Convertible bond issues
2020-2027 OCEANEs
On May 15, 2020, Safran issued 7,391,665 bonds convertible
into new shares and/or exchangeable for existing shares(“OCEANEs”) (the “initial bonds”), each with a par value of€108.23, i.e., representing a total nominal amount of €800 million.
The issue price of the initial bonds was 100% of par.
On October 12, 2020, Safran carried out a tap issue of
1,847,916 bonds convertible into new shares and/or exchangeable
for existing shares (“OCEANEs”) (the “additional bonds”),
each with a par value of €108.23, i.e., representing a total
nominal amount of €200 million. The additional bonds were
issued at a price of €118 per bond, representing a total issue
price of €218 million.
The additional bonds carried the same terms and conditions(with the exception of the issue price) as the initial bonds,
with which they were fully fungible and with which they
formed a single series.
The bonds bore interest at an annual rate of 0.875%, payableannually in arrears.
Following the May 30, 2024 dividend payment and inaccordance with the terms and conditions of the bonds, thebond conversion ratio has been 1.029 shares for one bondsince May 30, 2024. This conversion ratio was previously
1.019 Safran shares for one 2027 OCEANE bond.

Following the May 30, 2024 dividend payment and inaccordance with the terms and conditions of the bonds, thebond conversion ratio has been 1.009 shares for one bondsince May 30, 2024. This conversion ratio, which waspreviously 1.003 shares for one bond, was calculated by thebond calculation agent in accordance with the calculation
formula stipulated in the terms and conditions of the bonds
based on the following inputs:◼ previous bond conversion ratio: 1.003 shares for one bond;◼ share price: €217.4075;◼ dividend per share paid in 2024 in respect of 2023: €2.20.

The bonds come with an early redemption option that thebearer may trigger in the event of a change of control andthat the issuer may trigger (i) as from April 1, 2025, if theshare price multiplied by the bond conversion ratio exceeds
130% of the par value of the bonds or (ii) at any time, if thenumber of bonds outstanding represents less than 20% of thenumber of bonds originally issued.
Unless converted, redeemed or repurchased and canceled prior
to maturity, the bonds are redeemable at par on April 1, 2028.
OCEANEs are deemed a hybrid instrument comprising equity
and debt.

On May 29, 2024, Safran announced that it would redeem
these bonds (originally maturing on May 15, 2027) aheadof term on June 28, 2024. Bondholders had the option ofrequesting the exercise of their conversion right up to andincluding June 18, 2024.

After deducting issuance fees, a total of €712 million wasrecognized under interest-bearing financial liabilities, corresponding
to the present value of cash flows from a similar bond with noconversion rights (see Note 21, “Interest-bearing financial
liabilities”).

A total of 729,306 OCEANE bonds were converted at aconversion ratio of 1.019 shares, and 8,329,456 OCEANE
bonds were converted at a conversion ratio of 1.029 shares,
representing 9,314,154 Safran shares delivered in total.

The effective annual interest rate on the liability component is0.376% including issuance fees.

On June 28, 2024, the 180,819 bonds still outstanding wereredeemed at par plus interest accrued since the most recent
coupon payment date, i.e., €108.34416 per bond, for a total of€19.6 million.

2021-2028 OCEANEs
On June 14, 2021, Safran issued 4,035,601 bonds convertible
into new shares and/or exchangeable for existing shares(“OCEANEs”), each with a par value of €180.89, i.e., representing
a total nominal amount of €730 million. The bonds do notcarry any coupon.
The bonds were issued at a price of €187.22 per bond,representing a total issue price of €756 million.

44

Bondholders have the option of converting their bonds intoshares. This option can be exercised at any point from theissue date and up to the seventh trading day (exclusive)
preceding the standard or early redemption date.

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

The option component recognized in equity was valued at€39 million on the issue date, or €29 million after thedeferred tax impact.

e) Dividend distribution
At the Annual General Meeting of May 23, 2024, theshareholders approved a dividend payment of €2.20 per sharein respect of 2023. The dividend was paid on May 30, 2024,
entirely in cash.
The total dividend (€940 million) approved by the Annual
General Meeting was based on the total number of sharescomprising the Company’s share capital.
At the payment date, Safran held 13.3 million of its own
shares. As the shares bought back were not entitled todividends, the dividend payment amounted to €911 million(see the consolidated statement of cash flows).

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 19 PROVISIONS
Provisions break down as follows:

Reversals(in € millions)

Dec. 31, 2023

Performance warranties
Financial commitments on the saleof Group products

Surplus

Changes inscope ofconsolidation

(64)

-

(14)

-

Additions Utilizations

1,034

(1)

95

Reclassifications

(1)

(2)

Other June 30, 2024
3

1,054

2

-

-

-

(1)

-

-

1

Post-employment benefits(3)

690

41

(45)

-

-

4

(46)

644

Sales agreements

174

58

(7)

-

(8)

-

1

218

Provisions for losses oncompletion and losses arising ondelivery commitments

277

55

(12)

-

(1)

93

1

413

41

11

(2)

-

(2)

2

1

51

393

100

(86)

-

(7)

2

3

405

PROVISIONS

2,611

360

(216)

-

(33)

101

(37)

2,786

◼ Non-current

1,547

1,704

◼ Current

1,064

1,082

Disputes and litigation
Other

(1)
(2)
(3)

These reversals in respect of expenses for the period or reclassifications had no impact on profit for the period.
Including the foreign exchange difference resulting from fluctuations in the EUR/USD exchange rate in first-half 2024.
Of which a negative €46 million within “Other”, corresponding to the impact of changes in the discount and inflation rates, which isrecorded through equity.

The impacts on the income statement of overall movements in provisions can be analyzed as follows:(in € millions)

June 30, 2024

Additions (-)/Reversals (+) recognized in recurring operating income with income statement impact(286)

Utilization of provisions against operating expenses and therefore with no income statement impact

213

Additions (-)/Reversals (+) recognized in non-recurring operating income(4)

Additions (-)/Reversals (+) recognized in financial income (loss)

(34)

TOTAL

(111)

NOTE 20 BORROWINGS SUBJECT TO SPECIFIC CONDITIONSThis caption includes repayable advances granted by public bodies.
Movements in this caption break down as follows:(in € millions)

Borrowings subject to specific conditions at Dec. 31, 2023

292

New advances received

1

Advances repaid(10)

Sub-total: changes with a cash impact(9)

Cost of borrowings and discounting

5

Foreign exchange differences-

Adjustments to the probability of repayment of advances(1)

Sub-total: changes with no cash impact

4

BORROWINGS SUBJECT TO SPECIFIC CONDITIONS AT JUNE 30, 2024

287

Estimates as to the repayable amounts and the timing of repayments are made regarding borrowings subject to specific conditions.
Adjustments to the probability of repayment of advances mainly concern civil aircraft programs.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN45

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTE 21 INTEREST-BEARING FINANCIAL LIABILITIESBreakdown of interest-bearing financial liabilities:
Dec. 31, 2023

June 30, 2024

Bond issue

1,396

1,394

Convertible bonds (OCEANEs)

1,701

720

Senior unsecured notes (USPP)

568

579

Lease liabilities

469

538

Long-term borrowings

557

555

(in € millions)

Total non-current interest-bearing financial liabilities(portion maturing in more than 1 year at inception)

4,691

3,786

Bond issue

197-

Senior unsecured notes (USPP)

453-

Lease liabilities

111

121

Long-term borrowings

251

281

Accrued interest not yet due

95Current interest-bearing financial liabilities, long-term at inception

1,021

407

Negotiable European Commercial Paper (NEU CP)

200

200

Short-term bank facilities and equivalent

387

411

Current interest-bearing financial liabilities, short-term at inception

587

611

Total current interest-bearing financial liabilities (less than 1 year)

1,608

1,018

TOTAL INTEREST-BEARING FINANCIAL LIABILITIES(1)

6,299

4,804

(1)

The fair value of interest-bearing financial liabilities amounts to €4,703 million (€6,098 million at December 31, 2023).

Movements in this caption break down as follows:(in € millions)Interest-bearing financial liabilities at Dec. 31, 2023

6,299

Increase in long-term borrowings at inception (excluding lease liabilities)

11

Decrease in long-term borrowings at inception(1)(744)

Change in short-term borrowings

49

Sub-total: changes with a cash impact(684)

Net increase in lease liabilities

129

Accrued interest(5)

Changes in scope of consolidation8

Foreign exchange differences

15

Conversion and redemption of 2027 OCEANEs(961)

Change in the fair value of borrowings hedged with interest rate instruments(2)7Reclassifications and other(4)

Sub-total: changes with no cash impact(811)

INTEREST-BEARING FINANCIAL LIABILITIES AT JUNE 30, 2024

4,804

(1)
(2)

Including €20 million relating to 2027 OCEANE bonds not converted and redeemed.
See Note 23, “Management of market risks and derivatives”.

Analysis by maturity:(in € millions)

Dec. 31, 2023

June 30, 2024

Maturing in:◼ 1 year or less

1,608

1,018

◼ More than 1 year and less than 5 years

3,043

2,066

◼ Beyond 5 years(1)

1,648

1,720

INTEREST-BEARING FINANCIAL LIABILITIES

6,299

4,804

(1)

46

Mainly OCEANEs, other bonds and the USPP 2030 and 2032.

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

Analysis by currency before hedging:

Dec. 31, 2023

June 30, 2024

Currency

EUR

Currency

EUR

EUR

5,190

5,190

4,082

4,082

USD

1,054

954

595

555

CAD

6

4

7

5

GBP

19

22

18

21

Other

N/A

129

N/A

141

(in millions of currency units)

INTEREST-BEARING FINANCIAL LIABILITIES

6,299

4,804

Analysis by currency after hedging:

Dec. 31, 2023

June 30, 2024

Currency

EUR

Currency

EUR

EUR

5,926

5,926

4,377

4,377

USD

240

218

280

261

CAD

6

4

7

5

GBP

19

22

18

21

Other

N/A

129

N/A

(in millions of currency units)

INTEREST-BEARING FINANCIAL LIABILITIES

140

6,299

4,804

Analysis by type of interest rate:◼ Analysis by type of interest rate (fixed/floating), before hedging:

Total

Non-current

Dec. 31, 2023 June 30, 2024

Current

Dec. 31, 2023

June 30, 2024

Dec. 31, 2023

June 30, 2024

Average
Base interest rate

Average
Base interest rate

Average
Base interest rate

Average
Base interest rate

Base

Base

Fixed rate

5,950

4,434

4,601

0.90%

3,699

0.99%

1,349

3.60%

735

3.52%

Floating rate

349

370

90

2.70%

87

3.11%

259

3.82%

283

3.77%

6,299

4,804

4,691

0.93%

3,786

1.04%

1,608

3.64%

1,018

3.59%

(in € millions)

INTEREST-BEARING
FINANCIAL LIABILITIES◼ Analysis by type of interest rate (fixed/floating), after hedging:

Total

Non-current

Dec. 31, 2023 June 30, 2024

Current

Dec. 31, 2023

June 30, 2024

Dec. 31, 2023

June 30, 2024

Average
Base interest rate

Average
Base interest rate

Average
Base interest rate

Average
Base interest rate(in € millions)

Base

Base

Fixed rate

5,753

4,434

4,601

0.84%

3,699

0.91%

1,152

2.68%

735

3.52%

Floating rate

546

370

90

2.69%

87

3.11%

456

4.55%

283

3.77%

6,299

4,804

4,691

0.88%

3,786

0.96%

1,608

3.21%

1,018

3.59%

INTEREST-BEARING
FINANCIAL LIABILITIESThe Group’s net debt position is as follows:(in € millions)

Dec. 31, 2023

June 30, 2024

Cash and cash equivalents (A)

6,676

5,699

Interest-bearing financial liabilities (B)

6,299

4,804

Fair value of interest rate derivatives used as fair value hedges of borrowings (C)(3)-

NET FINANCIAL POSITION (A) - (B) + (C)

374

895

Dec. 31, 2023

June 30, 2024

The Group’s gearing ratio is shown below:(in € millions)
Net debt
Total equity

GEARING RATIO

374

895

12,088

11,727(3.09)%(7.63)%

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN47

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Main long-term borrowings at inception◼ US private placement (USPP) of senior unsecured notes

issued by the Group on June 29, 2020 for a nominal
amount equivalent to €564 million, comprising:● USD 181 million of 10-year notes due June 2030 at a
3.10% fixed-rate coupon (tranche A);● USD 133 million of 12-year notes due June 2032 at a3.30% fixed-rate coupon (tranche B);● €122 million of 10-year notes due June 2030 at a 2.00%
fixed-rate coupon (tranche C);● €164 million of 12-year notes due June 2032 at a 2.05%
fixed-rate coupon (tranche D).
A EUR/USD cross currency swap (EUR fixed-rate borrowerand USD fixed-rate lender) was set up on tranches A and B
on July 21, 2020, swapping USD fixed-rate debt for EUR
fixed-rate debt.
After taking this hedge into account, tranche A bears
fixed-rate interest at 2.04% and has a notional amount of€158 million, while tranche B bears fixed-rate interest at
2.22% and has a notional amount of €116 million.
After taking this hedge into account, the 10-year notes(tranches A and C) of the USPP carry an effective couponof 2.02% and have a notional amount of €280 million, whilethe 12-year notes (tranches B and D) carry an effective
coupon of 2.12% and have a notional amount of €280 million.
◼ Issuance on March 16, 2021 of:● 5-year, 0.125% fixed-rate bonds for €700 million (maturingon March 16, 2026). The bonds were issued at 99.231% of par;● 10-year, 0.750% fixed-rate bonds for €700 million(maturing on March 17, 2031). The bonds were issued at
99.349% of par;● since their issuance, the bonds have been rated byStandard & Poor’s in line with Safran’s long-term credit
rating (BBB+ when the bonds were issued and A- since
December 2, 2022).

◼ Lease liabilities recognized in accordance with IFRS 16 (including

former finance lease liabilities) totaling €659 million atJune 30, 2024.
The Group’s other long- and medium-term borrowings are
not material taken individually.

Significant operationsin the first half of 2024:◼ Redemption at maturity on February 9, 2024 of the lasttranche of USD 505 million senior unsecured notes issued
on February 9, 2012.
◼ Redemption at maturity on April 11, 2024 of €200 million

worth of bonds issued on April 11, 2014.
◼ Early redemption on June 28, 2024 of bonds convertible and/or

exchangeable for new and/or existing shares (OCEANEs)
issued for a nominal amount of €1 billion in 2020 andoriginally falling due on May 15, 2027. At the early redemption
date, 180,819 OCEANEs remained outstanding and were
therefore redeemed at par plus accrued interest for a total
amount of €20 million. The other OCEANEs had previously
been converted (see Note 18.d, “Convertible bond issues”).

Main short-term borrowings◼ Negotiable European Commercial Paper (NEUCP): €200 million(€200 million at December 31, 2023).

◼ Bonds convertible into new shares and/or exchangeable◼ Financial current accounts with non-consolidated subsidiaries

for existing shares (“OCEANEs”) on June 14, 2021 for anominal amount of €730 million. The bonds do not carry a
coupon and were offered at an issue price representing
103.5% of par, or a gross negative yield to maturity at theissue date of 0.50%. Unless converted, redeemed or
repurchased and canceled prior to maturity, the bonds are
redeemable at par on April 1, 2028. The effective annualinterest rate on the liability component of the OCEANEs is
0.38% including issuance fees (see Note 18.d, “Convertible
bond issues”).

and joint ventures: €357 million (€373 million at
December 31, 2023). Remuneration indexed to overnightrates corresponds to the currency of the current account.

◼ A bank loan from the European Investment Bank (EIB) for€500 million, at a fixed rate of 1.091%. It was signed on
March 4, 2021 and drawn down in full on February 21, 2022
for 10 years (maturing in February 2032). The loan is being
used to finance some of the Group’s research into
innovative propulsion systems for the next generation of
single-aisle commercial aircraft, marking a major step
forwardin
Safran’sroadmap
towards
achievingcarbon free air transportation.
◼ Negotiable European Commercial Paper (NEUCP) subscribedby a corporate mutual fund of the Group employee savings
plan and amounting to €300 million at June 30, 2024.

48

The average interest rate payable by Safran on thiscommercial paper was 3.84% at June 30, 2024. The sums
managed by the corporate mutual fund and reinvested in
Safran NEU CP are frozen for an initial period of five years.
In view of the fund’s commitments, the NEU CP is classified
within long-term borrowings. At June 30, 2024, 88% of
the sums managed by the corporate mutual fund will beavailable within one year. Accordingly, 88% of the€300 million in NEU CP is classified within the current
portion of long-term borrowings.

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

Other short-term borrowings consist mainly of bank overdrafts.

Sale of receivables without recourse
Net debt at both June 30, 2024 and December 31, 2023 does
not include the confirmed trade receivables sold without
recourse relating to CFM International Inc. (joint operation).
This facility, rolled over in February 2024, is capped at
USD 1,200 million until January 2025.
A total of USD 1,199 million (USD 600 million based on a 50%
interest) had been drawn on the facility at June 30, 2024,
versus USD 201 million (USD 101 million based on a 50%
interest) at December 31, 2023.
The facility may be terminated by the bank counterparties if
there is a significant deterioration in the credit rating of thecustomer whose trade receivables have been sold.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 22 OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES(in € millions)
Payables on purchases ofproperty, plant and equipment
and intangible assets

Dec. 31, 2023

Movements during
the period

Foreign exchange
differences

Share buyback(1)Reclassifications

June 30, 2024

175

(36)

1

-

(4)

136

Payables on purchasesof investments

8

(2)

-

250

-

256

OTHER FINANCIAL
LIABILITIES

183

(38)

1

250

(4)

392

◼ Non-current

33

-

-

◼ Current

150

-

392

(1)

The increase in payables on purchases of investments reflects the liability related to the launch of the first tranche of the sharebuyback program (shares earmarked for cancellation) – see Note 18.b, “Breakdown of share capital and voting rights“.

These liabilities are not included in the Group’s net financial position at June 30, 2024.

NOTE 23 MANAGEMENT OF MARKET RISKS AND DERIVATIVES
The main market risks to which the Group is exposed are foreign currency risk, interest rate risk, counterparty risk and liquidity risk.
The carrying amount of derivatives used to manage market risks is shown below:

Dec. 31, 2023

June 30, 2024

AssetsLiabilities

AssetsLiabilities

Interest rate risk management

-

(8)

-

(8)

Floating-for-fixed interest rate swaps

-

(5)

-

(8)

Fixed-for-floating interest rate swaps

-

(3)

-

-

Foreign currency risk management(6,519)(in € millions)

1,577(4,735)

1,686

Currency swaps

18

-

19

-

Purchase and sale of forward currency contracts

2

(45)

6

(3)

Currency option contracts

1,557(4,690)1,661(6,516)

Management of risks on Power Purchase Agreements

-

-

4

-

VPPAs

-

-

4

-

TOTAL

1,577

(4,743)

1,690(6,527)All derivatives are categorized within Level 2 of the fair value
hierarchy set out in IFRS 13 (as at December 31, 2023).
Credit valuation adjustment (CVA) and debt valuation
adjustment (DVA) are taken into account when measuring
the fair value of derivatives.

Hedging policy
Three basic principles underscore the foreign currency risk
management policy defined by Safran for most of its
subsidiaries:◼ to protect the Group’s economic performance from random

fluctuations in the US dollar;

Foreign currency risk management
Most Group revenue is denominated in US dollars, which isvirtually the sole currency used in the civil aviation industry.
To protect its earnings, the Group implements a hedging
policy (see below) with the aim of reducing uncertainty
factors affecting operating profitability and allowing it toadapt its cost structure to an adverse monetary environment.
Net revenue on US dollar hedges unwound in first-half 2024
totaled USD 5.9 billion (USD 4.9 billion in first-half 2023).

◼ to optimize the quality of hedging whenever possible, without

jeopardizing the Group’s economic performance (firstprinciple);◼ to provide visibility as regards the exchange rate applied in

the Group’s consolidated financial statements.
Protecting economic performance means setting a minimum
USD exchange rate parity over an applicable term. Minimum
parity corresponds to a USD exchange rate that allows Safran
to meet its operating profit targets. Hedging arrangements
have been made accordingly over a timeframe of three tofour years.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

SAFRAN49

2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Optimization measures are also used with a view toimproving the minimum exchange rate parity, and seek toprotect the Group’s economic performance at all times. They
are based on products that allow the Group to take advantage
of any improvement in the underlying exchange rate parities.

Management policy
The hedging policy is based on managing the financial
instrument portfolio in order to guarantee a predefinedminimum parity.
In building up its hedging portfolio, the Group primarily uses
forward sales, accumulators and a combination of options.
Certain instruments include knock-in or knock-out barrier
options, representing a risk to the size of the hedge book andto targeted hedge rates in certain cases of exchange rate
fluctuations.

Foreign currency derivatives
The portfolio of foreign currency derivatives breaks down as
follows:

Dec. 31, 2023
(in millions of currency units)

Fair value(1)Notional
amount(1)June 30, 2024

Less than
1 year 1 to 5 years Fair value(1)Notional
amount(1)Less than
1 year 1 to 5 years

Forward exchange contracts(43)

Short USD position

(32)

400

400

-

-

-

-

-

(32)

400

400

-

-

-

-

-

Of which against EURLong USD position

3

(11)

(700)

(700)

-

-

(250)

(250)

-

Of which against EUR

(11)

(700)

(700)

-

-

(250)

(250)

-

Long GBP position against EUR

-

-

-

-

(1)

92

92

-

Short GBP position against EUR

-

-

-

-

-

5

5

-

Long CAD position against EUR

-

-

-

-

(1)

116

116

-

Long MXN position against EUR

-

-

-

-

4

2,116

2,116

-

Short MXN position against EUR

-

-

-

-

1

900

900

-

Currency swaps

18

(314)

-

(314)

Cross currency swaps

Currency option contracts

18

19
(819)

(505)

(314)

(3,133)19(4,853)

USD put purchased against EUR

777

59,49959,499-556

62,011

61,611400

USD call purchased against EUR

496(16,460)(16,460)-

781(14,600)(14,600)-

USD put sold against EUR(141)(8,900)(8,900)-(14)(8,000)(8,000)-

USD call sold against EUR(4,443)138,014138,014-(6,340)144,664

143,664

1,000-

CAD call purchased against EUR
CAD put sold against EUR
GBP call purchased against EUR

16(1,120)(1,120)-23(1,354)(1,354)(35)(2,240)(2,240)-(30)(2,708)(2,708)-59(1,201)(1,201)-91(1,230)(1,183)(48)

GBP put sold against EUR(24)(2,245)(2,245)-(7)(2,304)(2,208)(96)

MXN call purchased against EUR

123(21,404)(21,404)-105(28,854)(28,259)(594)

MXN put sold against EUR(1,189)(35)(41,374)(41,374)-(102)(55,948)(54,759)

Accumulators – sell USD for EUR(2)

16

3,493

1,769

1,724

28

634

439

196

Accumulators – buy USD for EUR(2)58(1,807)

(934)

(874)

56

(680)

(661)

(19)

FOREIGN CURRENCYDERIVATIVES PORTFOLIO(1)(2)(3,158)(4,831)

Fair values are expressed in millions of euros; notional amounts are expressed in millions of currency units.
Notional amounts for accumulators represent the maximum cumulative amount until the instrument is unwound.

In the balance sheet, changes in the fair value of outstanding
currency hedging instruments between December 31, 2023
and June 30, 2024 represent a negative €1,673 million.

◼ cash flow risks in respect of floating-rate financial assets

In the income statement, the Group has chosen not to apply
hedge accounting to these derivatives. As a result, anychanges in the fair value of these instruments are recognizedin full in “Financial income (loss)”.

Within the framework of its interest rate risk management
policy, the Group arbitrates between these two types of risks
using financial instruments specific to fixed-income markets(interest rate swaps and options, etc.).

and liabilities. Interest rate fluctuations have a direct
impact on the Group’s profit or loss.

Exposure to USD interest rate risk

Interest rate risk management
The Group’s exposure to fluctuations in interest rates covers
two types of risk:◼ fair value risk in respect of fixed-rate financial assets andliabilities. Interest rate fluctuations impact the market valueof these assets and liabilities as well as the Group’sbalance sheet;

50

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

On July 21, 2020, a cross currency swap (USD fixed-ratelender/EUR fixed-rate borrower) was set up on the two USD
tranches of the June 29, 2020 senior unsecured notes issued
on the US private placement market (USPP), amounting to
USD 181 million bearing fixed-rate interest over a period of
10 years (tranche A) and USD 133 million bearing fixed-rateinterest over a period of 12 years (tranche B). The interest
rate portion of the cross currency swap is eligible forcash flow hedge accounting.

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Dec. 31, 2023

June 30, 2024

Fair
value

Notional
amount(USD)

Fixed-for-floating

(2)

505

505

-

-

-

-

-

-

-

Floating-for-fixed

(5)

819

505

-

314

(8)

314

-

-

314

TOTAL

(7)

(in € millions)

2

Less
than
1 year 1 to 5 years

More
than
5 years

Fair
value

Notional
amount
(USD)

Less
than
1 year 1 to 5 years

More
than
5 years

USD INTEREST RATE SWAPSManagement of risks on Power
Purchase Agreements
Following the signature of a 12-year Virtual Power Purchase
Agreement (VPPA) in the United States in late 2023, inFebruary 2024, Safran signed a 21-year agreement in Malaysia
based on an expected total output of 15 GWh per annum.
With the exception of the certificates of origin component,
these VPPAs are treated as derivative instruments inaccordance with IFRS 9.
In accordance with IFRS 9, VPPAs are classified at fair value
through profit or loss.
The Group-wide impact of changes in the fair value of VPPAs
was not material at June 30, 2024.

Counterparty risk management
The Group is exposed to counterparty risk on the following:◼ short-term financial investments;◼ derivatives;◼ trade receivables;◼ financial guarantees granted to customers;◼ undrawn lines of credit.

Financial investments are diversified and consist of blue-chip
securities that are generally traded with top-tier banks.
The sole purpose of the Group’s derivative transactions is to
reduce the overall exposure to foreign currency and interest
rate risks resulting from its ordinary business activities.
Transactions are either carried out on organized markets orover-the-counter with top-tier intermediaries.

(8)

the Group’s current and forecast financing requirements, andensures that it has the ability to meet its financial
commitments while maintaining a level of available cash
funds and confirmed credit facilities commensurate with its
scale and debt repayment profile.
On May 4, 2022 Safran set up a €2 billion revolving credit
facility, with an original maturity of May 2027, that was
undrawn at June 30, 2024. Following the exercise of the two
one-year extension options, the maturity has been extended
to May 2029. The financial terms and conditions of theliquidity line are indexed to the achievement by the Groupof two sustainable development criteria: CO2 emissions(Scopes 1 and 2) and the proportion of women among senior
executives. There is no contractual obligation to achieve thesesustainable development criteria and failure to do so would notconstitute a breach of contract. Achievement or not of thecriteria has no impact on the Group’s ability to use the facility.
Issues of senior unsecured notes on the US private placement
market (USPP) on June 29, 2020 are subject to a financial
covenant which states that the net debt to EBITDA ratio mustbe 3 or less (see Note 21, “Interest-bearing financial liabilities”).
The covenant is tested every six months and the Group
complied with the applicable ratio at June 30, 2024.
The terms “net debt” and “EBITDA” used in the aforementioned
covenant are defined as follows:◼ Net debt: interest-bearing borrowings (excluding borrowings

subject to specific conditions) less cash and cash equivalents;◼ EBITDA: the sum of profit (loss) from operations and thenet charge to depreciation, amortization and provisions for
impairment of assets (calculated based on adjusted data).

Changes in the Group’s ratings

Credit facilities are taken out with top-tier banks.

On February 25, 2021, Safran was rated for the first time byStandard & Poor’s, which assigned the Company a long-term
credit rating of BBB+ with a stable outlook.

Liquidity risk management

On April 29, 2022, Standard & Poor’s revised the outlook on
the Company’s BBB+ rating from stable to positive.

Treasury management is centralized within the Group. Where
permitted by local legislation, all surplus cash is invested with,and the financing requirements of subsidiaries met by, theparent company on an arm’s length basis. Safran SA manages

On December 2, 2022, Standard & Poor’s raised the rating to
A- with a stable outlook.

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2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

NOTE 24 RELATED PARTIESIn accordance with IAS 24, the Group has identified thefollowing related parties: shareholders (natural persons or
entities, including the French State) exercising control, joint
control or significant influence over the Group; companies
over which these shareholders exercise control, joint control orsignificant influence; associates, joint ventures and management
executives.

◼ similar rights over other Group entities (ArianeGroup,

Safran Electronics & Defense and Safran Power Units);◼ a share in Aubert & Duval to protect its strategic interests.

The following transactions were carried out with related parties
other than joint ventures:

The French State also holds:◼ a golden share in Safran Ceramics allowing it to veto any

change in control of the company or sale of company
assets (including Roxel);

First-half 2023

First-half 2024

Sales to related parties other than joint ventures

2,239

2,563

Purchases from related parties other than joint ventures

(65)

(85)

(in € millions)

Dec. 31, 2023

June 30, 2024

Amounts receivable from related parties other than joint ventures

2,628

2,285

Amounts payable to related parties other than joint ventures

4,863

5,561

Dec. 31, 2023

June 30, 2024

2,661

2,508

(in € millions)(in € millions)
Commitments given to related parties other than joint ventures(1)(1)

See Note 25.a, “Off-balance sheet commitments and contingent liabilities relating to the Group’s operating activities”.

Transactions with related parties other than joint ventures primarily concern the delivery of aviation products to Dassault
Aviation, Airbus and the French Directorate General of Weapons Procurement (DGA).
The following transactions were carried out with joint ventures:(in € millions)First-half 2024

426

305

Purchases from joint ventures

(44)

(89)

(1)

Mainly with Shannon Engine Support Limited.

Dec. 31, 2023

June 30, 2024

Amounts receivable from joint ventures

328

344

Amounts payable to joint ventures

418

388

Dec. 31, 2023

June 30, 2024

849

1,788

(in € millions)(in € millions)
Commitments given to joint ventures(1)(1)

52First-half 2023

Sales to joint ventures(1)Reservation of engine capabilities with Shannon Engine Support Limited.

SAFRAN

2024 I NTER I M FINANC IAL REP O RTINTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 25 OFF-BALANCE SHEET COMMITMENTS AND CONTINGENT LIABILITIESa) Off-balance sheet commitments and contingent liabilities relating
to the Group’s operating activities(i) Commitments given and contingent liabilities
The Group granted the following commitments in connection with its operating activities:

Dec. 31, 2023

(in € millions)Purchase commitments on intangible assets
Purchase commitments on property, plant and equipment
Guarantees given in connection with the performance of operating agreements

June 30, 2024

9

10

238

355

6,998

7,029

Lease commitments

131

149

Financial commitments on the sale of Group products

25

23

Other commitments given

2,950

3,951

COMMITMENTS GIVEN AND CONTINGENT LIABILITIES

10,351

11,517

Guarantees given in connection with the performanceof operating agreements
These guarantees relate mainly to guarantees granted by
Safran to customers and principals (essentially aircraft
manufacturers) in which Safran or the subsidiary provide a
joint and several guarantee that its subsidiaries will performtheir duties under their contractual obligations. These guarantees
are given in respect of research, design, development,
manufacturing, marketing and product support programs inplace at Group subsidiaries. They are generally granted forthe term of the program concerned, and are capped at a
certain amount.
Guarantees granted to Airbus are shown within “Guarantees
granted to related parties” in Note 24, “Related parties”.

Offset obligations
In some countries, as a condition to the Group securing major
contracts, it may be required to fulfill direct, semi-direct orindirect local offset obligations, as required by law or
regulations. This is particularly the case in the defense industry.
Failure to meet these obligations within the required
timeframe may lead to penalties for the Group, which may, insome cases, not discharge the obligation. When there are
doubts as to the Group’s ability to meet its obligations, aprovision is recognized as a deduction from revenue in theamount of the penalty stipulated in the contract.

Lease commitments
Lease commitments given concern leases qualifying for the
IFRS 16 exemption criteria (short-term leases or leases of
low‑value assets), as well as leases signed but not yet started.

Financial commitments on the sale of Group products
The Group may enter into financial commitments as part ofcertain civil aircraft engine sales campaigns. These commitments
form part of financing packages proposed by aircraft
manufacturers to airlines. The commitments are made by theGroup together with its partner General Electric alongsideaircraft manufacturers, and generally correspond to the sharerepresented by engines in the financing of the aircraft
concerned. They can take the form of backstop aircraft
financing, backstop guarantees granted to lending institutions
for aircraft financing, asset value guarantees at a given date,or trade-ins of used aircraft at a given date and at a given price.
Unlike asset value guarantees and used aircraft trade-ins,
backstop commitments are in fact financing commitments
granted in principle when an order is placed but which only
take effect at the customer's request when the orderedaircraft are delivered. In the transaction currency, thesefinancing commitments represented an undiscounted amountof USD 1.7 billion at June 30, 2024. They are not included in
the gross exposure in the above table as (i) the probability
that they will be called by the airline companies is too
uncertain because the deliveries are too far in the future, and(ii) in the past, few commitments have been called due totheir dissuasive financing conditions and to the fact that they
represent a “last recourse” after the active rental, banking,credit insurance and investor markets.
Accordingly, only the amounts of commitments actually inplace at the reporting date are shown in the above table.
The Group’s gross exposure in respect of these financing
commitments in their transaction currency represents
USD 25 million at June 30, 2024 (USD 28 million at
December 31, 2023), or €23 million (€25 million at
December 31, 2023). However, these amounts do not reflect
the actual risk to which Safran is exposed. In view of the valueof the underlying assets pledged as security or eventually
owned, the net exposure represents USD 1 million atJune 30, 2024 (USD 4 million at December 31, 2023), or€1 million at June 30, 2024 (€4 million at December 31, 2023)
for which a provision, based on an assessment of the risk, isbooked in the financial statements based on a modeling of
the probability of events likely to generate a net future
outflow of resources for the Group.

Other commitments given
In connection with the French government’s aerospace
support plan, Safran undertook to subscribe to the Ace Aéro
Partenaires (AAP#1) investment fund in an amount of€58 million.

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2

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

Following the various funding rounds completed, Safran’s
remaining commitment amounted to €12 million at June 30, 2024.

Contingent liabilities arising on ordinary activities

various claims from customers. These claims usually consistof compensation claims for failing to meet technicalspecifications, for a delay in the development phase, latecompletion and/or for additional work in connection withproduct performance and reliability falling outside the scopeof the warranties and commitments provisioned or included
within contract costs (see Note 3.b, “Provisions”, and Note 19,“Provisions”). While the initial amount of any such claim may
be material in certain cases, it does not necessarily have any
bearing on the costs that may be ultimately incurred tosatisfy the customer. As these claims represent contingent
liabilities, no provision has been recognized beyond
contractual liability limits, if any.

As part of their ordinary activities, the Group, some of its
subsidiaries, or certain joint arrangements or consortia in
which they are shareholders or members, may be subject toIn the absence of an agreement between the parties, some ofthese claims may give rise to litigation, the most significantof which are indicated in Note 26, “Disputes and litigation”.

As part of Safran USA's contemplated acquisition of Collins
Aerospace's actuation and flight control business, Safran SA
contractually granted a USD 1.8 billion payment guarantee toGoodrich Corporation and Hamilton Sundstrand Corporation
on behalf of its subsidiary Safran USA.
If legal proceedings were to block the acquisition, Safranwould have to pay termination costs of up to USD 72 million.

(ii) Commitments received
The Group was granted the following commitments in connection with its operating activities:

Dec. 31, 2023

(in € millions)

June 30, 2024

Commitments received from banks on behalf of suppliers

44Completion warranties

8

11

Endorsements and guarantees received

1

2

Other commitments received

239

302

COMMITMENTS RECEIVED

252

319

Dec. 31, 2023

June 30, 2024

42

39

Dec. 31, 2023

June 30, 2024

221

221

b) Off-balance sheet commitments and contingent liabilities relating
to the Group’s scope of consolidation
Vendor warranties are given or received on the acquisition or sale of companies.

(i) Vendor warranties given(in € millions)
Vendor warranties given(1)(1)

Vendor warranties, the amount of which may be fixed or determinable.

(ii) Vendor warranties received(in € millions)
Vendor warranties received

Vendor warranties granted in connection with the disposalof the Security businesses
In connection with the sale of the Identity and Security
businesses on May 31, 2017, Safran granted Advent
International a specific indemnity capped at BRL 200 million(€34 million) to cover any financial consequences arisingfrom the dispute between Morpho do Brasil and the Brazilian
tax authorities concerning the calculation method for value
added tax on certain products.

In connection with the acquisition of Thales’ aeronauticalelectrical systems business, Thales granted Safran a contractual
general liability guarantee for €18 million and specificwarranties for €18 million covering various matters.

c) Off-balance sheet commitments
and contingent liabilities relating
to the Group’s financing
Commitments received in respect of financing relate to:

Guarantees received in connection with acquisitions
On the sale of Aubert & Duval, Eramet granted Safran ageneral liability guarantee of €35 million and various specificwarranties totaling €150 million.

54

SAFRAN

2024 I NTER I M FINANC IAL REP O RT

◼ any unused portion of trade receivables factoring facilities,

under which the related receivables are deconsolidated(see Note 21, “Interest-bearing financial liabilities”);◼ the confirmed syndicated credit line for €2 billion, set up in

May 2022 and undrawn at June 30, 2024 (see Note 23,“Management of market risks and derivatives”).

INTERIM FINANCIAL STATEMENTS
Notes to the Group condensed interim consolidated financial statements

2

NOTE 26 DISPUTES AND LITIGATION
Safran and certain Group subsidiaries are party to regulatory,
legal or arbitration proceedings arising in the ordinary courseof their operations. Safran and certain Group subsidiaries arealso party to claims, investigations, legal action and regulatory
proceedings outside the scope of their ordinary operations.
The amount of the provisions booked is based on the level ofrisk for each case, as assessed by Safran and its subsidiaries,
and largely depends on their assessment of the merits of theclaims and defensive arguments, bearing in mind that theoccurrence of events during the proceedings can lead to areassessment of the risk at any time.
A provision is only booked to cover the expenses that may
result from such proceedings when the expenses are probableand their amount can be either quantified or reasonably
estimated.
Safran considers that the provisions booked are adequate tocover the risks it incurs.

◼ in the course of the implementation of its complianceprogram, Safran detected a situation with regards to an
activity within a company belonging to the former Zodiac
Aerospace business scope acquired in 2018 andself‑disclosed this matter to the competent authorities inGermany and the United States. As a reminder, at the endof 2022, the US Department of Justice (DoJ) decided not
to initiate proceedings against Safran in the United States.
With regard to Germany, in September 2023, a settlementagreement was signed with the authorities putting an end
to the proceedings in return for payment to the German
tax authorities of around €6.5 million. The payment of a
final reassessment notice pending receipt from the local
tax authorities for an amount of around €0.5 million willbring this matter to a close.
To the best of Safran’s knowledge and that of its subsidiaries,
there are no other ongoing regulatory, legal or arbitration
proceedings that could have a material impact on the financial
position of the Company and/or Group.

The most important proceedings are described below.
◼ a number of civil and/or criminal lawsuits have been filed

against certain Safran subsidiaries in connection with aviation
accidents. The Group’s insurance policy would cover any
civil damages payable by Safran or its subsidiaries underthese proceedings;

NOTE 27 SUBSEQUENT EVENTS
Acquisition of Preligens, a leader in
artificial intelligence for the aerospaceand defense sectors
On June 24, 2024, Safran announced that it had entered into
exclusive discussions to acquire 100% of Preligens, a leader in
artificial intelligence (AI) for aerospace and defense, for an
enterprise value estimated at €220 million.
Based in France, Preligens had revenue of €28 million in 2023.
The company employs 220 people, including 140 engineers in
Research and Development.

On July 16, 2024, the parties signed an agreement for theacquisition of Preligens shares. Completion of this proposed
acquisition remains subject to a foreign investment approval.
This acquisition would represent a unique opportunity for
Safran to add state-of-the-art AI capabilities to its productoffering and to accelerate its digital transformation roadmap,
in particular for Industry 4.0. Through its global presence,
Safran would also be able to reinforce the development ofPreligens internationally, in particular in the US market.

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3

STATUTORY AUDITORS’ REVIEW REPORT

Assembling the carbon discs for the brake system on the 777X

For the six months ended June 30, 2024

STATUTORY AUDITORS’ REVIEW REPORT ON THE INTERIM FINANCIAL INFORMATION
To the Shareholders,
In compliance with the assignment entrusted to us by your Annual General Meeting and in accordance with the requirements ofArticle L.451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:◼ the review of the accompanying condensed interim consolidated financial statements of Safran for the six months ended

June 30, 2024;◼ the verification of the information contained in the interim activity report.

These condensed interim consolidated financial statements are the responsibility of the Board of Directors. Our role is to express
a conclusion on these financial statements based on our review.

1. Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable in France.
A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted inaccordance with professional standards applicable in France and consequently does not enable us to obtain assurance that wewould become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim
consolidated financial statements have not been prepared, in all material respects, in accordance with IAS 34, “Interim Financial
Reporting”, as adopted by the European Union.

2. Specific verification
We have also verified the information presented in the interim activity report on the condensed interim consolidated financial
statements subject to our review.
We have no matters to report as to its fair presentation and consistency with the condensed interim consolidated financial statements.

Paris-La Défense, July 31, 2024
The Statutory Auditors

56

SAFRAN

Forvis Mazars

Ernst & Young et Autres

Christophe Berrard

Philippe BerteauxJérôme de Pastors

Nicolas Macé

2024 I NTER I M FINANC IAL REP O RT

4

CORPORATE GOVERNANCE

Assembly of the Makila 2A1 turbo engine

ANNUAL GENERAL MEETING OF MAY 23, 2024 – DIVIDEND PAYMENT
OF €2.20 PER SHARE
Safran's Annual General Meeting was held on May 23, 2024 at
the Safran Campus – 31, rue de Vilgénis, 91300 Massy (France).
All of the resolutions submitted to the vote of the Annual
General Meeting were approved.
In particular, shareholders approved:◼ the 2023 financial statements and the setting of the 2023

dividend at €2.20 per share;◼ two new related-party agreements and the Statutory Auditors’

special report on related-party agreements;◼ the re-appointment of Patricia Bellinger as an independent

Director;◼ the appointment of Pascale Dosda to replace Marc Aubry◼ the appointment of Mazars and Ernst & Young et Autres as

Statutory Auditors in charge of certifying the Company’ssustainability disclosures;◼ all of the resolutions relating to corporate officer compensation(2023 compensation and 2024 compensation policies);◼ the new authorization allowing Safran to buy back its own

shares at a price not exceeding €300 per share. The
maximum amount that may be invested in the program is€12.8 billion. The program description, drafted in accordancewith the provisions of Article 241-2 of the General Regulationsof the French financial markets authority (Autorité desmarchés financiers – AMF), is available on the Company’s
website (www.safran–group.com, in the Finance/Regulated
information section).

(whose term of office has expired) and the re-appointment ofAnne Aubert as Directors representing employee shareholders;

MEMBERSHIP STRUCTURE OF THE BOARD OF DIRECTORSAND ITS STANDING COMMITTEESThe Board of Directors◼ one representative of the French State and one Director

Following the approval by the shareholders at the Annual
General Meeting of May 23, 2024 of all the resolutions relating
to its membership structure, the Board of Directors comprises
16 members, including:◼ two Directors representing employee shareholders and◼ eight independent Directors;

put forward by the French State;
two Directors representing employees.
At the close of the Annual General Meeting, the proportion of
independent Directors remains at 66.7%(1) and the proportionof women on the Board remains at 41.7%(1).

(1) In accordance with the AFEP-MEDEF Corporate Governance Code for Listed Companies and French law, Directors representing
employee shareholders and Directors representing employees are not included when calculating the percentage ofindependent Directors.

2 0 2 4 I N T E R I M F I NANCI AL R E PO R T

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CORPORATE GOVERNANCE
Membership structure of the Board of Directors and its standing committees

At the filing date of this report, the Board of Directors is thus composed of the following members:

Directors

Independent

Ross McInnes, Chairman of the Board of Directors
Olivier Andriès, Chief Executive Officer
Anne Aubert, Director representing employee shareholders
Hélène Auriol Potier✓

Patricia Bellinger✓

Fabrice Brégier

✓Monique Cohen, Lead Independent Director and Chair of the Appointments and Compensation Committee✓

Christèle Debarenne-Fievet, Director representing employees
Pascale Dosda, Director representing employee shareholders
Céline Fornaro, representative of the French State
Laurent Guillot, Chairman of the Audit and Risk Committee✓

Ivan Hardouin, Director representing employees
Alexandre Lahousse, Director put forward by the French State
Fabienne Lecorvaisier✓

Patrick Pélata, Director responsible for monitoring climate issues and Chairman of the Innovation,
Technology & Climate Committee✓

Robert Peugeot✓(1)

16 members, of which 66.7% independent(1)

In accordance with the AFEP-MEDEF Corporate Governance Code for Listed Companies, Directors representing employee
shareholders and Directors representing employees are not taken into account when calculating the percentage of independent Directors.

The standing Committees of the Board of Directors
On May 23, 2024, the Board of Directors appointed Ivan Hardouin as a member of the Audit and Risk Committee, replacing Marc Aubry,
and re-appointed Patricia Bellinger as a member of the Appointments and Compensation Committee.
At the filing date of this report, the standing Committees of the Board of Directors are composed as follows:

Audit and Risk Committee

Independent✓

Laurent Guillot, Chairman
Ivan Hardouin (Director representing employees)
Céline Fornaro (representative of the French State)
Fabienne Lecorvaisier✓

Patrick Pélata

✓✓Robert Peugeot(1)

6 members, of which 80% independent (4/5 )(1)

In accordance with the AFEP-MEDEF Corporate Governance Code for Listed Companies, Directors representing employee
shareholders and Directors representing employees are not taken into account when calculating the percentage of independent Directors.

Appointments and Compensation Committee

Independent

Monique Cohen, Chair – Lead Independent Director✓

Hélène Auriol Potier✓

Patricia Bellinger✓

Christèle Debarenne-Fievet (Director representing employees) – “compensation” discussions
Céline Fornaro (representative of the French State)
Patrick Pélata

✓6 members, of which 80% independent (4/5(1))(1)

In accordance with the AFEP-MEDEF Corporate Governance Code for Listed Companies, Directors representing employee
shareholders and Directors representing employees are not taken into account when calculating the percentage of independent Directors.

Innovation, Technology & Climate Committee

Independent

Patrick Pélata, Chairman – Director responsible for monitoring climate issues✓

Hélène Auriol Potier✓

Fabrice Brégier

✓Ivan Hardouin (Director representing employees)
Laurent Guillot✓

Alexandre Lahousse (Director put forward by the French State)

6 members, of which 80% independent (4/5(1))(1)

58

In accordance with the AFEP-MEDEF Corporate Governance Code for Listed Companies, Directors representing employee
shareholders and Directors representing employees are not taken into account when calculating the percentage of independent Directors.

SAFRAN

2024 I NTER I M FINANC IAL REP O RTCONTACT

Financial Communications Department
Analysts and institutional investors

Individual shareholders• Tel: +33 (0)1 40 60 80 80• Toll-free number (mainland France only): 0 800 17 17 17• E-mail: investor.relation@safrangroup.com

Monday to Friday, 9 a.m to 5 p.m.
• E-mail: actionnaire.individuel@safrangroup.com

SAFRAN2, boulevard du Général Martial Valin
75724 Paris Cedex 15
FranceAll financial information pertaining to Safran is available on the Group’s website at www.safran-group.com, in the Finance section.

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SAFRAN2, boulevard du Général-Martial-Valin
75724 Paris Cedex 15
FranceTel: +33 (0)1 40 60 80 80
www.safran-group.com