SAFRAN magazine PARTNERS - 赛峰在中国 fileSAFRAN magazine THE MAGAZINE FOR SAFRAN'S CUSTOMERS AND PARTNERS APRIL 2015 # 17 SAFRAN IN CHILE, from biometric ID to astronomy MRO

SAFRANmagazine

THE MAGAZINE FOR SAFRAN'S CUSTOMERSAND PARTNERS

APRIL 2015# 17

SAFRAN IN CHILE, from biometric ID to astronomy

MRO AND SERVICES: delivering value to our customers

EDITORIAL 0302 CONTENTS

Safran Magazine online www.safran-group.com/press-media/safran-magazine-457/?457

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JEAN-PAUL HERTEMANCHAIRMAN AND CEO OF SAFRAN

As my term as Chairman and CEO, and my long career in industry, draw to a close, I would like to share with you my pride and my gratitude when I see how far we have come.

During my career, I saw Snecma, then Safran undergo an in-depth transformation, become more unified, attract a growing roster of young talent, and boost competitiveness. I saw us rise to challenges that many thought were lost causes, like the merger between Snecma and Sagem, or the successive redeployments at our Fougères plant. I saw us expand into new markets, become a truly international enterprise and achieve technological breakthroughs to retain that indefinable edge that makes us stand out.

We have succeeded in all these areas because of our culture and our values, namely a rigorous approach, a focus on innovation and technical and industrial excellence, along with social unity, being open to others and to the world, solidarity and a real team spirit. Above all, we succeeded thanks to the 69,000 men and women who now make up our Group, and the giants who preceded us, all of whom contributed their knowledge, their passion

and their professionalism. Without them, none of this would have been possible. They are the wellspring of our success, today and for many years to come.

To m o r row, P h i l i p p e Petitcolin and Ross McInnes, the new CEO and Chairman of Safran, respectively, will be carrying on this tradition of Safran’s unique culture,

combining demanding standards, passion and a desire to surpass oneself. Whether they’re dealing with the ramp-up in LEAP production, the service entry of Silvercrest® and new helicopter turbines, or innovative new systems like green taxiing and biometric security solutions, I know that they will be able, with all our employees, to lead Safran even further along the path to success.

“I saw us expand into new markets, become a truly international enterprise and achieve technological breakthroughs to retain that indefinable edge that makes us stand out.”

Safran Magazine April 2015

SAFRAN, YESTERDAY AND TOMORROW

04 NEWS BREAKS

12 TOMORROWTowards a more competitive European space industry

14 PANORAMASafran is 10 years old!

2, bd du Général-Martial-Valin, 75724 Paris Cedex 15 – France – [email protected] – Publication Director: Pascale Dubois – Editorial Director: Marie-Laure Dufour – Editor-in-Chief: Isabelle de Buyer - Project Manager: Martin Bellet – Translation: Don Siegel,

ID Communications – Production: - Printed by: Imprimerie Vincent, certified imprim’vert on PEFC accredited paper – ISSN 1960-7164 – The articles and illustrations published in this magazine may not be reproduced without prior authorization.Cover: Philippe Stroppa / Snecma / Safran

20 INSIGHT20 Safran Tech: cutting-edge R&T to drive innovation22 Eco-design, the backbone of Safran products

24 SPECIAL REPORTMRO and services: delivering value to our customers

33 MARKETS33 MorphoTablet™: a secure tablet from Safran34 Nacelles: channeling innovation36 A passport for Chile 38 Eurosatory defense show: a success for Sagem

40 INTERVIEWAn interview with Moulay Hafid Elalamy, Moroccan Minister for Industry, Trade, Investment and the Digital Economy

April 2015 Safran Magazine

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24 SPECIAL REPORTMRO AND SERVICES: DELIVERING VALUE TO OUR CUSTOMERS

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DISCOVERY DAY 2014

Discovery Day 2014 took place on September 29 and 30, and October 1. It welcomed more than 2,000 recently hired Safran employees from around the world, introducing them to the Group through roundtable discussions, presentations by corporate officers and workshops on specific subjects. They also got their first

look at the Safran Campus, which hosted this event. Located in Vilgénis, near Paris, the Campus was inaugurated on September 3, 2014 by Safran Chairman and CEO Jean-Paul Herteman. It primarily houses Safran University, which provides training courses to boost employee skills and support their career development.

MORE An interview with Yannick Bonnaire, Corporate Vice President for Leadership & Managerial Development and Director of Safran Campus, in the Media corner on the Safran website: www.safran-group.com

April 2015 Safran Magazine Safran Magazine April 2015

NEWS BREAKS 0504 NEWS BREAKS

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A NEW STATE-OF- THE-ART PLANT

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French President François Hollande, along with Jean-Paul Herteman, Chairman and CEO of Safran, and Joseph G. Morone, President and CEO of Albany International Corp., officially inaugurated a new plant in Commercy (eastern France) on November 24. Created within the scope of the industrial partnership between Safran and Albany, this new plant makes composite parts for new-generation aircraft engines, using an innovative new process. The first application is fan blades and cases for the LEAP engine (developed and produced by CFM International, the 50/50 joint venture of Snecma (Safran) and GE). Jean-Paul Herteman described the new plant as “the fruit of a deeply shared vision and mutual trust by industry and government.” It will produce the same parts as its American “sister” plant in Rochester, New Hampshire, inaugurated in March 2014. By 2018, the new plant in France will have 400 to 500 employees.

Left to right: Joseph G. Morone, President and CEO of Albany International Corp., French President François Hollande and Jean-Paul Herteman, Chairman and CEO of Safran.

First flight of Bell 505 Jet Ranger XThe Bell 505 Jet Ranger X made its first flight on November 10, 2015. This light single-engine helicopter with room for five passengers is powered by the Turbomeca (Safran) Arrius 2R turboshaft engine. Turbomeca has sold more than 3,000 Arrius engines to date, logging 6.6 million flight-hours for 430 customers in 60 countries. This proven reliability is built into the 2R and reinforced by a 3,000 hours time between overhaul (TBO) from the time it enters service. It is rated in the 500 shaft horsepower class.

HELICOPTERS

A new carbon brake plant in MalaysiaTo support strong business growth in the Asia-Pacific, Messier-Bugatti-Dowty (Safran), the world's leading pro-ducer of carbon brakes for commercial airplanes, chose Malaysia to set up its third production site worldwide. The carbon brake disk produc-tion/refurbishment plant in Sendayan will span 10,000 square meters and have 150 employees by 2018. It was inaugurated on January 15, 2015 by Jean-Paul Herteman, Chairman and CEO of Safran, in a cere-

mony attended by His Highness, the Sultan of Negeri Sembilan. Messier-Bugatti-Dowty now works with 18 opera-tors in Malaysia, sup-plying wheels and carbon brakes for some 200 aircraft in service and another 400 on order.

The Boeing 777X, which has already recorded more than 300 orders, should replace the company's best-selling 777 long-range widebody twinjet towards 2020. The 777X will be powered by GE's new GE9X engine. Safran has been a program partner since July 2014, via its companies Snecma and Techspace Aero. The new airplane will reduce fuel consumption by 10% compared with its predecessor, an improvement due in part to new technologies from Safran, such as 3D woven composite materials using the resin transfer molding (RTM) process. In addition, for the first time Boeing selected Aircelle (Safran) in December 2014 to supply the titanium nozzles, which contribute to the engine's performance and noise attenuation.

Safran helps power Boeing 777XWIDEBODY JETS

Morpho-Dictao chosen by NATOA first success for Morpho (Safran) and its new acquisi-tion Dictao. At the end of November 2014, the Dictao AdSigner e-signature solution was certified by NATO and included in the NATO Information Assurance Product Catalogue. The 28 member-states and their allies can now call on this product to protect sensitive data against cyber-attacks. The announcement of this certification fol-lows Morpho's August 2014 acquisition of Dictao, specialized in strong authentica-tion solutions, secure online transactions and secure archiving, for both public and private markets.

BIOMETRICS

PRODUCTION

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EQUIPMENT

First flight of Embraer KC-390 airlifter a success!

The largest aircraft ever produced by Brazilian planemaker Embraer, the KC-390 was designed for both civil and military operations. On February 3, 2015, it made a successful first flight. Safran is a major contributor to this aircraft, supplying six “work packages”. For example, Labinal Power Systems provides the primary and secondary electrical distribution systems, the emergency power generation system and all ventilation systems. Messier-Bugatti-Dowty makes the wheels and brakes, braking system, nosewheel steering system and landing gear extension/retraction equipment, while Sagem provides the horizontal stabilizer trim system (HSTS), which plays a vital role in the aircraft's stability. Deliveries of the KC-390 are expected to start in late 2016.

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MORE To read the articles on Safran's contribution, go to the Media corner on Safran's website: www.safran-group.com

JOINT VENTURE

In March 2015, Rolls-Royce and Hispano-Suiza (Safran) announced the creation of Aero Gearbox International, a 50/50 joint venture that will develop world-class power transmission systems for aircraft engines. This announcement follows the definitive agreement signed in October 2014. The new joint venture combines the two companies' areas of expertise: Hispano-Suiza in power transmis-sion systems design, production and support, and Rolls-Royce as engine manufacturer and systems integrator. Based on a 25-year, renewable agreement, Aero Gearbox International will have exclu-sive responsibility for power transmission systems on all of Rolls-Royce's upcoming commercial aircraft engines.

A powerful transmission partnership

1 out of every 3 helicopter turbine engines sold worldwide is made by Turbomeca.

Every 2 seconds somewhere in the world, an aircraft takes

off under CFM56* power, and a plane lands on Messier-Bugatti-Dowty landing gear.

More than 1 million_ biometric terminals delivered

by Morpho worldwide.

10,000 thermal imagers delivered by Sagem.

Nearly 160 Ariane nozzles delivered by Herakles.

SAFRAN FACTS & FIGURES

* Developed and produced by CFM International, the 50/50 joint venture between Snecma (Safran) and GE.

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MARITIME



Two Safran employees were recognized at the Women in Industry awards ceremony in September 2014: Aurore Ferrant, Rocket Motor Test and Integration Department Manager at Herakles, was named Most Promising Newcomer, and Fabienne Lacorre, Senior Vice President for Engineering at Snecma, won the R&D Women award. Organized by business and industry weekly L'Usine Nouvelle, this competition contributes to the enhancement of women's careers in French industry. Safran has been a partner in this event since it premiered in 2012, reflecting its strong commitment to supporting equal opportunity and diversity.

Safran employees wins Women in Industry awardsAWARDS

Electric taxiing makes debut in ChinaIn November 2014, Honeywell and Safran signed a Memorandum of Understanding (MoU)with China Aviation Energy and Emissions Solutions (CAEES) to study the deployment of the EGTSTM electric taxiing system in the Chinese aviation market. Developed by Honeywell and Safran through the joint venture EGTS International, this system allows airplanes to taxi, and even back up, without using their jet engines, via electric motors located in the wheels on the main landing gear, powered by the aircraft's power generation system. The EGTSTM will reduce fuel consumption by up to 4% per flight, and reduce carbon dioxide (CO2) and nitrogen oxide (NOx) emissions at airports by 75% and 50%, respectively.

“MORE ELECTRIC” AIRCRAFT

BlueDome, an innovative anti-piracy system

In February 2015, the Sagem (Safran)-led Auto-protection consortium unveiled a complete, integrated system to protect commercial ships against pirate attacks. Dubbed BlueDome, this system includes long-range detection of small craft, analysis of their behavior, identification via a day/night optronic turret, and deployment of various deterrent systems (light projectors, acoustic devices) and anti-boarding measures (water cannons, smoke grenades).

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Within the scope of a partnership with Pratt & Whitney AeroPower, Microturbo (Safran) was given full responsibility in 2014 for two auxiliary power units (APU) for business jets: the APS2 [800] for Bombardier's Global 7000 and 8000, and the APS500 [D] for the Dassault Aviation Falcon 5X. Microturbo has opened a new facility in San Diego, California to produce these units, including development, assembly, testing and support. The agreement between the two companies also provides for collaboration on future business and regional jets, with Microturbo leading the former segment and Pratt & Whitney AeroPower the latter.

Microturbo to build bizjet APUs

APU

POUR EN SAVOIR L’interview de Pierre-Yves Morvan, directeur général de Microturbo, dans l’espace Médias du site de Safran : www.safran-group.com

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Infatigable voyageur, féru de randonnée et grand amateur de sport, Bruno Even met depuis un an sa passion de la haute technologie au service de Sagem (Safran), dont il est devenu le directeur général après quinze années passées au cœur des turbines pour hélicoptères chez Turbomeca (Safran). « Ce changement fut un véritable défi personnel, mais c’était aussi une formidable opportunité pour découvrir de nouveaux horizons et des enjeux commerciaux très différents. » Marqué par la personnalité d’industriels passionnés et engagés comme Marcel Dassault ou Joseph Szydlowski, le fondateur de Turbomeca, Bruno Even ne s’est jamais départi de certaines aspirations. « J’ai toujours été attiré par les produits ayant une technicité très élevée. C’était un univers dans lequel je me voyais évoluer, une aventure humaine à laquelle je voulais prendre part ». Depuis sa formation à Polytechnique et Sup’Aéro, Bruno Even a en effet toujours été poussé par cette passion, « ainsi que par toutes les personnes qui m’ont formé, confié des responsabilités et qui, comme moi, ne croyaient pas aux modèles préétablis ». Aujourd’hui aux commandes de Sagem pour renforcer sa dimension internationale, l’imposer dans le domaine civil et améliorer significativement sa compétitivité, Bruno Even s’appuie sur les maîtres mots de confiance et de plaisir car « c’est ainsi que l’on peut générer un esprit de corps, de la performance et l’envie de se surpasser ».

DÉCIDEURBRUNO EVENDIRECTEUR GÉNÉRAL DE SAGEM (SAFRAN)

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BIOGRAPHY 1987: Graduates from the École Polytechnique1992: Graduates from Sup'Aéro, joins French defense procurement agency DGA1999: joins Turbomeca (Safran)2006: named Turbomeca Vice President, Programs2013: named CEO of Sagem

A tireless traveler, enthusiastic hiker and sports fan, Bruno Even has brought his passion for high technology to Sagem (Safran). He was named Chief Executive Officer in 2013, after spending fifteen years with helicopter turbine engine specialist Turbomeca (Safran). “The change was a real personal challenge,” he admits, “but it was also a tremendous opportunity to discover a new field and a very different business environment.” Bruno Even had been influenced by several strong industry personalities, such as Marcel Dassault and Joseph Szydlowski, the founder of Turbomeca, and he always had strong and simple aspirations. “I was always attracted by technically sophisticated products. I clearly saw myself working in this world, and taking part in this human adventure.” After graduating from the prestigious Polytechnique and Sup'Aéro engineering schools, Bruno Even has always been guided by this passion, as well as “by all the people who helped train me, who entrusted me with responsibilities and, like me, didn't believe in traditional models.” Today, he's at the head of Sagem, tasked with boosting its international footprint and presence in civil markets, and significantly improving competitiveness. “For me,” he adds, “the watchwords are confidence and pleasure, because that's how you generate a real ‘esprit de corps’, performance and a desire to surpass your limits.”

DECISION-MAKER

BRUNO EVEN SAGEM (SAFRAN) CEO

TOWARDS A MORE COMPETITIVE EUROPEAN SPACE INDUSTRYThe countries belonging to the European Space Agency (ESA) officially approved the new Ariane 6 launcher program in December 2014. The two main contributors are Airbus Group and Safran, which have created a 50/50 joint venture, Airbus Safran Launchers, to give Europe a more competitive launch vehicle. Safran Magazine talked with Marc Ventre, Chairman of the Board of Directors of Airbus Safran Launchers, and Alain Charmeau, Chief Executive Officer of Airbus Safran Launchers.

TOMORROW 1312 TOMORROW


ARIANE 6 AT A GLANCE

Partners: Germany, France, Italy, Belgium, Spain, Netherlands, Sweden, Switzerland, etc.

Up to 12 launches/year.

72 hectares, equal to 150 football/soccer stadiums

Targeted orbits: altitudes up to

36,000 km via geostationary transfer

orbit (GTO).

Launch complex surface area:

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and Avio. Adapted from the rocket motors powering the Vega light launcher, these new powerplants will then be fitted to an upgraded version of Vega. The main stage will be powered by the Vulcain® 2.1+ cryogenic engine, made by Snecma (Safran). The upper stage will be fitted with the restartable Vinci® cryogenic engine, already developed by Snecma for Ariane 5 ME. By leveraging all of these synergies, we can considerably reduce the cost.

What are the different steps in the creation of Airbus Safran Launchers?A. C.: The first phase started in January 2015, with space program management responsibility transferred to the joint venture, which now has 450 employees. At that point, Airbus Safran Launchers also became the shareholder in Europropulsion, Regulus,

What challenges does Airbus Safran Launchers now face? Marc Ventre: The launch market is growing, driven for example by the development of the Internet and satellite TV. This has naturally spurred the arrival of new players, such as SpaceX, offering simplified and optimized launcher designs, and therefore very competitive launch prices. In other words, this trend entails a risk of seeing Ariane 5 lose its leadership in the geostationary satellite launch market. But one of Europe's strategic priorities is to maintain independent access to space, and to guarantee the long-term viability of its space industry. The landmark

Arianespace in particular. The second phase will come in the second half of 2015, pending regulatory authorization and consultation with employee unions. At that moment, the two companies will transfer to the joint venture their assets concerning launch vehicles and strategic missiles. In addition, they will purchase the shares in Arianespace held by French space agency CNES, under terms now being negotiated.

That would give Airbus Safran Launchers about 75% of Arianespace – which would mean that Airbus Safran Launchers would be responsible for all aspects of Ariane 6, from design and development, to production and commercialization. Because of this more highly integrated industrial structure, we can optimize operations, simplify relations and procedures, and therefore reduce design lead-times. ■

MARC VENTRE, CHAIRMAN OF THE BOARD OF DIRECTORS OF AIRBUS SAFRAN LAUNCHERS

ALAIN CHARMEAU, CHIEF EXECUTIVE OFFICER OF AIRBUS SAFRAN LAUNCHERS

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decision by the ESA ministerial council during their meeting on December 2 resulted in a green light for development of the new Ariane 6 launcher, supported by the German and French governments in particular. At the same time, Airbus Group and Safran created this new joint venture to deploy a more efficient industrial organization that could offer a simpler and above all much more cost-effective launcher design in a market that has become fiercely competitive.

What will Airbus Safran Launchers be offering?Alain Charmeau: The growing demand for launch services in fact concerns different types of satellites. Two versions of the new launcher will be developed to meet most of these requirements. Ariane 62, with two boosters, will handle medium payloads, up to about 5 tons, mainly for government missions such as Earth observation, defense and science. Ariane 64 will have four boosters, and will be used for dual launches or heavy satellites (up to 10.5 metric tons), in particular for private telecom operators. The first Ariane 6 launch is now slated for 2020.

How can you guarantee that Ariane 6 will be more competitive while also retaining the exceptional reliability of Ariane 5? M. V.: Ariane 6 will offer a simplified design, but also largely call on the technical heritage of Ariane 5, and will reuse certain elements that were already being developed for Ariane 5 ME1. The boosters will be based on P120 solid rocket motors made by Europropulsion, a 50/50 joint venture of Herakles (Safran)

1. ME = Midlife Evolution, an upgraded version of Ariane 5, now replaced by Ariane 6.

Avril 2015 Safran Magazine Safran Magazine Avril 2015

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Safran is celebrating its 10th anniversary in 2015. We look back at the first decade of this high-tech group, which has become a leader in its core markets.

PANORAMA 1514 PANORAMA

2005 Snecma and

Sagem merge to form Safran

2007 Creation

of Sagem Sécurité, which is renamed Morpho in 2010

2008 • Safran refocuses on

the aerospace, defense and security markets

• Safran and GE renew their CFM International

partnership through 2040

2009 • Safran sets up a Scientific Council

• Launch of the LEAP,

successor to the CFM56

2010 • Creation of the new Safran logo, to bolster

the Group’s image

• Creation of Safran University to provide

a training structure that will help meet Safran’s

challenges

2011 • All landing and braking businesses consolidated in Messier-Bugatti-Dowty

• Safran share added to the French stock market index,

CAC 40

2012 Creation of Herakles, a world leader in solid

propulsion, which adds SME’s

expertise in energetic materials

2014 • All Safran business lines

concerning “more electric” aircraft are consolidated within

Labinal Power Systems

• Inauguration of Safran Composites

• Creation of Airbus Safran Launchers, a 50/50 joint

venture between Safran and Airbus Group

2015 Inauguration of

Safran Tech

SAFRAN IS 10 YEARS OLD!

Rise in Safran’s annual sales

from 2006 to 2014, going

from €10.8 billion to €15.4

billion.

Increase in the Safran share

price since 20061.

Rise in Safran’s backlog

of orders since 20061.

Safran’s employee

shareholding ranking among

CAC 40 companies.

Capital expenditures by

Safran since 2006 to

increase production capacity1.

Investment in R&D since

20102.

Increase in Safran’s workforce

since 20102.

1. From 2006 to 2014. 2. From 2010 to 2014.

A human logo formed by 3,000 engineers and managers at Safran Discovery Day.

42%

192%

221%

2nd

€3.6 billion

€7.7 billion

25%

PORTFOLIO 1716 PORTFOLIO

Avril 2015 Safran Magazine Safran Magazine Avril 2015



From CFM56 to LEAP, a global success storyIn 2008, Safran and GE renewed their CFM International partnership until 2040. Created in 1974, this 50/50 joint venture gave birth to one of the major successes in the history of aviation, the CFM56. To succeed this best seller, with over 27,200 already delivered at end-2014, the two partners launched a new engine called LEAP. It is now the best-selling engine while under development in history, recording 8,700 orders and commitments as of January 31, 2015.

Security, a key marketCutting-edge identification solutions, biometric ID documents, hazardous substance detection systems, secure digital transaction solutions… these Morpho (Safran) products are all part of the fast-growing security market. Morpho continues to develop its expertise in this key market, and has added a number of targeted acquisitions in recent years to bolster its competitive standing. Safran supplies police forces, security units and airports in many countries, and is a major partner in the Indian program Aadhaar, the largest biometric identification program in the world.

A VISIONARY ENTERPRISE, CREATOR OF LANDMARK PROGRAMS

“More electric” aircraft: a dynamic, disruptive technologyTo meet the dual ecological and economic challenge of air transport, Safran has for many years developed electrical systems and equipment for aircraft. This research led to ETRAS®, the world’s first electrically-actuated thrust reverser control system, fitted to the Airbus A380, and the EGTSTM electric taxiing system, demonstrated at the Paris Air Show in 2013. In January 2014, Safran consolidated its aircraft electrical system business lines in Labinal Power Systems to bolster its R&D capabilities in this key area.

At the heart of major aircraft programsSafran companies are key contributors to all major aircraft programs that have shaped the market in the last ten years, including the Airbus A320, A350 XWB, A380 and A400M, Boeing 737 Next-Generation, 767, 777 and 787 Dreamliner, Rafale, Eurofighter, Typhoon, F-18, etc.

No. 1 worldwide in helicopter turbinesSafran company Turbomeca is the world’s leading maker of turbine engines for helicopters, building on its long-standing technical reputation, custom-tailored services and strong local customer support. All major helicopter manufacturers worldwide now use Turbomeca engines.

A legacy partner on ArianeSafran has been a major contributor to the Ariane launcher program since the outset, and is one of today’s world leaders in space propulsion. At the end of 2014 Safran teamed up with Airbus Group to create a 50/50 joint venture to develop lower-cost, multipurpose launch vehicles, marking its heightened commitment to guaranteeing reliable and independent access to space for Europe. The evolving defense market

Safran continues to provide products and services to support military and homeland security missions that protect citizens in many different countries. A preferred partner to governments worldwide, Safran designs, develops and produces systems and equipment tailored to their defense needs. Sagem (Safran) makes innovative navigation, optronic, tactical information and stabilization solutions for a wide range of platforms – air, land and sea – deployed around the world.

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INNOVATION, THE KEY TO SAFRAN’S STRATEGY

AN INTERNATIONAL, ENGAGED, RESPONSIBLE GROUP

Teaming up on researchSafran counts on shared expertise to push back the bounds of innovation. This collaborative mindset is deployed through a number of partnerships with academia and industry, including partners such as Onera, CNRS, CEA, Valeo, etc.

Composites, the leading edgeComposite materials have been a primary research focus at Safran since the 1980s. Lighter and stronger than conventional materials, they are revolutionizing aerospace. Safran has three dedicated new composites facilities, all inaugurated in 2014: the Safran Composites research center near Paris, and twin production plants, one in Rochester, New Hampshire (U.S.) and the other in Commercy (eastern France).

Safran Tech: R&T excellenceSafran’s focus on research & technology allows it to develop innovative solutions that guarantee future success. With the creation of the Safran Tech R&T center, inaugurated in January 2015, Safran will accelerate and pool its R&T efforts to foster the emergence of differentiating technologies.

Expanding international reachWith more than 69,000 employees in over 50 countries, Safran continues to expand its international reach. This global footprint allows Safran to establish commercial and industrial relations with the world’s leading prime contractors and operators, and offer all customers fast, local service to maximize competitiveness.

Ocean-racing sponsorship, a long-haul commitment Safran started its ocean racing sponsorship back in 2005 and has now reener-gized this unifying project. Marc Guillemot has had an exceptional career, from both the human and sporting standpoints. Morgan Lagravière, the new 27-year-old skipper, is currently train-ing intensively to prepare for the 2016 Vendée Globe round-the-world solo race, at the helm of the new Safran monohull ocean racer.

A strong commitment to employmentThe plant in Fougères (western France) is an excellent example of Safran’s industrial redeployment policy: over the years, it has successively made fax machines, portable phones, defense equipment and printed circuit boards. Maintaining employment is one of Safran’s top objectives, and the Group applies a training policy keyed to this goal.

Talent, Safran’s primary wealthWith an ongoing focus on developing its people’s potential, Safran applies an ambitious training policy, organized around Safran University, which is located on the Safran Campus. Inaugurated in September 2014, this campus is an integral part of this approach, hosting training sessions, seminars, orientation days and other major corporate events.

A joint mindsetInnovation is the key to Safran’s competitiveness and irrigates the entire enterprise, with all employees encouraged to submit new ideas. This employee-driven innovation is celebrated each year since 2006 at the Innovation Awards, recognizing the best improvement initiatives from Safran employees. In the last two years, suppliers have also taken part in this contest.

Community outreachSafran’s philanthropy policy reflects its corporate social responsibility. Since 2005, Safran has undertaken nearly 480 projects to support social and professional integration, equal opportunity via education and artistic creativity, either through its foundations or directly. Safran is also continuing its partnership with the association Planète Sciences to raise young people’s awareness of technical jobs in the aerospace industry.

Sustainable and responsibleBy signing the United Nations Global Compact in 2013, Safran confirmed its commitment to sustainable development and fair trade practices.

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20 INSIGHT


INSIGHT 21

SAFRAN TECH: CUTTING-EDGE R&T TO DRIVE INNOVATIONOn January 27, 2015, Jean-Paul Herteman, Chairman and CEO of Safran, inaugurated Safran’s new Research & Technology Center, Safran Tech, in a ceremony attended by Geneviève Fioraso, former French Minister of Higher Education and Research. Spearheading R&T at Safran, this new facility will accelerate the development of innovative solutions across all of Safran’s business sectors.

Open innovationSafran Tech’s other major advantage is its totally open attitude. “To attract the top talent, we designed a space that welcomes researchers from around the world, and from academia or industry,” said Christian Picollet, Deputy Director, R&T, at Safran, during a symposium following the inauguration. The teams at Safran Tech will be working closely with universities, public organizations and industrial partners. According to Eric Bachelet, Safran Senior Vice President for R&T, “We integrated the open innovation1 concept right from the outset. Given current conditions, you have to be able to call on a world-class knowledge ecosystem. By working with industrial or academic partners, as well as innovative small businesses and startups, we progress more quickly, and we’re open to new ideas. This is a win-win relationship for all partners, and can be developed in many different forms.”

The first joint laboratory, created in April 2014 by Safran and the French

Alternative Energies and Atomic Energy Commission (CEA) to study microsensors and their applications, will shortly set up at this new center. Next in line will be the Materials lab from the École des Mines de Paris engineering school, which boasts an international reputation for its expertise in high-temperature materials. A robotics lab formed by PSA, Valeo, the École des Mines and Safran could also be created in the coming years. ■

1. An innovation approach based on collaboration with outside partners, including corporations, research organizations, suppliers, etc.

WORLD-CLASS RESEARCHERSSafran Tech started its search for researchers well over a year ago. “Recruitment is just as much a strategic challenge as the creation of research programs,” claims Axelle Trevisani, Safran Tech's Head of Human Resources. “We are very demanding, and we’re looking for researchers with recognized skills. We’re hiring both inside the Group and outside, with a focus on professional and cultural diversity, and we also count on our broad network of partnerships with leading schools and research labs in France and around the world.”

A NEW SAFRAN SITE Safran Paris-Saclay is the Group’s latest site. In addition to Safran Tech, it also houses Paris area teams from several Safran companies and partners: nacelle specialist Aircelle and its subsidiary SCLA, plus Safran Engineering Services. Two Ecole des Mines de Paris research centers (materials and energy efficiency), and other research partners will also join the site.

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300researchers by 2017.

€60 million investment.

45,000square meters (486,000 sq ft). Safran Tech is located

near Paris in Saclay, a world-class science and technology cluster. It will help Safran intensify and

pool its R&T efforts to gear up for the advent of disruptive technolo-gies, including “more electric” air-craft, new propulsion architectures and advanced information and com-munications. “Safran Tech reflects Safran’s ongoing investments to ensure the future of our businesses, our industry, the knowledge econ-omy in Europe, innovation and

growth,” said Jean-Paul Herteman, Chairman and CEO of Safran, at the inauguration.

Nurturing innovationBy 2017, some 300 employees will be working on these major research programs. They will focus on three main areas: advanced aircraft systems; digital technology (from data processing to simulation); and materials, processes and sensors. “Safran Tech is a strategic venue that promotes cross-functionality and nurtures innovation,” explains Stéphane Cueille, Safran Tech's Director. “It provides an additional opportunity for our experts to guide and assess our research, which will now be on a more collaborative basis. We have high expectations of this initiative, especially in terms of cross-fertilization.”

An investment of 60 million euros is planned. Part of this sum has already been spent to outfit this state-of-the-art center with a materials characterization lab, additive manufacturing cell , computing center and simulation bench. Several other Safran R&T facilities now report to this center, including the corporate Materials and Processes division, the Safran Composites research center in Itteville (near Paris) and the innovative materials research center.

The inauguration of Safran Tech, on January 27, 2015.

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22 INSIGHT


INSIGHT 23

SIMply GREEN: MORPHO’S GREEN SIM CARDThe SIMply Green card developed by Morpho (Safran) looks like the hundreds of millions of SIM cards produced worldwide year after year. But in fact, it’s by far the most ecological of these cards. Totally made of wood fibers, it is biodegradable, compostable and recyclable – a real “green card” that offers all the performance of a conventional SIM card. Morpho is also working on a bank card made of bio-sourced plastic; in other words, vegetal fibers.

COATINGS WITH LOWER ENVIRONMENTAL IMPACTDifferent types of surface treatment, indispensable to protect metallic parts from corrosion, may turn out to be toxic for the health and environment. To reduce their impact, and comply with upcoming regulations, Messier-Bugatti-Dowty (Safran) studied the replacement of Cr6+ bichromate cadmium, the main coating used to protect steel parts on landing gear from corrosion, by a Cr3+ passivated zinc-nickel alloy. After four years of development and qualification in the company’s plants in Bidos (France) and Montreal (Canada), this new-generation coating is now entering production.

DECOMPOSING SOLID PROPELLANT RESIDUE WITH BACTERIA!In April 2014, Herakles (Safran) inaugurated a biological treatment station capable of extracting and eliminating ammonium perchlorate using a bacteria-based biological process. Ammonium perchlorate is the main ingredient in the solid propellants that power launch vehicles and missiles. Until now, propellant waste and residue were burned, which generates atmospheric emissions. The new process is much more environmentally-friendly, generating only water-based byproducts which comply with regulations. The new installation can handle up to 300 tons/year, and will be mainly used for the dismantling of M45 and M51 strategic missiles.

S afran has a long-standing commitment to improv-ing its products’ envi-ronmental performance, including some very well-

known innovations in this field. For example, while the best-selling CFM56 (developed and produced by CFM International, a 50/50 joint venture of Snecma (Safran) and GE) is already one of today’s most fuel-efficient engines, its successor, the LEAP, will help reduce fuel consumption by 15% versus today’s planes. Fellow Safran company Aircelle has incorporated honeycomb materials on its engine nacelles to help reduce engine noise. And many other improvements, large and small, are being applied at every step in the life cycle, reflecting Safran’s eco-design approach.

A holistic approach“By ‘eco-design’, we mean taking into account a product’s impact on health and environment at all stages of its life cycle, from design and fabrication, to operation, support and end-of-life recycling,” explains Bertrand Fiol, the Toxicology and Chemical Risks Adviser in Safran’s Sustainable Development department. Safran’s environmental approach focuses on five key areas: chemical risks, energy consumption, the increasing scarcity of natural, non-renewable resources,

A MAJOR ROLE IN THE RESEARCH PROGRAM CLEAN SKY 2Safran was already a major player in the European research program Clean Sky (2008-2013), which aimed to make air transport “greener”. Today, it is continuing its commitment in the follow-on program, Clean Sky 2, launched in 2014. In particular, Safran is conducting research on tomorrow’s helicopters and open rotor type aircraft engines. The open rotor could enter service towards 2030 and reduce fuel consumption by a full 25%. Clean Sky 2 will help industry meet the ambitious objectives for 2050 set by the Advisory Council for Aviation Research and Innovation in Europe (ACARE), in particular a 75% reduction in CO2 emissions from air transport.

atmospheric releases and noise. A number of initiatives are addressing these objectives (see opposite page).

Safran is making a special effort to reduce the use of hazardous substances at its production plants. According to Bertrand Fiol, “In our plants, most of the cleaning products containing chlorinated solvents have been replaced by detergent-type products that are much less harmful to the environment. Some substances, including lead and cadmium, have either been banned, or are in the process of being replaced.” Recycling is also a top priority, as shown by the creation of the company Tarmac Aerosave in 2009. Tarmac, a partnership between Safran, Airbus Group, GDF Suez and Equip’Aéro Services, dismantles aircraft at end of life and manages the recycling of materials or reuse of parts.

Corporate citizenshipAll of these efforts reflect Safran’s corporate social responsibility (CSR). “As a responsible enterprise, we have to be at the forefront in the environmental field,” says Bertrand Fiol. “We want to play our role in addressing the challenges of climate change, the increasing scarcity of natural resources, noise at airports and the environmental impact of hazardous substances.” Eco-design is also becoming part of the business equation, since a growing number of manufacturers are including environmental aspects in the contract bidding process. Given these increasingly daunting objectives, Safran is pooling its efforts with fellow aerospace companies, especially as part of international programs such as Clean Sky 2 (see below). ■

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ECO-DESIGN, THE BACKBONE OF SAFRAN PRODUCTSSafran’s sense of corporate social responsibility includes a sharp focus on a product design process that helps protects the environment at every stage in the life cycle.

27 % decrease in gas consumption per employee from 2008 to 2013, even though Safran’s business increased substantially during this period.

90 % of the total weight of dismantled aircraft is recycled by Tarmac Aerosave.

SPECIAL REPORT 2524 SPECIAL REPORT


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MRO ANDSERVICES:DELIVERING VALUE TO OUR CUSTOMERSSafran continues to apply a strategy based on differentiation in this fiercely competitive market, by offering customers increasingly innovative services.

X2.5Air traffic should increase 2.5-fold from 2013 to 2033*.* Snecma (Safran) market study in 2015.

11.3%Growth in Safran's commercial engine service business in 2014 (in USD).



S afran’s aircraft propulsion ser-vice business jumped 11.3% in 2014. In fact, it now accounts for half of Safran’s aerospace pro-pulsion revenues. These figures

clearly indicate the validity of Safran’s initial strategic decisions. Safran has made MRO a cornerstone of its growth strategy, and continues to improve and expand its range of services – the key to ensuring customer loyalty throughout the product lifespan. To achieve this goal, Safran has an ace in the hole, namely its status as an original equip-ment manufacturer, responsible for design

Safran is leveraging its assets – technological expertise, data management, international reach – to increase its share of the competitive aircraft maintenance, repair and overhaul (MRO) market. But the goal never varies: bring value to its customers.

EXCELLENCE IN SERVICE STRATEGY

and construction. “We have been making jet engines for a number of decades now,” says François Planaud, Executive Vice Pres-ident of Snecma's (Safran) Services division. “And this unrivaled experience means we can give our customers tailored recommen-dations on how to optimize the use of their engines, to save money of course, but also to ensure total passenger safety.” Christian Rossi, Head of the department that designs and develops Turbomeca's (Safran) services, agrees, pointing out, “Our status as turbine engine designer legitimizes us, and helps us to develop a direct relationship with oper- q

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The outlook for the aviation market is promising indeed, with the global fleet of commercial airplanes set to double by 20331. The growth in the global helicopter fleet is

estimated at 40% over the next 20 years2. As a direct consequence, the global MRO market should post very healthy growth. In addition to the growing number of engines to be repaired and maintained, service providers will also have to deal with new equipment and a broader geographic footprint.

In other words, the MRO sector is undergoing deep changes, as is the entire aviation service sector, including real-time monitoring of aircraft health, failure forecasts, maintenance recommendations and more. The growing spectrum of available services delivers increasing added-value to end-customers.

Innovation in servicesSafran already offers a wide range of services based on operating data gathered from sensors on its aircraft systems and equipment. By analyzing this data in depth, Safran can offer its customers optimized maintenance schedules. This is a clear competitive advantage when customers are choosing service providers to support them throughout the lifespan of these long-lasting products. A virtuous circle quickly forms in this case, because, over and above the added value for customers from enhanced performance, the revenues generated by the service business are a major source of R&D funding for next-generation products based on even more innovative concepts. “For

Because of the forecast growth in air traffic, plus aging fleets and their replacement, the aircraft maintenance, repair and overhaul (MRO) market should continue to grow. We take a closer look at a changing market that is attracting an increasing number of players.

SUPPORT SERVICES, A GROWTH DRIVER

MARKETS

instance,” says Eric Dalbiès, Vice President for Strategy at Safran, “that’s how we were able to develop an engine like the LEAP (developed and produced by CFM International, a 50/50 joint venture of Snecma (Safran) and GE), offering significantly better environmental and economic performance than the current generation of engines.”

Rich data lode More and more companies want to get into the service business. In addition to the traditional service providers – airlines, equipment manufacturers and operators – specialized big data firms are also making their move. Eric Dalbiès explains: “Calling on vast amounts of data generated by digital flight systems, Internet and IT players could be credible providers in terms of processing massive amounts of non-structured data concerning the operation of our products, detecting weak signals and establishing themselves as intermediaries between us and our customers. But retaining this direct access is critical in terms of collecting feedback, improving our maintenance, offering and developing products that are increasingly tailored to actual needs, which allows us to anchor our position in this fiercely competitive market.”

Safran’s service strategy is based on differentiation, for instance by creating advanced services that could allow airlines to optimize much more than just maintenance (see page 31). ■

1. Snecma (Safran) market study in 2015. 2. Turbomeca (Safran) market study in 2014.

X2The global fleet of commercial airplanes should double by 20331.



Turbomeca’s global network:

16 repair centers and

30 MRO centers.

The nerve center of Snecma’s engine maintenance shop in Querétaro, Mexico.

ators, anchored in customer satisfaction.” Because of Turbomeca’s overall expertise in these products and the associated services, major helicopter operators such as Héli-Union have chosen the company to provide engine support services.

Unique technological expertiseSafran’s proven ability to provide MRO also comes from its technological leadership, as explained by Michel Brioude, Head of Snecma’s MRO division: “Proven expertise in technologies, processes and materials, especially the latest developments, is an essential part of maintenance know-how and the ability to carry out certain repairs.” The Group’s expertise in composites is for example a clear advantage when servicing a new-generation nacelle made of a compos-ite honeycomb material.

Another center of expertise at Safran is the “more electric” aircraft, meaning the

increasing use of electrical systems instead of traditional hydraulics and pneumatics. Safran’s expertise will prove decisive when latest-generation airplanes such as the Boeing 787 Dreamliner begin to need repairs.

Tailored servicesSafran capitalizes on its expertise to offer tailored services, such as the “by the hour” support contracts chosen by several air-lines. This type of fixed rate per flight-hour ensures maximum dispatch reliability for customers, combined with lower costs, better scheduling of shop visits and inven-tory management. From this standpoint, Safran’s technical expertise is vital. Safran designs in equipment maintainability from the outset, to oversee the entire life cycle. “Our aim is not just to sell a maintenance or repair service, but to give our custom-ers comprehensive solutions to extend the

How has your relationship with Messier-Bugatti-Dowty changed over the years?Gilles Néron: The company has made the transition from an equipment supplier to a tier-1 partner for MRO and services. Today, we have maintenance contracts with Messier-Bugatti-Dowty covering 42 aircraft in our fleet, including the four Boeing 787 Dreamliners that recently entered service. All in all, Messier-Bugatti-Dowty performs some 5,000 MRO operations a year on our planes.

Why did you decide to outsource landing gear maintenance?G. N.: It allowed us to create tighter bonds with our supplier and speed up reaction time. In case of a problem, we have direct access to Messier-Bugatti-Dowty’s engineering teams. Their knowledge of the product is a critical advantage, especially in terms of taking care of older equipment.

What do you expect from your MRO partners?G. N.: We want to focus on long-term contracts. And that will be an important factor in our upcoming request for proposals concerning the maintenance of the 80 Boeing 737 MAX twinjets on order. We’re also looking for digital services to extend equipment service life.

“Cementing ties with Messier-Bugatti-Dowty”

GILLES NÉRON, DIRECTOR OF THE BUSINESS DEVELOPMENT & ADMINISTRATION DIVISION, AIR CANADA

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service life of their equipment,” notes Bruno Chiarelli, Head of the MRO division at Mess-ier-Bugatti-Dowty, the Safran company specialized in aircraft landing and braking systems. “It’s a beneficial situation for our customers, because it improves their fleet dispatch reliability.”

In the bizjet market, this issue is a top pri-ority. For the new Silvercrest® engine devel-oped by Snecma, for instance, maintenance is “on condition”, meaning that it depends on the actual condition of engine parts, and not a predetermined schedule. This engine will offer the ForeVision™ system, monitor-ing operating data in real time and detecting any deviation from the norm.

More preventive than correctiveIn other words, manufacturers no longer simply deliver original equipment, then spare parts. They have to give customers a guarantee that their aircraft will stay in the air, and allow them to grow their business. As Christian Rossi explains, “Starting with a culture of product excellence, we want to transition to an extended service offering, based largely on the automated collection and analysis of in-flight turbine engine data, so we can avoid all non-scheduled servic-ing.” Because of this personalized monitor-ing, service providers can now plan ahead for work on an aircraft, and schedule this work during already planned overhauls or other major operations – a sort of “one stop shop” solution that avoids the dreaded “air-craft on ground” (AOG) situation. Deploy-ing new solutions to optimize the process-ing of all this data is one of Safran’s major objectives for its support services (see page 31).

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24/7 availability of Snecma spare parts for airlines.

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The huge mass of data recorded in flight by aircraft is a veritable treasure chest for airlines. Once analyzed, this data can be used to schedule timely maintenance and

more efficiently manage fleet dispatch reli-ability – provided that airlines have a partner capable of tackling this vast pool of data. Safran has been developing this expertise for over ten years “The automated process-ing of the data collected enables us to come up with really innovative services,” explains David Weic, Responsible of Business Devel-opment at Safran. For example, a new ser-vice such as BOOSTTM (see opposite) was designed to help customers optimize turbine maintenance. Along the same lines, Sagem (Safran) is offering Cassiopée™, a range of online flight data services that facilitates fleet management and the analysis of its customers’ flight data.

Analyzing data and aircraft use from the service standpoint is now a hot topic because it will enhance operational efficiency and improve the quality and relevance of support services. Safran has already signed up for this digital revolution.

BIG DATA SET TO REVOLUTIONIZE THE SERVICE SECTOR

TECHNOLOGY

Local supportThe last building block in this strategy is a global MRO network to guarantee local support for all customers. Safran is accelerating network deployment to ensure aircraft dispatch reliabil-ity anywhere and at any time. For instance in March 2015, Aircelle (Safran) opened its first MRO facility in North America, in Indianapolis, Indiana. “We are now considering expansion to China, where demand is exploding,” adds Jean-François Pichon, Head of the MRO Network at Aircelle. Messier-Bugatti-Dowty is applying the same strategy, as Bruno Chiarelli explains: “In the future, you won’t win any MRO contracts unless you offer real local presence. For our Chinese customers, local support underpins the trust needed to continue our relationship.” Snecma is currently building a new facility at its site in Querétaro, Mexico to repair parts for CFM561 engines, in addition to its 12 centers of repair excellence in the company’s global MRO network. Snecma also offers its customers sup-port for the line-replaceable units (LRU) in its CFM56 engines, with a pool of spare parts for flight-line replacements. The company has five main warehouses and two hubs around the world, with more than 1,000 different parts and equipment, to meet demand for units that can be removed and replaced, via a 24/7 assistance service, for maximum customer support. ■

1. Developed and produced by CFM International, the 50/50 joint venture between Snecma (Safran) and GE.

FAB LAB, A SEEDBED FOR NEW SERVICESLaunched in June 2014, the Fab Lab is one of the main components in Snecma's Service Innovation Workshop, created in 2012 to come up with innovative service solutions based on information technology. The Fab Lab helps Safran employees develop their service ideas based on the analysis of digital data. “We provide not only a 3D printer and electronic prototyping equipment, but also Lego blocks and foam-board for modeling,” explains Fabrice Poussière, Director of the Fab Lab. “In just a few short weeks, they can develop and test a new service concept”. The Fab Lab calls on a team of specialists, including two designers, a developer, a data specialist and a cognitive scientist. Budding inventors also have access to Snecma's vast trove of engine data, enabling them to realistically evaluate the viability of the new service.

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TRAINING, A COMPETITIVENESS DRIVERSafran deploys powerful resources for employee and customer staff training, based on its accumulated expertise, proven practices and ability to innovate. “The aim of the 'Safran Training Solutions' (STS) initiative assigned to Safran University is to improve outside access to our capacities and maximize value creation,” says Patrick Samier, STS Manager. “Training user staff has always been part of Safran's MRO offering. It now takes on even greater strategic importance because of two major market trends, namely the advent of airlines without advanced technical capabilities, and business models based on by-the-hour support contracts. Under these conditions, training has become a real selling point.” Training conveys a positive corporate image and embodies Safran's human and technical values, along with its innovative mindset.

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BOOSTING MAINTENANCE AT HÉLI-UNIONHéli-Union, a specialized air transport provider for gas and oil companies, keeps a constant watch on its 36 helicopters to make sure they’re flightready. Turbomeca (Safran), which provides engines and associated services to Héli-Union, one of its leading customers, is developing an online service portal, dubbed BOOST™, to improve fleet operability. “It will allow us to digitize the engine logbook, and therefore reduce the amount of data entry needed, while also guaranteeing virtually automatic online information sharing via Internet,” explains Loïc Binard, Deputy Managing Director at Héli-Union. Through BOOST™, operators can access services such as the e-logbook for the engine, along with the technical publications, also online. The new application will give operators a complete product history and facilitate contacts with Turbomeca for more efficient maintenance operations. “Héli-Union is our launch customer for BOOST™,” notes Christian Rossi, Head of the Turbomeca department that designs and develops services. “They will be able to monitor turbine operation, plan ahead for servicing, and reduce AOG (aircraft on ground) situations.” Already tested on two turbine engines in October 2014, BOOSTTM will be extended to the entire fleet in 2015.

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32 SPECIAL REPORT

April 2015 Safran Magazine

What are the main challenges of big data?Ghislaine Doukhan: The development of the Internet, communications networks and connected objects has generated massive amounts of data, which we call “big data”. Companies like Safran therefore have a lot of data from their own databases, from sensors embedded in their products and from the gradual digitization of

production's facilities. By cross-checking this data, we could generate value in terms of productivity gains, decision-aid tools and risk reduction. Furthermore, analyzing this data to forecast trends will allow us to offer services that are more closely tailored to customer needs, and the service business is a major source of revenue for Safran.

Why was Safran Analytics created?G. D.: By deploying a big data strategy, we want to make data processing a new performance driver. Next, Safran Analytics should coordinate the Group’s activities in this area, and support our companies’ digital transformation. This joint initiative will quickly help us enhance production efficiency and leverage innovation and differentiation in developing high value-added products and services.

So the challenge is as much organizational as technical…G. D.: Very much so. We have to manage the data for an entire process and match these data to our business sector expertise to effectively analyze

the data and create value. We are therefore planning to develop high-level skills in applied math and information technology. These teams will be applying advanced methodologies and working closely with Group companies, to help them develop “proof of concept” demonstrators and then put the solution into practice.

In short, you’re talking about the power of a corporate entity combined with the agility of a startup…G. D.: Absolutely! Everything is designed to ensure maximum fluidity, modernity and responsiveness. Safran Analytics has been created to be an accelerator as we embrace the big data challenge and seize opportunities.

“Cross-checking data could really generate value”

GHISLAINE DOUKHAN, HEAD OF SAFRAN ANALYTICS

Increasingly innovative services“The development of wireless communica-tions and the capabilities of the Internet have been decisive, because collecting data from aircraft is much faster, and vir-tually automatic,” notes David Weic. “This provides a unique opportunity to offer new online services, accessible on all devices.”

Safran therefore set up a new corporate division in January 2015, dubbed Safran Analytics, to coordinate the Group’s big data activities, and leverage advanced

q data processing to drive performance (see below). In particular, this new unit con-tributes to advances in the service sector, because by developing new data analysis tools, Safran Analytics will underpin the creation of differentiating new services. For example, by capitalizing on the data collected, Safran could offer recommen-dations to reduce aircraft fuel consump-tion and CO2 emissions during flights, or change flight paths to decrease ground noise. ■

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Safran Magazine April 2015

MorphoTablet™ features state-of-the-art technologies from Morpho (Safran), including biometric sensors, encryption and secure connectivity. It has already been chosen by governments and private companies alike.

MORPHOTABLET™: A SECURE TABLET FROM SAFRAN

Egypt was the first country to use MorphoTablet™ in a voting pro-cess, stretching from January to May 2014. The country deployed 2,300 MorphoTablet™

devices in some 350 polling stations and a number of embassies, in particular to check voters’ identities and avoid multiple votes. “Government authorities singled out our product for its capabilities and efficiency,” says Walid Ghobrial, Morpho’s Chief Executive in Egypt. “Not only did it ensure the security of the voting process, it also reduced waiting lines. And we garne-red excellent media coverage for Morpho’s role in the process.”

Trusted mobile identificationMorpho, a specialist in biometrics and cryptography, has helped spread the use of these technologies for many years. With the new MorphoTablet™, it gives both governments and businesses a simple, reliable personal ID system. MorphoTablet™ looks like a regular tablet, but… it is fitted with a high-definition camera and a certified fingerprint reader, it can read both regular and contactless smart cards and it has sophisticated encryption functions. In other words, MorphoTablet™ is a mobile, multifunction and secure device that provides trusted services in all sectors, anywhere and at any time.

Benefits for people and businesses“The tablet ’s many functions mean that it can be used for a wide variety of applications, by governments, police forces and private businesses,” notes Arnaud Duparc, Morpho Product Manager for Mobile Solutions. “In the healthcare sector, for instance, MorphoTablet™ guarantees the confidentiality of medical files. It authenticates fingerprints so that only certified caregivers can check a patient’s identity and access their personal data.”

Another example: in Latin America, a major bank plans to use MorphoTablet™ devices to provide new services to far-flung populations. Furthermore, this innovative terminal could be used for access control in buildings or factories. These are just a few of the many possibilities among hundreds of business opportunities identified by Morpho in over 30 countries. ■

6 millionEgyptian citizens have had their right to vote confirmed by MorphoTabletTM for the presidential election and constitutional referendum in 2014.

Because of its 5-megapixel autofocus camera, MorphoTabletTM can be used to identify people even while they’re moving.

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A major first for Aircelle: at the end of 2014, Boeing chose Safran’s nacelle specialist to supply the titanium exhaust on its future 777X. A few months

earlier, Airbus had announced its selection of Aircelle to provide the nacelles on its reengined widebody twin, the A330neo (see below).

Aircelle is now the world’s second leading manufacturer of nacelles, covering all main segments: business and regional aircraft, single-aisle and widebody mainline jets. Its recent selection by Dassault Aviation for the Falcon 5X and 8X consolidates its leadership in the business aviation market.

Technical excellenceAircelle has carved out its position among the world leaders through technical excel-lence. “The nacelle is a complex system, involving both engine and aircraft manu-facturers,” notes François Guerzeder, Vice President, Sales & Marketing at Aircelle. “A nacelle-maker has to integrate these two areas of expertise, in line with the specifi-cations of each manufacturer.” For nacelles, the focus is on aerodynamics, acoustic properties and weight, plus operation in a severe environment, because of high tem-peratures, size restrictions, etc. The design also has to provide for easy engine access for servicing.

Standing out through innovationThe key to success is innovation. For example, Aircelle was the first company to introduce an electrical thrust reverser actuation system (ETRAS®) on the engine nacelles for the Air-bus A380 super-jumbo. The nozzles on these nacelles also incorporate Aircelle’s expertise in advanced materials, since they are made of a titanium alloy. Furthermore, their acoustic design contributes to the huge jetliner’s low noise levels.

In addition to these metallic alloys, Aircelle has also invested in composites. It used the resin transfer molding (RTM) process to augment the strength of certain complex parts, including structural parts on the Airbus A320neo thrust reverser.

Aircelle teamed up with fellow Safran company Sagem to develop a new generation ETRAS® for the C919 jetliner being built by Comac of China

NACELLES:CHANNELING INNOVATIONFrom business and regional jets to mainline jets of all sizes, Aircelle (Safran) is the only nacelle manufacturer that covers all civil aircraft market segments. Here’s a quick look at the keys to its success.

AIRCELLE ON THE A330neoThe Airbus A330neo, officially announced during the Farnborough airshow in July 2014, will offer fuel savings of about 14% per seat versus the current-generation plane. “This is largely due to its new propulsion system, comprising engine and nacelle, and the larger wingspan, with winglets* like those on the A350 XWB,” says Eric Maury, Propulsion System Purchasing Strategy Manager at Airbus. Already an Airbus partner on the A330, A320neo and A380, Aircelle was chosen as sole nacelle supplier on the A330neo. “We chose Aircelle because of their proven ability to provide latest-generation nacelles, under very tight development deadlines,” explains Pierre-Laurent Macé, Airbus Nacelle Purchasing Manager. “Another advantage for us is that Aircelle is capable of delivering complete nacelle systems, including all the integration and support services we need.”

*Nearly vertical extensions of the wingtips, which increase aerodynamic efficiency by reducing drag without lengthening the wingspan.

AIRCELLE AT A GLANCE

3,800employees

REGIONAL JETSBUSINESS AIRCRAFT

120airline customers

17,000nacelles in service

100,000 flight-hours per day

No. 2 World’s second leading nacelle manufacturer

MAINLINE JETS

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NEXCELLE BETS ON INTEGRATED PROPULSION SYSTEMSAircraft manufacturers like the idea of integrated propulsion systems, including both engine and nacelle, since they are lighter and offer better aerodynamic performance. Nexcelle, the joint venture between Aircelle and Middle River Aircraft Systems, a GE company, is establishing a position in this growth market. For instance, Nexcelle designed the nacelle on CFM International’s LEAP-1C engine that will power the C919 single-aisle commercial jet under development by Comac of China. CFM International, a 50/50 joint venture between Snecma (Safran) and GE, develops and produces the CFM56 and LEAP engines. Nexcelle will also supply the nacelle for the GE PassportTM engine that will power the Bombardier Global 7000 and Global 8000.

NACELLES:CHANNELING INNOVATION

and, through its joint venture with GE, Nexcelle, it has developed a new “O-duct” type layout for the thrust reverser. This innovative system improves the aerodynamics of the bypass flow and reduces weight, which in turn reduces fuel consumption. According to François Guerzeder, “This innova-tive design gives us a lighter thrust reverser, with a more efficient airflow.”

With this constant stream of advanced tech-nologies that improve propulsion system perfor-mance, Aircelle is definitely on the fast track for future growth. ■



A PASSPORTFOR CHILEMorpho (Safran) has been Chile’s main supplier of secure ID documents since 2012. Combined with Safran’s active role as a supplier of aircraft engines and defense equipment, this bolsters the Group’s presence in the South American market.

Morpho has pro-duced more than

4.8 million ID cards and

530,000 passports for Chile (as of January 30, 2015).

T he Visa Waiver Program set up by the United States in 2008 allows foreign visitors to enter the country for business or leisure travel for up to 90 days, without

requiring a visa. Chile joined this program in March 2014. Its citizens can now travel without visa to the U.S. thanks to Morpho’s expertise in secure identification documents that meet American requirements. Back in 2012, Chile chose Morpho to produce secure passports and ID cards for its citizens – which meant that two years later, Chile was the first Latin American country to take advantage of the Visa Waiver Program.

“Because of our state-of-the-art technologies, these documents will change the daily life of Chilean citizens and make

doing business easier,” notes Richard Schindler, Morpho’s Vice President for Latin America. “Our new ID cards will, for example, make it easier to register for social benefits and health services. The country has already issued nearly five million documents, and the production rate is set to increase.”

On land and at seaWith this latest contract, Morpho is bolstering the presence of Safran in Chile. Several Group companies already operate in the country, considered a high-potential market for Safran. “Chile posted 4.1% growth in 2013, along with excellent stability, anchoring its status as a strong economy” notes Olivier Piepsz, Safran Vice President for Latin America. “Given this environment, we’ve

seen the emergence of regional champions, such as LATAM, the leading airline in Latin America. At the same time, this growth drives the development of all our businesses.” For example, LATAM chose Snecma (Safran) to provide the CFM56 engines (developed and produced by CFM International, a 50/50 joint venture with GE) for 70 Airbus A320 twinjets, along with Messier-Bugatti-Dowty (Safran) wheels and electric brakes for its 32 Boeing 787 widebody jets.

Sagem (Safran) manages a diverse portfolio of military contracts, including the modernization of periscopes on the Chilean

navy’s submarines, along with optronic pods* for the army’s Super Puma helicopters. Turbomeca (Safran) services the Makila 1 engines powering these rotorcraft. “We also provide technical support for the Arriel engines powering the Dauphin and Ecureuil/Fennec fleets,” adds François Haas, CEO of Turbomeca do Brasil, and coordinator of Turbomeca’s business activities in Latin America. “We are now shifting our focus to maintenance of civil helicopters, in partnership with Ecocopter, a Chilean service company.”

Looking to the starsSafran is also involved in a major scientific program based in Chile. Reosc, a subsidiary of Sagem, is bidding on equipment contracts for the upcoming European Extremely Large Telescope (E-ELT), which will be the world’s largest optical telescope. Located on the summit of the Cerro Armazones mountain, it will produce images sixteen times sharper than those from the Hubble space telescope. The heart of the system is a mirror 39 meters in diameter (128 ft), made up of 798 small hexagonal mirrors. “We have already demonstrated our know-how by building prototypes for the E-ELT, and by polishing mirrors for the Very Large Telescope, also located in the region,” notes Roland Geyl, Vice President, Business Development at Reosc. Further proof that, when it comes to Chile, Safran is very far-sighted indeed. ■

* Offering numerous sensors, the optronic pods carry out observation missions.

39 meters (128 ft): the diameter of the main mirror on the E-ELT telescope.

120Turbomeca helicopter engines now in service in Chile.

The Milky Way reflected in

the mirror on the Very Large

Telescope (VLT); the high-precision mirror

was polished by Sagem.

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NEW-GENERATION OPTRONICS FOR CHILE’S SUBMARINESTwo Chilean navy submarines were damaged during the earthquake that hit the country on February 27, 2010, and had to be repaired. The government chose Sagem to repair their attack periscopes and radar, delivered six years earlier. “We have now completed the refurbishment of equipment on the first submarine, and at-sea trials confirmed their excellent performance,” says Gilles Champion, Sagem’s Regional Director. “The second submarine was more heavily damaged, so we’re looking at all the possibilities to come up with the best solution.”

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Eurosatory is a major defense and security trade show and exhibition, with more than 1,500 exhibitors at the latest event in June 2014. “It’s not like the Paris

Air Show, where companies officialize their latest contracts,” points out Frédéric Mazzanti, Head of Sagem’s Optronics and Defense division. “Eurosatory is more discreet. For us, the primary goal is to showcase our latest technological innovations so we can build foundations for future contracts.”

Another defining characteristic of Eurosatory is its international scope, as Frédéric Mazzanti explains. “Our presence at Eurosatory is strategic from the standpoint of international business, since we want to boost our exports. The French defense market is increasingly restricted by the economic situation, and can no longer finance the

What is Sagem’s role on the MMP program? Jean-Marie Nicklaus: Sagem supplies two key subassemblies for this portable land-based missile: the optronics for the launch station, allowing target acquisition, and the seeker and inertial guidance system on the missile, which guide the missile to its target.

Is there anything special about these technologies? J.-M. N.: The MMP is the only missile in its class to use an uncooled infrared seeker, which enables quick and reversible firing, unlike cooled detector systems. Once the operator has locked-on the target, he can launch the missile and quickly take cover. Even if the target is not directly in the line-of-sight, Sagem’s guidance system allows the MMP to fly under inertial guidance until target lock-on.

What’s the business outlook for this product? J.-M. N.: Thanks to our exemplary partnership with Sagem, we’re now a world leader. The MMP will replace the Milan system. France has already ordered 400 launch stations and 2,850 missiles, and we are expecting export orders to follow.

“The MMP symbolizes the partnership between MBDA and Sagem”

JEAN-MARIE NICKLAUS, MBDA DIRECTOR OF SURFACE ATTACK PROGRAMS

MORPHO SECURITY SOLUTIONS ON DISPLAYMorpho unveiled its latest identification innovations at Eurosatory, especially an automated facial recognition system, as well as trace detection devices. “Our Itemiser® DX and Hardened Mobile Trace® systems, capable of detecting both explosives and narcotics, are already deployed by customs and security departments at airports,” notes Richard Siegwald, EDS Global Sales Leader at Morpho. “Exhibiting at Eurosatory allows us to contact new customer segments, such as armies and police criminal investigation units, where we have already identified real demand for our products.”

development of the new technologies needed.”How can a company stand out in this

fiercely competitive environment? “The era of ‘off the shelf’ purchases is over,” explains Frédéric Mazzanti. “More and more countries will only sign a contract if it includes technology transfers. We have had to adapt to this situation, of course, especially by opening local production facilities.” Sagem’s strategy seems to be paying off, as shown by the announcement of a major contract with South Africa at Eurosatory, to supply MATIS thermal imagers for infantry fighting vehicles.

Combining two advanced technologiesOver and above its local expansion strategy, Sagem’s success is built on its proven expertise in two key technologies, optronics (electro-optical equipment) and inertial navigation. “We have combined these two areas of expertise to develop amazing products, such as the PASEO sight, unveiled at Eurosatory in 2014,” says Frédéric Mazzanti. “PASEO combines a very-high-performance day/night panoramic observation system with a gyroscopic system that ensures image stability even when the platform is moving. It’s the only system of its kind now on the market.”

The PatrollerTM drone, shown in the static display area, also combines several Sagem

technologies, namely optronics, with a new-generation multi-sensor imaging suite, and an advanced avionics suite to ensure safe guidance even in the midst of air traffic.

Solid partnershipsSagem also deploys its expertise through solid partnerships. For example, at Eurosatory, the company unveiled the first concrete application resulting from its partnership agreement with car parts giant Valeo, signed in 2013: an array of sensors for armored vehicles, enabling them to observe their surroundings under all weather conditions, for self-defense.

Sagem is also continuing its long-standing partnership with major missile-maker MBDA. Hélène Lecoeuche, Deputy Sales and Marketing Director for the Avionics division, explains: “Our role in MBDA’s new medium-range land-based missile, the MMP, officially announced at Eurosatory, mainly concerns the development and production of 1,500 seekers from now until 2022. A lot is at stake with this new program, especially because we are introducing a breakthrough technology for the seeker, namely an uncooled infrared detector, providing very high performance at lower cost.” This program is just further proof that, when it comes to technological differentiation, Sagem knows where it’s heading! ■

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EUROSATORYDEFENSE SHOW: A SUCCESS FOR SAGEMThe Eurosatory international land and air-land defense and security exhibition, organized every two years at the Paris Nord Villepinte exhibition park, brings together all the major players in these sectors, allowing Sagem (Safran) to showcase its latest advances in optronics and inertial navigation.

55,770 visitors in 2014.

172official delegations

from 88 countries.

Jean-Paul Herteman, Chairman and CEO of Safran (right), and Jean-Yves Le Drian, French Minister of Defense on Safran’s booth.

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INTERVIEW 41


Often portrayed as the “odd man out” in North Africa, Morocco is increasingly seen as a bridge between Europe and Africa. In the wake of the Arab Spring, the Kingdom has implemented a series of unprecedented constitutional reforms that illustrate its firm commitment to social and political development. In terms of the economy, meanwhile, the “Accelerated Industrial Development Plan” unveiled in 2014 aims to reshape the country’s industrial landscape and turn it into a regional “industrial and social champion”. We asked Moulay Hafid Elalamy, the Moroccan Minister for Industry, Trade, Investment and the Digital Economy, to share his insights on this roadmap.

MOROCCO: UPPING THE PACE OF INDUSTRIAL DEVELOPMENT

Safran Magazine: Morocco adopted a new constitution in July 2011, and the country is now speeding up the reform process, particularly on a political and social level. How do the Moroccan people view these developments?Moulay Hafid Elalamy: The new constitution marked an important democratic turning point for the country. Its aim was to lay the foundations for a new political, economic and social era. This goal has been achieved, and all the evidence indicates that Morocco has successfully implemented major structural reforms while retaining its stability. Thanks to the enlightened vision of His Majesty the King, these far-reaching reforms – introduced in response to calls from key players in politics and civil society – were tailored to meet the wishes of the Moroccan people. The country’s standing in the region, and its impressive performance in an unfavorable environment, bear eloquent testimony to their success.

Turning to the economy, the Accelerated Industrial Development Plan unveiled in April 2014 talks about “strong ecosystems”. Can you explain what that means? M. H. E.: In April, we launched an ambitious plan that aims to boost the performance

of Moroccan industry and make it more competitive. The “strong ecosystems” that lie at the heart of this strategy are part of a new approach that we expect to deliver excellent results. In concrete terms, it ’s about kick-starting strategic alliances between major companies and small businesses in a given sector, to get firms to work together on targeted cooperation programs, leading to long-term contracts and technology transfer agreements. The role of major groups and leading industry players will be to drive the development of a local manufacturing base. They will provide perspective and visibility for small businesses, who will have to be more dynamic and innovative in order to meet their customers’ needs. The major groups will also benefit from being close to suppliers, which will drive down production costs, making them, in turn, more responsive and competitive.

The plan is being implemented at a sustained pace. The Moroccan phosphates company OCP set the ball rolling by creating three ecosystems, and ecosystems are also being developed in a number of other sectors, including electricity, electronics, renewable energies, cement, road freight, automotive bodywork, pharmaceuticals and

32.6 million: population of Morocco.

446,550 km2:surface area of Morocco.

US$104.4 billion: GDP of Morocco in 2013.

40 INTERVIEW

MOULAY HAFID ELALAMY,

MOROCCAN MINISTER FOR INDUSTRY,

TRADE, INVESTMENT AND THE DIGITAL

ECONOMY

1960 Born in Marrakesh,

Morocco

1995 Creates the SAHAM

group, a leading multiservice operator

2005 Appointed CEO of CNIA

Assurance following its acquisition by the

SAHAM group

2006-2009 President of the

Moroccan business federation (CGEM)

2013 Appointed Moroccan Minister for Industry,

Trade, Investment and the Digital Economy

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Do you think these assets will attract further foreign investment to Morocco? M. H. E.: We have a proven ability to attract foreign investment. In addition to Morocco’s many inherent advantages, such as its geographical location, political stability and economic fundamentals, the government is focusing considerable effort on improving the business environment, developing a competitive offering, and ensuring favorable conditions for investors. These efforts have been amply rewarded: our performance in terms of attracting foreign direct investment (FDI) in 2013 was impressive, with a total of $4.6 billion1 flowing into the country. This record figure continues the rising trend in net investment flows seen in 2012. We aim to grow our FDI at an even faster rate through the launch of the new industrial strategy. A comprehensive package of

aerospace. Our aim is to implement the plan at sector and regional level. The government will provide significant targeted support in terms of real estate, training and finance. In return, companies will have to meet specific targets for job creation, added value and export capacity. The ultimate goal is to deliver clear roadmaps for each sector.

What are Morocco’s fastest-growing sectors at the moment? M. H. E.: We are seeing significant yet variable growth right across the board. Some sectors, such as aerospace and automobiles, have stood out in the past few years. The auto industry, in particular, has posted remarkable figures, with a 24% increase in export revenues between 2012 and 2013, making Morocco the leading vehicle exporter in the Middle East and North Africa (MENA) region. There has also been a sharp upturn in the number of jobs in the sector, which rose from 38,500 in 2008 to 70,000 in 2012 – an 80% increase. The aerospace sector, meanwhile, has shown strong growth over the past decade. In the period 2008-2013, exports grew by an average of 19% year on year. The sector now employs 11,000 highly qualified personnel, and has developed genuine centers of excellence in high-added-value segments such as production, services, maintenance, engineering, etc.

What is the impact of this growth? M. H. E.: This tremendous growth has attracted renowned foreign groups such as Safran, Airbus Group, Boeing and Bombardier to set up shop in Morocco. I would like to pay tribute to Safran, in particular, for the confidence they have shown in our country, and for the efforts the company is making to further boost the dynamic performance of the aerospace industry by actively engaging in the government’s policy of support for the sector. With its eight corporate entities in Morocco, Safran is a top-tier industrial partner for our companies and universities, enabling it to function very effectively within a sustainable ecosystem model. Looking beyond the aerospace and automobile sectors, our aim is to promote growth right across industry via an ambitious package of measures that will allow all sectors to fully leverage their capacity to create wealth and jobs, thereby driving growth.


INTERVIEW 4342 INTERVIEW

measures – focused on availability of real estate, training of a qualified workforce, and financial support for investors – is planned, with the aim of making the country more attractive and establishing it as a regional platform for investment, production and exchanges.

The actions implemented under the Accelerated Industrial Development Plan are already starting to deliver results: just a few months after the launch of the new strategy, a number of leading global companies (Eaton, Aérolia, Alcoa and Shandong Shangang Group) have committed to establishing a presence in Morocco. These initial successes point the way to a promising future for Moroccan industry. ■

1. 1 MAD (Moroccan dirham) = 0.09 EUR (euro) = 0.1 USD (US dollar).2. Developed and produced by CFM International, the 50/50 joint venture between Snecma (Safran) and GE.

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assembles nacelle

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Servicing CFM562 engines at Snecma Morocco Engine Services (Safran) in Casablanca.

11,000 people work in aerospace in Morocco, including more than 3,000 at Safran.

Jean-Paul Herteman, Chairman and CEO of Safran, Moulay Hafid

Elalamy, Moroccan Minister of Industry,

Trade, Investment and the Digital Economy, Alain Sauret, CEO of

Labinal Power Systems, and Hamid Benbrahim El-Andaloussi, Safran's

General Delegate to Morocco, visit

the Labinal Power Systems plant in

Morocco during its 10th anniversary

celebrations in February 2015.

Morpho (Safran) makes driver licenses and e-registration documents for Morocco.

Why is Morocco such a strategically important country for Safran? Hamid Benbrahim El-Andaloussi: Safran has operated in Morocco for fifteen years, allowing it to forge a strong partnership with the country, which is now a key production and services hub. Our initial aim was to get close to our customers and exploit growth in the regional maintenance market. The successes achieved by the first maintenance center set up by Snecma (Safran) paved the way for other Group companies to locate to Morocco. Following the recent creation of Safran Maroc, we now have eight group entities with a total of 3,300 employees, and we are continuing to grow our business in the country, notably thanks to a research and technology (R&T) agreement signed in June 2014.

Can you tell us more about this agreement?H. B. E.-A.: The parties to the agreement include the Hassan II Academy of Science and Technology as well as four Moroccan universities. It builds on an existing professional training partnership with the Moroccan Aerospace Institute. The aim is to boost the country’s higher education system by creating high-level doctoral programs in aerospace subjects, while also meeting Safran’s local needs in terms of R&T capabilities and qualified personnel. The first research topics, already identified, include composite materials and associated production processes, mechanical engineering, applied mathematics and onboard systems. What role will the agreement play in Morocco’s industrial development? H. B. E.-A.: The agreement meets two key political aims: the forging of stronger links between universities and industry, and the creation of strong ecosystems to support Morocco’s Accelerated Industrial Development Plan. The partnership with Safran will allow the country’s aerospace industry to deliver added value, and could attract other industry players seeking a competitive platform for trade between Europe and Africa.

HAMID BENBRAHIM EL-ANDALOUSSI, GENERAL DELEGATE, MORROCO, SAFRAN

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SAFRAN magazine PARTNERS - 赛峰在中国 fileSAFRAN magazine THE MAGAZINE FOR SAFRAN'S CUSTOMERS AND PARTNERS APRIL 2015 # 17 SAFRAN IN CHILE, from biometric ID to astronomy MRO