Safran : Half-year 2022 earnings

H1 2022 RESULTS

July 28, 2022

Olivier ANDRIES

Chief Executive Officer

Pascal BANTEGNIE

Chief Financial Officer

Disclaimer & foreword

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements relating to Safran, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those included in such statements. These statements or disclosures may discuss goals, intentions and expectations as to future trends, synergies, value accretions, plans, events, results of operations or financial condition, or state other information relating to Safran, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as "anticipate," "believe," "plan," "could," "would," "estimate," "expect," "forecast," "guidance," "intend," "may," "possible," "potential," "predict," "project" or other similar words, phrases or expressions. Many of these risks and uncertainties relate to factors that are beyond Safran's control. Therefore, investors and shareholders should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: uncertainties related in particular to the economic, financial, competitive, tax or regulatory environment; the risks that the new businesses will not be integrated successfully or that the combined company will not realize estimated cost savings and synergies; Safran's ability to successfully implement and complete its plans and strategies and to meet its targets; the benefits from Safran's plans and strategies being less than anticipated; the risks described in the Universal Registration Document (URD); the full impact of the outbreak of the COVID-19 pandemic; the full impact of the Russo-Ukrainian conflict.

The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Safran does not assume any obligation to update any public information or forward-looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws.

USE OF NON-GAAP FINANCIAL INFORMATION

This document contains supplemental non-GAAP financial information. Readers are cautioned that these measures are unaudited and not directly reflected in the Group's financial statements as prepared under International Financial Reporting Standards and should not be considered as a substitute for GAAP financial measures. In addition, such non-GAAP financial measures may not be comparable to similarly titled information from other companies.

ADJUSTED DATA

All revenue figures in this presentation represent adjusted data(1) (except where noted). Safran's consolidated income statement has been adjusted for the impact of:

• purchase price allocations with respect to business combinations. Since 2005, this restatement concerns the amortization charged against intangible assets relating to aircraft programs revalued 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 business combinations, particularly amortization and depreciation charged against intangible assets and property, plant and equipment recognized or remeasured at the time of the transaction 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 interests in 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.

ORGANIC GROWTH

• Organic variations were determined by excluding the effect of changes in scope of consolidation and the impact of foreign currency variations.

(1) See slide 11 for bridge with consolidated revenue

• SAFRAN - H1 2022 RESULTS / July 28, 2022

This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran

01.

H1 2022 HIGHLIGHTS

H1 2022 highlights

AIR TRAFFIC RECOVERY

Q2 2022 narrowbody ASK at 81% of Q2 2019 level

Improving trend in China

CHALLENGING ENVIRONMENT

Supply chain / inflation

GROWTH DRIVING STRONG PROFITABILITY AND CASH IN H1 12.2% recurring operating margin

€1.7bn free cash flow supported by customer advance payments

PORTFOLIO MANAGEMENT

Divestment of Safran Aerosystems Arresting Systems completed Acquisition of Orolia completed

SPA for Aubert & Duval signed

FY 2022 OUTLOOK RAISED

Stronger US dollar providing additional tailwind on revenue Recurring operating margin confirmed

Free cash flow raised

4	SAFRAN - H1 2022 RESULTS / July 28, 2022

This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran

H1 2022 market environment

GLOBAL NARROWBODY CAPACITY

• Narrowbody air traffic improvement resumed in Q2 with China recovering gradually
• • Q2 2022 ASK*: 81% vs Q2 2019
  • Good resumption from 75% in both Q4 2021 and Q1 2022

100	NB ASK (% vs same period in 2019)
2020 Q2-Q4 average: 38%	2021 average: 63%	2022 H1 average : 78%

80

60

40

20

0

Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
	2020				2021		2022

* ASK: available seat-kilometers

• SAFRAN - H1 2022 RESULTS / July 28, 2022

CFM FLIGHT CYCLES

• Worldwide CFM engines flight cycles improving at the end of
  Q2 at 86% of 2019:
• • North America, Middle-East and South America back at 2019 levels
  • China gradually increasing since beginning of April thanks to easing travel restrictions: CFM cycles at 63% of their 2019 level, same for APAC excl. China at 71%
  • Europe at 87% of 2019
• Retirements of 2nd generation CFM56-powered aircraft remain low (60 in first 6 months)

This document and the information therein are the property of Safran. They must not be copied or communicated to a third party without the prior written authorization of Safran