SAFRANCHINA

by Stéphane ABRIAL Senior Executive Vice President, International and Public Affairs

Building on more than a century of relations with China, Safran is now a major player in the Chinese civil aviation and security markets. We have established a presence in all segments, from airplane and helicopter engines to aircraft landing and braking systems, and from identification to detection systems. Our presence in China is anchored in long-term cooperation. We work closely with both partners and customers, an approach that guides all subcontracting and production operations, as well as our joint

ventures with AVIC and COMAC. We are also fully committed to supporting the training of Chinese engineers, as reflected in strong partnerships with schools including the Ecole Centrale of Beijing, the Sino-European Institute of Aviation Engineering, the Civil Aviation University of China and, most recently, Shanghai Jiao Tong.Safran is working hand in hand with Chinese manufacturers covering the whole spectrum of industrial activities to shape the future of the aviation and security industries.

EDITORIAL

GLOBAL FOOTPRINT & LONG-STANDING PRESENCE IN CHINA

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SAFRAN CHINA

SAFRAN CHINA

Beijing

Chengdu

Guanghan

Xi’an

Safran Representative Office Safran China

Turbomeca (Beijing) Helicopter Engines Trading Co., Ltd (TBHE) Morpho Security System (Shanghai) Co., Ltd, Beijing Branch

Safran China, Xi’an Branch Xi’an SAVI Nacelles Co., Ltd

Safran China, Chengdu Branch Sichuan Services Aero Engine Maintenance Company (SSAMC)

Aero Engine Maintenance Training Center (AEMTC)

Shanghai

Safran China, Shanghai Branch Morpho Security System (Shanghai) Co., Ltd Shanghai SAIFEI Aviation EWIS Manufacturing Co., Ltd

Suzhou

Shenzhen

Snecma Suzhou Co., Ltd Messier-Bugatti-Dowty Suzhou Co., Ltd

Suzhou SME-CQ Automotive Safety Technology Co., Ltd

Morpho Security System (Shanghai) Co., Ltd, Shenzhen Branch

Tianjin

Turbomeca (Tianjin) Helicopter Engines Co., Ltd (TTHE) Snecma Suzhou Co., Ltd, Tianjin Branch

Guiyang

Wuhan

Snecma Xinyi Airfoil Castings Co., Ltd (SXAC)

Morpho Security System (Shanghai) Co., Ltd, Wuhan Branch

Office/ Company

Joint venture Industrial Site

Services University collaboration/ training center

SAFRAN’S MARKET POSITION IN CHINA

SAFRAN CHINA

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Roll out of COMAC C919 jetliner. This new commercial jet will be powered by the LEAP engine designed by CFM International, a 50/50 joint venture between Snecma (Safran) and GE.

The AC352 (Z-15) was developed and is produced by Airbus Helicopters and Chinese counterpart Harbin Aviation (a subsidiary of AVIC). The AC352 is powered by the latest generation engine co-developed by Turbomeca and Dong’an, derived from the Turbomeca Ardiden 3 family.

Morpho detection systems are installed in many Chinese airports, including Beijing, Guangzhou and Chongqing.

SAFRAN CHINA

Safran is a major player in the Chinese civil aviation and security sectors, largely based on a sustained

and balanced cooperation policy and a local presence in all market segments. Over the last 40 years,

Safran has formed strong ties with the major players in the Chinese aviation industry and this mutual

trust has been rewarded by several strategic partnerships. Today, Safran has 20 entities and more

than 1,800 people operating in China.

AEROSPACECOMMERCIAL AIRCRAFTSafran is heavily involved in Chinese airline operations, mainly as one of the parent companies of CFM International, the 50/50 joint venture between Snecma (Safran) and GE that makes the CFM56® and LEAP® turbofan engines. From sales & marketing to customer support, MRO and engineering

services, Safran provides broad local support to the Chinese civil aviation sector. More than 3,900 CFM56 and LEAP engines were in service or on order in China at May 31, 2015. Safran also calls on local industrial partners to make a variety of engine parts, including low-pressure turbine shafts for the CFM56-5B and -7B engines. In partnership with Air China, Safran has created a center dedicated to CFM56 maintenance, repair and overhaul (MRO). Safran companies Aircelle, Messier-Bugatti-Dowty and Labinal Power Systems provide a wide range of systems and equipment for the single-aisle and widebody commercial jets operated by China’s leading airlines, including engine nacelles and thrust reversers, landing gears and wiring. Safran’s electronics specialist Sagem provides aircraft condition monitoring systems (ACMS) and analysis ground stations (AGS) to bring Chinese airlines to improve fleet operation and management to the highest standard. More than four out of ten commercial planes in China are fitted with landing

gears and braking systems from Messier-Bugatti-Dowty. A MRO center in Singapore supports these landing gears on Airbus and Boeing jetliners. Messier-Bugatti-Dowty also supplies wheels and carbon brakes for the Airbus jetliners deployed by the four national airlines and eight private carriers.

HELICOPTERSSafran has worked closely with AVIC (China Aviation Industry Corporation) for some 40 years, through complete or partial production under license of the Turbomeca Arriel 1 and Arriel 2C helicopter engines and Sagem autopilots for the Z9/H425 helicopter. Turbomeca is also co-developing the WZ16 turboshaft engine with Dong’an to power the new AC352 helicopter. Over half of the Chinese helicopter fleet is powered by Turbomeca turboshaft engine. Moreover, hundreds of helicopters in China use Sagem equipment (autopilots and flight control systems), either imported or license-built in the country.

SECURITYLAW ENFORCEMENT Morpho, the Group’s security specialist, provides biometric identification systems for Chinese government, immigration agencies and police forces. Morpho’s automated fingerprint identification systems (AFIS) are deployed in the Tianjin municipality, Ningxia region and Changzhou. Morpho has also provided with facial recognition systems the police agencies in Shanghai, Tianjin, Heilongjiang, Jilin, Jiangxi, Guangzhou and Wenzhou.

BORDER CONTROLMorpho, in cooperation with the ministry of public security, also plays a predominant role in the market for entry-exit biometric solutions.

AIRPORTSMorpho has worked closely with major airports in China for nearly 20 years to install advanced explosive detection systems. Used to screen passengers, carry-on bags and checked luggage, these systems are designed to meet evolving threats and international security regulations, while handling fast-growing passenger traffic. Morpho now equips over 80 airports in China, and has set up a nationwide network with local partners and suppliers to handle sales and support services.

3,900+ CFM56 AND LEAP ENGINES ARE IN SERVICE OR ON ORDER IN CHINA.

OVER 50% OF ALL HELICOPTERS IN CHINA ARE POWERED BY TURBOMECA ENGINES, IMPORTED OR BUILT UNDER LICENSE.

OVER 40% OF CHINA’S COMMERCIAL AIRPLANES ARE EQUIPPED WITH MESSIER-BUGATTI-DOWTY LANDING GEARS AND BRAKING SYSTEMS.

MOST CHINESE JETLINERS ARE EQUIPPED WITH FADEC CONTROL SYSTEMS PRODUCED BY THE JOINT VENTURE BETWEEN SAGEM AND BAE SYSTEMS.

50% OF ALL EXPLOSIVE DETECTION SYSTEMS IN CHINA ARE BASED ON THE LATEST COMPUTED TOMOGRAPHY (CT) TECHNOLOGY SUPPLIED BY MORPHO.

SAFRAN CHINA

TRAININGOver 12,000 mechanics from all over Asia have been trained in the maintenance and repair of CFM56 engines.

Back in 1996, Safran opened the Aero-Engine Maintenance Training Center in Guanghan (Chengdu) in partnership with CFM International, GE, China Aviation Supplies (CAS) and the Civil Aviation Flying University of China (CAFUC).

Safran and AVIC also team up to actively develop training initiatives in both groups.

In September 2011, Safran and AVIC signed a Memorandum of Understanding (MoU) on training, extending the strategic partnership first created in 2010.

SUPPORTING UNIVERSITIESSafran is heavily involved in education and in-service training programs for engineers, reflecting its ongoing commitment to the development of the Chinese aviation industry. Safran signed an initial agreement with four Chinese engineering schools (Beijing, Xi’an, Chengdu and Shanghai) and the Ecole Centrale de Lyon engineering school in November 2002. In 2005, Safran was the first industrial partner to join the project to create the Ecole Centrale of Beijing, part of Beihang University. Safran also signed a partnership agreement with major French and Chinese aeronautical engineering schools to create the Sino-European Institute of Civil Aviation (SIAE) in Tianjin, teaming up with the Civil Aviation Administration of China (CAAC). Safran University signed a Memorandum of Understanding (MoU) with the Civil Aviation University of China (CAUC) in 2011 to develop scientific and technical training courses. In 2012, Safran and Beihang University signed a MoU to bolster their collaboration. Safran is also one of the founding members of the SPEIT engineering school (partnership between ParisTech and Shanghai Jiaotong University) in Shanghai, created in 2013.

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SAFRAN CHINA

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MORE THAN

100 YEARSOF STRONG LOCAL PARTNERSHIP

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1910 Safran’s relationship with China started in 1910 with the first visit to France by a Chinese delegation. They witnessed a demonstration flight by a Blériot XI, powered by the Omega rotary engine made by Gnome, one of Safran’s predecessor companies.

1980 - Agreement with AVIC for the production of Turbomeca Arriel 1 engines. - Sagem’s transfer to AVIC of PA155 autopilot technology, under license,

for the Z-9 helicopter.

1985 - First CFM56 engines enter service in China with delivery to CAAC for Yunnan Airlines and Southwest Airlines (Air China).

- Opening of first Turbomeca office in Beijing.

1990 Beginning of subcontracting in China. Today, a dozen AVIC plants make aircraft equipment and engine parts for Safran.

1999 Creation of SSAMC engine maintenance joint venture between Snecma, China Southwest Airlines and Willis Lease & Finance.

2002 - Opening of the Messier-Bugatti-Dowty plant in Suzhou to manufacture medium-sized landing gear parts, subassemblies and assemblies. This site is also the hub for the Asian supply chain.

- Selection of Morpho AFIS by the Police of the Municipality of Tianjin.- Partnership in Education and Research between Snecma, École Centrale de Lyon and

several Chinese universities.

2004 Creation of the subsidiary Morpho Security System (Shanghai) Co., Ltd to develop identification and detection activities.

2006 - Creation of Snecma Xinyi Airfoil Castings Co., Ltd to produce turbine parts for CFM56 engines. - Turbomeca and the Chinese aerospace industry agree to strengthen their partnership by

jointly developing the Ardiden 3C/WZ16.

2008 - Creation of Turbomeca Beijing Helicopter Engines Trading Co., Ltd. - Opening of a Messier-Bugatti-Dowty plant shared with Snecma.

2010 - Creation of Safran China – Safran (Beijing) Enterprise Management Co, Ltd.- Creation of joint venture Xi’an SAVI Nacelles Co., Ltd to assemble nacelle components.

2011 Creation of Suzhou SME-CQ Automotive Safety Technology Co., Ltd to design, produce and sell automotive safety systems.

2012 Creation of Shanghai SAIFEI Aviation EWIS Manufacturing Co., Ltd to develop Electrical Wiring Interconnection Systems (EWIS), in particular for the COMAC C919.

2015 Safran and AVIC sign joint venture agreement concerning turboprop engines modules for commercial airplanes.

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SAFRAN WORLDWIDE

Safran is a leading international high-technology group and a Tier-1 supplier of systems

and equipment for aerospace, defense and security. Through its global presence,

Safran not only enhances competitiveness, but also builds industrial and commercial

relations with the world’s leading prime contractors and operators, while providing

fast, local service to customers around the world. Working alone or in partnership,

Safran holds world or European leadership positions in its core markets.

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DEFENSE

SPACESECURITY

AVIATION

SAFRAN WORLDWIDE

SAFRAN WORLDWIDE

KEY FIGURES

SPACE

AVIATION

WORLDWIDEAEROSPACE

> Launch vehicles (in partnership with Airbus Group)

> Engines for mainline commercial aircraft with more than 100 seats (in partnership with GE)

> Helicopter turbine engines

> Landing gears

> Wheels and carbon brakes (mainline commercial jets with more than 100 seats)

> Aircraft electrical interconnection systems

> Power transmissions (mainline commercial jets with more than 100 seats)

DEFENSE

IN EUROPEDEFENSE

> Inertial navigation systems

> Optronic systems

> Tactical drones

WORLDWIDEDEFENSE

> Engine control units for commercial aircraft (in partnership with BAE systems)

> Helicopter flight controls

WORLDWIDESECURITY

> Biometric ID solutions (based on fingerprint, iris and facial recognition)

> Automated fingerprint identification systems (AFIS)

> Computed-tomography (CT) explosive detection systems (EDS) for checked luggage

SECURITY

69,000 PEOPLE

IN NEARLY

60 COUNTRIES

AND LEADING POSITIONS IN

> Smart cards

> Aircraft engine nacelles

> Military aircraft engines

LOCATED IN SUZHOU INDUSTRIAL PARK, SNECMA SUZHOU’S PLANT COVERS

18,000 SQUARE METERS AND IS ORGANIZED IN THREE MAIN SECTIONS:

MACHINING, SPECIAL PROCESSES (HEAT TREATMENT AND SURFACE TREATMENT)

AND FINAL ASSEMBLY OF CFM INTERNATIONAL* ENGINE PARTS AND MODULES.

SNECMA SUZHOU HAS DEVELOPED STRONG SYNERGIES WITHIN SAFRAN WITH

MESSIER-BUGATTI-DOWTY SUZHOU, LOCATED ON THE SAME SITE.

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www.safran.cn

* CFM International is a 50/50 joint company between Snecma (Safran) and GE

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SAFRAN REPRESENTATIVE OFFICE6F, Building A, Gateway Plaza, No.18 Xiaguangli, North Road Dongsanhuan, Chaoyang District,Beijing, 100027, CHINAPhone: +(86 10) 8440 0026www.safran.cn