Safran Sa Unspon/ Adr

Pierre-Richard Pascal, and let us go straight to the key highlights. We had a strong start to the year with a very solid momentum across both civil, aerospace, and defense. Revenue was up 17% year on year, nearly 14% organically, reaching 7.3 billion euros. growth was once again driven by a robust demand for aftermarket across the board. In particular, on civil engines, sales of spare parts were up by 25%, exceeding our expectations, and sales of services increased by close to 18%. On the strategic front, we have made good progress toward the acquisition of Collins Actuation and Flight Control Activities with the attention of the European Commission approval, subject to ongoing analysis on the divestment of North American Electromechanical Actuation Business and Woodward suitability as a purchaser. And the close of the consultation period by the CMA in the UK on this divestment. Decisions are still pending. Our current performance and the strong momentum we are seeing in our markets give us high confidence in meeting our full year targets while keeping potential tariff impact out of the equation. Let us turn to slide four, highlighting strong momentum across our civil and defense and space activities. got additional orders from Malaysian Airlines as well as All Nippon Airways. We are pleased to welcome MTU Dallas as our sixth Leap Premier MRO partner, further expanding the Leap Open MRO market, a key point of our strategy that we presented during our last Capital Market Day. Our helicopter engines offering its meeting success with the selection of our Arius 2E engine on the Airbus H140 and our Ariel 2W engine on the new Robinson Air 88 helicopter. In defense and space, we achieved a significant milestone with the successful first commercial flight of Ariane 6 The Finnish Defence Forces selected our Geonics Advanced Inertial Navigation System and we secured a contract with Bell Textron to support the US future Long Range Assault Aircraft with testing solutions and antennas. On new mobility, the NG NEWS has been selected by Ascendance in France for their VTOL aircraft. This illustrates the strong dynamism of our global activities. On slide five, let me now say a word on tariff. It reflects the latest known situation which remains very fluid. As you know, the global aviation sector has long operated in a tariff-free regime for the benefit of all parties on both sides of the Atlantic. Implementation of tariff will result in additional cost for the industry and for the final customers. To mitigate any economic impact, we are leveraging available regulatory mechanisms, such as duty drawback, USMCA exemption, use of free trade zones, of bonded warehouses, along with other strategies, such as modifying logistical flows. With all those actions, which are already largely underway, we expect to reduce significantly our growth exposure. We are now engaging into commercial discussion with our customers OEM and airlines and from there we expect to reduce further the impact. Our teams are fully dedicated to executing these operational actions also some actions will take time to materialize. At this stage, given the level of uncertainty, it is too early to quantify the impact. As a result, our 2025 outlook excludes any potential impact from tariff. In addition, while the broader environment is uncertain, We are closely monitoring secondary effects on consumer confidence and air traffic data. Today's demand remains strong, and we are operating from a position of strength given the robust backlog. I will now let Pascal provide further comments on our Q1 figures.

Thank you, Olivier. Good morning, everyone. Let's start with an update on FX on slide seven. The macro uncertainty mentioned by Olivier has resulted in the depreciation of the dollar against the euro since early April. The euro-dollar is now trading around 113-114, which compares to an average of 105 in Q1 2025. Our hedge portfolio is composed of options, some of which may be deactivated if a CAO barrier is reached. Our trading floor is working to reduce any immediate risk of deactivation. By the way, the latest fluctuation did not lead to any deactivation. In any case, we have secured a hedge rate of 1.12 this year. Notwithstanding any risk of deactivation, as of March 2025, our hedge book stands at 54.1 billion euros, mostly unchanged from the end of December. Turning to page 8, Q1 2025 revenue reached 7.26 billion, up 16.7% year-over-year. We delivered 1 billion euros of additional revenues compared to Q1 last year with strong organic growth of nearly 14%. Services led the way with nearly 20% organic growth, more than twice the OE rate. Currency had a supportive impact of 2.3%, reflecting a more favorable euro dollar spot rate of 105 compared to 109 a year ago. This translates into a positive impact on sales of nearly 140 million euros. And Scope contributed a modest 0.5%, notably from the acquisition of Prédigence, an air-liquid oxygen system, in 2024. Let me now provide a few details per activity. Propulsion revenue reached 3.7 billion euros, up 16.4% organically year-over-year. LEAP OE deliveries were down 13% year-over-year, with 319 engines delivered. However, the favorable customer mix did more than offset the volume impact. Civil aircraft engines aftermarket continued to benefit from a high level of demand, with spare parts up 25.1%, boosted by demand for both CFM56 and ICERES engines, which is a combination of price and volume, and specifically on ISRAS engines, AVR Workscope. Services were up 17.6%, mainly driven by the LEAP contracts. Strong demand in spare parts is reflected in the revised assumption of our four-year guidance. Military aftermarket activity has been robust, with strong growth on spares and services, notably on the MRT-8 engine. Helicopter tubing services increased as well, supported by both volume and pricing. Equipment and defense, its revenue grew by 2.8 billion euros, up 11% year-over-year. We saw strong growth in OE deliveries, especially from NASAIL and continued strength in avionics on SADC and actuators. On defense and space, we had good momentum with robust growth in satellite communication systems, land systems like optronics, missile propulsion guidance systems, and aerospace inertial navigation. Services activity was up, supported by spares and landing gear, wheels and brakes, and nacelles. Aircraft interiors performed well as well, with revenue reaching close to 800 million euros, up 14%, and now, and for the first time, exceeding its Q1 2019 level of sales by 8%. This was driven by nearly tripling business class seat deliveries, highlighting improved industrial performance and continued momentum in the business class seats market. Services also grew mainly on cabin spares with strong demand, especially from airlines in Middle East and Asia. Let me now walk you through our latest actions regarding debt management and share repurchase. First on the OCEAN 2028 early redemption. We executed a soft call on April 1st on the 730 million euros worth of 2028 OSEAN. More than 93% of these convertible bonds were converted into existing shares that had been previously repurchased. The remaining bonds were reimbursed at par for a total cash out of 49 million euros. The early redemption improved our net cash position by 673 million euros. Moving to the share repurchase program for consolation. Between Jan and April, 1.5 million shares were repurchased for consolation purpose, and there are 350 million euros first-range program. In addition, 0.2 million shares originally acquired to meet conversion needs and SAFRAN convertible bonds were reallocated for consolation. This amount for a total of 1.7 million shares for consolation to date. And as a reminder, Safran will propose to its shareholder vote a dividend per share of 2.9 euros for fiscal year 2024 to be paid early June. Olivier, back to you.

Thank you, Pascal. As already mentioned earlier in the call, our current performance and the strong momentum we are seeing in both civil aerospace and defense sectors give us high confidence in meeting our full year targets, excluding any potential tariff impact. The only adjustment refers to spare part revenue growth now expected in the low teens compared to our previous high single digit plus forecast. Thank you. We will now answer your question.