Frequently Asked Questions

Shareholders’ Meetings

When is the next Shareholders’ Meeting?
How can i participate ?


Being a SAFRAN Shareholder

How can I become a SAFRAN shareholder?
Is a fee charged for purchasing or selling bearer shares?


Registered shares

Can I directly purchase registered shares held in an account managed on behalf of the Company?
Who should I contact to directly buy or sell these shares?
Who manages these registered shares for SAFRAN?
What are the advantages of owning registered shares held in an account managed on behalf of the Company?



Taxation

What share price should I put on my “ISF” (wealth tax) return?
How are dividends taxed?
How are capital gains taxed?
What is the IFU?


How to get information ?

How can I find out the SAFRAN share price?
Can I get information on SAFRAN’s results?

Shareholders’ Meetings

1. When is the next Shareholders’ Meeting?

LSAFRAN’s next Ordinary and Extraordinary Shareholders’ Meeting will take place on 27 May 2010. Please go to the General meeting page for all related information and documentation. This page is regularly updated.

2. How can I participate?

You hold registered shares the Notice of Meeting and voting form will be sent to you directly. If you wish to cast a postal vote you simply need to complete the voting form and return it to the address indicated on the form.
If you hold bearer shares you need to contact your bank or broker who will ensure that you receive all the relevant documents. For further information please go to the General meeting page

Being a SAFRAN shareholder

1. How can i become a SAFRAN shareholder ?

There are two ways to become a SAFRAN shareholder :

• by purchasing bearer shares through your bank or broker. You can purchase shares by placing a buy order with your bank or broker. If you choose this option your shares will be held in “bearer” form either in an ordinary share account or in a “PEA” personal equity plan.
  
• by contacting SAFRAN’s registered shares department. You can acquire SAFRAN shares directly in registered form and therefore benefit from all the advantages of this type of shareholding.
  
  There are two ways of holding registered shares.
  
• In an account managed on behalf of the Company. In this case your shares are registered with SAFRAN and placed in an account in your name with BNP Paribas Securities Services which manages the shares on the Company’s behalf.
  
• In an account managed by a bank or broker of your choice, in which case your shares are registered with SAFRAN but are held in an account managed by your bank or broker.
  
  If you already hold SAFRAN shares in bearer form you can ask your bank or broker to convert them to either one of the above types of registered shares.
  
  

2. Is a fee charged for purchasing or selling bearer shares?

Yes, there is a fee for purchasing or selling bearer shares. You will need to ask your bank or broker for the exact charge or refer to your share account agreement.

The two main types of fees for purchasing, selling and holding shares are:

• Brokerage fees, set by your bank or broker and generally corresponding to a percentage of the order amount, subject to a minimum charge. These fees have been freely negotiable since July 1, 1989.
  
• VAT at 19.60% (payable on brokerage fees).
  
  

Registered shares

1. Can I directly purchase registered shares held in an account managed on behalf of the Company?

If you are not yet a SAFRAN shareholder you can directly place a buy order for this type of share by contacting BNP Paribas Securities Services – Service Emetteur de SAFRAN.


2. Who should I contact to directly buy or sell these shares?

You can call 0826 100 374 (France only) to place buy or sell orders for registered shares held with SAFRAN. This securities service is available to answer any questions you may have Monday through Friday, from 8.45 a.m. to 6 p.m.


3. Who manages these registered shares for SAFRAN?

BNP Paribas Securities Services manages these shares on behalf of the Company. For any questions you can call a dedicated team on 0826 100 374 (France only), Monday through Friday from 8.45 a.m. to 6 p.m. or write to the following address:
BNP PARIBAS Securities Services
G.C.T. Emetteurs
Relations Actionnaires
Grands Moulins de Pantin
9 rue du Débarcadère
93761 PANTIN CEDEX


4. What are the advantages of owning registered shares held in an account managed on behalf of the Company?

• You will not have to pay any management fees
• If you have any questions you can call a dedicated BNP Paribas Securities Services number – 0826 100 374 (France only) Monday through Friday from 8.45 a.m. to 6 p.m
• You can place buy or sell orders quickly and easily (by telephone, fax or on-line)
• You will benefit from attractive brokerage fees
• Notices of Shareholders’ Meetings will be sent to you directly
• Shares registered in your name for two years carry double voting rights,
• All shareholder information and other Group news will be sent to you directly
• You can join SAFRAN’s shareholder club from the moment you hold just one registered share.
  
  

Taxation

1. What share price should I put on my “ISF” (wealth tax) return?

In France, the calculation of how much wealth tax (Impôt de Solidarité sur la Fortune or ISF) is due on listed shares is based on :

• the last share price recorded for the year; or
• the average of the last thirty closing share prices for the year.
  The taxpayer can choose which of these calculations to use.
  
  In 2009, the average last thirty closing Safran share prices fo the year came to €12.469 and the last share price recorded for the year was €13.690.
  
  In 2008, the average of the last thirty closing Safran share prices for the year came to €9.65 and the last share price recorded for the year was €9.63.
  
  

2. How are dividends taxed?

As of January 1, 2009*, dividends paid to individuals domiciled for tax purposes in France are subject to:

• Social security contributions withheld at source, at an overall rate of 12.1% (CSG at 8.2%, CRDS at 0.5 % the prélèvement social at 2.3% and CRSA at 1.1%). As from 2009, dividends will be paid to shareholders net of these contributions.
• Personal income tax
• In addition to the above social security contributions, dividends are subject to personal income tax. Shareholders can choose one of the following two options:
  Paying income tax on dividends at sliding-scale rates (automatic option) In this case the taxpayer benefits from an uncapped 40% tax allowance as well as an annual fixed allowance of €1,525 for a single person, or €3,050 for a couple filing a joint tax return. In addition, the taxpayer is entitled to a global tax credit corresponding to 50% of the amount of the dividends paid but which is capped at €115 for a single person and €230 for couples filing jointly.
  
• Paying a flat rate of 18%
  This is the more attractive option if you receive over €19,700 a year in dividends for a single person or €39,400 for a couple filing jointly, and if you are taxed at the marginal rate of 40%. Once you have chosen this option it must be applied for the whole year. If you receive several dividends the option can be just partially applied, i.e. you can choose to apply it to certain dividends. In this case, other dividends received are subject to the sliding-scale tax regime but the above-mentioned 40% allowance, fixed annual allowance and tax credit will not apply.
  

3. How are capital gains taxed?

Capital gains on the sale of shares are only taxable when the value of the shares sold during the year exceeds a certain threshold per tax household. For 2008 this threshold is €25,000 and in 2009 it is €25,730 (without deduction of brokerage fees).

The net capital gain corresponds to the difference between the sale price of a share (net of brokerage fees and tax) and its cost price (including transaction costs).
Capital gains on the sale of shares are subject to the following taxes as from the first euro:

• Capital gains tax at 18%
• Social security contributions (11% in 2008 and 12.1% in 2009).
  
  Any capital losses on the sale of shares can be offset against share sale capital gains made in the same year or in the ten subsequent years provided that the above-described threshold relating to the value of the shares is exceeded.
  *Based on the legislation in force at the date this information was prepared
  
  

4. What is the IFU ?

In accordance with Article 242 ter of the French Tax Code, all securities transactions carried out during the year in France on behalf of the taxpayer and revenue from such transactions have to be declared in a special annual fiscal summary called an Imprimé Fiscal Unique (IFU).

For bearer shares and registered shares held in an account managed by your bank or broker, the latter will send you an IFU listing all of your share account transactions. This IFU will also show the total value of any share sales made during the year. Some banks and brokers manage capital gains but a fee is usually charged for this service.

• For registered shares held in an account managed on behalf of the Company you will receive an IFU from the institution that manages the Company’s registered shares so that you can declare the dividends you have received. The IFU will only provide information on the value of the SAFRAN shares you have sold during the year – you will need to calculate the capital gains yourself.
  
  
  

How to get information

1. How can I find out the SAFRAN share price?

You can find out the SAFRAN share price by calling 0 800 17 17 17 (calls in France only and toll-free if the call is made from a land line).
Information is also available in the Shareholders’ corner of our web site www.safran-group.com


2. How can I get information on SAFRAN’s results ?

You will find all of the Group’s financial publications in the following sections of the website:
Annual reports
Regulated information.


The Financial press releases section also provides information throughout the year on significant events relating to the Company.

Lastly, you can become a member of the SAFRAN Shareholders’ Club to regularly receive news about the Group.