Safran selected for CAC 40, the Paris stock exchange benchmark index
What are the criteria for a company to enter the CAC 40?
The NYSE Euronext Index Steering Committee meets four times a year, making its selection based on a company's free float market capitalization, meaning the proportion of the share capital that can be exchanged, as well as the share turnover, or the number of shares and the daily exchange volume.
Safran's selection for the CAC 40 flows directly from actions undertaken by the Group over the last few years: first, to increase the "float" in Safran's share capital, which increased from less than 39% in 2005 to more than 50% today; and secondly to foster better understanding of Safran's fundamentals. Safran's market capitalization has increased by more than 70% since it was first listed on May 5, 2005, and now stands at over 11 billion euros, ranking Safran 25th among CAC 40 companies.
Safran joins EADS to represent the aerospace and defence (A&D) sector in the benchmark CAC 40 index, which is only natural given the weight of this sector in the French economy.
What are the advantages for our Group in joining the CAC 40?
The Safran share will officially become part of the NYSE Euronext Paris CAC 40 index on September 19, just six years after the creation of the Safran group. Being selected for the CAC 40 reflects the recognition by French and international investors of the progress that Safran has made since its inception (focus on its business portfolio, external growth, steady increase in profitability), along with their understanding of Safran's future growth prospects, thanks to the Group's role on major aerospace programs and the strong potential of its Security business.
Safran's presence in this benchmark index significantly bolsters our corporate and financial visibility in France and in international markets. It should have a favorable impact on our corporate recognition, especially in terms of recruiting the top young talents to Group companies.
The CAC 40 is the benchmark index for the Paris stock exchange, now NYSE Euronext Paris. Created on December 31, 1987, it is based on the prices of 40 continuously listed shares among the top 100 companies listed on Euronext Paris according to free float market capitalization and share turnover. The CAC 40 index represents different business sectors and reflects the overall economic trend in major French companies. This list is reviewed regularly to ensure that it is representative.
CAC stands for Continuous Assisted Quotation