1. © Sagem Défense Sécurité - Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C MARCUS EVANS CONFERENCE JUNE 3RD & 4TH 2010 Valérie COLLOT Credit Management in France

2. 11 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C An international high technology group More than 10 billion euros sales in 2008 (At December 31, 2009) 54,900 employees in over 30 countries (At December 31, 2009) Three core businesses: Safran group Aerospace Defense Security

3. 22 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Aerospace propulsion Aircraft equipment  Labinal  Teuchos  Technofan  Sofrance Defense Security  Snecma  Snecma Propulsion Solide  Turbomeca  Microturbo  Techspace Aero  Aircelle  Hispano-Suiza  Messier-Dowty  Messier-Bugatti  Messier Services  Sagem  Sagem Sécurité Safran group businesses Main companies

4. 33 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Sagem in 2010 A global or European leader in solutions and services in optronics, avionics, navigation, and electronics / critical software for civilian and defense markets 2009 consolidated sales: 1,061 million euros Workforce: 6,900 people (31/12/2009) 3 divisions: “Optronics & Defense”, “Avionics”, “Safran Electronics” A worldwide industrial presence:  Europe: France, Finland, Germany, Switzerland  North America: Canada, USA  Asia: Singapore  Present across the globe via the Safran group’s international network

5. 44 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Sagem activities Optronics (air, land and sea) Defense programs (soldier modernization, UAVs, communication systems) Space optics 41 % 43 % 16 % Avionics Navigation Guidance and armament systems Aircraft modernization Embedded electronics and software Electronics for optronic systems Electronics for avionics and navigation Engine control units (FADEC), electronics for landing systems and monitoring

6. 55 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Sagem’s worldwide presence Safran Electronics USA, Inc. Seattle Sagem Avionics, Inc. Dallas Vectronix, Inc. Leesburg Safran Electronics Canada, Inc. Peterborough Robonic Ltd Oy. Tampere (Finland) Vectronix AG Heerbrugg (Switzerland) Sagem Navigation GmbH Murr (Germany) Safran Electronics Asia Pte Ltd. Singapore Subsidiaries Joint-ventures Sagem representatives in Safran Offices Beijing, China EAU Delhi, India Moscow, Russia Optics 1, Inc. Westlake Village Optics 1, Inc. Manchester Sagem Avionics, Inc. Puyallup Vectronix, Inc. Newington Fadec International Johnson City Sagembat Defense Abu Dhabi

7. 66 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Summary Insolvencies in France New French law on payment terms « loi de modernisation de l’Economie » Payments Trends in France and impact of the new law Profile of the French Credit Manager

8. 77 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Evolution of the insolvencies In France 1st quarter (each 5th of April)

9. 88 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C According to the size of the company (number of employees) Evolution of the insolvencies

10. 99 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Depending on the date of creation of the company Evolution of the insolvencies

11. 10 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Evolution of the insolvencies In France during the last 5 years (January 2005 until March 2010)

12. 11 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Evolution of the insolvencies Per area 1 St quarter 2010

13. 12 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Loi de modernisation de l’Economie – In force since 01/01/2009 Maximum payment term allowed between French companies or between French and foreign companies (customers and suppliers) but under French law are : 45 days end of month or 60 days from invoice date Some exceptions (specific fields of activity) are in force if validated by the competition counsel. Penalties if the company does not comply with the law. Debt interests : BCE rate + 10points ou 3 times the legal interest rate (0.65% in 2010) The auditors should write an article about the payments terms used within the company. (from the balance sheets dated 2009)

14. 13 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C PENALTIES CIVIL SANCTIONS AGAINST LEGAL ENTITY : L 442- 6 : to grant a payment term > 45 days end of month to a partner can lead a penalty up to 10% of the worlwide turnover L441-6 : non respect of payment term of 45 days end of month or 60 days from invoice date can lead a penalty of 15,000 EUR PENAL SANCTIONS « Chatel law » january 2008 No respect of the payment term = 15,000 EUR for individual and 75,000 EUR for legal entity

15. 14 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C 45 Days end of month or 60 days from invoice date JanuaryFebruaryMarchApril Invoice date January 5th Invoice date January 20th 5205 45 days end of month 60 days from invoice date 45 days end of month 60 days from invoice date 15 20 60 days 45 days End of the month of January = beginning of calculation of the 45 days DATE OF PAYMENT AFDCC (Association Française des Credit Managers & Conseils) Due date calculation

16. 15 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C But… two ways of calculating the « 45 days end of the month » (1) Invoice date + 45 days and end of the month (2) Invoice date, end of the month + 45 days Ex : invoice date 20/05/2010 (1) : due date 30/07/2010 (2) : due date 15/07/2010

17. 16 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C PAYMENT TERMS WITH FRENCH PUBLIC ADMINISTRATION For contracts notified after 04/29/2008, payment term is 30 days from date of receipt of the invoice. Debt interest is BCE rate + 7 points (if no discrepancy has been notified).

18. 17 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Payment trend in France / Q1 2010

19. 18 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Late in payment in days

20. 19 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C AFDCC survey on DSO at the end of 2009.  Payment duration in decrease for more than 70% of the companies

21. 20 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C French economic data

22. 21 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C French economic data

23. 22 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Payment delay and late in payment in France

24. 23 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Main export partners of French companies

25. 24 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C AFDCC : payment trends / position regarding the use of debt interests ?  57% of the companies claim debt interests  of 79% do cash them

26. 25 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Payment delay in France (Intrum Justitia – survey 2010) 55j 39j 6 3j 57 j 24 29 45 41 20 25 30 35 40 45 50 20092010200920102009 48 44 2010 BtC Companies Public Administration -8% -9% Contractual payment term in days 55j 39j 6 3j 57 j 43 63 59 40 45 50 55 60 65 70 20092010200920102009 70 65 2010 BtC BtB Public administration -7% -6% Payment average in number of days  A decrease of the contractual payment term  A consequence of the implementation of the LME

27. 26 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C France We can note a decrease in proportion of the invoices of more than 90 days (20% versus 22%). 59 j Payment duration in number of days 54 56 58 60 62 64 66 68 20062007200820092010 59 56 -3 14 j 19 j 14 j 19 j Payment delay in days ) 0 2 4 6 8 10 12 14 16 18 20 20062007200820092010 19 18

28. 27 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Survey Robert Half / AFDCC 2008 Next survey will be published at the end of 2010. « Credit Managers, who are you ? »

29. 28 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Profile of the french credit manager 70% of the Credit Managers work for large companies (turnover > 150MEUR) vs 63% in 2006 & 52% in 2004. 55% work in the Paris area. 42% work in the industry. 65% are male. Average age is 41 years, 50% are less than 42,5 years old. 63% of the Credit Managers have been working for their company for more than 5 years. 43% of the credit managers have an university degree.

30. 29 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Main activities and outsourced services Main activities : Management Credit analysis Cash collection 93% use the following providers Financial & commercial information Cash collection agencies Specific Surveys Credit insurance Lawyers Banks

31. 30 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Reporting and Management 67% report to the CFO 8% to the General Manager (mainly in SMES) 8% to the Finance & Treasury management 44% (vs 40% in 2006) supervise more than 6 people.

32. 31 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Credit Manager salary Average salary 55,358EUR + 6,5% in 2 years +12% in 4 years 32% > 61,000 EUR Versus 23% in 2006.

33. 32 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C If you change field of activity within 5 years, what would your next position be ?

34. 33 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Do you think you will still be a credit manager in 5 years ?

35. 34 © Propriété de Sagem Défense Sécurité – Reproduction et Divulgation interdites / Disclosure and copy prohibited. Valérie COLLOT – JUNE 2010 – MARCUS EVANS CONFERENCE LONDON Sagem is the commercial name of the company Sagem Défense Sécurité / 24 038 489 GB - C Contact information : www.afdcc.comwww.afdcc.com (Vice President) www.fecma.euwww.fecma.eu (Vice President)