Dassault Aviation Sa · EURONEXT:AM
Dassault Aviation Sa — H1 2018 Earnings Presentation
27 slides from Dassault Aviation Sa's earnings presentation, Jul 19, 2018
Slide 1: Press Conference
Press Conference Saint-Cloud July 19, 2018
Slide 2: Activities & Programs 1st half 2018
ACTIVITIES & PROGRAMS 1st half 2018
Slide 3: 2018 context
2018 context • Economics Trade war between United States and China and between United States and Europe Volatility of the dollar Oil prices rise • Geopolitics French Defense Procurement 2019-2025 law Military partnership between France and Germany Launch of the European Defense Fund by E
Slide 4: Rafale France and French Procurement Law (2019-2025)
Rafale France and French Procurement Law (2019-2025) • Rafale France 2 Rafale delivered during the 1st half of 2018, bringing up to 151 the total number of aircraft delivered (1 Rafale to be delivered during the 2nd half) For the last 28 Rafale to be delivered to France out of the 180 ordered, r
Slide 5: Future Combat Air System (FCAS)
Future Combat Air System (FCAS ) Further to the common statement in July 2017 between France and Germany (French President and Chancellor of Germany), both countries signed a Letter Of Intent in June 2018 to launch the Future Air Combat System (FCAS) project to create a combat system around a combat
Slide 6: MALE RPAS
MALE RPAS (Medium Altitude Long Endurance Remotely Piloted Aircraft System) • Airbus Defense and Space, Leonardo and Dassault Aviation pursue the study of the definition for a MALE drone • This 2-year study was notified in 2016 by the OCCAR (Organization for Joint Armament Cooperation), in conjuncti
Slide 7: nEUROn
nEUROn • Notification in 2018 1st half of new stealth flight studies and tests over the period 2018-2020 • Preparation of the demonstrator for the 2018 flight test campaign Press Conference July 19, 2018 7
Slide 8: Rafale Egypt and Qatar
Rafale Egypt and Qatar • Egypt Ongoing execution of the contract (10 Rafale left to be delivered) Support of the fleet (technical assistance, spare parts, training, etc.) • Qatar Entry into force in March 2018 of the option for 12 additional Rafale Ongoing execution of the 36 Rafale contract
Slide 9: Rafale India
Rafale India • Ongoing execution of the contract for 36 Rafale ordered • Significant needs in India for fighters : Answer to the « Request For Information » for the supply of 57 fighters for the Indian Navy Answer in July 2018 to the « Request for Information » for the supply of 110 fighters to
Slide 10: Make in India
Make in India • Implementation of a production line in India Joint Venture Dassault Reliance Aerospace Ltd : assembly of civil and military sub-parts Implementation of a supply-chain : pylons, drums, primary parts and engineering • Construction of the initial infrastructures • Recruiting and tra
Slide 11: Mirage 2000
Mirage 2000 France • Continued renovation works on the French Mirage 2000D • Retirement from the French Air Force of the Mirage 2000N that entered into service in 1988 India • Continuation of support to Hindustan Aeronautics Ltd. (HAL) for the upgrade of aircraft in India United Arab Emirates (UAE)
Slide 12: Mission Aircraft
Mission Aircraft Japan • Sale of a 5th aircraft to the Japanese coastguards • Continuation of development works on Falcon 2000 Maritime Surveillance Aircraft for the Japanese coastguards Germany – German Aerospace Research Center (DLR) • Sale of a Falcon 2000LX converted to a testbed airplane France
Slide 13: Business jet market
Business jet market • The positive trend in the business jet market is confirmed : new aircraft market : recovery in North America and in Asia-Pacific pre-owned aircraft market : decrease of the aircraft available for sale inventory but still at low prices • Persistence of the pressure of compet
Slide 14: Falcon 6X
Falcon 6X Launch of the Falcon 6X on February 28, 2018 : • Range : 5,500 NM • Cabin comfort : cross section 2,7 m ; volume 52,2 m3 • Engines : 2 Pratt & Whitney PWC 812D • Avionics : EASy III • Maximum speed : M 0.90 as well as usual Falcons’ advantages : • Safety (fly by wire, fuel tank) • Flexibil
Slide 15: Falcon Family
Falcon Family 2000S (3,350 NM) 2000LXS (4,000 NM) 900LX (4,750 NM) 6X (5,500 NM) 7X (5,950 NM) 8X (6,450 NM) Press Conference July 19, 2018 15
Slide 16: New Falcon Features
New Falcon Features • New on-board service offer : Launch of « Falcon Connect », a comprehensive solution designed to facilitate the use, management and control of inflight connectivity Development for in-service aircraft of the high-speed connectivity service (Ka) • Falcon Eye : completion of f
Slide 17: Future Falcon
Future Falcon Ongoing specifications Press Conference July 19, 2018 17
Slide 18: Transformation plan follow-up (1/2)
Transformation plan follow-up (1/2) Dassault Aviation signed with Dassault Systèmes a cooperation agreement for the implementation of the collaborative engineering platform 3DEXPERIENCE™. Press Conference July 19, 2018 18
Slide 19: Transformation plan follow-up (2/2)
Transformation plan follow-up (2/2) The industrial transformation plan intends to meet effectiveness requirements, and aims at specializing each production facility, by chain field, in order to build a refocused, consistent and effective industrial system. ARGENTEUIL SECLIN • Complex piping • Shaped
Slide 20: 2018 1st half Results
2018 1st half Results
Slide 21: Order intake, deliveries and backlog
Order intake, deliveries and backlog in units ORDER INTAKE DELIVERIES BACKLOG 2018 1st Half 2017 1st half 2018 1st Half 2017 1st half 06.30.2018 12.31.2017 18 15 17 55 52 14 Incl. 5X cancellations no 5X Incl. 5X not cancelled FALCON and 6X 1st orders 111 101 82 70 12 RAFALE Export 2 4 RAFALE France
Slide 22: Order intake, net sales and backlog
Order intake, net sales and backlog in € Bn - 2017 IFRS 15 pro forma N.B.: Dassault Aviation recognizes the Rafale Export contracts in their entirety (i.e. including the Thales and Safran parts), whereas for France, only the Dassault Aviation part is recognized. ORDER INTAKE DELIVERIES BACKLOG 2018
Slide 23: Self-funded R&D
Self-funded R&D in € million € 176 M (8.5% of Net Sales) 488 482 431 € 143 M (8.4% of Net Sales) 293 313 2013 2014 2015 2016 2017 9.8 % of net sales in average 2018 1st half 2017 1st half Press Conference July 19, 2018 23
Slide 24: Group adjusted income statement
Group adjusted income statement st 1 Half 2017 IFRS 15 in € millions 2018 Restated NET SALES 1,709 2,068 OPERATING RESULT 111 121 Operationnal margin 6.5% 5.9% FINANCIAL RESULT -38 -18 THALES and other equity affiliates 134 97 TAXES -21 -34 NET RESULT 186 166 Net result margin 10.9% 8.0% Earning per
Slide 25: Available cash
Available cash in € Bn Down- Inventories and payments work in-progress € 1.2 Bn € -0.3 Bn € 5.0 Bn € 4.1 Bn 12.31.2017 06.30.2018 Press Conference July 19, 2018 25
Slide 26: 2018 Outlook and Strategy
2018 Outlook and Strategy same as published in March 2018 • Obtain qualification of the F3-R standard • Conclude a contract for the Rafale F4 standard • Sign with France the CUGE order for the Epicure mission Falcon • Contribute in the definition of the proposal for a contract to launch the MALE pro
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