Dassault Aviation Sa · EURONEXT:AM
Dassault Aviation Sa — FY2023 Earnings Presentation
35 slides from Dassault Aviation Sa's earnings presentation, Mar 6, 2024
Slide 1: Press Conference March 6, 2024
PRESS CONFERENCE MARCH 6, 2024
Slide 2: Context
CONTEXT War in Ukraine Conflict in the Middle East Disruption of supply chains and global trade Environmental challenges, energy transition Upcoming elections in the United States, Europe, India and Indonesia 2 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault
Slide 3: Post Year End
POST YEAR END Indonesia: In January 2024, entry into service of 18(1) additional Rafale Indonesia under the contract for 42 (following the initial 6 in 2022 and another 18 in 2023) (1) Not included in the order intake for 2023 or the backlog as of 12/31/2023 3 MARCH 6th 2024 - PRESS CONFERENCE Ce do
Slide 4: 2023 Highlights
2023 HIGHLIGHTS Commercial success of the Rafale Historic backlog: EUR 38.5 billion Entry into service of the Falcon 6X Record breaking adjusted net income: Supply chain issues causing difficulties with EUR 886 million deliveries 4 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intel
Slide 5: Activities and Programs
[ ACTIVITIES AND PROGRAMS /
Slide 6: Rafale Momentum
RAFALE MOMENTUM Since the program began, 495 Rafale have been ordered to date: • 234 by France • 261 for Export (including the 18 aircraft for Indonesia entered into force in early 2024) • India’s decision to purchase 26 Rafale Marine • Ongoing business development French and Export orders secure Ra
Slide 7: Military Procurement Law
MILITARY PROCUREMENT LAW France’s Military Procurement Law (LPM): passed on July 13, 2023, the Military Procurement Law (Loi de Programmation Militaire - LPM) allocated a budget of EUR 413 billion for the period 2024- 2030, representing a 40% increase on spending under the previous LPM • Rafale prod
Slide 8: Rafale France
RAFALE FRANCE 42 aircraft ordered by the French Defense Procurement Agency (DGA) (5th Rafale batch “5T”) • Deliveries planned between 2027 and 2032 • Brings the total ordered by France since the program’s inception to 234 Delivery of 11 Rafale Ongoing development of the Rafale F4 standard Preparatio
Slide 9: Rafale Export
RAFALE EXPORT Commercial Success • Indonesia: 18 aircraft entered into service on August 10, 2023, with 24 aircraft on order as of December 31, 2023. 18 additional aircraft entered into service on January 8, 2024, bringing the total Indonesian aircraft to 42 • India: in July 2023, the Indian Governm
Slide 10: Support of Military Fleets in Service
SUPPORT OF MILITARY FLEETS IN SERVICE France • Performance of Operational Maintenance contracts (Ravel for the Rafale, Ocean for the ATL2 and Balzac for the Mirage 2000): availability targets met and participation in High Intensity exercises with the Forces • Awarding of the Alphacare contract (Alph
Slide 11: Future Combat Air System (FCAS)
FUTURE COMBAT AIR SYSTEM (FCAS) Work on phase 1B of the demonstrator started in March 2023 (detailed specifications) • Dassault Aviation, prime contractor and architect of pillar 1, the New Generation Fighter (NGF) • Construction of a physical workspace in Saint-Cloud to receive teams of engineers f
Slide 12: Eurodrone
EURODRONE Airbus, prime contractor for the program Work continues In particular, Dassault Aviation is in charge of flight control and mission communication systems 12 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault Aviation. Il ne peut être utilisé, reprodui
Slide 13: Mission Aircraft
MISSION AIRCRAFT France • Ongoing development of AVSIMAR (Falcon 2000LXS maritime surveillance) and Archange (Falcon 8X strategic intelligence) • ATL2: delivery of the 7th and final aircraft modified by Dassault Aviation • Future PATMAR: architectural study on the basis of the Falcon 10X (in competi
Slide 14: Background for the Falcon Range
BACKGROUND FOR THE FALCON RANGE 23 orders received compared to 64 in 2022 2023 26 delivered compared to 32 in 2022 Slowdown in sales during 2023 • High-end business aviation traffic was stable in 2023 compared to 2022 • Pre-owned market: increase in inventories of aircraft for sale - at 2020 level •
Slide 15: Business Aviation and Taxonomy
BUSINESS AVIATION AND TAXONOMY Business Aviation • Committed to becoming carbon neutral by 2050 • 2% of CO2 emissions from global aviation, i.e. 0.04% of global CO2 emissions • One year of global 2,100 Falcon fleet utilization is equivalent to 24 hours of global video streaming, 5 hours of worldwide
Slide 16: Falcon: 4 Pillars Toward Business Aviation Decarbonization
FALCON: 4 PILLARS TOWARD BUSINESS AVIATION DECARBONIZATION SAF (Sustainable Aviation Fuel) Optimization of Flight Operations • Company plan launched in 2022 to use SAF as • Assets for future management of air traffic control standard (flexibility, avionics and flight control, • 413 flights carried o
Slide 17: Falcon 6X (1/2)
FALCON 6X (1/2) EASA/FAA Certification on August 22, 2023 and entry into service on November 30, 2023 Industrial ramp-up at a time of supply chain difficulties First delivery in February 2024 17 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault Aviation. Il ne
Slide 18: Falcon 6X (2/2)
FALCON 6X (2/2) Client feedback during demonstration flights confirmed a very high level of passenger comfort 18 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault Aviation. Il ne peut être utilisé, reproduit, modifié ou communiqué sans son autorisation. Dassau
Slide 19: Falcon 10X
FALCON 10X Most spacious and comfortable cabin on the market Manufacture of the first development aircraft is underway Adjusted schedule First deliveries in 2027 19 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault Aviation. Il ne peut être utilisé, reproduit,
Slide 20: Falcon Support
FALCON SUPPORT Dassault Aviation strives for a high standard of maintenance of the Falcon fleet in operation: • Opening of a new maintenance facility in Dubai in 2023 (replacing the former center) • Preparing for the entry into service of the Falcon 6X, training of mechanics and crew • Stabilizing t
Slide 21: CSR: Tangible Results and Ambitions
CSR: TANGIBLE RESULTS AND AMBITIONS 2023 saw the first meaningful results of the Parent Company energy saving plan launched at the end of 2022 • Energy consumption / hours worked: -10.4% vs. 2022 • CO2 emissions / hours worked: -7.2% vs. 2022 The Group continues its waste management efforts • Pionee
Slide 22: CSR: Human Resources
CSR: HUMAN RESOURCES In 2023: 1 732 hires in fixed term and permanent contacts and 215 apprentices in a job market under strain – particularly in the aeronautics sector. In this context, the Group: • Strengthens his employer attractiveness, mainly via dedicated communication campaigns • Deploys robu
Slide 23: Modernizing Our Industrial Systems
MODERNIZING OUR INDUSTRIAL SYSTEMS The Company is continuing to invest in its industrial infrastructure • Istres: building designed to house the Falcon 10X simulator delivered • Mérignac: fitting of Building G for special projects and Building K to accommodate Falcon 10X • Martignas: canopy building
Slide 24: Make in India
MAKE IN INDIA Dassault Reliance Aerospace Limited (DRAL) in India - ongoing activities: • Production of the T12 and T4 sections for the Falcon 2000 Dassault Aviation is involved in the development of the Indian supply chain • Growing our network of local partners • Approval of new, key sub-contracto
Slide 25: Supply Chain / Deliveries
SUPPLY CHAIN / DELIVERIES Deliveries in 2023 were adversely affected by supply chain disruptions. Supplier defaults linked to capacity shortages, mainly affecting aerostructure, caused delays in production. The risk to our supplies and organization is still present in 2024. For aerostructure supplie
Slide 26: 2023 Results
2023 RESULTS
Slide 27: Order Intake, Net Sales and Backlog
IN € BILLION Order Intake Net sales Backlog Falcon €1.7 Bn (23 a/c) €3.4 Bn (64 a/c) €1.8 Bn (26 a/c) €2.1 Bn (32 a/c) €4.6 Bn ( 84 a/c) €4.7 Bn ( 87 a/c) Defense Export €3.6 Bn (18 a/c) €15.7 Bn (92 a/c) €1.5 Bn ( 2 a/c) €3.6 Bn (13 a/c) €24.0 Bn (141 a/c) €21.9 Bn (125 a/c) Defense France €3.0 Bn
Slide 28: Consolidated Self-Funded R&D
CONSOLIDATED SELF-FUNDED R&D IN € MILLIONS 28 MARCH 6th 2024 - PRESS CONFERENCE Ce document est la propriété intellectuelle de Dassault Aviation. Il ne peut être utilisé, reproduit, modifié ou communiqué sans son autorisation. Dassault Aviation Proprietary Data
Slide 29: Thales
THALES Dassault Aviation is a shareholder of Thales since 2009 and as leading industrial shareholder, has entered into a shareholders’ agreement with the French state. Dassault Aviation holds 26.05% of Thales share capital as of December 31, 2023 vs. 24.62% at December 31, 2022. Key figures for Thal
Slide 30: Adjusted Consolidated Income Statement
ADJUSTED CONSOLIDATED INCOME STATEMENT in million euros 2023 2022 NET SALES 4,801 6,929 OPERATING INCOME 349 572 Operating margin 7.3% 8.3% FINANCIAL INCOME 210 11 THALES and other equity affiliates 460 394 TAXES -133 -147 NET INCOME 886 830 +6.7% Net income margin 18.5% 12.0% % Self financed R&D -1
Slide 31: Consolidated Available Cash
CONSOLIDATED AVAILABLE CASH IN € BILLION The decrease in cash in 2023 is essentially due to an increase in work-in-progress (performance 9.5 of military contracts, ramp-up of the Falcon 6X), share buybacks and the acquisition of an 7.3 additional stake in Thales. Free Cash Flow EUR -1,0 billion 12.3
Slide 32: Shareholding Structure and Voting Rights
SHAREHOLDING STRUCTURE AND VOTING RIGHTS AS OF DECEMBER 31, 2023 - PRE- AND POST-CANCELLATION Shareholding Structure Distribution of exercisable voting rights Pre-cancellation as of December 31, 2023 GIMD (64.31%) 80,802,366 Free float (23.25%) shares Airbus (10.24%) Dassault Aviation (2.20%) GIMD (
Slide 33: Value Sharing
VALUE SHARING Proposed dividend of EUR 3.37/share submitted for approval by the Annual General Meeting of May 16, 2024 Paid in (in respect of N-1 earnings) 2024 2023 Dividends EUR 266 million EUR 249 million Dividend per share EUR 3.37 EUR 3.00 The application of intra-Group agreements will lead to
Slide 34: Outlook and Strategy
OUTLOOK AND STRATEGY Deliver Rafale and Falcon Meet our schedule and cost commitments for Falcon and military developments Availability and support for our aircraft: maintain satisfaction levels among our military customers and regain our position as leader in business aviation support rankings Get
Slide 35: Disclaimer
DISCLAIMER This press conference may contain forward-looking statements which represent objectives and cannot be construed as forecasts regarding the Company’s results or any other performance indicator. The actual results may differ significantly from the forward-looking statements due to various r