Dassault Aviation Sa · EURONEXT:AM
Dassault Aviation Sa — H1 2019 Earnings Presentation
33 slides from Dassault Aviation Sa's earnings presentation, Sep 4, 2019
Slide 1: Press Conference September 4, 2019
PRESS CONFERENCE September 4, 2019
Slide 2: Paris Air Show 2019 (1/3): FCAS industrial agreement
PARIS AIR SHOW 2019 (1/3) Future Combat Air System (FCAS): industrial agreement and submission of proposals to France and Germany Dassault Aviation and Airbus Defence and Space reached a major milestones of the FCAS program. Éric Trappier, Chief Executive Officer of Dassault Aviation, and Dirk Hoke,
Slide 3: Paris Air Show 2019 (2/3)
PARIS AIR SHOW 2019 (2/3) French President visit Tributes Announcement of Archange and Albatros by the French Armed Forces Minister PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 4: Paris Air Show 2019 (3/3)
PARIS AIR SHOW 2019 (3/3) Minister of Transport visit AI & Big Data at Paris Air Lab Prime Minister visit Recruitment Foreign delegations PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 5: Context
CONTEXT European elections Environmental pressures Uncertainties: Geopolitical tension and terrorism Trade war between China and the United States Brexit Economic environment $/€ exchange rate PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 6: Future Combat Air System (FCAS)
FUTURE COMBAT AIR SYSTEM (FCAS) Unveiling of the first mock-ups of the New Generation Fighter (NGF) and support drones The industrial agreement covers demonstrator programs for the main components of the Future Combat Air System: New Generation Fighter and support drones. Joint industrial proposals
Slide 7: Rafale France (1/2)
RAFALE FRANCE (1/2) No deliveries in 2019 in accordance with the Military Programming Law. Delivery of the 28 Rafale remaining of the 180 ordered will start again in 2022. Commencement of work on the F4-standard Rafale. F4-Standard: AASM 1000 kg integration study PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 8: Rafale France (2/2) - RAVEL
RAFALE FRANCE (2/2) - RAVEL RAVEL contract notification for the french Rafale Operational Condition Maintenance (OCM). Dassault Aviation is the OCM single prime contractor for: aircraft equipment (excluding engines and seats) enhanced technical and logistical services a 10 year term Through-li
Slide 9: Rafale Qatar
RAFALE QATAR Delivery of the first 10 Rafale of the 36 ordered (end of August, 15 Rafale delivered). Continued training of the pilots at Dassault Aviation Convention Training Center (CTC) and set up of local technical support. His Excellency Dr. Khalid bin Mohamed Al Attiyah, Qatar Deputy Prime Mini
Slide 10: Rafale Egypt and Rafale India
RAFALE EGYPT AND RAFALE INDIA Rafale Egypt Delivery of the 24th Rafale in July (not included in first semester) Rafale India 1st deliveries in 2019 of the contract of 36 Rafale ordered Indian Forces getting ready for the entry into service of the Rafale Prime Minister Narendra Modi re-elected Discus
Slide 11: Make in India - Production line in India
MAKE IN INDIA - IMPLEMENTATION OF A PRODUCTION LINE IN INDIA Dassault Reliance Aerospace Ltd subsidiary in Nagpur: progressive ramp up Construction of the main hangar (2nd hangar) Production release of the first Falcon 2000 assemblies (5 front tanks, 3 front sections) Development of an Indian supply
Slide 12: Eurodrone
EURODRONE Ongoing set-up by Airbus Defence and Space, with Leonardo and Dassault Aviation as main subcontractors, of proposals in response to the OCCAR (Organization for Joint Armament Cooperation) invitation to tender, with a view to signing a contract for the development, production and initial su
Slide 13: Space Programs
SPACE PROGRAMS Space vehicles Pursuit of the studies for the reusable orbital vehicle « Space Rider » from the ESA (1st flight planned in 2021). Dassault Aviation responsible for the vehicle design and approached for the missions’ definition. Interest in the new Defense space policy PRESS CONFERENCE
Slide 14: Maritime Patrol Aircraft
MARITIME PATROL AIRCRAFT Delivery of the ATL2 upgrade and of the first modernized aircraft. PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 15: Multi-Mission Falcon
MULTI-MISSION FALCON Japan Delivery of the first 2 aircraft. Order of a 6th Falcon 2000MSA for maritime surveillance by the Japanese Coast Guards. France Announcement by the French Armed Forces Minister on June 17, 2019 of plans to buy: 3 Falcon 8X « Archange » to implement the Universal Electroni
Slide 16: Business Jet Market
BUSINESS JET MARKET Very flat market at the start of the year leading to an order intake of only 7 Falcon at the end of June. Numerous prospects and negotiations started during the period. July and August: finalization and achievement resulting in a total of 26 Falcon order intake as of August
Slide 17: Falcon 6X
FALCON 6X Program progressing in line with schedule for an entry into service in 2022 Production of the first components and commencement of work on the first T5 sub-assemblies and wing. nominal PW812D engine tests: 4 engines in the test phase, 1,000 test hours 150 hours carried out on a flying
Slide 18: Falcon in Service (1/2)
FALCON IN SERVICE (1/2) Considering the effort made in Falcon support since a few years (Falcon Response, parts availability, service centers network…) the business jet market acknowledged Dassault Aviation’s great results: N°1 overall (AIN and ProPilot) N°1 parts availability (AIN and ProPilot) N°1
Slide 19: Falcon in Service (2/2)
FALCON IN SERVICE (2/2) Falcon 8X New time record across United States: from Santa Monica to Teterboro in 4:28 hours (take off on a length and noise restricted field). Excellent customer feedback on the comfort of the Falcon 8X, recognized as the quietest jet on the market. Continuous improvement of
Slide 20: Falcon Family
FALCON FAMILY 8X (6 450 NM) 7X (5 950 NM) 6X (5 500 NM) from 2022 900LX (4 750 NM) 2000LXS (4 000 NM) 2000S (3 350 NM) PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 21: Future Falcon
FUTURE FALCON In progress: marketing and technical studies are ongoing. PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 22: Falcon Customer Service
FALCON CUSTOMER SERVICE Continuing development of a network of excellence while expending our market share in Falcon maintenance: acquisition, in July, of RUAG’s business jet operations in Geneva and Lugano (in addition to the previous acquisitions of ExecuJet and TAG Aviation - Europe operations).
Slide 23: Transformation Plan
TRANSFORMATION PLAN The transformation plan covers all the areas initially targeted (culture, skills and organization; digital tools, process and innovation; industrial tools; program management). In the 1st half of 2019, this involved: new appointements, the implementation of the extended engin
Slide 24: Digital (1/2)
DIGITAL (1/2) Ramp-up of the Dassault Systèmes 3DExperience™ collaborative engineering platform: Dassault Aviation / Dassault Systèmes strategic partnership (cf. next slide Dassault Systèmes Q2 results press conference abstract). The future Falcon program is the 1st to use 3DExperience™. Big Data: i
Slide 25: Digital (2/2)
DIGITAL (2/2) Dassault Systèmes’ Press conference abstract dated July 24, 2019 PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 26: Industrial
INDUSTRIAL Decision to relocate from Argenteuil to Cergy. Mérignac: laying of the foundation stone of the future building that will house some of the Company’s operational departments. Biarritz: modernization works. Martignas: delivery in August of the building for the pyrotechnics Laying of the fou
Slide 27: Order Intake, Deliveries and Backlog - In Units
ORDER INTAKE, DELIVERIES AND BACKLOG - IN UNITS Order Intake Deliveries Backlog 2019 1st half 2018 1st half 2019 1st half 2018 1st half 06.30.2019 12.31.2018 18 17 53 15 43 7 Falcon 101 91 63 73 12 10 Rafale Export Rafale France 0 2 28 28 PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 28: Order Intake, Net Sales and Backlog - In € Billion
ORDER INTAKE, NET SALES AND BACKLOG - IN € BILLION Note: Dassault Aviation recognizes the Rafale Export contracts in their entirety (with the Thales and Safran parts) and the OCM RAVEL contract for Rafale France, whereas for all other contracts, only the Dassault Aviation part is recognized. Defense
Slide 29: End of August: Order Intake, Deliveries and Backlog
ORDER INTAKE, DELIVERIES AND BACKLOG - IN UNITS END OF AUGUST Order Intake Deliveries Backlog End of august 2019 2019 1st half End of august 2019 2019 1st half 08.31.2019 06.30.2019 12.31.2018 26 23 17 56 53 43 7 Falcon 91 101 85 16 73 10 57 63 Rafale Export Rafale France 0 0 28 28 28 PRESS CONFEREN
Slide 30: Consolidated Self-Funded R&D - In € Million
CONSOLIDATED SELF-FUNDED R&D - IN € MILLION € 258 M (8.4% of Net Sales) Reminder: 488 431 392 293 313 € 143 M (8.4% of Net Sales) 2014 2015 2016 2017 2018 9.2 % of net sales on average 2019 1st half 2018 1st half PRESS CONFERENCE – SEPTEMBER 4, 2019
Slide 31: Adjusted Consolidated Income Statement
ADJUSTED CONSOLIDATED INCOME STATEMENT 1st HALF in € millions 2019 2018 NET SALES 3,058 1,709 OPERATING INCOME 250 111 Operating margin 8.2% 6.5% FINANCIAL INCOME -26 -38 THALES and other equity affiliates 143 134 TAXES -81 -21 NET INCOME 286 186 Net income margin 9.4% 10.9% PRESS CONFERENCE – SEPTE
Slide 32: Consolidated Available Cash
CONSOLIDATED AVAILABLE CASH The € 4.8 Bn cash includes in particular, Rafale Export down payments received for ongoing € 5.2 Bn contracts. € 4.8 Bn N.B.: in the coming years Rafale Export contract execution, development of two Falcon programs and large investments for the transformation plan in the
Slide 33: Press Conference September 4, 2019
PRESS CONFERENCE September 4, 2019