Dassault Aviation Sa · EURONEXT:AM
Dassault Aviation Sa — H1 2017 Earnings Presentation
29 slides from Dassault Aviation Sa's earnings presentation, Jul 26, 2017
Slide 1: Press Conference
PRESS CONFERENCE Saint-Cloud – July, 26th 2017
Slide 2: Ordre du jour
Ordre du jour ACTIVITIES and PROGRAMS 1st half 2017 1st half 2017 results – Press conference July, 26th 2017
Slide 3: Context
Context • New President of the French Republic, new Prime Minister and new Defense Minister, • Defense strategic review, • new Defense Procurement Law in 2019, • India : execution of the 36 RAFALE contract, need of the « make in India » to win new orders, • FALCON 5X 1st flight, • business jet marke
Slide 4: RAFALE France
RAFALE France • Delivery of 1 RAFALE, bringing the total delivered to 149 out of 180 ordered, • delivery of 1 naval RAFALE retrofitted to standard F3, • continuation of development works on the F3-R standard, including the final validation firing of the METEOR missile, • RAFALE support, in regards o
Slide 5: RAFALE Export (1/2)
RAFALE Export (1/2) EGYPT • delivery of 3 RAFALE during the 1st half 2017 (*) bringing to 9 the total delivered out of 24 ordered, • continuation on Egyptian RAFALE support in accordance with the contract. (*) 2 RAFALE Egypt were delivered in July 2017. 1st half 2017 results – Press conference July,
Slide 6: RAFALE Export (2/2)
RAFALE Export (2/2) QATAR • 24 RAFALE contract under execution. INDIA • 36 RAFALE contract under execution, • answer to the Request For Information to supply 57 naval RAFALE to the Indian Navy. Continuing promotion of Export RAFALE 1st half 2017 results – Press conference July, 26th 2017
Slide 7: Dassault Reliance Aerospace Limited DRAL (1/2)
Dassault Reliance Aerospace Limited DRAL (1/2) • Material needs for combat aircraft in India : additional batches for the Air forces, 57 aircraft for the navy, • imperative need of success of the « Make in India » to hope winning those contracts, creation of the DRAL JV on February 10, 2017, loc
Slide 8: Dassault Reliance Aerospace Limited DRAL (2/2)
Dassault Reliance Aerospace Limited DRAL (2/2) • Progressive ramp up, over 5 years, from the start of production, scheduled for late 2017, to the manufacture of FALCON 2000 components and RAFALE sub-assemblies, in order to : build the required infrastructures, hire and train staff, ensure proc
Slide 9: MIRAGE 2000
MIRAGE 2000 • INDIA : continuation of support to HAL in India for the upgrade of the aircraft, • FRANCE : continuation of upgrade works for the MIRAGE 2000D, • support to MIRAGE 2000 fleet, all countries. 1st half 2017 results – Press conference July, 26th 2017
Slide 10: Maritime Surveillance
Maritime Surveillance ATLANTIQUE 2 Continuation of test in flight and on ground of the upgraded combat system of the ATLANTIQUE 2, use of process with tools « PLM Systèmes » enabling main partners, SIAé, Naval Group (ex-DCNS), Thales and Dassault Aviation to collaborate on a common platform type V6.
Slide 11: Maritime Surveillance
Maritime Surveillance JAPAN Notification by the Japan Coast Guards of the purchase of a 4th Maritime Surveillance FALCON 2000. FRANCE Continuation of works on additional capacity for dropping chains on four FALCON 50 Maritime Surveillance. 1st half 2017 results – Press conference July, 26th 2017
Slide 12: nEUROn
nEUROn • 2017 test campaign for France : radar signature measurements by DGA (French Defense Procurement Agency). • Contract in negotiation for a new flight test campaign in the 2nd half of 2017. 1st half 2017 results – Press conference July, 26th 2017
Slide 13: Franco-British Program / FCAS
FRANCO-BRITISH PROGRAM / FCAS FCAS (Future Combat Air System) In the frame of the Franco-British treaty of Lancaster House : • continuation of the feasibility phase, • preparation with our industrial partners BAE Systems, Thales, Leonardo, Rolls- Royce, and Safran of a proposal for a launch, by the
Slide 14: MALE RPAS
MALE RPAS (Medium Altitude Long Endurance Remotely Piloted Aircraft System) • Airbus Defense & Space, Leonardo and Dassault Aviation carry on the definition study in order to develop a drone MALE, • this study was notified in 2016 by the OCCAR (Organization for Joint Armament Cooperation), in conjun
Slide 15: Business jet market
Business jet market • Persistent difficulties on the business jet market with intense price competition and a weak demand, • geopolitical uncertainties (US taxes, institutional crisis in Brazil…), • pre-used aircraft high inventory, recent increase of number of deals but at historically low prices.
Slide 16: FALCON 5X
FALCON 5X July 5th 2017 : FALCON 5X 1st flight • 2-hour flight performed with a preliminary version of the Safran Silvercrest engines, because design issues have delayed the power plant development 4 years beyond the initial schedule (the entry into service of the FALCON 5X was moved from 2017 to 20
Slide 17: FALCON 8X
FALCON 8X Mature aircraft and well appreciated from its entry into service • Comfortable and silent cabin, • London City Airport certification : February 2017, • long range demonstration : Singapour - London : 6,300 nm, Flight duration : 14 hours, • certification of the FalconEye pilot assistanc
Slide 18: FALCON Family
FALCON Family 2000S (3,350 NM) 2000LXS (4,000 NM) 900LX (4,750 NM) 5X (5,200 NM) 7X (5,950 NM) 8X (6,450 NM) 1st half 2017 results – Press conference July, 26th 2017
Slide 19: FALCON Customer Support
FALCON Customer Support • Expansion of our FALCON after sales network (2 new Service Centers approved in Malaysia and Austria). • Services improvement : Falcon Sphere II, flight preparation assistance, Falcon Immersive Training, training for mechanics using virtual reality, Falcon Broadcast, c
Slide 20: 1st half 2017 Results
1st half 2017 Results 1st half 2017 results – Press conference July, 26th 2017
Slide 21: Order intake, deliveries and backlog
Order intake, deliveries and backlog in units ORDER INTAKE DELIVERIES BACKLOG 1st half 2017 1st half 2016 1st half 2017 1st half 2016 06.30.2017 12.31.2016 17 14 15 60 63 11 22 FALCON 106 110 -11 F5X 75 78 7 RAFALE Export 4 3 RAFALE France 0 0 3 4 31 32 1 1st half 2017 results – Press conference Jul
Slide 22: Order intake, net sales and backlog
Order intake, net sales and backlog in € Bn N.B.: DASSAULT AVIATION recognizes the RAFALE Export contracts in their entirety (i.e. including the THALES and SNECMA parts), whereas for France, only the DASSAULT AVIATION part is recognized. ORDER INTAKE NET SALES BACKLOG 1st half 2017 1st half 2016 1st
Slide 23: Self-funded R&D
Self-funded R&D in € million Self-funded R&D increased due to FALCON 5X 482 488 387 431 €176M (8.6% of net sales) 293 €130M (7.8% of net sales) 2012 2013 2014 2015 2016 10.4 % of average net sales 1st half 2017 1st half 2016 1st half 2017 results – Press conference July, 26th 2017
Slide 24: Group adjusted income statement
Group adjusted income statement 1st half in € million 2017 2016 NET SALES 2,050 1,662 OPERATING INCOME 123 125 Operating margin 6.5% 7.5% FINANCIAL RESULT 16 17 THALES and other equity affiliates 106 91 TAXES -46 -48 NET INCOME 199 185 Net margin 9.7% 11.1% nb: earnings per share 24.32 € 21.4 € 1st
Slide 25: Available cash
Available cash in € Bn Down Inventories and payments work in progress Others € 1.1 Bn € -0.2 Bn € -0.2 Bn € 3.8 Bn € 3.1 Bn 12.31.2016 31.12.2016 Acomptes Stocks et encours Autres 06.30.2017 30.06.2017 1st half 2017 results – Press conference July, 26th 2017
Slide 26: Changes in capital after dividend payment
Changes in capital after dividend payment in shares • To pay the dividend in shares, 61,136 new shares were created and distributed on June 21st 2017, • our main shareholder, GIMD, opted to receive 100% of its dividend in shares, 47% of the free float decided to be paid in shares, and Airbus opted t
Slide 27: Transformation plan follow-up: Leading our future
Transformation plan follow-up « Leading our future » • Plan in 4 points (culture and organization, digital transformation, industrial transformation, program management) scheduled to be run over several years, • first decisions taken : launch of digital transformation projects (including 3DExperie
Slide 28: Outlook and Strategy
Outlook and Strategy In this uncertain environment, we have to : • insure FALCON sales of all models, • prepare new contracts for RAFALE and successfully implement the essential “Make in India”, • obtain development contracts in France and/or in cooperation (F4, FCAS, MALE, …) to ensure our future b
Slide 29: Press Conference
PRESS CONFERENCE Saint-Cloud – July, 26th 2017