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Dassault Aviation Sa — FY2019 Earnings Presentation

32 slides from Dassault Aviation Sa's earnings presentation, Feb 27, 2020

  1. Slide 1: Press Conference

    PRESS CONFERENCE February 27, 2020

  2. Slide 2: Activities & Programs

    ACTIVITIES & PROGRAMS

  3. Slide 3: Highlights

    HIGHLIGHTS Delivery of 26 Rafale Export FCAS launch and unveiling of the mock-ups February 20, 2020 : launch of the demonstrators Falcon : Falcon 6X program development on schedule  40 deliveries, 40 orders  Dassault Aviation #1 in Support (AIN & ProPilot) 3 PRESS CONFERENCE - FEBRUARY 27, 2020 Th

  4. Slide 4: Context

    CONTEXT  Geopolitical & economical uncertainties : • Geopolitical tensions and terrorism • Trade wars: China / United States; Europe / United States,… WTO role • U.S. elections in 2020  Which model for Europe? (Brexit, …)  Rise of environmental concerns, Green deal, International Civil Aviation O

  5. Slide 5: Rafale Export

    RAFALE EXPORT Delivery of 26 Rafale in line with the guidance (as of December 31, 2019 : 49 delivered, 47 in backlog) Guidance 2020 : 13 Rafale deliveries 5 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Dassault Aviation. It cannot be used, replicated, edited or

  6. Slide 6: Future Combat Air System (FCAS)

    FUTUR COMBAT AIR SYSTEM (FCAS) June 2019: first mock-ups of the New Generation Fighter (NGF) and its support drones unveiled  The industrial agreement covers demonstrator programs for the main components of the Future Combat Air System: New Generation Fighter and its support drones  Submission of

  7. Slide 7: Rafale France (1/2)

    RAFALE FRANCE (1/2) No deliveries in 2019 in accordance with the French Military Procurement Law  Delivery of the 28 Rafale remaining out of the 180 ordered will resume in 2022  Potential 5th batch (French Military Procurement Law): deliveries starting from 2027  Start of the F4-standard developm

  8. Slide 8: Rafale France (2/2) - RAVEL

    RAFALE FRANCE (2/2) - RAVEL Signature of RAVEL, a fully integrated support contract for French Rafale Dassault Aviation is the single contractor for:  aircraft equipment (excluding engines and seats),  enhanced technical and logistical services,  a 10 year term. Support activities will be based o

  9. Slide 9: EuroDrone

    EURODRONE Airbus Defence and Space (prime contractor), with Leonardo and Dassault Aviation as Main Subcontractors, started negotiations with OCCAR (Organization for Joint Armament Cooperation) in order to contractualize in 2020 the development, the production and the initial support of a Medium Alti

  10. Slide 10: nEUROn

    nEUROn Continuing the nEUROn flight test campaign 2018-2021 dedicated to stealthiness with the French Defense Procurement Agency, the French Air Force, and the French Navy 10 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Dassault Aviation. It cannot be used, repl

  11. Slide 11: Space Programs

    SPACE PROGRAMS Space Vehicles Pursuit of the studies for the reusable orbital vehicle « Space Rider » from the ESA Dassault Aviation is responsible for the vehicle design Interest in the new Defense space policy 11 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Da

  12. Slide 12: Maritime Patrol Aircraft

    MARITIME PATROL AIRCRAFT Delivery of the ATL2 upgrade and of the 2 first modernized aircraft (out of 18)  Dassault Aviation: system architect  Thales: radar and acoustic detection  Naval Group: core system software 12 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property

  13. Slide 13: Multi-Mission Falcon

    MULTI-MISSION FALCON Japan  Delivery of the first 4 aircraft  Order of a 6th Falcon for maritime surveillance by the Japanese Coast Guards in 2019 France Following the announcement by the French Armed Forces Minister on June 17, 2019 :  Order at the end of 2019 of 2 Falcon 8X « Archange » for the

  14. Slide 14: Falcon

    FALCON  2019: 40 deliveries, 40 orders, 53 Falcon in Backlog as of December 31  Challenging market, continued competitive pressure  Falcon Family extension • Falcon 6X: entry into service in 2022 • Future Falcon: to be announced in 2020  Guidance 2020: 40 deliveries 14 PRESS CONFERENCE - FEBRUAR

  15. Slide 15: 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) 15 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Dassault Aviation. It cannot be used, replicated, edited or communicated without its prior auth

  16. Slide 16: Falcon 6X

    FALCON 6X Program development on schedule for a 2022 entry into service  Wing assembly in process in Martignas  Fuselage assembly of aircraft #1 finished in Biarritz  Testbeds in activity (Istres, Saint-Cloud, suppliers…)  Nominal PW812D engine testings: • 6 engines in test phase: 1,400 test hou

  17. Slide 17: Falcon Customer Service (1/2)

    FALCON CUSTOMER SERVICE (1/2) Continuing development of a network of excellence while expending our market share in Falcon maintenance: +17 service centers worldwide Post-acquisitions worldwide network of service-centers : + 60 sites 2019 Acquisitions January 2019 (closing in March 2019 except Dubai

  18. Slide 18: Falcon Customer Service (2/2)

    FALCON CUSTOMER SERVICE (2/2) In 2019, considering the effort made in Falcon support since a few years (Falcon Response, parts availability, service center network…), the business jet market acknowledged Dassault Aviation’s great results: #1 overall (AIN and ProPilot) #1 parts availability (AIN and

  19. Slide 19: Digital

    DIGITAL  Ramp-up of the Dassault Systèmes 3DExperience™ collaborative engineering platform: Dassault Aviation / Dassault Systèmes strategic partnership  The future Falcon program is the 1st to use 3DExperience™  Big Data: • implementation of a Dassault Aviation/Dassault Systèmes platform to meet

  20. Slide 20: Geographical Footprint

    GEOGRAPHICAL FOOTPRINT FALCON SERVICE CENTERS NOT INCLUDED SECLIN • Shaped and machined metallic parts TETERBORO (DFJ) ARGENTEUIL / CERGY PROJECT • Falcon sales 2021 • Spare parts LE BOURGET • Marketing • Complex piping • Showroom, Falcon deliveries • Forward fuselage assembly • Equipped skin panels

  21. Slide 21: Make in India – Rafale Offset and Falcon 2000 in India

    MAKE IN INDIA – RAFALE OFFSET AND FALCON 2000 IN INDIA Dassault Reliance Aerospace Ltd in Nagpur: progressive ramp up  Commissioning of the new 12,000 m² production hangar  2 new buildings construction to start in 2020  Production ramp up of the Falcon 2000 assemblies and first Rafale assemblies

  22. Slide 22: Corporate Social Responsibility (1/2)

    CORPORATE SOCIAL RESPONSIBILITY (1/2) Dassault Aviation strengthens its approach by setting up a CSR Group policy regarding 5 major themes:  Attractive and motivating social model  Healthy and secure workplace  Environmental performance of our activities and products  Compliance to the regulatio

  23. Slide 23: Corporate Social Responsibility (2/2)

    CORPORATE SOCIAL RESPONSIBILITY (2/2) 2019 HIGHLIGHTS  Recruitment and diversity: numerous recruiting in 2019, 23% of which are women  Quality of life at work: (teleworking, nurseries, concierge services)  Carbon footprint: strengthening low carbon actions • Falcon Service Advisory, biofuels, fli

  24. Slide 24: 2019 Results

    2019 RESULTS

  25. Slide 25: Order Intake, Deliveries and Backlog in Units

    ORDER INTAKE, DELIVERIES AND BACKLOG IN UNITS Order intake Deliveries Backlog 2019 2018 2019 2018 12.31.2019 12.31.2018 40 42 53 53 40 41 Falcon 101 75 73 47 Rafale Export 26 12 12 Rafale France 0 9 3 28 28 25 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Dassaul

  26. Slide 26: Order Intake, Net Sales and Backlog

    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) Falcon Defense Export Defense France Order intake Net sales Backlog 2019 2018 2019 2018 12.31.2019 12.31.2018 7.3 19.4 17.8 2.2 5.7 2.2

  27. Slide 27: Consolidated Self-Funded R&D

    CONSOLIDATED SELF-FUNDED R&D IN € MILLION AND IN % OF NET SALES € 527 M 7.2 % of net sales € 392 M 7.7% of net sales 2019 2018 27 PRESS CONFERENCE - FEBRUARY 27, 2020 This document is the intellectual property of Dassault Aviation. It cannot be used, replicated, edited or communicated without its pr

  28. Slide 28: Thales

    THALES  Dassault Aviation has been a shareholder of Thales since 2009 and as a leading industrial shareholder Dassault Aviation has entered into a shareholders' agreement with the French state.  The change in adjusted net income since 2009 is as follows: in € millions 2009 2010 2011 2012 2013 2014

  29. Slide 29: Consolidated Available Cash

    CONSOLIDATED AVAILABLE CASH The € 4.6 Bn cash includes in particular, Rafale Export down payments received for € 5.2 Bn ongoing contracts. € 4.6 Bn This decrease in line with forecast is correlated to the Rafale Export contract execution in backlog. 12.31.2019 12.31.2018 29 PRESS CONFERENCE - FEBRUA

  30. Slide 30: Group Adjusted Income Statement

    GROUP ADJUSTED INCOME STATEMENT 2018 in € millions 2019 published (*) NET SALES 7,341 5,084 OPERATING INCOME 765 669 Operating margin 10.4% 13.2% FINANCIAL INCOME -52 -77 THALES and other equity affiliates 351 294 TAXES -250 -205 NET INCOME 814 681 Net income margin 11.1% 13.4% Earning per share 97.

  31. Slide 31: Dividend

    DIVIDEND Dividend’s proposal 25.4 €/share to be submitted to the Annual General Meeting on May 12, 2020 2019 2018 Dividends € 212 M € 177 M ( ) Payout * 26% 26% Dividend per share € 25.4 € 21.2 (*) on Group adjusted net income Whereas the legal formula would have led for 2019 to an amount of € 38 M

  32. Slide 32: 2020 Outlook and Strategy

    2020 OUTLOOK AND STRATEGY  Meet our Rafale Export and Falcon delivery commitments in terms of quality and schedule,  Sell our Falcon,  Continue Rafale promotional and prospecting activities in India, Finland, Switzerland and other countries,  Continue the Falcon 6X development for an entry into

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