Dassault Aviation : 2012 annual results

Dassault Aviation : 2012 annual results 
SAINT-CLOUD CEDEX 300, FRANCE -- (Marketwire) -- 03/14/13 -- 

|Order intake         58 FALCON compared to 36 in 2011                    |

|Deliveries           66 FALCON and 11 RAFALE compared to 63 FALCON and 11|
|                     RAFALE in 2011                                      |

|Net sales            EUR 3,941 million, up by 19%                        |
|                                                                         |
|Adjusted net income* EUR 524 million, up by 25%                          |
|                                                                         |
|Adjusted net margin* 13.3% (+0.6 point)                                  |

*  From 2012 and on, in order to  enable a better monitoring and
benchmarking of its economic performance, DASSAULT AVIATION presents
an adjusted net income. The Group consolidated net income is adjusted
with : 
*  neutralizing amortization of THALES purchase price allocation
*  neutralizing  change in fair  value of derivative  exchange
instruments not     eligible to hedge accounting. 
Cf.  Appendix  1: Table  of  reconciliation  between consolidated net
income and adjusted net income. 
The  Board  of  Directors,  chaired  by Mr. Eric TRAPPIER,  closed
yesterday  the financial  statements for  the year 2012.
consolidated  financial statements were certified  by the
Statutory Auditors who expressed an unqualified conclusion. 
Eric TRAPPIER, Chairman and CEO of DASSAULT AVIATION, stated : 
<<The  year 2012 started  well with  the RAFALE  selection by  India.
This choice based  on technical,  operational and  financial criteria
 confirms our aircraft
The  technical success  of the  nEUROn was  added to  this RAFALE
selection. We marked  the history of aeronautics with the flight of
the first European furtive
aircraft. With the nEUROn, we show at the
same time our technical skills and our know-how as prime contractor
in a multinational partnership. 
These  skills and this know-how are also  implemented in the manner
we currently
develop  our  SMS.  Technologically  and  commercially 
very ambitious, this new business jet will be released within a few
In  France, an important  Defense budget cut  is announced, due  to
the national
debt  crisis. This reduction of the military  budgets,
which is observed in many
other  countries, reinforces  the
aggressiveness  of our competitors, especially
Concerning  business jets, the  uncertain evolution of  the world
economy and in particular  of  our  historical  markets,  United 
States  and  Western Europe,
encourages us to remain vigilant. 
Finally,  the  dollar  weakness  remains  a  strong  and not easily
constraint because of the spasms of the international
financial system>>. 
Order intake and backlog 
2012 orders  amounted  to  EUR  3,325 million  compared to EUR 2,863
millions in 2011. Export represented 78 % of the total order intake. 
New  orders, net  of cancellations,  stood at  58 FALCON in 2012
compared to 36 FALCON in 2011. 
Commercial  activity increased compared to 2011, in particular at the
end of the year.  Asia remained very active, as well as South America.
North America market
showed some encouraging signs, but wait and see
policy still applies. 
Defense  orders amounted to EUR 793 million  in 2012 compared to EUR
931 million
in  2011 and corresponded  to support  and development. 
They decreased  by 15%
compared  to 2011 which included, in
particular, the contract for the upgrade of the Indian Air Force's
MIRAGE 2000 fleet. 
As  of December 31(st), 2012 consolidated backlog  amounted to EUR
7,991 million
compared to EUR 8,751 million as of December 31(st),
2011, down by 9%. 
Net sales 
Consolidated  net sales increased  by 19% to EUR  3,941 million in
2012 from EUR 3,305 million  in 2011. Export net  sales represented
75% of  the 2012 total net sales. 
FALCON  net sales increased  by 16% reaching EUR  2,797 million in
2012 from EUR 2,415 million in 2011. 66 FALCON were delivered in 2012
(compared to 63 in 2011). 
FALCON net sales represented 71% of the 2012 total net sales. 
11 RAFALE  were delivered to the French Air Force and Navy in 2012,
as in 2011.
Defense  net  sales  showed  an  upturn  of  29% due  to 
an  increase in RAFALE
development activity. 
The book-to-bill ratio reached 0.84. 
Operating income 
2012 operating  income reached  EUR 547 million  compared to  EUR 377
million in 2011, up by 45%. 
Operating margin improved to 13.9% from 11.4% in 2011. 
This  improvement is  due to  the increase  of net  sales and  a
better currency
Adjusted financial income 
In 2012, adjusted financial income amounted to EUR 16 million,
compared to EUR
32 million in 2011. This fall-off results mainly from
the following factors : 
*  the  Group made a profit  of EUR 12 million on  the sale of some
available-for-sale  marketable securities  compared to  a profit  of
EUR 38 million in     2011, 
*  borrowing costs are EUR 2 million compared to EUR 13 million in
Adjusted net income 
Adjusted net income stood at EUR 524 million compared to EUR 419
million in 2011, up by 25%. Adjusted net margin reached 13.3%, versus
12.7% in 2011. 
THALES contribution to the Group net income, before amortization of
Price Allocation amounted to EUR 158 million in 2012
compared to EUR 125 million
in 2011. 
2012 consolidated  net income amounted  to EUR 510 million  compared
to EUR 323
million in 2011. 
Financial situation 
The  Group has defined a specific indicator, "Available cash", that
reflects the Group's total liquidities net of borrowings. 
Consolidated   available   cash   reached   EUR 3,760 million   as 
of December
31(st), 2012 compared  to EUR  3,274 million as  of
December 31(st), 2011, up by EUR 486 million. 
This  rise is notably due to consolidated  net cash from operating
activities (+ EUR  500 million),  and  to  a  decrease  in working
capital (+ EUR 109 million)
partially  offset by investments (- EUR
66 million) and dividends payment (- EUR 86 million). 
Apart  from  working  capital,  the  balance  sheet structure is
impacted by the repayment  of  the  EUR  400 million  loan  subscribed
 in  the framework of the acquisition of THALES shares. 
The  Board  of  Directors  will  submit  for  approval at the General
Meeting of shareholders  in May 15(th), 2013, the payment of  a
dividend of EUR 94 million,
representing EUR 9.30 per share (versus
EUR 8.50 per share in 2011). 
Group activities 
Regarding  business jets, 2012 was marked by the  launch at NBAA of a
2000 version,  FALCON 2000LXS, and  by the  progress of 
the FALCON 2000S flight
tests,  with in particular the demonstration 
of "low speed" performances better
than expected. 
Regarding  military activities, 2012 was marked by the RAFALE
selection by India
as  the winner of MMRCA competition and the start
of exclusive negotiations with
Indian Air Force. The contract has to
be finalized. 
Concerning other programs, it has to be noted : 
* the maiden flight of the Unmanned Combat Air Vehicle demonstrator
nEUROn, in     Istres   (France)  on  December  1(st), 2012. This 
program,  with DASSAULT 
AVIATION as prime contractor, involves
five European industrial partners, 
* the  notification by the  French DGA and  the UK Ministry  of
Defense of the     preparatory  study  for  the  launch  of  a  FCAS
(Future Combat Air System) 
demonstrator in cooperation with BAE
2013 outlook 
Business jets market remains convalescent but we hope for a recovery,
in the United States. 
Regarding  military  aircraft,  we  have  to  capitalize on export
related to the RAFALE. 
With  the  signature  of  the  French-British  UCAS agreement, the
Group aims at preparing the future with drones. 
Since  the Indian authorities announced, at  the end of January 2012,
final  selection in the frame of the MMRCA  program in
order to equip the Indian
Air   Force  with  126 new  aircraft, 
DASSAULT  AVIATION  keep  mobilized into
finalizing the contract. 
DASSAULT  AVIATION Group  expects to  deliver around  70 FALCON and
11 RAFALE in 2013. 2013 net sales should be higher than 2012 net
Appendix 1: table of reconciliation between consolidated income
and adjusted 
In  2012, the  impact  of  the  change  in  fair  value  of 
derivative exchange
instruments  adjustment  and  the  THALES  PPA
amortization adjustment on income
statement is detailed below : 

|               |             |                |Change in fair |          |
|               |    2012     |   THALES PPA   |   value of    |   2012   |
|(EUR thousands)|Consolidated |amortization (1)|  derivative   | Adjusted |
|               |    data     |                |   exchange    |   data   |
|               |             |                |instruments (2)|          |
|Financial      |       97,897|                |        -82,154|    15,743|
|income         |             |                |               |          |
|Share of income|             |                |               |          |
|of equity      |       90,436|          67,967|               |   158,403|
|affiliates     |             |                |               |          |
|Income tax     |     -225,441|                |         28,286|  -197,155|
|Net income     |      509,878|          67,967|        -53,868|   523,977|

(1) neutralization of THALES Purchase Price Allocation (PPA)
amortization, net
 of income tax. 
(2)  neutralization  of  the  change  in  fair  value,  net  of
income tax, of
 derivative  exchange  instruments  which  do  not
qualify for hedge accounting
 under the specific rules of IAS 39
<<Financial Instruments>>. 
In  2011, the  impact  of  the  change  in  fair  value  of 
derivative exchange
instruments  adjustment  and  the  THALES  PPA
amortization adjustment on income
statement is detailed below: 

|               |            |                |Change in fair |           |
|               |    2011    |   THALES PPA   |   value of    |   2011    |
|(EUR thousands)|Consolidated|amortization (1)|  derivative   | Adjusted  |
|               |    data    |                |   exchange    |   data    |
|               |            |                |instruments (2)|           |
|Financial      |      13,979|                |         18,425|     32,404|
|income         |            |                |               |           |
|Share of income|            |                |               |           |
|of equity      |      41,064|          83,858|               |    124,922|
|affiliates     |            |                |               |           |
|Income tax     |    -108,879|                |         -6,344|   -115,223|
|Net income     |     322,665|          83,858|         12,081|    418,604|

(1) neutralization of THALES Purchase  Price Allocation (PPA)
amortization, net
of income tax. 
(2) neutralization of the change in fair value, net of income tax, of
exchange  instruments  which  do  not  qualify  for  hedge
 accounting under the specific rules of IAS 39 <<Financial
Readers are reminded that only the consolidated financial statements
are audited
by  the Group's statutory  auditors. Adjusted financial 
data are subject to the verification  procedures applicable to  all
of the  information provided in this
press release. 
Dassault Aviation : 2012 annual results:
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Source: Dassault Aviation via Thomson Reuters ONE 
Contact :
Stephane Fort
Corporate communication
Tel.: + 33 (0)1 47 11 86 90 
More information on: www.dassault-aviation.com/finance
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