Dassault Aviation : Dassault Aviation : 2012 annual results

         Dassault Aviation : Dassault Aviation : 2012 annual results

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%
Adjustednet 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 (PPA),

  *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.

Saint-Cloud, 14  March 2013  - The  Board of  Directors, chaired  by Mr.  Éric 
TRAPPIER, closed yesterday the financial  statements for the year 2012.  These 
consolidated financial statements were certified by the Statutory Auditors who
expressed an unqualified conclusion.

Éric 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 
superiority.

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 months.

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 
Americans.

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  controllable 
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 58FALCON 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 
hedging.

Adjustedfinancial 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 2011.

Adjusted net income

Adjusted net income stood at EUR 524 million compared to EUR 419million 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 Purchase
Price Allocation amounted to EUR158 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 EUR3,760million 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 new FALCON
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 Systems.

2013 outlook

Business jets  market  remains  convalescent  but  we  hope  for  a  recovery, 
especially in the United States.

Regarding military aircraft,  we have  to capitalize  on export  opportunities 
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, the RAFALE
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 sales.

                                                                     Contact:
                                                                 Stéphane Fort
                                                       Corporate communication
                                                  Tel. : + 33 (0)1 47 11 86 90

                        More information on: www.dassault-aviation.com/finance

  Appendix 1: table of reconciliation between consolidated income and adjusted
                                                                        income

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 income          97,897                            -82,154     15,743
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:

                    2011      THALES PPA   Change in fair value of     2011
(EUR thousands) Consolidated amortization    derivative exchange     Adjusted
                    data         (1)           instruments (2)         data
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 
derivative exchange  instruments which  do not  qualify for  hedge  accounting 
under the specific rules of IAS 39 «Financial Instruments».

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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