|
2016 |
2015 |
|
|
Order intake |
EUR 9,558 million 36 RAFALE India
21 FALCON including 12 cancellations of FALCON 5X |
EUR 9,884 million 24 RAFALE Egypt 24 RAFALE Qatar 25 FALCON including 20 cancellations of FALCON NetJets |
|
Adjusted net sales (*) |
EUR 3,586 million
6 RAFALE France 3 RAFALE Egypt 49 FALCON |
EUR 4,176 million
5 RAFALE France 3 RAFALE Egypt 55 FALCON |
|
Backlog (as of December 31) |
EUR 20,323 million
110 RAFALE 63 FALCON |
EUR 14,175 million
83 RAFALE 91 FALCON |
|
Adjusted net income (*) |
EUR 384 million
EUR 45.5/share |
EUR 482 million EUR 54.6/share |
| Adjusted net margin (*) |
10.7% of net sales |
11.5% of net sales |
| Available cash
(as of December 31) |
EUR 3,105 million |
EUR 2,885 million |
|
Dividend |
EUR 100 million
EUR 12.1/share |
EUR 110 million
EUR 12.1/share |
| Profit-sharing and incentive schemes
Workforce as of 12/31 |
EUR 84 million
11,942 |
EUR 92 million
12,177 |
(*) See table of reconciliation between the consolidated income statement and the adjusted income statement in appendix.
Note: Dassault Aviation recognizes RAFALE Export contracts in their entirety (including the Thales and Safran parts), whereas for France, only the Dassault Aviation part is recognized.
Saint Cloud, March 8, 2017 – The Board of Directors, chaired yesterday by Mr. Éric TRAPPIER, closed the 2016 financial statements. These consolidated financial statements were certified by the Statutory Au- ditors, who expressed an unqualified opinion.
Éric TRAPPIER, Dassault Aviation’s Chairman and Chief Executive Officer, stated:
“In 2016, we celebrated our centennial, which presented an opportunity to reaffirm our Company’s DNA: a passion for aviation, our civil and military duality, the search for technological innovation, sound manage- ment to ensure the financial health of the Company whilst investing in the future, family shareholding and spirit, teamwork, responsiveness and tenacity, not forgetting the element of luck, symbolized by the clover in our logo.
2016 will be remembered for two major events:
Furthermore, Dassault Aviation’s values were recognized in 2016 when it received the Randstad Award for the most attractive French company for all categories combined, which was followed by the Company being elected the best employer in France, all categories combined, in early 2017 by the Statista Institute for the Capital financial magazine.
Despite these successes and this collective pride, 2016 will also be remembered for the global economic and geopolitical uncertainty that weighed heavily on the business aviation market, which had already been diffi- cult in 2015, in an increasingly gloomy and fierce price war backdrop.
In terms of business aviation, in addition to the first delivery of a FALCON 8X on October 5, 2016, the year was marked by:
With regard to our military aircraft, 2016 resulted in:
In terms of future combat drones:
In 2016, we also announced the creation of a Joint Venture with RELIANCE Group in view of managing off- sets related to the contract for 36 RAFALE India. On February 10, 2017, Dassault Reliance Aerospace Limited was created.
The year 2016 will also be noted for the continued withdrawal by Airbus Group from the capital of Dassault Aviation, leading to further consolidation by our traditional and majority shareholder, GIMD. Dassault Avia- tion’s capital is now 62.0% held by GIMD, 27.5% by free float, 10.0% by Airbus Group and 0.5% by Das- sault Aviation.
Today, our challenge is to prepare for the future in an increasingly unpredictable and competitive environ- ment. Our transformation shall contribute to the launch of a new FALCON and allow us to increase our mar- kets shares, while improving our competitiveness (costs, quality, competitive advantages).
To achieve this goal, we launched a transformation plan called “Leading our Future”. It is based on:
and relies on:
Our objectives for 2017 are:
The Group forecasts that in 2017, it will deliver 45 FALCON and 9 RAFALE (1 to France and 8 to Egypt). 2017 net sales should be higher than in 2016 given the RAFALE Export net sales.
The Board of Directors of Dassault Aviation, having noted the resignation of Mrs. Nicole DASSAULT and Mr. Alain GARCIA, has co-opted:
for the remaining terms of their predecessors’ mandates, or until the Annual General Meeting that will be called to approve the financial statements for fiscal year 2019. Mrs. Mathilde LEMOINE is considered to be an independent director.
These appointments will be definitively settled after the ratification of these co-optations, which will be sub- ject to the approval of the Annual General Shareholders’ Meeting of May 18, 2017.
2016 KEY FIGURES USING CONSOLIDATED ADJUSTED DATA
See table of reconciliation between the consolidated income statement and the adjusted income statement in appendix
2016 order intake was EUR 9,558 million, compared to EUR 9,884 million in 2015. Exports represented
Order intake consists exclusively of firm orders.
21 FALCON were ordered (including 12 FALCON 5X that were canceled as a result of Safran Aircraft Engines being late with the SilverCrest engine), compared to 25 FALCON ordered (including 20 FALCON Netjets canceled) in 2015. Thus FALCON orders represented EUR 1,419 million, compared to EUR 1,602 million in 2015. The weakness of orders reflects a difficult business aviation market.
DEFENSE order intake was EUR 8,139 million in 2016, compared to EUR 8,282 million in 2015. The signature and coming into force of the contract for 36 RAFALE with India follow the coming into force in 2015 of contracts with Egypt (24 RAFALE) and Qatar (24 RAFALE). Dassault Aviation recognizes RAFALE Export contracts in their entirety (including the Thales and Safran parts), whereas for France only the Dassault Aviation part is recognized.
2016 net sales amounted to EUR 3,586 million, compared to EUR 4,176 million in 2015. Exports
represented 83%.
49 FALCON were delivered in 2016, compared to 55 in 2015. This is in line with our forecast of
50 deliveries in 2016. 2016 FALCON net sales amounted to EUR 2,342 million, compared to EUR 2,507 million in 2015.
6 RAFALE were delivered to France and 3 RAFALE to Egypt during fiscal year 2016. DEFENSE net sales in 2016 amounted to EUR 1,244 million, compared to EUR 1,669 million in 2015. The higher DEFENSE net sales for 2015 benefited from the delivery of modernization work to bring the Indian MIRAGE 2000 in line with the I/TI standard.
****
The book to bill ratio (the order intake/net sales ratio) stood at 2.7 in 2016; this was due particularly to the RAFALE India contract, for which net sales will be recognized over several years.
The backlog as of December 31, 2016 was EUR 20,323 million, compared to EUR 14,175 million as of December 31, 2015. The increase is explained by the RAFALE India order in 2016.
The FALCON backlog stood at EUR 3,052 million, compared to EUR 3,798 million as of December 31, 2015. It particularly includes 63 FALCON (compared to 91 as of December 31, 2015).
The France Defense backlog stood at EUR 2,793 million, compared to EUR 2,622 million as of December 31, 2015. It includes in particular 32 RAFALE (compared to 38 as of December 31, 2015).
The Defense Export backlog stood at EUR 14,478 million, compared to EUR 7,755 million as of December 31, 2015. It includes in particular 36 RAFALE India, 24 RAFALE Qatar (compared to 24 as of December 31, 2015) and 18 RAFALE Egypt (compared to 21 as of December 31, 2015).
Operating income
The 2016 operating income was EUR 218 million, compared to EUR 361 million in 2015. The operat- ing margin was 6.1%, compared to 8.6% in 2015. This decrease is the result of an unfavorable volume effect (reduction in net sales) combined with an increase in competitive pressure on the FALCON market. This also led the Group to take measures to downsize the workforce, provisioned at EUR 39 million at the end of 2016.
Net financial income for 2016 was EUR 11 million, compared to EUR 19 million in 2015.
Net income was EUR 384 million in 2016, compared to EUR 482 million in 2015. The contribution of Tha- les to the Group’s net income was EUR 218 million, compared to EUR 189 million in 2015. Net margin stood at 10.7% in 2016, compared to 11.5% in 2015.
Net income per share in 2016 stood at EUR 45.50/share, compared to EUR 54.60/share in 2015.
Available cash stood at EUR 3,105 million as of December 31, 2016, compared to EUR 2,885 million as of December 31, 2015, up by EUR 220 million.
Operational cash flows favorably impacted the available cash. The working capital requirement reduced sig- nificantly because of advances received due to RAFALE Export contracts.
The increase in cash related to operational activities was partially offset by own share buybacks of EUR 477 million during 2016.
Total equity amounted to EUR 3,317 million as of December 31, 2016, compared to EUR 3,771 million as of December 31, 2015. This decrease is explained largely by own share buybacks of EUR 477 million, with income for the period partially offsetting this decrease.
Borrowings and financial debts amounted to EUR 1,185 million as of December 31, 2016, compared to EUR 1,210 million as of December 31, 2015. They include loans taken out by the Group in 2014 and 2015 for EUR 1,000 million and locked-in employee profit-sharing funds.
Inventories and work-in-progress increased by EUR 578 million and stood at EUR 4,006 million as of December 31, 2016. This increase is notably explained by the increase in RAFALE Export work-in-progress.
Advances and down-payments received from customers net of advances and down-payments paid to suppli- ers went up by EUR 1,268 million as of December 31, 2016 due primarily to progress payments received under the scope of RAFALE Export contracts, particularly with the RAFALE India contract.
The market value of financial derivatives as of December 31, 2016 was stable at EUR -507 million (EUR -506 million as of December 31, 2015).
The Board of Directors decided to propose to the Annual General Shareholders’ Meeting the distribution of a dividend of EUR 12.10/share in 2017, corresponding to a total of EUR 100 million, i.e. a payout of 26%, as in 2016.
In terms of earnings distribution policy, Group employees will receive, under profit-sharing and incentives schemes, EUR 84 million (whereas the legal formula would have led to an amount of EUR 2 million).
The Board of Directors proposes to offer shareholders the option to receive the dividend to which they are entitled for fiscal year 2016 in cash or, in part or in full, in shares.
In the case of exercising the option for payment of the dividend in shares, the new shares would be issued without discount, at a price equal to the average of the latest twenty fixings on the Euronext Paris regulated market preceding the day of the Annual General Meeting, less the amount of the dividend and rounded up to the nearest eurocent.
If the amount of the dividend for which the option would be exercised were not to correspond to a whole number of shares, the shareholder may receive the number of shares rounded up to the next number by paying the difference in cash, or receive the number of shares rounded down to the next number with a balancing payment in cash.
All information relating to the publication of our results is available on our website, www.dassault- aviation.com.
Stéphane Fort Armelle Gary
Corporate Communications Investor Relations
Tel.: + 33 (0) 1 47 11 86 90 Tel.: + 33 (0) 1 47 11 84 24
The impact in 2016 of the adjustments of income statement aggregates is presented below:
| 2016
consoli- dated income statement |
Foreign exchange deriva-
tives |
Adjustments applied by Thales |
2016 ad-
justed in- come statement |
|||
| (in EUR thousands) | Foreign exchange gain/loss |
Change in fair value |
Thales
PPA |
|||
| Net sales | 3,653,417 | -67,619 | 3,585,798 | |||
| Operating income | 285,531 | -67,619 | 217,912 | |||
| Net financial income/expense | -33,205 | 67,619 | -23,029 | 11,385 | ||
| Share in net income of equity associates | 202,711 | 39,742 | -19,676 | 222,777 | ||
| Income tax | -75,971 | 7,688 | -68,283 | |||
| Net income | 379,066 | 0 | -15,341 | 39,742 | -19,676 | 383,791 |
| Group share of net income | 379,030 | 0 | -15,341 | 39,742 | -19,676 | 383,755 |
| Group share of net income per share (in euros) | 45.0 | 45.5 | ||||
The impact in 2015 of adjustments to income statement aggregates is set out below:
| 2015 con- solidated income statement | Foreign exchange deriva-
tives |
Adjustments applied by Thales |
2015 ad-
justed in- come statement |
|||
| (in EUR thousands) | Foreign exchange gain/loss | Change in fair value | Thales PPA | |||
| Net sales | 4,175,805 | 4,175,805 | ||||
| Operating income | 361,190 | 361,190 | ||||
| Net financial income/expense | -425,862 | 444,496 | 18,634 | |||
| Share in net income of equity associates | 144,409 | 37,820 | 11,050 | 193,279 | ||
| Income tax | 61,762 | -153,040 | -91,278 | |||
| Net income | 141,499 | 0 | 291,456 | 37,820 | 11,050 | 481,825 |
| Group share of net income | 141,457 | 0 | 291,456 | 37,820 | 11,050 | 481,783 |
| Group share of net income per share (in euros) | 16.0 | 54.6 | ||||
To reflect the Group’s actual economic performance and enable its monitoring and comparability, the Group sets out the following alter- native performance indicators:
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