Dassault Aviation closes 2015 on an increased backlog

Saint-Cloud, March 10, 2016. The consolidated backlog  of Dassault Aviation was on December 31, 2015, was EUR 14,175 million compared to EUR 8,217 million on December 31, 2014. The increase was due to 2015 RAFALE Export orders. Defense Export represented 55% of backlog, FALCON 27%, and Defense France 18%. The Board of Directors, chaired by Éric Trappier, closed the 2015 financial statements. These consolidated financial statements were certified by the Statutory Auditors, who expressed an unqualified opinion. In 2015 operating income was EUR 361 million compared to EUR 353 million in 2014.

Éric Trappier, Chairman and Chief Executive Officer of DASSAULT AVIATION, stated, “The year 2015 will first and foremost be the year of the attacks that dramatically struck France in January and November. In this struggle against terrorism, as always when France is militarily engaged, we stand aside our forces and give them all the support they need in their military operations.”

Regarding their military aircraft he informed that the year was marked by the signing of the first 2 export contracts for the RAFALE, with 24 RAFALE ordered by Egypt and 24 RAFALE by Qatar, bringing the number of aircraft ordered to 48 in 2015. These successes are the proof of the operational quality and performance of our aircraft.

On April 10, the announcement by the Indian Prime Minister of his intention to buy 36 “fly away” RAFALE and the negotiations with the Indian authorities took place and price negotiations are in progress, he added.

The delivery of 8 RAFALE in 2015 – 5 to France and 3 to Egypt, the delivery of 3 RAFALE Marine France retrofitted to the F3 standard, the delivery of 2 Indian MIRAGE 2000 upgraded to the I/TI standard in France, and continued support for HAL (Hindustan Aeronautics Ltd) for the following aircraft in India, the delivery to France of the 2 last FALCON 50 SURMAR, out of 4 aircraft ordered, the 100th flight of the nEUROn in Istres and its first strike during the Sweden campaign, on May 18, 2015, the French, German and Italian Governments announced their intention to select DASSAULT AVIATION, AIRBUS DEFENCE & SPACE and FINMECCANICA to conduct a 2-year definition study for a MALE (Medium Altitude Long Endurance) drone with European technologies.

“The Organization for Joint Armament Cooperation (OCCAR) is responsible for notifying the contract. Regarding our business jet aircraft, the year was marked by disappointing order intake in a difficult competitive environment. FALCON sales slowed in 2015 45 FALCON were ordered (compared to 90 FALCON in 2014) and 20 FALCON NetJets were canceled.The delivery of 55 FALCON, whereas we had planned 65. The negative gap is linked to the low number of FALCON orders in 2015. The first flight of the FALCON 8X on February 6. The 2015 test program proceeded in line with our expectations. The test aircraft completed 250 missions representing 450 flight hours. Certification is planned for mid- 2016. Interior completion work was begun on five aircraft at the end of 2015. The first aircraft should be delivered to customers in the second half of 2016,” he added.

Regarding the FALCON 5X, SNECMA’s difficulties in the development of the SilverCrest engine and their new related schedule (postponement of the engine certification from 2015 to 2018) have forced them to temporarily freeze production internally and externally, readjust in 2016 the FALCON 5X program schedule, with the first deliveries planned during the first-half of 2020,he informed. We have informed our customers of this change. This is obviously a disappointment.

The order by the Japan Coast Guards of 2 FALCON 2000 Maritime Surveillance, the launch of our new FALCON Response solution, which provides unique after-sales service to our customers, the inauguration of the new hangar in our Little Rock plant to accommodate new FALCON programs for their interior completion, the laying of the first stone for the future service station of our DASSAULT FALCON SERVICE subsidiary in Mérignac.

“The year 2015 marked also a turning point in our capital history with the sale by AIRBUS GROUP SAS of 18.75% of our capital, 5% of which was to our Company. This sale enables new investors to enter our capital, and reinforces our historical and main shareholder, GROUPE INDUSTRIEL MARCEL DASSAULT, warrant of stability for DASSAULT AVIATION,” said Eric.