- 1st
HALF 2022 DASSAULT AVIATION GROUP
RESULTS
|
H1 2022 |
H1 2021 |
Order intake(new aircraft in units) |
€ 16,290 M80 Rafale UAE6 Rafale
Greece41 Falcon |
€ 3,913 M6 Rafale Greece12 Rafale France25 Falcon |
Adjusted net sales (*) |
€ 3,098 M7 Rafale Export14 Falcon |
€ 3,107 M13 Rafale Export6 Falcon |
|
|
|
|
as of June 30,
2022 |
as of December 31, 2021 |
Backlog(new aircraft in units) |
€ 34,085 M165
Rafaleof which 125 Rafale Export40 Rafale France82
Falcon |
€ 20,762 M86 Rafaleof which 46 Rafale Export40 Rafale France55
Falcon |
|
|
|
|
H1 2022 |
H1 2021 |
Adjusted operating income (*)Adjusted operating margin |
€ 200 M6.5% of net sales |
€ 175 M5.6% of net sales |
Research & Development |
€ 278 M9.0% of net sales |
€ 250 M8.0% of net sales |
Adjusted net income (*)Adjusted net margin |
€ 318 M10.3% of net sales |
€ 265 M8.5% of net sales |
|
|
|
|
as of June 30,
2022 |
as of December 31, 2021 |
Available cash |
€ 6,276 M |
€ 4,879 M |
Note: Dassault Aviation recognizes Rafale Export
contracts in their entirety (including the Thales and Safran
parts).
Main aggregates under IFRS in EUR million (see
table of reconciliation below)
(*) Consolidated net sales |
3,107 |
3,106 |
(*) Consolidated operating income |
218 |
177 |
(*) Consolidated net income |
272 |
212 |
Saint-Cloud,
July 20th, 2022
- The Board of Directors, which met today, under the chairmanship
of Mr. Éric Trappier, approved the 2022 half year financial
statements. The Statutory Auditors have performed a limited review
of these consolidated financial statements and have expressed an
unqualified opinion.
“First half 2022 saw a
record-breaking order intake amounting EUR 16.3 billion (86 Rafale
and 41 Falcon) amid supply chain difficulties and a tight and
competitive job market, result of the war in Ukraine and the
persistence of the Covid 19 epidemic.
Regarding the Ukraine-Russia conflict, sanctions
adopted by the European Union and the United States are strictly
enforced by the Company (especially the ban on commercial
transactions and the restriction on financial transactions with
sanctioned persons or entities). A dedicated crisis unit has been
set up. Our locations in Russia, our Moscow office and DFS service
center subsidiary have stopped all commercial activities. Some
contracts were cancelled, in addition, the sanctions have had a
particular impact on the service station business in Europe,
especially TMS.
The Company remains also constrained by the
effects of the Covid 19 pandemic: although the main health measures
were able to be lifted in March 2022, vigilance is still
needed.
The impact of these two major crises has led to
uncertainty over the supply of energy, electronic components and
materials. This has stoked an increase in inflation due to actual
or potential shortages and weakened the supply chain, now an even
acute risk given the increase in our production rate.
In recent weeks, France has held both
presidential and legislative elections. The French President has
talked about the country entering a war economy. The latter will be
further explored by the French Armed Forces Ministry. For Dassault
Aviation, the priority is to be on the side of the French armed
forces to support our Aircraft in service in Air and Naval
forces.
In the military sector, the year began with the
sale to Greece of 6 additional new Rafale. The first down payment
under the contract for 80 Rafale for the United Arab Emirates was
received in April 2022, with this order entering the backlog as a
result. The Rafale order intake for the first half is therefore 86
units. The Rafale backlog is 165 units.
Indonesia signed a contract for 42 Rafale
(6+36). The contract will enter into force upon receipt of the
first down payment and therefore it is not included in the backlog
as of June 30, 2022.
During the six-month period, we delivered 7
Rafale Export and provided support to the French and export fleets.
We also continued the development work on the F4 Standard and the
negotiations and business development for the Rafale.
For the FCAS, of which Dassault Aviation is lead
contractor for the New Generation Fighter demonstrator, work on
phase 1A was completed in the 1st half of 2022.
The next phase of the work, phase 1B, was not
awarded to the parties in the absence of an agreement with Airbus
Defence and Space. Dassault Aviation is prime contractor for pillar
1. The prime contractor/main partner relationship is still to be
clarified. Dassault Aviation is seeking a clear statement of
acceptance of its role as prime contractor by Airbus Defence and
Space for the NGF (in symmetry with Eurodrone).
Work has begun on the Eurodrone contract.
Dassault Aviation is responsible in particular for flight control
systems and mission communications, as a subcontractor of Airbus
Defence and Space.
Regarding the Falcon mission aircraft,
development work is continuing on the Archange and Albatros
programs. Our business development efforts resulted in order intake
for 4 Falcon 2000LXS for the South Korean Air Force.
In the civil sector, the Falcon market was
buoyant during the 1st half of 2022.
We delivered 14 Falcon and booked 41 new Falcon
orders in the 1st half of 2022, vs. 6 deliveries and 25 orders in
the 1st half of 2021.
Development efforts on the Falcon 6X and 10X are
continuing:
-
as expected, the Falcon 6X program completed all the technical
stages for its entry into service mid-2023.
- the first
primary parts have been manufactured for the Falcon 10X. A
full-scale mock-up of this aircraft was unveiled at EBACE. Its
entry into service is scheduled for late 2025. the calendar is
tight because of difficulties related to Covid, with its impact on
the supply chain and collaborative work.
Our 2022 guidance remains unchanged: delivery of
13 Rafale and 35 Falcon; decrease in net sales compared with last
year.”
Éric Trappier,Chairman and Chief Executive
Officer of Dassault Aviation
- 1ST
HALF 2022 ADJUSTED CONSOLIDATED RESULTS
(see reconciliation table in appendix)
1.1 Order
INtake
Order intake for the 1st half
of 2022 was EUR 16,290 million,
vs. EUR 3,913 million in the 1st half of 2021.
Export order intake stood at
97%.
Order intake was as follows, in
EUR million:
|
H1 2022 |
% |
H1 2021 |
% |
Defense |
14,318 |
88% |
2,500 |
64% |
Defense Export |
13,897 |
|
1,907 |
|
Defense France |
421 |
|
593 |
|
|
|
|
|
|
Falcon |
1,972 |
12% |
1,413 |
36% |
|
|
|
|
|
Total order
intake |
16,290 |
|
3,913 |
|
% Export |
97% |
|
82% |
|
The order intake is entirely composed of firm
orders.
Defense programs
During the 1st half of 2022, 86 Rafale
Export were booked.
Defense Export order intake
totaled EUR 13,897 million in the
1st half of 2022, vs. EUR 1,907 million in the 1st half of 2021.
Order intake for the 1st half of 2022 notably includes 80 Rafale
for the UAE (contract signed in 2021, receipt of the first down
payment in the 1st half of 2022), as well as the additional order
for 6 new Rafale for Greece.
Defense France order intake
stood at EUR 421 million in the 1st half of 2022,
compared with EUR 593 million in the 1st half of 2021, when the
order intake included 12 Rafale.
Falcon programs
During the 1st half of 2022, 41 Falcon
orders (net of cancelled Russian aircraft) were received,
compared with 25 in the 1st half of 2021. This explains the
increase in Falcon order intake
to EUR 1,972 million in the
1st half of 2022, vs. EUR 1,413 million in the 1st half of
2021.
1.2 Adjusted
net sales
Adjusted net sales for the 1st
half of 2022 totaled EUR 3,098 million,
compared with EUR 3,107 million for the 1st half of 2021.
Export net sales stood at 77% in
the 1st half of 2022.
Consolidated sales were as follows, in
EUR million:
|
H1 2022 |
% |
H1 2021 |
% |
Defense |
2,137 |
69% |
2,405 |
77% |
Defense Export |
1,452 |
|
2,061 |
|
Defense France |
685 |
|
344 |
|
|
|
|
|
|
Falcon |
961 |
31% |
702 |
23% |
|
|
|
|
|
Total adjusted net
sales |
3,098 |
|
3,107 |
|
% Export |
77% |
|
87% |
|
Defense programs
7 Rafale
Export were delivered during the 1st half of 2022,
compared with 13 Rafale Export for the 1st half of 2021.
This led to a fall in Defense
Export net sales, which totaled EUR 1,452
million in the 1st half of 2022, vs. EUR 2,061
million in the 1st half of 2021.
Net sales for Defense France
stood at EUR 685 million in the
1st half of 2022, compared with EUR 344 million in the 1st half of
2021. The increase is largely due to the delivery of the standard
for the mid-life upgrade of the Mirage 2000.
Falcon programs
14 Falcon were delivered
in the 1st half of 2022, compared with 6 in the 1st half of
2021.
Falcon net sales for the 1st
half of 2022 amounted to
EUR 961 million, vs.
EUR 702 million for the 1st half of 2021. The increase is
primarily due to the number of Falcon delivered (14 vs. 6).
****
The “book-to-bill ratio” (order intake/net
sales) is 5.3 for the first half of 2022.
1.3 Backlog
The consolidated
backlog as of June 30, 2022 (determined in accordance with
IFRS 15) was EUR 34,085 million, vs. EUR
20,762 million as of December 31, 2021. The sharp increase is due
to the high level of order intake in the 1st half of 2022. The
backlog trend is as follows:
|
06/30/2022 |
|
12/31/2021 |
|
Defense |
29,814 |
87% |
17,633 |
85% |
Defense Export |
22,319 |
|
9,874 |
|
Defense France |
7,495 |
|
7,759 |
|
|
|
|
|
|
Falcon |
4,271 |
13% |
3,129 |
15% |
|
|
|
|
|
Total backlog |
34,085 |
|
20,762 |
|
% Export |
75% |
|
58% |
|
-
the Defense Export backlog stood at EUR
22,319 million as of June 30, 2022, vs.
EUR 9,874 million as of December 31, 2021. This figure notably
includes 125 new Rafale and 6 pre-owned Rafale, compared with 46
new Rafale and 6 pre-owned Rafale as of December 31, 2021,
-
the Defense France backlog stood at EUR
7,495 million as of June 30, 2022, vs.
EUR 7,759 million as of December 31, 2021. This figure includes 40
Rafale, the support contracts for the Rafale (Ravel), Mirage 2000
(Balzac) and ATL2 (Ocean), and the Rafale F4 standard,
-
the Falcon backlog stood at EUR
4,271 million as of June 30, 2022, vs.
EUR 3,129 million as of December 31, 2021. It includes 82 Falcon,
compared with 55 as of December 31, 2021.
1.4 Adjusted
results
Adjusted operating income
Adjusted operating income for
the 1st half of
2022 came to EUR 200 million,
compared with EUR 175 million in the 1st half of
2021.
R&D expenses in the 1st half of 2022 totaled
EUR 278 million, equivalent to 9.0% of net sales,
compared with EUR 250 million and 8.0% of net sales in
the 1st half of 2021. These figures reflect the self-funded R&D
effort focused on the Falcon 6X and Falcon 10X programs.
Operating margin was
6.5%, as against 5.6% in the 1st half of 2021, up
despite the increase in R&D expenses.
The hedging rate for the 1st half of 2022 was
$1.19/€, as in the 1st half of 2021.
Adjusted net financial income/expense
Adjusted financial income for
the 1st half of
2022 was EUR -13
million, vs. EUR -11 million for the
same period in the previous year. This financial loss was due to
accounting principle of the long-term military contracts’ financing
component.
Adjusted net income
Adjusted net income for the
1st half of 2022
was EUR 318 million, compared with EUR 265 million
in the 1st half of 2021. The contribution of Thales to the Group’s
net income was EUR 180 million, compared with
EUR 146 million during the 1st half of 2021.
Adjusted net margin thus stood
at 10.3% for the 1st half of 2022, vs. 8.5% for
the 1st half of 2021.
Adjusted net income per share for 1st half 2022
was EUR 3.82 versus EUR 3.19* for 1st half 2021.
*2021 proforma following the stock split.
- 1ST
HALF 2022 CONSOLIDATED RESULTS UNDER IFRS
1.5 Consolidated
operating income (IFRS)
Consolidated operating income
for the 1st half of 2022 came to
EUR 218 million, compared with
EUR 177 million in the 1st half of 2021.
R&D expenses amounted to EUR 278 million in
the 1st half of 2022 and accounted for 9.0% of consolidated net
sales, vs. EUR 250 million and 8.0% of consolidated net sales in
the 1st half of 2021.
Consolidated operating margin
was 7.0%, compared with 5.7% in the 1st half of
2021, up despite the increase in R&D expenses.
1.6 Consolidated
net financial income/expense (IFRS)
Consolidated net financial
expense for the 1st half of 2022 came to EUR
-37 million, vs. EUR -31 million in the
1st half of 2021. This negative financial result is due to the
recognition of the financing component under long-term military
contracts and the fall in market value of hedging instruments which
do not qualify for hedge accounting under IFRS. The market value of
these instruments, purchased because of the efficient economic
hedge they offer the Group, were adversely impacted by movements in
the US dollar rate in the 1st half ($1.0387/€ at June 30, 2022,
versus $1.1326/€ at December 31, 2021).
1.7 Consolidated
net income/expense (IFRS)
Consolidated net income for the
1st half of 2022 was EUR 272 million, compared
with EUR 212 million in the 1st half of 2021. The contribution of
Thales to the Group’s net income was EUR 139 million,
compared with EUR 105 million during the 1st half of
2021.
Consolidated net margin thus
stood at 8.7% for the 1st half of 2022, vs. 6.8%
for the 1st half of 2021.
Consolidated net income per share for the 1st
half of 2022 was EUR 3.36, vs. EUR 2.55* for the 1st half of
2021.
* 2021 proforma following the stock split.
- FINANCIAL
STRUCTURE
1.1 Available
cash
The Group uses a specific indicator called
“Available cash”, which reflects the amount of total liquidities
available to the Group, net of financial debts. It includes the
following balance sheet items: cash and cash equivalents, current
financial assets (at market value) and financial debt, excluding
lease liabilities. The calculation of this indicator is detailed in
the consolidated financial statements (Note 7 of the interim
condensed consolidated financial statements).
The Group’s available cash
stands at
EUR 6,276 million as of
June 30, 2022, vs. EUR 4,879 million as of December 31,
2021. This increase is mainly due to the receipt of the first down
payment under the contract for 80 Rafale for the UAE and the
dynamism of the Falcon business. It is partially offset by the
increase in inventories and work-in-progress. Investments and
dividends paid during the period are offset by the operating
cashflow generated during the 1st half of 2022.
1.8 Balance
sheet (IFRS)
Total equity stood at EUR 5,737
million as of June 30, 2022, vs. EUR 5,300 million as of
December 31, 2021.
Borrowings and financial debt amounted to
EUR 227 million as of June 30, 2022, compared with
EUR 226 million as of December 31, 2021. Borrowings and
financial debt are composed of locked-in employee profit-sharing
funds for EUR 103 million and lease liabilities
recognized for EUR 124 million.
Inventories and work-in-progress increased by
EUR 500 million to stand at EUR 3,980 million
as of June 30, 2022. The increase is attributed to the Falcon
business, particularly with the increased production rate on the
Falcon 6X and future Defense deliveries.
Advance payments received on orders net of
advance payment paid to suppliers, were up
EUR 1,703 million to stand at
EUR 5,890 million. This is mainly due to the receipt of
the first down payment under the contract for 80 Rafale for the UAE
and the dynamism of the Falcon business.
The derivative financial instruments market
value stood at EUR -189 million as of June 30, 2022, vs.
EUR -81 million as of December 31, 2021. The decrease is
mainly due to the change in the US dollar exchange rate between
June 30, 2022 and December 31, 2021 ($1.0387/€ vs. $1.1326/€).
This Financial Press Release may contain
forward-looking statements which represent objectives and cannot be
construed as forecasts regarding the Company's results or any other
performance indicator. The actual results may differ significantly
from the forward-looking statements due to various risks and
uncertainties, as described in the Directors’ report.
CONTACTS
Corporate CommunicationStéphane
Fort - Tel. +33 (0)1 47 11 86 90 -
stephane.fort@dassault-aviation.comInvestor
RelationsNicolas Blandin - Tel. +33 (0)1 47 11 40
27 -
nicolas.blandin@dassault-aviation.comdassault-aviation.com
APPENDIX
FINANCIAL REPORTING
IFRS 8 “Operating Segments” requires the
presentation of information per segment according to internal
management criteria.The entire activity of the Dassault Aviation
Group relates to the aerospace sector. The internal reporting made
to the Chairman and Chief Executive Officer, and to the Chief
Operating Officer, as used for the strategy and decision-making,
includes no performance analysis, under the terms of IFRS 8, at a
lower level to this domain.
DEFINITION OF ALTERNATIVE PERFORMANCE
INDICATORS
To reflect the Group’s actual economic
performance, and for monitoring and comparability reasons, the
Group presented an adjusted income statement of:
-
foreign exchange gains/losses resulting from the exercise of
hedging instruments which do not qualify for hedge accounting under
IFRS standards. This income, presented as net financial income in
the consolidated financial statements, is reclassified as net sales
and thus as operating income in the adjusted income statement;
-
the value of foreign exchange derivatives which do not qualify for
hedge accounting, by neutralizing the change in fair value of these
instruments (the Group considering that gains or losses on hedging
should only impact net income as commercial flows occur), with the
exception of derivatives allocated to hedge balance-sheet positions
whose change in fair value is presented as operating income;
-
amortization of assets valued as part of the purchase price
allocation (business combinations), known as “PPA”;
-
adjustments made by Thales in its financial reporting.
The Group also presents the “available cash”
indicator which reflects the amount of the Group’s total
liquidities, net of financial debt. It covers the following balance
sheet items:
-
cash and cash equivalents;
-
other current financial assets (essentially available-for-sale
marketable securities at their market value);
-
financial debt, excluding lease liabilities.
The calculation of this indicator is detailed in
the condensed consolidated financial statements (see Note 7).
Only consolidated financial statements are
audited by statutory auditors. Adjusted financial data are subject
to the verification procedures applicable to all information
provided in the half-year report.
IMPACT OF ADJUSTMENTS
The impact of the adjustments of income
statement aggregates for the 1st half 2022 is set out below:
(in EUR thousands) |
Consolidated income statement H1 2022 |
Foreign exchange derivatives |
PPA |
Adjustments applied by Thales |
Adjusted income statement H1 2022 |
Foreign exchange gain/loss |
Change in fair value |
Net sales |
3,106,839 |
-6,930 |
-1,499 |
|
|
3,098,410 |
Operating income |
217,563 |
-6,930 |
-12,296 |
1,563 |
|
199,900 |
Net financial income/expense |
-37,437 |
6,930 |
17,891 |
|
|
-12,616 |
Share in net income of equity associates |
141,910 |
|
|
1,566 |
39,739 |
183,215 |
Income tax |
-50,525 |
|
-1,445 |
-318 |
|
-52,288 |
Net income |
271,511 |
|
4,150 |
2,811 |
39,739 |
318,211 |
Group share of net income |
272,511 |
|
4,150 |
2,811 |
39,739 |
318,211 |
Group share of net income per equity (in euros) |
3.26 |
|
|
|
|
3.82 |
The impact of the adjustments of income
statement aggregates for the 1st half 2021 is set out below:
(in EUR thousands) |
Consolidated income statement H1 2021 |
Foreign exchange derivatives |
PPA |
Adjustments applied by Thales |
Adjusted income statement H1 2021 |
Foreign exchange gain/loss |
Change in fair value |
Net sales |
3,106,206 |
- 368 |
883 |
|
|
3,106,721 |
Operating income |
177,224 |
- 368 |
- 3,865 |
1,688 |
|
174,679 |
Net financial income/expense |
- 31,154 |
368 |
19,442 |
|
|
- 11,344 |
Share in net income of equity associates |
108,527 |
|
|
1,501 |
39,152 |
149,180 |
Income tax |
- 42,798 |
|
- 4,255 |
- 342 |
|
- 47,395 |
Net income |
211,799 |
0 |
11,322 |
2,847 |
39,152 |
265,120 |
Group share of net income |
211,799 |
0 |
11,322 |
2,847 |
39,152 |
265,120 |
Group share of net income per share (in euros) (1) |
2.55 |
|
|
|
|
3.19 |
(1) proforma following the stock split.
- Financial Release H1 2022 EN
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