Scienza e Tecnologia
Dassault Aviation: 2023 Annual Results Financial Release
KEY FIGURES OF DASSAULT AVIATION GROUP
NB: Dassault Aviation recognizes Rafale Export contracts in their entirety (including the Thales and Safran parts).
Main IFRS aggregates (see reconciliation table below)
Saint-Cloud, March 6 2024 - The Board of Directors held yesterday and chaired by Mr. Éric Trappier approved the 2023 statement of accounts. The audit procedures have been completed and the audit opinion is in the process of being issued.
“The Group's backlog continues to increase, driven by the commercial success of the Rafale. It stands at EUR 38.5 billion as of December 31, 2023 (295 aircraft - 141 Rafale Export, 70 Rafale France and 84 Falcon). Post-closing of the 2023 financial statements, the backlog increased with the entry into force in January 2024 of the third batch of 18 Rafale of the Indonesian contract. A total of 495 Rafale have thus been ordered since the beginning of the program.
Certification of the Falcon 6X by EASA and FAA (type certificate) has been approved on August 22 , 2023, the entry into service of the aircraft including the application of post certification upgrades happened on November 30 2023. The first delivery took place in February 2024.
13 Rafale and 26 Falcon were delivered, versus a guidance of 15 and 35, due to supply chain issues and the delayed entry into service of Falcon 6X.
Group's Revenues for this year stood at EUR 4.8 billion, leading to an adjusted EBIT of EUR 349 million and a record breaking adjusted net result of EUR 886 million, representing 18.5% of net sales.
In 2023, the international context deteriorated, marked by the ongoing war in Ukraine and the conflict in the Middle East. France adopted an ambitious Military Procurement Law (Loi de Programmation Militaire - LPM), which allocates a budget of EUR 413 billion for the 2024-2030 period (representing an increase of 40% compared to the previous LPM). For Dassault Aviation, the LPM provides for the ongoing deliveries of the Rafale program fourth batch, the coming into force of the 42 aircraft of the fifth batch (20 of which are to be delivered from 2027 to 2030), the completion by 2027 of the Rafale Standard F4, the negotiation and beginning of Rafale Standard F5 which should come along with the development of a combat drone.
Supply chain issues that arose during the Covid crisis continue to have a severe impact on sub-contractors in the aviation industry, which are not always able to deliver the required quality or meet deadlines. Certain supplier weaknesses, coupled with capacity shortages, mainly in aerostructure, resulted for the Group in delays in production start-ups. While these risks will continue to weigh on the Group's business in 2024, Dassault Aviation has implemented a centralized steering plan to introduce corrective measures, provide the necessary support to certain sub-contractors and develop “Make in India.”
The Paris Le Bourget Air Show was held in June 2023. This trade show allowed Dassault Aviation to once again showcase the efforts it has undertaken to decarbonize its processes and products, and those that it will continue to pursue in the years to come. The Group is committed to its decarbonization: the Falcon aircraft are certified to fly with Sustainable Aviation Fuel (SAF) blends with kerosene up to 50%. Today's available alternative fuels (SAF) offer a carbon emission reduction's rate in the range of 80% to 90% compared to conventional kerosene. All Dassault Aviation flights, including those in the United States, are using 30% SAF blends which are the only ones available on the market today. 413 flights have been operated in 2023 by Dassault Aviation with 30% SAF blends (vs. 179 in 2022). Aircraft models currently under production will be compatible with 100% SAF blends by 2030 (Falcon 10X natively).
In the military sector, 2023 saw:
In the civil aviation segment, 23 Falcon were ordered and 26 Falcon were delivered in 2023, compared with a guidance of 35.
The year also saw:
Social and environmental responsibility was reflected in 2023 through:
2024 Objectives:
2024 Guidance
We forecast an increase in Group's revenue for 2024 compared to 2023, EUR 6 Billion range (of which deliveries of 35 Falcon and 20 Rafale).
The Board of Directors would like to congratulate all the Group's employees for the past year's success and express its confidence in achieving the objectives for the coming year”
2023 order intake was EUR 8,253 million versus EUR 20,954 million in 2022. Export order intake represented 64% .
Changes were as follows, in millions of euros:
The order intake is composed entirely of firm orders.
Defense programs
In 2023, Defense order intake totaled EUR 6,524 million , compared with EUR 17,510 million in 2022.
The Defense Export share amounted EUR 3,583 million in 2023, versus EUR 15,657 million in 2022. In 2022,
92 Rafale were ordered (80 by the United Arab Emirates, 6 by Greece and 6 by Indonesia) compared to 18 Rafale ordered by Indonesia in 2023.
The Defense France share amounted to EUR 2,941 million in 2023, compared with EUR 1,853 million in 2022. This increase is mainly due to the order for Batch 5 of 42 Rafale (in 2022, the order relating to Phase 1B of the FCAS demonstrator was recorded).
Falcon programs
In 2023, 23 Falcon orders were recorded, compared with 64 in 2022. Order intake totaled EUR 1,729 million versus EUR 3,444 million in 2022. This decrease is mainly due to the decline in the number of Falcon ordered (23 vs. 64 in 2022).
2. ADJUSTED NET SALES
Net sales for 2023 were EUR 4,801 million versus EUR 6,929 million in 2022. Export represented 68% .
Changes were as follows, in millions of euros:
Defense programs
In 2023, 13 Rafale (11 France and 2 Export) were delivered, compared with the guidance of 15. 14 Rafale
(13 Export and 1 France) were delivered in 2022.
Defense net sales in 2023 were EUR 2,980 million versus EUR 4,825 million in 2022.
The Defense Export share was EUR 1,512 million versus EUR 3,616 million in 2022. This decrease is largely due to the delivery of 2 Export Rafale, whereas 13 Export Rafale were delivered in 2022.
The Defense France share was EUR 1,468 million versus EUR 1,209 million in 2022. Defense France 2023 net sales notably included the delivery of 11 Rafale versus 1 Rafale in 2022.
Falcon programs
26 Falcon were delivered in 2023 , compared with the guidance of 35, versus 32 deliveries in 2022.
Falcon net sales for 2023 were EUR 1,821 million versus EUR 2,104 million in 2022. The decrease is primarily due to the number of Falcon aircraft delivered (26 vs. 32).
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The book-to-bill ratio of the Group (order intake/net sales) is 1.72 for 2023.
3. BACKLOG
The consolidated backlog as of December 31, 2023 (determined in accordance with IFRS 15) was
EUR 38,508 million , versus EUR 35,008 million as of December 31, 2022. Change in the backlog is as follows, in millions of euros:
The backlog as of December 31, 2023 consists of the following:
Additional information on the backlog can be found in Note 24 to the consolidated financial statements.
4. ADJUSTED RESULTS
Adjusted operating income
Adjusted operating income for 2023 was EUR 349 million , compared with EUR 572 million in 2022.
Research and development costs totaled EUR 483 million in 2023 and accounted for 10.1% of net sales, compared with EUR 572 million and 8.3% of net sales in 2022. These amounts reflect the self-funded R&D effort focused on the Falcon 6X and Falcon 10X programs.
The adjusted operating margin stood at 7.3% compared to 8.3% in 2022, representing a 1.0 point decrease, notably due to the 1.8 point increase in the weight of research and development expenditure.
The foreign exchange hedging rate was USD 1.20/EUR in 2023, vs. USD 1.19/EUR in 2022.
Adjusted financial income
2023 adjusted financial income was EUR 210 million compared to EUR 11 million in 2022. This strong increase was due to financial income generated by the Group's cash position in a context of favorable interest rates.
Adjusted net income
Adjusted net income for 2023 was EUR 886 million vs. EUR 830 million in 2022, increasing by 6.7 %. Thales' contribution to the Group's net income was EUR 453 million, versus EUR 386 million in 2022.
As a result, adjusted net margin was 18.5% in 2023, versus 12.0% in 2022. This increase is mainly due to the higher net financial income and contribution from Thales.
Adjusted net income per share in 2023 was EUR 10.95 vs. EUR 9.99 in 2022.
5. CONSOLIDATED KEY FIGURES UNDER IFRS
Consolidated operating income (IFRS)
Consolidated operating income for 2023 was EUR 349 million vs. EUR 591 million in 2022.
R&D costs totaled EUR 483 million in 2023 and accounted for 10.1% of consolidated net sales (EUR 4,805 million), compared to EUR 572 million and 8.2% of consolidated net sales in 2022. These amounts reflect the self-funded R&D effort focused on the Falcon 6X and Falcon 10X programs.
The consolidated operating margin was 7.3% compared to 8.5% in 2022.
Consolidated financial income (IFRS)
Consolidated net financial income for 2023 was EUR 212 million vs. EUR -12 million in 2022. This strong increase was due to financial income generated by the Group's cash position in a context of favorable interest rates.
Consolidated net income (IFRS)
Consolidated net income for 2023 was EUR 693 million, compared with EUR 716 million in 2022. Thales' contribution to the Group's net income was EUR 259 million, versus EUR 275 million in 2022.
As a result, consolidated net margin was 14.4% in 2023, as against 10.3% in 2022.
Consolidated net income per share for 2023 was EUR 8.57 compared with EUR 8.62 in 2022.
6. AVAILABLE CASH
The Group uses a specific indicator called “Available cash”, which reflects the amount of total cash available to the Group, net of financial debts. It includes the following balance sheet items: cash and cash equivalents, current financial assets and financial debt, excluding lease liabilities. The calculation of this indicator is detailed in the consolidated financial statements (see Note 9 of the December 31, 2023, consolidated financial statements).
The Group's available cash stands at EUR 7,294 million , versus EUR 9,529 million as of December 31, 2022. The decrease in available cash in 2023 was mainly due to the increase in work-in-progress (execution of military contracts, ramp-up of the Falcon 6X), share buybacks and acquisition of the additional stake in Thales.
7. CONSOLIDATED BALANCE SHEET
Total equity stood at EUR 5,742 million as of December 31, 2023 compared with
EUR 6,006 million as of December 31, 2022. This amount has been impacted by the share buyback.
Borrowings and financial debt stood at EUR 262 million as of December 31, 2023, compared with EUR 234 million as of December 31, 2022. Borrowings and financial debt include locked-in employees' profit-sharing funds, for EUR 78 million, and lease liabilities, for EUR 184 million.
Inventories and work-in-progress rose to EUR 5,258 million as of December 31, 2023, compared with
EUR 3,922 million as of December 31, 2022. This increase was due to the execution of military contracts and the ramp-up of the Falcon 6X.
Advances and progress payments received on orders, net of advances and progress payments paid decreased by EUR 137 million as of December 31, 2023. The decrease relating to the retrocession of Rafale Export downpayments received at the end of 2022 to our co-contractors was almost entirely offset by advances received, notably for the Rafale contracts in Indonesia and Egypt.
Derivative financial instruments had a market value of EUR 29 million as of December 31, 2023, compared with
EUR -88 million as of December 31, 2022, reflecting an improvement in the hedging portfolio rate.
8. VALUE SHARING
The Board of Directors decided to propose to the Annual General Meeting a dividend distribution, in 2024, of
EUR 3.37 per share , EUR 266 million in aggregate , representing a payout of 30%. The Board of Directors of
March 5 , 2024, has decided to cancel 1,850,554 shares. The dividend per share is calculated based on the number of shares as of December 31, 2023, netted of the number of those shares canceled.
For 2023, the Group will pay EUR 170 million in employee profit-sharing and incentives, including 20% employer's corresponding tax, whereas the application of the legal formula would have resulted in a EUR 8 million payment (including the employer's corresponding tax).
Dividends per share over the five last years are provided in Note 32 to the Parent Company Financial Statements.
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 Communication
Stéphane Fort - Tel. +33 (0)1 47 11 86 90 - stephane.fort@dassault-aviation.com
Mathieu Durand - Tel. +33 (0)1 47 11 85 88 - mathieu.durand@dassault-aviation.com
Investor Relations
Nicolas Blandin - Tel. +33 (0)1 47 11 40 27 - nicolas.blandin@dassault-aviation.com
APPENDIX
To reflect the Group's actual economic performance, and for monitoring and comparability reasons, the Group presents an income statement adjusted with the following elements:
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:
The calculation of this indicator is detailed in the consolidated financial statements (see Note 9).
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 annual report.
2. IMPACT OF THE ADJUSTMENTS
The impact in 2023 of adjustments to income statement aggregates is presented below:
The impact in 2022 of adjustments to income statement aggregates is presented below:
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