(AOF) – The Board of Directors of Dassault Aviation has decided to reduce the company’s capital by canceling 556,179 treasury shares held in registered form. They represent 0.67% of the share capital. This capital reduction took effect on May 24. Dassault Aviation’s share capital now amounts to 66,017,423.20 euros, divided into 82,521,779 shares of 80 euro cents each, fully paid up.
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Key points
– Centennial aeronautical group with more than 2100 civil aircraft and 1000 military aircraft in service, delivered for 100 years in 90 countries;
– Activity of €7.2 billion generated 88% by export, covering upstream (design and development) and downstream (sales and support), from Mirage and Rafale combat aircraft to high-end Falcon business jets and military drones;
– Rise in defense power, at 68% of sales, ahead of the Falcons;
– “Architect of the future” business model based on the civil/defense and specific duality by distributing the profit in 3 equal parts – profit-sharing and profit-sharing to employees, dividends to shareholders and taxes to the State-;
– Capital held 62.2% (76.9% of voting rights) by the Dassault family) and 9.9% (6.1% of voting rights) by Airbus, Eric Trappier being Chairman and Chief Executive Officer of board of directors of 9 members;
– Healthy balance sheet with available cash of €4.9 billion and €4.9 billion in equity.
Challenges
– “Driving our future” operational transformation strategy organized in various areas (culture- skills- organizations, digital tools- processes- innovations, industrial tool, program management), facilitated by cooperation with Dassault Systèmes for collaborative platforms and big data;
– Innovation strategy integrated into the economic model:
– R&D self-financed at 7.6% of revenues and focused on the Falcon 6X, the Falcon 10 X, the Rafale F4 standard and the SCAF,
– InnoLab approach focused on platforms for integrating technological breakthroughs with 3 focuses – on-board artificial intelligence via the upstream “man machine learning” study plan, decision-making via data and hydrogen,
– collaborations and partnerships – Cerac, Clean Sky, Sesar;
– Environmental strategy adhering to the recommendations of the European group ACARE based on 3 pillars:
– deployment of life cycle analysis tools, technologies and concepts,
– processes, including eco-design, 80% recovery of waste, and the Moliède program for innovative materials and limiting environmental impacts,
– reduction of CO2 emissions until total neutrality in 2050;
– Order book of €20.8 billion and order intake of €12.1 billion with 51 Falcon and 49 Rafale including 37 for export at the end of 2021, since reinforced by orders for new Rafale by Greece (24) , Croatia (12) and the United Arab Emirates (80);
– Continued progress in the CUGE or Universal Electronic Warfare Capability -Falcon Archangel and Albatros for strategic intelligence, nEUROn stealth aircraft, etc.- and in the Eurodrone with Germany, Spain, France and Italy, launch customers.
Challenges
– Sensitivity to the supply chain;
– Awaiting a decision from Colombia on the purchase of new Rafales;
– Speculation on the terms of participation in the SCAF program to create a Franco-German-Spanish combat aircraft whose launch could be postponed;
– Uncertainties on the interest of Servia for the Rafale by Serbia which would displease the French government;
– Entry into service of the Falcon 6X by the end of the year;
– Dividend of €2.49.
The end of a duopoly?
For several decades, the American Boeing and the European Airbus have shared 99% of the world market for airliners with more than 110 seats. This market weighs more than 100 billion dollars per year. However, this duopoly seems to be weakened in 2022 for several reasons. First, for the first time, two medium-haul single-aisle aircraft, the Chinese Comac’s C919 and the Russian Irkut’s MC-21, are about to enter service. Added to this is the Boeing 737 MAX crisis. With the cessation of deliveries of this aircraft between 2019 and 2021, the production balance has been broken. In 2021 Boeing posted 340 deliveries, with Airbus remaining well ahead with 611.