The Board
of Directors, which met under the chairmanship of Mr. Éric Trappier, has approved
the 2023 half year financial statement. The Statutory Auditors performed a
limited review of these consolidated financial statements and have expressed an
unqualified opinion.
The global
context remains marked by the war in Ukraine and the associated instability.
In the
business jet market, the post-Covid upturn in growth witnessed in 2022 began to
ease off in the last quarter of 2022, a slowdown that continued in the 1st half
of this year. The Rafale’s success is
still generating new prospects for Export. Post-closing, the announcement on 13
July by the Indian Government of the selection of the Navy Rafale to equip the
Indian Navy with a latest generation fighter illustrates this success.
Following an international competition launched by the Indian authorities, this
decision comes after a successful trial campaign held in India, during which
the Navy Rafale demonstrated that it fully met the Indian Navy's operational
requirements and was perfectly suited to the specificities of its aircraft carrier.
The Indian Navy's 26 Rafale will eventually join the 36 Rafale already in
service, making India the first country to make the same military choice as
France by operating both versions of the aircraft (Navy and Air Force). This
selection confirms the excellence of the Rafale, the exceptional quality of the
link between Dassault Aviation and the Indian Forces, and the importance of the
strategic relationship between India and France.
In France,
the Military Programming Law (“LPM”) voted on 13 July includes the 42 aircraft
of the 5th batch of the Rafale (out of which 20 are to be delivered between
2027 and 2030, which will make the fleet of the French Air and Space Force
reach 137 Rafale), the Rafale F5 standard which includes the development of a
drone derived from the works of the nEUROn demonstrator, the pursuit of
FCAS/NGF, the decision for the launch of a successor to the ATL2 in 2024, and
the activation of the options for 5 Falcon 2000 AVSIMAR and for a 3rd Falcon 8X
Archange.
Like most
other players in the sector, we face supply chain issues. The situation has
deteriorated further since 2022. We are striving to limit the negative impact
of this by keeping a closer eye on our suppliers' production. This situation
has an impact on the development and production of our aircraft, while we need
to ramp up to meet our commitments.
The Paris Air Show was highly appreciated with an
important visitor numbers on trade and general public days. It was an
opportunity for meetings and discussions with government and foreign
delegations. The popularity of our aircraft was illustrated by the success of
the Rafale: in flight (demonstration), at the static display (new simulator)
and on the stand (Rafale Export mock-ups), the impact of the multi-mission Falcon
(Albatros, Japan Coast Guards, Archange, Falcon Fire Fighter, etc), the strong
impression made by the Falcon 6X (in flight and on static display) and by the
Falcon 10X mock-up, with prospects from all around the world. The airshow has
been the opportunity to disclose our actions toward decarbonation (SAF, etc)
and to lead ambitious recruitment operations.
The environment remains a major issue for the Group,
which is working to reduce the carbon impact of its industrial processes and
aircraft. The use of Sustainable Aviation Fuels (SAF), the energy saving plan
and the development of tools to improve flight plans are levers to be among the
first in the aviation industry to become carbon neutral. Business aviation is
not included in the EU taxonomy, unlike commercial aviation.
This is
particularly disappointing given that business aviation is paving the way:
Falcon flights operated by Dassault Aviation already fly on 30% SAF; they could
fly on 50% SAF today if those blends were available. Falcon 10X will be the
first 100% SAF compatible Falcon. In the United States, industries are
receiving subsidies and making rapid progress; Europe is putting less money on
the table and imposing standards. We are considering legal actions for breach
of the principle of equality while business aviation has begun its decarbonisation.
In the
military sector, during the 1st half, we delivered 4 Rafale (2 Export and 2
France) and 4 pre-owned Rafale to Greece, and provided support to the French
and export fleets. We also continued the development work on the F4 standard
and negotiations and business development for the Rafale.
Regarding
the FCAS, for which Dassault Aviation is lead contractor for the New Generation
Fighter demonstrator, work on phase 1B has begun in March. The teams of German
and Spanish manufacturers are on site, alongside the Group’s employees, at the
dedicated physical workspace created in Saint-Cloud.
For
multi-mission aircraft, we delivered the 1st of the 4 Falcon 2000 ordered by
Republic of Korea in 2022, and the 7th and last ATL2 modernised by Dassault
Aviation to France. We continued the development works on the Archange and
Albatros programmes, and began working on the architectural design based on the
Falcon 10X for a future maritime patrol aircraft, a project on which we are
competing with Airbus. We also unveiled the mock-up at the Paris Air Show of a
firefighting specialised Falcon project: the “Falcon Fire Fighter”.
In the
civil sector, in the 1st half of 2023, we recorded 12 Falcon orders, compared
with 41 in the 1st half of 2022 and we delivered 9 Falcon, compared with 14 in
the 1st half of 2022. Test flights for the Falcon 6X have been completed. The
aircraft was showcased with its cabin fitted out at EBACE and at the Paris Air
Show; its demo flight was one of the highlights of the Paris Air Show. We are
awaiting its certification to start the deliveries. Development of the Falcon
10X is ongoing (the detailed technical specification phase has been completed)
and we are now in the industrialisation and early manufacturing phase.
In a challenging supply chain environment, our 2023
guidance remains unchanged: delivery of 15 Rafale and 35 Falcon (including
Falcon 6X); decrease in net sales compared with last year.”
Text
and photos: Dassault Aviation