Dassault Aviation : Transcript "2022 annual results"

Dassault Aviation

Full-Year 2022

Results

9 March 2023

Client name: Name of presentation	x month year
List of MAIN speakers	Company	Job title
Eric Trappier	Dassault Aviation	CEO

PRESS CONFERENCE

Éric Trappier

CEO

Good morning, everyone, and thank you for being with us for our press conference presenting our 2022 business results. We are going to start this conference with a video, and then we'll be presenting our financial results and then we'll have a Q&A. We'll start with the video.

CORPORATE VIDEO

Ferried by Greek air force crews, six Rafale fighters left [inaudible 00:00:37] and reached the Tanagra Air Base on January 19th. Our CEO was a guest at the ceremony, presided over by the Greek prime minister. The entry into operational services of these first six Rafales in the Hellenic Air Force, a 3-32 squadron, clearly demonstrates the strong partnership between France and Greece just one year after the signing of the contract for 18 aircraft.

On March 24th, our CEO and the Greek defence minister signed a new contract for six additional Rafales in Athens in the presence of the French Minister of the armed forces. This order will bring the number of Rafales operated by Hellenic Air Force to 24.

This year, two Greek Rafales took part in the traditional 14th of July fly-pass over the Champs Elysée, among a total of 44 Dassault aircraft mobilised for this National Day holiday. Dassault was present with GIFAS and French Air and Space Force for the second edition of La Fabrique de France trade show in Paris. For three days, armed forces and industry professionals gave a large number of young people the chance to discover the challenges of defence and to find vocations, training opportunities and professions for their future.

On the 3rd and 4th of February, Dassault Aviation took part in the Aviation Summit in Toulouse, an event organised as part of the French presidency of the European Union. We showcased the FalconEye, our operational combined vision system for optimising approaches to demonstrate how improving flight operations can reduce carbon emissions. The company has been contributing to the European Clean Aviation and SESAR Environmental Research Programmes for many years and also that of CORAC in France.

On February 10th, Éric Trappier and Air Vice Marshal, Yusuf Jauhari, head of the Defence Facilities Agency of the Indonesian Defence Ministry, signed a contract in Jakarta for the purchase of 42 latest generation Rafale fighters in the presence of French Minister of the Armed forces. Indonesia is the eighth country to purchase Rafale, the seventh international customer, the first to acquire new Rafale fighters without having even owned Dassault aircraft before.

The contract for the supply of 20 MALE Eurodrone systems, that is 60 drones and their support for five years, was signed at the end of February by OCCAR and Airbus Defence and Space, which is the prime

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Client name: Name of presentation	x month year

contractor for the programme. Dassault Aviation is one of the three main subcontractors. We are specifically in charge of flight controls and mission communications.

The Kazakh Research and Training chair was set up in 2016 under the impetus of Dassault Aviation and the ISAE-SUPAERO Foundation, with the aim of rethinking the relationship between crews and the systems used in aviation. The initial results have been promising and we have renewed our partnership for a further three years.

The Dassault team has won the Corsica race in support of organ donation for the second year running 850 km from Paris to Les Arcs covered in four days and four nights in a spirit of cohesion and solidarity. It's a sporting success, of course, but also, above all, a human one. The most important thing was to highlight the cause to be defended, the gift of life.

As in 2021, Dassault Aviation is included in the Financial Times Europe's climate leaders 2022 ranking. This ranking acknowledges the 400 European companies having made the most significant efforts to reduce the intensity of their greenhouse gas emissions. We are one of the five aerospace and defence companies to appear in this ranking.

Dassault Aviation has moved up this year in the Universum 2022 ranking for most attractive employers for engineering college students, all fields combined. Dassault is positioned fourth among the 100 most attractive employers. This is one place higher than in 2021. For the past decade, our company has been in the top ten companies favoured by students at engineering schools. This is corroborated by the EPOKA ranking where Dassault Aviation is on the podium for the Industry category.

EBACE convention and exhibition took place in Geneva from May 23rd to 25th. For the first time, we set up a full size Falcon 10X cabinet for our exhibition booth. This attracted numerous visitors, all impressed by the new aircraft's interior and quality design. We were able to present the Falcon 6X for the first time to our customers and the press.

The aircraft was exhibited in the static display alongside the 8X and the press conference confirmed that the technical step had been completed, but as the Covid pandemic put us as well as our partners and suppliers under pressure, we decided to put off the entry into service of the 6X, which will take place in mid-2023, said our CEO.

The first Falcon 6X has completed a world tour with its team of on-board engineers and technicians. It went through the hot Middle East weather and the low altitude routes over the desert to test the peak efficiency of the environmental control system. This follows on from the extreme cold tests carried out last winter in Iqaluit, Canada, where the business jet was tested at -37C. The first customer aircraft are currently being finalised at our Little Rock facility in Arkansas.

For over 20 years, Dassault Aviation has been a close partner of Les Chevaliers du Ciel Association, responsible for the Rêves de Gosse initiative, aimed at realising the dreams of disabled children. This nine-stop aerial tour is organised to promote inclusion and acceptance of differences by giving ordinary and extraordinary children battered by life or illness an opportunity to meet each other. With the help of volunteers, the association is able to offer about 1,500 children a first flight.

General Stéphan Mille, chief of staff of the French Air and Space Force, and our CEO, Éric Trappier, inaugurated on July the 8th from the Ouragan to the Rafale 70 years of Industrial and Operational Excellence Exhibition. One of each of these fighters were on display throughout the summer in front of the prestigious Hotel National des Invalides in Paris. An opportunity to remind that the Rafale is the result of 70 years of technological achievements in French air fighters. And it all began with the Ouragan.

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Client name: Name of presentation	x month year

Les Invalides is one of the greatest symbols of military progress, a field in which aviation has secured a prominent place in times of war. It cannot accomplish everything, but nothing can be accomplished without it. There can be no modern and efficient army without aircraft. At the same time, there cannot be combat aircraft without an efficient industry. A jet fighter is the human achievement that concentrates the most critical technologies in such a small volume. It is so complex that only three or four countries in the world, including France, currently have the know-how to master and build a combat aircraft with no outside help.

Mastering this complexity is a slow learning process, a process of accumulation, maturation and knowledge transfer from one generation to the next. You cannot cut corners and so it goes on. Aviation is an industry shaped by cumulative experience. You cannot become an aircraft manufacturer overnight.

On the occasion of various site visits carried out in the first half of the year, Éric Trappier and Loïk Segalen were able to check on the progress of the Dassault Aviation Transformation Plan. On June 28th, the CEO visited Mérignac, where he enjoyed the exciting presentation of the scientific day organised simultaneously in Saint-Cloud, eastern Mérignac by the General Technical Division, Direction Générale Technique.

While on his same trip, the CEO presided over a ceremony in honour of the martyrs of aeronautics industry in front of the still dedicated to the memory of workers and members of the French Resistance who died or were shot or deported during the Second World War. Today, at our own level, we are striving to ensure that France continues to keep control of its destiny with powerful tools that will guarantee its freedom of decision and action. In a troubled world, we refuse subjection and we uphold our spirit of resistance to defend the independence of our country and its army.

It is not always understood. Nevertheless, it is undoubtedly a major feature of our corporate culture, which has been transmitted to us by Marcel and Serge Dassault and by all those whose memory is engraved on this tale.

The extension of the Seclin plant was inaugurated on September 23rd. A ceremony was held with Xavier Bertrand, president of the Hauts-de-France Regional Council, and in attendance alongside numerous elected officials and representatives of the regional ecosystem and the plant personnel. The extension works lasted from early 2018 to mid-2019. They were followed by the equipment installation phase. In accordance with our transformation plan, the new workshops are devoted to surface treatment and sheet metal work. Surface area of the site was increased by 13,000m² to reach a total of 50,000m² and also it has led to an increase in the number of employees.

In mid-October, Éric Trappier and Loïk Segalen went to visit our Little Rock plant in Arkansas. They were able to assess the implementation of new processes for the interior fitting of our Falcon aircraft. Our leaders then flew to Orlando for the NBAA, a very important meeting for business aviation. For the first time in the US, Dassault Aviation showcased a full scale cabin mock-up of the Falcon 10X, a Falcon 6X and 8X were also presented on the static display to the many customers in attendance.

Our company's ranked in the top 100 most responsible companies in France, the most conscientious companies in terms of environmental, social, and corporate governance, ESG, as according to a ranking published by Le Point magazine.

Dassault Aviation attended the Euronaval show in late October in Le Bourget. In addition to the Rafale, Marine Company showcased its maritime patrol and surveillance know-how.

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Client name: Name of presentation	x month year

While primary parts manufacturing is underway, the production of first subassembly is on its way for the Falcon 10X. A new approach to ground testing will be used in order to demonstrate full system maturity before the jet's maiden flight. Two multi-system test benches will be deployed at Istres for this purpose.

Dassault Aviation was a partner of the Congress of Fighter Aviation in Le Bourget, an exceptional event organised every four years, bringing together more than 1,000 French and foreign fighter pilots. This addition was made even more memorable by the presence of French astronauts. The event was also focussed on young people. A military ceremony was organised at the Airman's Memorial in front of the Air and Space Museum.

The 10th anniversary of nEUROn's maiden flight was observed on December 1st, 2022. Developed as part of our European program involving Sweden, Italy, Spain, Greece and Switzerland under the leadership of Dassault Aviation. This UCAV demonstrator was initially intended to remain in service for only a few years. Ten years later it is still in use. It has faced many operational tests and has exceeded all expectations. In the name of the French, German and Spanish government, the French Defence Procurement Agency awarded the contract for phase 1B of the demonstrator of the Future Combat Air System known as FCAS.

This contract confirms Dassault Aviation's central role as primary contractor, architect and integrator of the NGF Future Compact aircraft, a main feature of FCAS, for which France is the lead partner.

The prestigious French Air and Space Academy awarded its 2022 Grand Prix to our CEO Éric Trappier for his remarkable career as an engineer manager. The ceremony took place in the Salle des Illustre of the Toulouse City Hall in the presence of many personalities.

On December 16th, the Dassault family visited the Seclin plant. Éric Trappier and Loïk Segalen presented to a majority shareholder the new extension of the site and the ultra-modern equipment installed as part of the company's transformation plan.

On December 29th, the Mérignac plant delivered the Rafale B359 to the Direction Générale de l'Armement. This event marks the resumption of Rafale deliveries to France after a four-year interruption.

Dassault Aviation presented its dual military and civil know-how at the 2023 edition of the Aero-India show in Bangalore from February 13th to 17th. The highlights were the Air and Navy versions of the Rafale, a Falcon 8X and a front section of the Falcon 2000 produced in the Nagpur plant. The Rafale was presented when flying. Dassault also attended the IDEX show from February 20th to 24th in Abu Dhabi. This was an opportunity to showcase the Rafale in flight. The United Arab Emirates have ordered 80 Rafale jets. Rafale demonstrates its versatility, efficiency and reliability every day in many theatres of operation. It continuously integrates feedback from the armed forces and the latest innovation to stay at the cutting edge of technology.

PRESS CONFERENCE

Éric Trappier

CEO

So, we're going to go on to the presentation. You've seen some very nice pictures already - the background. We're still having this war in Ukraine. The war between Ukraine and Russia and our

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