Dassault Aviation : 2021 first half-year results financial release

FINANCIAL RELEASE

Saint-Cloud, July 22nd, 2021

KEY FIGURES OF DASSAULT AVIATION GROUP

		H1 2021		H1 2020
		€ 3,913 M		€ 984 M
Order intake		6 Rafale Greece
(new aircraft in units)
	12 Rafale France
		25 Falcon		5 Falcon
		€ 3,107 M		€ 2,641 M
Adjustednet sales (*)		13 Rafale Export		7 Rafale Export
		6 Falcon		16 Falcon
		as of June 30, 2021		as of December 31, 2020
		€ 16,703 M		€ 15,895 M
Backlog		67 Rafale		62 Rafale
(new aircraft in units)		of which		of which
		40 Rafale France		28 Rafale France
		27 Rafale Export		34 Rafale Export
		53 Falcon		34 Falcon
		H1 2021		H1 2020
Adjustedoperating income (*)		€ 175 M		€ 55 M
Adjustedoperating margin		5.6% of net sales		2.1% of net sales
Research & Development		€ 250 M		€ 262 M
	8.0% of net sales		9.9% of net sales
Adjustednet income (*)		€ 265 M		€ 87 M
Adjustednet margin		8.5% of net sales		3.3% of net sales
		as of June 30, 2021		as of December 31, 2020
Available cash		€ 3,502 M		€ 3,441 M

Note: Dassault Aviation recognizes Rafale Export contracts in their entirety (including the Thales and Safran parts).

Main aggregates under IFRS(see table of reconciliation below)

(*) Consolidated net sales	3,106
(*) Consolidated operating income	177
(*) Consolidated net income	212

2,646

57

32

78 Quai Marcel-Dassault, 92552 Saint-Cloud Cedex 300, France - Tel. [phone]	1
Registered office: 9 Rond-Point des Champs-ÉlyséesMarcel-Dassault, 75008 Paris, France - Public limited company with share capital of €66,789,624 -
Paris Trade Register No. 712 042 456

FINANCIAL RELEASE

Saint-Cloud, July 22nd, 2021

Saint-Cloud,July 22nd, 2021 - The Board of Directors met today under the chairmanship of Mr. Éric Trappier and approved the 2021 half year financial statements. The statutory auditors performed a limited review of these consolidated financial statements and the audit report for certification purposes is being issued.

• The 1st half of 2021 saw contracts for the Rafale Export and Rafale France, the Falcon 6X maiden flight, the resumption of Falcon orders, the Falcon 10X reveal and its 1st orders.

In the military aircraft segment, the year began with the sale to Greece of 18 Rafale (6 new and 12 pre- owned aircraft currently in service with the French military), followed by the sale to France of 12 additional Rafale to replace the 12 pre-owned aircraft sold to Greece, bringing the total Rafale France ordered up to 192.

Egypt also signed a contract to purchase an additional 30 Rafale, bringing the number of Rafale in service in the Egyptian Air Force to 54. The contract shall enter into force upon receipt of the 1st down payment and therefore it is not included in the backlog as of June 30th, 2021.

Croatia announced that it had selected the Rafale with a view to acquiring 12 pre-owned aircraft from France.

We also continued negotiations and prospection for the Rafale.

Active discussions and negotiations for the FCAS continued during the 1st half of 2021:

• the Joint Concept Study (JCS) launched in January 2019 is nearing completion;
• launched in February 2020, phase 1A of the FCAS demonstrators, and the New Generation Fighter in particular, is continuing. The focus is on aerodynamics, with the first wind tunnel tests scheduled for September 2021.

The contract for phase 1B (under negotiation) is still to be signed. This will cover all the work carried out jointly between France, Germany and Spain until 2024 (NGF demonstrator studies, for which Dassault Aviation is the prime contractor). Discussions are being finalized with the French Defense Procurement Agency (DGA) on intellectual property rights.

The contract for the Eurodrone, a medium-altitude,long-endurance drone, between the OCCAR (Organisation for Joint Armament Cooperation) and Airbus Defence and Space (the prime contractor) has been negociated. Notification is expected in 2nd half 2021. The contracts between Airbus Defence and Space and its main partners, Leonardo and Dassault Aviation, are being negotiated. Dassault Aviation will be responsible for flight controls and mission communications in particular.

During the 1st half of the year, we delivered 13 Rafale Export (India and Qatar) and continued to support the French and Export fleets.

In the civil aircraft segment, our development efforts started to show results with the successful maiden flight of the Falcon 6X on March 10, 2021, (this flight has been dedicated to Olivier Dassault who died tragically in March 2021) demonstrating the maturity of the program and paving the way for pre-certification testing. On May 6, 2021, we unveiled the Falcon 10X, our new long-range business jet featuring the most spacious cabin on the market.

The business aviation market showed encouraging signs of improvement during the 1st half of 2021, particularly with the recovery of air travel in the United States. Nevertheless, we note that price pressures remain. The pre-owned business jet market is buoyant.

78 Quai Marcel-Dassault, 92552 Saint-Cloud Cedex 300, France - Tel. [phone]	2
Registered office: 9 Rond-Point des Champs-ÉlyséesMarcel-Dassault, 75008 Paris, France - Public limited company with share capital of €66,789,624 -
Paris Trade Register No. 712 042 456

FINANCIAL RELEASE

Saint-Cloud, July 22nd, 2021

We delivered 6 Falcon during the 1st half of the year and booked 25 new aircraft orders (vs. 16 deliveries and 5 orders in 1st half 2020).

Lastly, following the decision of the Annual General Meeting of May 11, 2021, the par value of Dassault Aviation shares will be divided by 10. The new shares will be delivered on October 1, 2021. On that date, in exchange for each of their current shares with a par value of EUR 8 per share, shareholders will receive 10 new shares with a par value of EUR 0.80 per share.

Our 2021 guidance remains unchanged:

• delivery of 25 new Rafale and 25 new Falcon;
• increase in net sales. "

Éric Trappier, Chairman and Chief Executive Officer of Dassault Aviation.

78 Quai Marcel-Dassault, 92552 Saint-Cloud Cedex 300, France - Tel. [phone]	3
Registered office: 9 Rond-Point des Champs-ÉlyséesMarcel-Dassault, 75008 Paris, France - Public limited company with share capital of €66,789,624 -
Paris Trade Register No. 712 042 456

FINANCIAL RELEASE

Saint-Cloud, July 22nd, 2021

1. ADJUSTED CONSOLIDATED RESULTS 1ST HALF 2021

(see reconciliation table in the appendix)

ORDER INTAKE

Order intake for the 1st half of 2021 was EUR 3,913 million, compared to EUR 984 million for the 1st half of 2020. Export order intake stood at 82%.

Order intake was as follows, in EUR million:

				H1 2021	%		H1 2020	%
	Defense	2,500	65%	315	32%
	Defense Export	1,907		132
	Defense France	593		183
	Falcon	1,413	35%	669	68%
	Total order			3,913			984
	intake
	% Export	82%		80%

The order intake is entirely composed of firm orders.

Defense programs

Defense order intake totaled EUR 2,500 million in the 1st half of 2021, vs. EUR 315 million in the 1st half of 2020.

Defense Export order intake stood at EUR 1,907 million for the 1st half of 2021, compared to EUR 132 million for the 1st half of 2020. During the 1st half of 2021, we received an order from Greece for 6 new Rafale aircraft and 12 pre-owned Rafale aircraft to be purchase from the French Air and Space Force.

Defense France order intake stood at EUR 593 million for the 1st half of 2021, vs. EUR 183 million for the 1st half of 2020. During the 1st half of 2021, we received an order from France for an additional 12 Rafale aircraft.

Falcon programs

During the 1st half of 2021, 25 Falcon orders were received, compared to 5 in the 1st half of 2020.

Falcon order intake amounted to EUR 1,413 million in the 1st half of 2021, vs. EUR 669 million in the 1st half of 2020.

78 Quai Marcel-Dassault, 92552 Saint-Cloud Cedex 300, France - Tel. [phone]	4
Registered office: 9 Rond-Point des Champs-ÉlyséesMarcel-Dassault, 75008 Paris, France - Public limited company with share capital of €66,789,624 -
Paris Trade Register No. 712 042 456

FINANCIAL RELEASE

Saint-Cloud, July 22nd, 2021

ADJUSTED NET SALES

Adjusted net sales for the 1st half of 2021 totaled EUR 3,107 million, compared with EUR 2,641 million for the 1st half of 2020. Export of net sales stood at 87% in the 1st half of 2021.

Consolidated sales were as follows, in EUR million:

				H1 2021	%		H1 2020	%
	Defense	2,405	77%	1,581	60%
	Defense Export	2,061		1,319
	Defense France	344		262
	Falcon	702	23%	1,060	40%
	Total adjusted net			3,107			2,641
	sales
	% Export	87%		89%

Defense programs

13 Rafale Export (India and Qatar) were delivered during the 1st half of 2021, compared with 7 Rafale Export for the 1st half of 2020.

Defense net sales for the 1st half of 2021 amounted to EUR 2,405 million, vs. EUR 1,581 million for the 1st half of 2020.

Defense Export net sales stood at EUR 2,061 million for the 1st half of 2021, vs. EUR 1,319 million for the 1st half of 2020. The increase is due to the number of Rafale aircraft delivered (13 vs. 7).

Defense France net sales stood at EUR 344 million for the 1st half of 2021, vs. EUR 262 million for the 1st half of 2020.

Falcon programs

6 Falcon were delivered in the 1st half of 2021, compared to 16 in the 1st half of 2020.

Falcon net sales for the 1st half of 2021 amounted to EUR 702 million, vs. EUR 1,060 million for the 1st half of 2020. The decrease is due to the number of Falcon aircraft delivered (6 vs. 16).

****

The "book-to-bill ratio" (order intake/net sales) is 1.26 for the first half of 2021.

78 Quai Marcel-Dassault, 92552 Saint-Cloud Cedex 300, France - Tel. [phone]	5
Registered office: 9 Rond-Point des Champs-ÉlyséesMarcel-Dassault, 75008 Paris, France - Public limited company with share capital of €66,789,624 -
Paris Trade Register No. 712 042 456