Dassault Aviation Press Conference 2021 1st half results

Thursday 22nd July 2021

Dassault Aviation: Press Conference 2021 1st half results

22 July 2021

List of MAIN speakers

Company

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Éric Trappier

Dassault Aviation

CEO

PRESS CONFERENCE 2021 1ST HALF RESULTS

Éric Trappier

CEO

Good evening. We're going to take a look at the 2021 H1 accounts. It's a COVID configuration, so there is nobody here. We're doing it remotely and tonight it will be recorded and broadcasted on our site. We're going to begin traditionally with the film with the highlights of the first half of 2021.

ACTIVITIES & PROGRAMS

Video Speaker

Late 2020 marked the start of the Falcon Maritime Surveillance and Intervention programme, AVSIMAR, called Albatross went into effect. This contract was announced by the Minister of Defence during her 19th November visit of our plant in Seclin near Lille, along with Defence Commission Chairman for the National Assembly and the Senate.

As per the French military programming law, the initial Order calls for seven aircraft to be delivered starting in 2025 out of a total of 12. A symbol of the civilian military duality of Dassault Aviation, this aircraft is based on the Falcon 2000LXS. It includes a multifunction radar under fuselage, an optronics pod of high performance, observation portholes, and a rescue equipment dropping system along with dedicated communication systems.

Four months only after Greece [ph 00:01:31] expressed its intention to acquire them on January 25th, 2021, in Athens, Éric Trappier signed two contracts for the acquisition of 18 Rafale and the accompanying logistical support.

A ceremony with the Minister of Armed Forces and the Greek Minister of Defence [ph 00:01:45] was held and this 18 Rafale order includes 12 aircraft that are currently in use by the French Air Force and six new aircraft to be produced in our plants. On July 21st we held a ceremony at Istres.

This marks Greece's intent. It's a European country. It is a partner of NATO. Greece's intent to choose French aircraft. This is a deliberate choice and shows that there is an alternative to the all US aircraft line-up.

Our aircraft is unequalled on the international scene. It's combat proven, it's fully interoperable, with NATO among others, and its operating and maintenance costs are well known, and it is constantly being upgraded based on operational feedback. The Rafale is undeniably in the forefront of innovation.

Cooperation of Greece with Dassault is based on a very firm foundation. This is going to reinforce our combat capability at the Greek Air Force, our mission being to defend the territory and the sovereign right of our nation.

The arrival of the Rafale in the Hellenic Air Force marks the high quality of our strategic partnership, in Greece and France and the continuation of sound partnerships which has been underway for over 45 years now.

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Dassault Aviation: Press Conference 2021 1st half results

22 July 2021

On the occasion of her late January visit to our Argonay plant in Haute-savoie, where we produce flight controls for all the aircraft at Dassault and have done so since 1963, Florence Parly, Minister of Armed Force, announced her decision to order 12 Rafale to replace the aircraft which will be sold to the Hellenic Air Force.

The Aero India Show was held from the 3rd to the 5th of February 2021 on the air base in Bangalore. France had the largest foreign delegation present there and this shows that the French industry is determined to contribute to the development of aeronautics, space, and Indian defence industries.

The 6X Falcon made its maiden flight on March 10th with Bruno Ferry and Fabrice Valette at the controls. This is its maiden flight. It lasted 2.5 hours and made it possible to reach an altitude of 40,000 feet at a speed of Mach 0.8. This test campaign will be actively pursued for entry into service in 2022.

This initial flight was an opportunity to pay tribute to Olivier Dassault who was tragically deceased a few days earlier. He was passionate about flying, just like his Grandfather, Marcel Dassault, and his father, Sege Dassault, and always supported the development of our Group's activities.

Since late June, we have now got three Falcon 6X is participating in the test flight campaigns and we will continue to test all the systems. The test flights are monitored by extensive instrument - a battery of instruments. The multimedia and entertainment systems are in place and this aircraft boasts very comfortable and luxurious cabin with fluid lines, which makes the flight a very comfortable one indeed for its passengers.

Egypt announced its decision to acquire 30 additional Rafale in early May. This new order will flesh out the line-up of 24 Rafale, for which Egypt signed purchase contract in 2015. It was based on extremely strong ties between Egypt and Dassault Aviation, which have been in existence for over 50 years. Egypt is our second export client to choose Rafale. The international presentation of our new Falcon was held on 6th of May in Le Bourget.

Because of the COVID crisis this launch, which was virtual and digital, called on augmented reality to create a magical event. The Falcon 10X has got the roomiest, the best lit and the most comfortable cabin on the market for an unparalleled passenger experience. It has digital flight controls, a digital cockpit, it has got carbon wings, and this new aircraft will become the standard on the market. It has two Rolls-Royce engines, and it will be able to fly up to 14,000 kilometres. It will be commissioned in late 2025. We have two new high end Falcons under development - the 6X and the 10X -and Dassault Aviation has proved once again that it's investing into its future.

An international call for tender was held as part of the multirole fighter aircraft programme and Croatia selected the Rafale for its Air Force. The contract provides for the acquisition of 12 Rafales that are currently in use by the French Air Force and there will be support to the fleet and training of teams in addition.

Europe's Climate Leaders 2021. We are in the line-up of the Financial Times Climate Leaders 2021 best in class. There are 300 companies which got the best results in reducing greenhouse gases as a result of their business activities. Dassault Aviation is committed to designing new processes to decrease our carbon footprint, and the Falcon line-up is already able to fly with sustainable fuels.

And we also had the AI Challenge for Industry - artificial intelligence challenge for industry. We co- organised this challenge and there were some dozen start-ups in the running. The idea was to use AI algorithms to develop virtual sensors [ph 00:08:30]. This was held on May 28th in Le Bourget.

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Dassault Aviation: Press Conference 2021 1st half results

22 July 2021

The result of an innovative partnership between Dassault Aviation and engineering schools of the ISAE Group, we have designed a EUROGLIDER, which is a two seater used for teaching, release, and training. It's electrically propelled and it meets three requirements: operational, environmental, and economic. It shows that once again, Dassault Aviation is firmly by the side of engineering schools to build the aeronautics of the future.

June 18th, the Army Chiefs of Staff of three countries involved in the FCAS programme travelled to Saint-Cloud to meet with our CEO and Technical Operation Studies on the NGF were presented to these French, German, and Spanish Generals.

Dassault Aviation is working on cutting edge materials in using acoustics, electromagnetics, and antifreeze technologies. This is called MOLIERE, and the idea is to continue to break ground here at Dassault Aviation.

HIGHLIGHTS

Éric Trappier

CEO

I'll be presenting the results for this first half. Some highlights first.

CONTEXT

As you've seen in the film, the first half was marked by Rafale contracts, France and export. After the announcement of the first 6X maiden flight, the announcement of the 10X project and the first orders of the 10X that arrived. I'd like to add Falcon orders on top of this that are also arriving.

A difficult context, health crisis. We thought it would be behind us by now, but it is still here. We've seen this. There is an economic recovery in spite of very strict travel restrictions, which is creating a lot of tensions on raw material and electronic components. So, therefore there are inflationary surges, and we'll have to check whether this inflationary surge is temporary or if it will last longer.

The aeronautic line was strongly affected, and this concerned us throughout the crisis because of the common supply chain we have with commercial aviation, business jets, and military aviation. There's going to be a recovery for the medium haul [? 00:11:28] and so work should recover in many areas of the sector. And this is going to create some new tensions with this new start.

RAFALE EXPORT

And the last point are all the environmental issues with the Sustainable Climate Law in France and the new projects of the European Commission after the Green Deal.

Greece, as we showed you in the film - 18 Rafale, six new aircraft, 12 pre-owned from the French Air Force. So, Greece is the first European country apart from France that is buying Rafale aircraft and the first [ph 00:12:12] export client of the Rafale. The first deliveries have begun because the first aircraft was delivered yesterday.

Egypt has also signed a new contract and we've communicated on the signature. We're just waiting for the enforcement of this contract and the sale of these 30 aircraft has not been taken into account in the backlog and the orders of the first half of 2021.

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Dassault Aviation: Press Conference 2021 1st half results

22 July 2021

Croatia. This is a contract from State to State on the sales of 12 pre-owned aircraft sold by France to Croatia. This is under negotiation and Dassault will support part of these aircraft in the country. The delivery of 13 Rafale, export Rafales, and we will keep prospecting for the Rafale in other countries, apart from the ones I've just mentioned.

RAFALE FRANCE

As for the Rafale France, an order of 12 Rafale which is going to offset the sales of the 12 pre-owned aircraft for Greece, and the total of French orders will be 192 Rafale. The future deliveries to France - the second batch of the fourth. So, we'll have 40 aircraft still to be delivered to France from 2022 [ph 00:13:46] until 2025.

We're going to pursue the development works of the F4 Standard, and we're going to prepare the fifth batch which will start from 2023 onwards, but we have to ensure productivity through a certain number of orders made by friends.

MILITARY SUPPORT

Military support. You know that France and the Minister in particular wanted to highlight the verticalization of these support contracts. That is, give their responsibility to the aircraft manufacturers. So, that's the case for Rafale with the RAVEL contract. The results are well known and are on the right side. So there is an appreciation from the armies and the Ministry on the success of these first years of the RAVEL contract.

The second point is the use of a big data platform based on the Dassault system 3DExperience platform and we have a cloud between the armies and us, and this will be a real breakthrough in this area because we do not use any American software for this platform. The OCEAN platform verticalized contract, Atlantique 2, which is managed in the same way as the RAVEL contract.

As for our exports apart from the support of all our aircraft in service in the world, what we need to highlight is the training centre in Mérignac that trains our export clients and in the coming days it will train the Greek pilots.

We've done the first part in the French army in Mont-de-Marsan, but they're going to keep training with the mechanics in our centre in Mérignac.

FUTURE COMBAT AIR SYSTEM (FCAS)

As for the FCAS, the Future Combat Air System, you followed it throughout the first half of the year. The work on the JCS, the technical and operational studies that were launched in 2019, these were pursued, and this is why we received the three Chiefs of Staff from the Air Force to tell them about the work in progress in these studies, that will allow us to test the important features on which we will have to work, either for the FCAS itself or all that can support the FCAS for the choice of the future programme.

The beginning of the launching of the demonstrator phase, the Phase that we had called 1A, which had given way to a contract a year ago in 2020. So, this is being pursued. It was not easy because of the COVID situation because nobody will organise that with the platform which exists in Saint-Cloud, but there are difficulties traveling, so therefore we could not really use this plateau [ph 00:16:46] during this COVID period.

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Dassault Aviation SA published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 11:29:02 UTC.