Dassault Aviation Financial Release - Full year results 2020

****

The “book-to-bill ratio” (order intake/net sales) is 0.63 for 2020.

1.3      Backlog

The consolidated order backlog as of December 31, 2020 was EUR 15,895 million versus EUR 17,798 million as of December 31, 2019. It consisted of:

  • the Defense Export backlog, which was EUR 8,249 million versus EUR 10,725 million as of December 31, 2019. This consisted mainly of 34 Rafale, versus 47 Rafale as of December 31, 2019,
  • the France Defense backlog, which was EUR 5,499 million, compared to EUR 4,740 million as of December 31, 2019. This included 28 Rafale (as of December 31, 2019), the RAVEL support contract for the Rafale, the OCEAN support contract for the ATL2, the Rafale F4 standard and the first study phases for the NGWS,
  • the Falcon backlog (including the Albatros and Archange mission aircraft), which was  EUR 2,147 million, compared with EUR 2,333 million as of December 31, 2019. It includes 34 Falcon, versus 53 as of December 31, 2019.

1.4      Adjusted results

Operating income

Adjusted operating income for 2020 was EUR 261 million, compared with EUR 765 million in 2019.

Operating margin was 4.8%, versus 10.4% in 2019. It is directly affected by:

  • the financial impacts due to the health crisis (under-used capacity, cost of health measures, decline in activity at Falcon maintenance centers, etc.). The savings associated with the action plans implemented by the Group have cushioned these impacts,
  • the significant level of self-financed R&D, representing 9.8% of net sales, compared with 7.2% in 2019. Despite the crisis, we aimed at keeping our current developments going, particularly the Falcon 6X and the future Falcon,
  • less absorption of fixed costs due to the 25% drop in net sales.

The foreign exchange hedging rate was 1.18 $/€ in 2020, as in 2019.

Financial income

2020 adjusted financial income was EUR -34 million compared to EUR -52 million in 2019. In 2020, the impact associated with the financing component recorded under long-term military contracts was less significant due to deliveries of the Rafale Export. Financial income for 2020 was also positively impacted by the reduction in financial expenses following the repayment of borrowings in late 2019 and early 2020.

Net income

Adjusted net income for 2020 was down 51% at EUR 396 million, compared with EUR 814 million in 2019. Thales’ contribution to the Group’s net income was EUR 231 million, versus EUR 346 million in 2019.

As a result, adjusted net margin was 7.2% in 2020, as against 11.1% in 2019. This decrease is mainly due to the fall in operating income and the smaller contribution to net income from Thales (4.2% of net sales in 2020, versus 4.7% in 2019).

Net income per share for 2020 was EUR 47.6, compared with EUR 97.9 in 2019.

2.     Financial structure

2.1      Available cash

The Group uses a specific indicator called “Available cash”, which reflects the amount of total cash available to the Group, net of financial debts. It includes the following balance sheet items: cash and cash equivalents, current financial assets (at market value) and financial debt; it excludes lease liabilities recognized following the application of IFRS 16.

The Group’s available cash stands at EUR 3,441 million, EUR 1,144 million less than at December 31, 2019. The decrease is primarily due to the additional working capital requirement (resulting from the reduction in advances and progress payments received under export contracts following deliveries), and to the significant investments made during the period (including the purchase of land and buildings previously leased). These items are partially offset by operating cash flows generated during the year. In 2020, no dividends were paid to shareholders.

2.2      Balance sheet (IFRS Data)

Total equity stood at EUR 4,560 million as of December 31, 2020, versus EUR 4,446 million as of December 31, 2019.

Borrowings and financial debt totaled EUR 270 million as of December 31, 2020, against EUR 558 million as of December 31, 2019. EUR 250 million of bank borrowings were repaid in early 2020. Borrowings and financial debt mostly consist of locked-in employees’ profit-sharing funds, for EUR 123 million, and lease liabilities recognized following the implementation of IFRS 16, for EUR 147 million.

Inventories and work-in-progress rose slightly to EUR 3,382 million as of December 31, 2020, compared with EUR 3,368 million as of December 31, 2019. The increase in Defense France inventories and work-in-progress was offset by the decrease in Defense Export inventories and work-in-progress, following the delivery of services under the Rafale Export contracts and the reduction in pre-owned Falcon inventory.

Advances and progress payments received on orders, net of advances and progress payments paid, fell by EUR 649 million as of December 31, 2020. This was mainly due to the reduction in progress payments following delivery of the Rafale Export during the period.

Derivative financial instruments had a market value of EUR 81 million as of December 31, 2020, compared with EUR -71 million as of December 31, 2019. This increase is essentially due to the change in the US dollar exchange rate between December 31, 2020 and December 31, 2019 (1.2271 $/€ versus 1.1234 $/€).

3.     Dividends and profit-sharing/incentives

The Board of Directors decided to propose to the Annual General Meeting a dividend distribution, in 2021, of EUR 12.3 per share, corresponding to a total of EUR 103 million, i.e., a payout of 26%.

For 2020, the Group will pay EUR 85 million in employee profit-sharing and incentives, including 20% correlated social tax, whereas the application of the legal formula would have resulted in a EUR 2 million payment.

4.     SPLIT of the PAR value OF THE SHARE

To align the share value with peers of the industry, to allow a better accessibility to individual investors, and to promote the liquidity of the stock, the Board of Directors decided to submit for the approval of the Annual General Meeting of May 11, 2021 a ten-for-one stock split, reducing the par value of Dassault Aviation shares from EUR 8 to EUR 0.80. This split would occur during the second half of 2021.

This Financial Press Release may contain forward-looking statements which represent objectives and cannot be construed as forecasts regarding the Company's results or any other performance indicator. The actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as described in the Directors’ report.

CONTACTS

Corporate Communication
Stéphane Fort - Tel. +33 (0)1 47 11 86 90 - stephane.fort@dassault-aviation.com

Investor Relations
Armelle Gary - Tel. +33 (0)1 47 11 84 24 - armelle.gary@dassault-aviation.com

dassault-aviation.com

 

APPENDIX

Definition of alternative performance indicators

To reflect the Group’s actual economic performance, and for monitoring and comparability reasons, the Group presents an adjusted income statement with the following elements:

  • gains and losses resulting from the exercise of hedging instruments which do not qualify for hedge accounting under IFRS standards. This income, presented as financial income in the consolidated financial statements, is reclassified as net sales and thus as operating income in the adjusted income statement,
  • the valuation of foreign exchange derivatives which do not qualify for hedge accounting, by neutralizing the change in fair value of these instruments (the Group considering that gains or losses on hedging should only impact income as commercial flows occur), with the exception of derivatives allocated to hedge balance-sheet positions whose change in fair value is presented as operating income,
  • amortization of assets valued as part of the purchase price allocation (business combinations), known as “PPA”,
  • adjustments made by Thales in its financial reporting.

The Group also presents the “available cash” indicator which reflects the amount of the Group’s total liquidities, net of financial debt. It covers the following balance sheet items:

« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article
Featured Video
Latest Blog Posts
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
Mid-November Economic Nuggets, With a Focus on Mega Projects, Inflation and Air Travel Statistics
Dr. Biplab SarkarVectorworks Blog
by Dr. Biplab Sarkar
See How You Can Design Without Limits With Vectorworks
Jobs
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
Senior Highway Engineer for RS&H at Jacksonville, Florida
Transit GIS analyst/planner for Jarrett Walker and Associates at Portland, Oregon
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Upcoming Events
The Buildings Show 2021 at Metro Toronto Convention Centre – South Hall. Toronto Canada - Dec 1 - 3, 2021
SIGGRAPH Asia 2021 at Tokyo, Japan Japan - Dec 14 - 17, 2021
Utopian and Sacred Architecture Studies (USAS) - 2nd Edition at University Way, Dockland Campus London, E16 2RD, UK London --Choose One-- United Kingdom - Jun 14 - 15, 2022



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise