Financial Press Release
(Source: Dassault Aviation; issued March 8, 2017)
SAINT CLOUD, France --- The Board of Directors, chaired yesterday by Mr. Éric TRAPPIER, closed the 2016 financial statements. These consolidated financial statements were certified by the Statutory Auditors, who expressed an unqualified opinion.

Éric TRAPPIER, Dassault Aviation’s Chairman and Chief Executive Officer, stated:

“In 2016, we celebrated our centennial, which presented an opportunity to reaffirm our Company’s DNA: a passion for aviation, our civil and military duality, the search for technological innovation, sound manage-ment to ensure the financial health of the Company whilst investing in the future, family shareholding and spirit, teamwork, responsiveness and tenacity, not forgetting the element of luck, symbolized by the clover in our logo.

2016 will be remembered for two major events:
 a further success for RAFALE with the sale of 36 RAFALE to India,
 the first delivery of a FALCON 8X, on October 5, 2016 following its certification in June 2016 by the EASA and the FAA, and the particularly successful flight campaign around the world that demonstrated the maturity of our new flagship aircraft.

Furthermore, Dassault Aviation’s values were recognized in 2016 when it received the Randstad Award for the most attractive French company for all categories combined, which was followed by the Company being elected the best employer in France, all categories combined, in early 2017 by the Statista Institute for the Capital financial magazine.

Despite these successes and this collective pride, 2016 will also be remembered for the global economic and geopolitical uncertainty that weighed heavily on the business aviation market, which had already been diffi-cult in 2015, in an increasingly gloomy and fierce price war backdrop.

In terms of business aviation, in addition to the first delivery of a FALCON 8X on October 5, 2016, the year was marked by:

 21 FALCON ordered (including 12 FALCON 5X that were canceled as a result of Safran Aircraft Engines being late with the SilverCrest engine), compared to 25 FALCON ordered (including 20 FALCON Netjets canceled) in 2015,

 49 FALCON delivered, compared to 55 in 2015, in line with our guidance of 50 deliveries,

 after the announcement by Safran Aircraft Engines of its schedule for catching up with development of the SilverCrest engine (delay in delivery of the first complete engine from the end of 2013 to the beginning of 2018), it was possible to draw up a new schedule for the FALCON 5X program, which led to the deferral of the first customer deliveries from the end of 2017 to the beginning of 2020. Engine modifications are in the course of development. The first engine with all the corrections will be tested in 2017 by Safran on the ground and in flight on the aircraft test bench before the integration campaign in 2018,

 the order of a third Maritime Surveillance FALCON 2000 by the Japanese coastguards.

With regard to our military aircraft, 2016 resulted in:

 the signing of an offset agreement simultaneously with the signing and the coming into force of a sales agreement for 36 RAFALE with India,

 the delivery of 6 RAFALE to France and 3 RAFALE to Egypt, in line with our forecasts,

 the delivery of 2 Naval RAFALE retrofitted to the F3 standard to French navy,

 the continuation of development works on the F3-R standard,

 the notification by France of the MIRAGE 2000D upgrade contract,

 the continued development works to upgrade the combat system on the ATLANTIQUE 2.

In terms of future combat drones:

 a new flight test program for the nEUROn unmanned fighter aircraft, dedicated to stealth demonstrations, as well as tests at sea with the Charles de Gaulle aircraft carrier,

 the notification of a one-year extension of the feasibility phase to prepare for a demonstration program; the preparation with our industrial partners of the proposal to launch at the end of 2017 the first develop-ment phase of an operational UCAS (Unmanned Combat Air System) demonstrator, one of the compo-nents of the Future Combat Aircraft System (FCAS), following the Franco-British Summit in Amiens on March 3, 2016. The DGA (French Defense Procurement Agency) also notified a national technological development works,

 the launch by OCCAR (The Organization for Joint Armament Cooperation), in conjunction with the French, German, Italian and Spanish defense ministries, of a 2-year definition study for a MALE RPAS (Medium Altitude Long Endurance - Remotely Piloted Aircraft System) drone using European technologies. This study brings together Dassault Aviation, Airbus Defence and Space and Leonardo.

In 2016, we also announced the creation of a Joint Venture with RELIANCE Group in view of managing off-sets related to the contract for 36 RAFALE India. On February 10, 2017, Dassault Reliance Aerospace Limited was created.

The year 2016 will also be noted for the continued withdrawal by Airbus Group from the capital of Dassault Aviation, leading to further consolidation by our traditional and majority shareholder, GIMD. Dassault Avia-tion’s capital is now 62.0% held by GIMD, 27.5% by free float, 10.0% by Airbus Group and 0.5% by Das-sault Aviation.

Today, our challenge is to prepare for the future in an increasingly unpredictable and competitive environ-ment. Our transformation shall contribute to the launch of a new FALCON and allow us to increase our mar-kets shares, while improving our competitiveness (costs, quality, competitive advantages).

To achieve this goal, we launched a transformation plan called “Leading our Future”. It is based on:
 culture, skills and organization,
 digital tools, processes and innovation,
 industrial tools (Dassault Aviation industrial sites and subcontracting),
 program management,
and relies on:
 women and men, at the center of the transformation,
 user-oriented digital technology, which will be the driver of our transformation.


Our objectives for 2017 are:
 to sell FALCON aircraft and obtain new RAFALE Export contracts,

 further to the execution of the RAFALE contract with India, to implement the offset contract notably through the Joint-Venture in India,

 to ensure that the SilverCrest engine program keeps on track in accordance with the new schedule, on which the FALCON 5X schedule depends,

 to reinforce the France roadmap for RAFALE and drones,

 to define the technological “building blocks” for the future FALCON, and establish the conditions to launch a new FALCON, according to the results of a market survey,

 to ensure the Company’s transformation in order to, in particular, improve industrial tools and competitiveness.

The Group forecasts that in 2017, it will deliver 45 FALCON and 9 RAFALE (1 to France and 8 to Egypt). 2017 net sales should be higher than in 2016 given the RAFALE Export net sales.


The Board of Directors of Dassault Aviation, having noted the resignation of Mrs. Nicole DASSAULT and Mr. Alain GARCIA, has co-opted:
 Mrs. Catherine DASSAULT
 Mrs. Mathilde LEMOINE
for the remaining terms of their predecessors’ mandates, or until the Annual General Meeting that will be called to approve the financial statements for fiscal year 2019. Mrs. Mathilde LEMOINE is considered to be an independent director.
These appointments will be definitively settled after the ratification of these co-optations, which will be sub-ject to the approval of the Annual General Shareholders’ Meeting of May 18, 2017.


2016 order intake was EUR 9,558 million, compared to EUR 9,884 million in 2015. Exports represented 92%. Order intake consists exclusively of firm orders.

21 FALCON were ordered (including 12 FALCON 5X that were canceled as a result of Safran Aircraft Engines being late with the SilverCrest engine), compared to 25 FALCON ordered (including 20 FALCON Netjets canceled) in 2015. Thus, FALCON orders represented EUR 1,419 million, compared to EUR 1,602 million in 2015. The weakness of orders reflects a difficult business aviation market.

DEFENSE order intake was EUR 8,139 million in 2016, compared to EUR 8,282 million in 2015. The signature and coming into force of the contract for 36 RAFALE with India follow the coming into force in 2015 of contracts with Egypt (24 RAFALE) and Qatar (24 RAFALE). Dassault Aviation recognizes RAFALE Export contracts in their entirety (including the Thales and Safran parts), whereas for France only the Dassault Aviation part is recognized.

2016 net sales amounted to EUR 3,586 million, compared to EUR 4,176 million in 2015. Exports represented 83%.

49 FALCON were delivered in 2016, compared to 55 in 2015. This is in line with our forecast of 50 deliveries in 2016. 2016 FALCON net sales amounted to EUR 2,342 million, compared to EUR 2,507 million in 2015.

6 RAFALE were delivered to France and 3 RAFALE to Egypt during fiscal year 2016. DEFENSE net sales in 2016 amounted to EUR 1,244 million, compared to EUR 1,669 million in 2015. The higher DEFENSE net sales for 2015 benefited from the delivery of modernization work to bring the Indian MIRAGE 2000 in line with the I/TI standard.

The book to bill ratio (the order intake/net sales ratio) stood at 2.7 in 2016; this was due particularly to the RAFALE India contract, for which net sales will be recognized over several years.

The backlog as of December 31, 2016 was EUR 20,323 million, compared to EUR 14,175 million as of December 31, 2015. The increase is explained by the RAFALE India order in 2016.

The FALCON backlog stood at EUR 3,052 million, compared to EUR 3,798 million as of December 31, 2015. It particularly includes 63 FALCON (compared to 91 as of December 31, 2015).

The France Defense backlog stood at EUR 2,793 million, compared to EUR 2,622 million as of December 31, 2015. It includes in particular 32 RAFALE (compared to 38 as of December 31, 2015).

The Defense Export backlog stood at EUR 14,478 million, compared to EUR 7,755 million as of December 31, 2015. It includes in particular 36 RAFALE India, 24 RAFALE Qatar (compared to 24 as of December 31, 2015) and 18 RAFALE Egypt (compared to 21 as of December 31, 2015).

Click here for the financial statement page, on the Dassault Aviation website.


prev next

Official reports See all