DASSAULT AVIATION

Order intake and backlog

http://www.dassault-aviation.com/fileadmin/user_upload/redacteur/presse/PRESS_KITS_2012/resultats_2011/EN_-_Press_Release_31122011.pdf

2011 orders amounted to EUR 2,863 million (*), compared to EUR 1,266 million in 2010. Export represented 83% of the total new orders in 2011.

Regarding business jets, commercial activity significantly improved compared to 2010. However, it remained contrasted, China being the most dynamic market while a recovery is still expected in North America. Europe shows encouraging signs, especially on pre-owned business jets market, but as a whole, wait-and-see policy still applies. New orders, net of cancellations, stood at 36 FALCON in 2011. They were negative by - 9 FALCON in 2010. FALCON order intake reached EUR 1,932 million in 2011 compared to EUR 474 million in 2010.

Defense orders rose to EUR 931 million in 2011 compared to EUR 792 million in 2010. They include, in particular, the Indian Air Force's MIRAGE 2000 fleet upgrade contract signed by DASSAULT AVIATION and THALES in July.

As of December 31, 2011, consolidated backlog amounted to EUR 8,751 million compared to EUR 9,401 million as of December 31, 2010, down by 7%.

(*) From now on, the Group is in line with other listed Groups practice as it no longer posts on order intake the annual variation of the €/$ exchange rate on the backlog.

Net sales

Consolidated net sales amounted to EUR 3,305 million in 2011 compared to EUR 4,187 million in 2010, down by 21%. Export net sales represent 74% of total net sales.

FALCON net sales decreased by 25% between the two periods, reaching EUR 2,415 million in 2011 compared to EUR 3,228 million in 2010. 63 brand new aircraft were delivered in 2011, compared to 95 in 2010.

11 RAFALE were delivered to French Air Force and Navy in 2011, unchanged from 2010. Defense net sales showed a downturn of 7%, due to a decrease in export support and development activities.

The book-to-bill ratio reached 0.87.

Results

DASSAULT AVIATION operational income amounted to EUR 377 million in 2011 compared to EUR 591 million in 2010, down by 36%. Operational margin stood at 11.4% compared to 14.1% in 2010, mainly explained by a net sales decrease and an increase of Research and Development expenses reaching EUR 303 million in 2011 compared to EUR 233 million in 2010.

Excluding THALES, 2011 net income was EUR 282 million compared to EUR 395 million in 2010, down by 29%. Net margin excluding THALES was 8.5% compared to 9.4% in 2010. 2011 profit included a financial income of EUR 14 million, compared to a financial loss of EUR 27 million in 2010.

Including THALES, 2011 net income^(*) amounted to EUR 407 million, up by 10% compared to 2010. Net margin including THALES reached 12.3% compared to 8.9% the year before. THALES contribution to the Group net income, before amortization of Purchase Price Allocation, was EUR 125 million in 2011 compared to a contribution of EUR - 24 million in 2010.

^(*) net income before amortization of Purchase Price

2012 Outlook

Business jets market recovery is initiated but its evolution remains uncertain for the year 2012.

Regarding military aircraft, decisive opportunities exist for both RAFALE export sales and drones.

On January 31, 2012, Indian Government announced the final selection of the RAFALE in the frame of the MMRCA program in order to equip the Indian Air Force with 126 new aircraft. This decision is a decisive step in the MMRCA tender. Still, the negotiation to finalize and sign the contract has to be completed successfully.

DASSAULT AVIATION Group expects to deliver around 65 FALCON and 11 RAFALE in 2012. Net sales should consequently remain even.