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2006 Annual Report

2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

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Page 1: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

2006 Annual Report

Page 2: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

First part: The Dassault Aviation Group

Message from the Chairman 3Management Committee 4Dassault Aviation: boldness, realism and high technology 5Key figures 62006 highlights 7Our commitment 8-9High technology 10-11Digital Flying Systems 12-13Rethinking the industry 14-15Customer service 16-17Cooperation 18-19Falcon business jets 20-21Combat aircraft 22-23Dassault aircraft worldwide 24-25

Second part: Fiscal 2006 director’s reports and financial statements

Group structure 1Boards of Directors / Management Committee 2Director’s Report 3Chairman’s Report 25Consolidated financial statements 31Company financial statements 67Resolutions 101

Summary

Page 3: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation Annual Report 2006

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The year 2006 will be remembered as a definite new record for Falcon sales since 1965 with158 aircraft ordered. Our sales were driven by worldwide economic growth that was virtuallyimpervious to rising oil and commodity prices and climbing interest rates. The historic orderof 24 Falcon 7X by NetJets bears witness to this favorable economic climate.

In the military aviation industry, we achieved our primary objective of qualifying the F2 stan-dard and commissioning the first Rafale squadron in the French Air Force. Our Companyhonored its commitments despite a very tight schedule.

Our 2006 consolidated figures are as follows:

• Order book: EUR 5.29 billion;

• Net sales: EUR 3.30 billion;

• Net consolidated income: EUR 281 million.

Our main objectives for 2007 are to:

• For the Rafale: ensure aircraft deliveries; finalize the F3 standard by mid-2008; prepare theintegration of future sensors.

• For the nEUROn: complete the feasibility studies and set up the physical plateau.

• For the Falcon 7X: complete the certification and ensure the initial deliveries while meetingthe deadlines and quality requirements.

• For other Falcons: certify the Falcon 2000DX; deliver the first Falcon 2000EX aircraftequipped with winglets; initiate the SMS feasibility work.

• In sales terms: pursue our efforts to export our equipment. • In economic terms: continue to cut costs in order to limit the dollar impact on our results;

maintain our flexibility.

We are firmly committed to a new approach for the design, industrial development, productionand support of our aircraft from both technical and economical standpoints. This approachshall be based on four pillars: PLM, PLM Systems, the ongoing reappraisal of our processesand a deep-rooted change in our culture in order to cut costs by more than ever before throughinnovation.

We shall therefore take the necessary steps to remain one of the world leaders in the aviationindustry, in an increasingly competitive context, marked by the chronic weakness in the dollarand the reduction in defense budgets.

Our Company must continue to adapt to the changes in its environment. I am certain thatthrough their efficiency and expertise, our employees will be able to meet the challengesawaiting us.

Charles EdelstenneChairman and Chief Executive Officer

A new record-breaking year

for Falcons

Page 4: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Management CommitteeManagement Committee

Guy PIRAS, Executive Vice-President,Industrial Operations,Procurement and Purchasing

Jacques MIANNAY, Senior Vice-President, Total Quality

Jacques PELLAS,Corporate Secretary

Alain BONNY, Senior Vice-President,Military Customer Support

Charles EDELSTENNE,Chairman and Chief Executive Officer

Eric TRAPPIER, Executive Vice-President,International

Claude DEFAWE, Vice-President, National and CooperativeMilitary Sales

Olivier VILLA, Senior Vice-President, Civil Aircraft

Didier GONDOIN,Senior Vice-President,Research, Design and Engineering

Loïk SEGALEN, Vice-President, Economic and Financial Affairs

Communicationsand human resources

• Yves ROBINS, Vice-President, Institutional Relations & Corporate Communications

• Pierre VIVIEN, Vice-President for Social Relations & Human Resources

Page 5: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation Annual Report 2006

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DASSAULT AVIATION:boldness, realism and

high technology.

Dassault Aviation is one of the major players in the global civil and militaryaviation industry. A reasonably sized and financially secure private interna-tional group, with a presence in more than 70 countries across 5 continents,Dassault Aviation has been profitable ever since its creation in 1936.

Structured to adapt its production to market cycles, Dassault Aviationen-compasses a rich industrial network of high-tech companies in France,Europe, the US and many countries worldwide.

Through its engineering design departments, production facilities, the skills ofits employees and its product lines, Dassault Aviation offers its customersin-depth know-how, ranging from design to operations, based on strongentrepreneurial values.

Pioneer of a worldwide industrial revolution.

Strategic technology expertise.

European leader in integration of complex airborne systems.

The only group in the world that designs, manufactures and sells combataircraft, instruments of political independence, and executive jets, work and economic development tools.

Products: Mirage, Rafale, Falcon, nEUROn.

More than 7,600 aircraft delivered, representing some 20 million hours of flight time.

Since 1975, 71% of Dassault aircraft have been sold on the export market. For Falcons, export sales exceed 90%.

Over the past 5 years, Falcons have represented on average 57% of salesgenerated.

World leader in top-of-the-range executive jets.

Unique manufacturer of executive jets in Europe.

Page 6: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Order book:

EUR 5.29 billion

Net sales:

EUR 3.30 billion

Net income:

EUR 281 million

Orders as of 12/31/2006:

EUR12.81billion

Net earnings per share:

EUR 27.8Personnel:

11,928

Orders in EUR million

Net sales in EUR million

312295

313 305281

4,76290%

1423%3917%

2,05362%

2758%

97430%

2,16654%

1233%

1,73043%

2,71977%

1224%

67919%

1,38558%

1536%

87836%

2,11661%

83824%

50515%

2,22665%

1585%

1,05330%

1,69251%

1,06132%

54517%

2002 2003 2004 2005 2006

2002 2003 2004 2005 2006

2002 2003 2004IFRS

2005IFRS

2006IFRS

3,520

4,06190%

1503%3157%

4,526

2,416

4,019

5,295

3,437 3,298 3,459

1,65148%

42813%

1,34939%

3,428 3,302

Net income in EUR million

Page 7: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation Annual Report 2006

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PROGRAMS:

Falcon:• 158 aircraft ordered, including

24 Falcon 7X by NetJets Europe(September 24).

• Falcon 7X: cold soak trials(Iqualuit and Resolute Bay -Canada), Flooded runway trials(Cranfield - UK), ultimate loadtrials (CEAT - Toulouse), hotweather testing (Tozeur - Tunisia),high altitude testing (Colorado -United States).

• First deliveries of Falcon 7Xproduction aircraft to the DassaultFalcon Jet completion center inLittle Rock.

• Falcon 2000EX EASy Step 3'sCertification. (August 10)

• First Falcon delivered in China.

Rafale:• First Rafale squadron for

the French Air Force (EC 1/7“Provence”) commissioned at theSaint-Dizier 113 airbase (June 27).

• Validation of the Rafale Marine F2standard

• Rafale flight test of the F3standard (May).

• “Tiger Meet” in Albacete (Spain),first international air competitionfor the French Air Force Rafale.

Mirage 2000:• Delivery to the United Arab

Emirates of seven Mirage 2000-9upgraded to the SAD92 standard.

• Delivery by the French Air Force of the first Mirage 2000 aircraft to Brazil (September 4).

• Contract for support of the Mirage2000 fleet for the Brazilian Air Force (December)

• Notification of the contract for theintegration of the MIDS Link 16function in the Mirage 2000 D andMirage 2000-5 F (October 2, 2006).

Unmanned Air Vehicles(UAV): • Notification of the development

contract to Dassault Aviation,prime contractor of the nEUROnprogramme by the French DGA(February).

Space: • Continued work on the Pré-X

reentry demonstrator and theFrench-Russian FLEX (In-FlightExperiment) reusabledemonstrator.

• Involvement in research for theCNES on airborne mini-launchers.

SITES AND INDUSTRY:

Sites: • Argenteuil: creation of a stretch

forming production unit; extensionof the digitally milling machine line(6 to 10 machines).

• Little Rock: commissioning of theFalcon 7X building for interiorfittings; New storage building.

• Argonay: creation of newmachining units, set-up ofassembly units using PLM tools(Delmia®).

• Biarritz: production of Falcon 7Xwinglets using RTM technology.

Quality and environmental policy: • EN 9100 and ISO 14001

certification (December).

AIR SHOWS:

Participation at air shows: Al Ain Air Show (United ArabEmirates), Air Power Conference(Rome - Italy), AVEX (Sharm El Sheikh - Egypt), EBACE (Geneva - Switzerland), AIREX(Istanbul - Turkey), Eurosatory(Villepinte - France), Farnborough(United Kingdom), Africa Aerospace(Johannesburg - South Africa),Monaco Yacht Show (Monaco),Defendory (Athens - Greece), NBAA (Orlando - United States),Euronaval (Le Bourget - France),LAVEX (Libya).

2006 highlights

Page 8: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Our commitment

The Dassault Aviation Group favors united action at

all levels, mutual respect, the search for professional self-realization, and the feeling of belonging to a company that is still human in scope.

Page 9: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

CUSTOMER SPIRIT

Satisfying the customer is both thephilosophy and the underlyingguideline of Dassault Aviation:- being a good listener,understanding his/her needs in amanner which efficiently serveshim/her, keeping our word;- offering excellent technicalperformance, confidentiality andcustomized follow-up, whileoptimizing the cost of businessexpenses and response times.

HUMAN QUALITIES

People are the heart of the Group.Dassault Aviation promotes teamspirit, the sharing of knowledge andknow-how, creative initiative, andrespect for ethics.The Group favors united action at alllevels, mutual respect, the searchfor professional self-realization, andthe feeling of belonging to acompany that is still human inscope.Human development is a primaryconcern for the Company. This is demonstrated in a humanresources policy establishedaccording to a code of ethics.Based on the principle oftransparency and equity, the policy’saim is to motivate employees while providing a sense ofresponsibility.

TECHNOLOGICALEXCELLENCE AND INNOVATION

Technological excellence andinnovation is the motto of DassaultAviation on which its spirit, passionand history are based.The Group ensures the quality,reliability, and safety of its aircraftthrough a strategy of constantinnovation, its project managementcapability, and its mastery ofcomplex systems.

ECONOMICPERFORMANCE

Dassault Aviation regards thecreation of value as an essential

goal in terms of ensuring itsprofitability, financial stability andlong-term future.In a context of intense internationalcompetition, the Group must bemore flexible, adaptable, andresponsive in dealings with itscustomers, suppliers and partners.

OPENNESS TO THE WORLD

In a spirit of partnership, DassaultAviation is engaged in sustainedprograms of scientific, technological,technical, and industrial cooperationin France and abroad.The Group is active in national andinternational aviation and defenseorganizations.Its internal and externalcommunications are open andtransparent.

SUPPORT FOR THEGLOBAL COMPACTINITIATIVE

In 2003, Dassault Aviation joinedthe UN Global Compact initiative.The Group supports the tenprinciples relating to human rights,labor standards, environmentalprotection and the fight against

corruption. It is through thiscommitment that Dassault Aviationhas progressively incorporated theGlobal Compact principles into itsstrategy, culture and dailyoperations.(www.unglobalcompact.org)

ENVIRONMENTALPROTECTIONMEASURES

For several years, Dassault Aviationhas gradually developed anenvironmental policy and anorganization that has helpedreinforce environmentalconsideration at all its sites. Itsfacilities have all received the ISO14001 certification relating toenvironmental managementsystems.

In the executive aviation industry,Dassault Aviation monitorstechnological and regulatorydevelopments, thereby enabling it totake into account a certain numberof environmental requirements asfrom the Falcon design phase. Thisis the case for the maximum levelsof sound or atmospheric pollutionpermitted in order to obtaincertification for an aircraft. In the military aircraft industry, the French General Delegation for Armament (DGA) will soon draftenvironmental clauses for its futurecalls for tender.

Dassault Aviation Annual Report 2006

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Enthusiasm, excellence and professional conduct

In the context of a global economy and intensecompetition, Dassault Aviation relies on strong values, a confirmed reputation and a strict code of ethics to reach its objectives.

Page 10: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

High technology

At Dassault Aviation, research and development

in both the military and civil aviationsectors is a reality thanks to mixedteams of researchers who implementsimilar processes. The Falcon 7X is now equipped with the electric flight controls designed for the Mirage 2000 and the Rafale.

Page 11: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

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Research and development isessential to the Group’s activity interms of preparing for the future.The upstream understanding ofinnovative technologies that are themost promising in terms ofcost/efficiency, through fundamentalresearch, has always beenconsidered a primary factor incompetitiveness. Dassault Aviationhas the resources necessary todesign pivotal high-performanceproducts under operationalconditions.

The general research conducted byDassault Aviation enables theapplication of new technologies toboth current programs and futuresystems. Particular attention isgiven to the work which reducesprogram cycles and costs andimproves quality. The Companyconducts studies and researchunder internally financed projectsand in partnership with the Frenchgovernment and Europeaninstitutions. It maintains partnershipswith over one hundred researchcenters in France and worldwide:universities, laboratories, institutes,manufacturers, etc.

Dassault Aviation is currentlyworking on future airborne systemsinvolving:• preliminary studies for an

executive jet in the super mid-sizemarket;

• a range of unmanned combataircraft or observation drones;

• technologies for a supersonicexecutive jet.

Dassault Aviation also has expertisein cutting-edge technologies at theproduction level: manufacturing ofairframes with composite materials,resin transfer molding (RTM), hotforming, stereolithography andfilament placement, etc.Its workshops manage high-speedmachining techniques and havebroken new ground in robotics.In the combat aircraft industry,Dassault Aviation is the primecontractor of the nEUROnunmanned technologicaldemonstrator for combat aircraft.With this demonstrator initiative,France seeks to provide Europeanengineering design departments

with a project intended to maintainand develop their strategic expertisein forthcoming years. Dassault Aviation contributes to theHISAC (High Speed Aircraft)international research program,which includes more than thirtypartners under its leadership.

Controlling key technologies

Dassault Aviation is constantly at the cutting edge in terms of technological innovation. This desire to prepare the long term is all the moreimportant as Dassault Aviation’s industry has long cycles: a civil or military aircraft represents around ten years of design and around thirty years of operating life.

Page 12: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Digital Flying Systems

The new EASy (Enhanced Avionics System) cockpit,

developed in conjunction withHoneywell and incorporating thecombat aircraft expertise acquired by Dassault Aviation (groundreconnaissance, assessment andcontrol of a complex tactical situation,etc.), has brought the world of graphicavionics to the executive jet.

Page 13: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation Annual Report 2006

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A digital airborne systemsintegrator, Dassault Aviationmanufactures products that havebecome industry benchmarks. Few companies in the world arenow capable of producing thesecomplex airborne systems, whichinclude, for example, a navigationand weapon system or a digitalflight control system. These requireessential expertise from the designto production to support stage interms of coordination, theaccounting management ofintegrated systems and integration.The system’s integrator must boasta wide range of skills to takeaccount of all the system’s technicaland financial components, whileknowing how to assess the risksinvolved in its integration. DassaultAviation’s expertise is built uponfour cornerstones:• Global architectures; • Balancing between performance,

technology and cost savings;• Control over costs and deadlines;• Risk management.

IN EXECUTIVEAVIATION: • Dassault Aviation’s unique know-

how in electric and digital flightcontrol systems for combataircraft contributes to therecognized flight performancequalities of its equipment. Itenabled the production of the firstexecutive aircraft in the worldequipped with non-mechanicalcomputerized flight controls: theFalcon 7X.

• The new EASy (EnhancedAvionics System), cockpit,developed in conjunction withHoneywell and incorporating thecombat aircraft expertise acquiredby Dassault Aviation (groundreconnaissance, assessment andcontrol of a complex tacticalsituation, etc.), has brought theworld of graphic avionics to theexecutive jet. The man-machinedialogue is intuitive. The changesprovided by EASy significantlyimprove aircraft safety and pilotcomfort.

IN MILITARYAVIATION: The Rafale F2 standard adds air-to-ground capabilities and modular air-to-ground weaponry to the air-to-air functions of the F1standard. It also incorporates frontalsector optronics (FSO), the NATO“link 16” data link and the infraredversion of the Mica air-to-air missile.To manage such a weaponssystem, and, in particular, to be ableto synthesize its innumerable data,a new “core system” was required.The Rafale F2 is equipped with amodular information processingsystem or “super computer”.

These modular avionics offerconsiderable benefits in terms of calculation power, reliability and on-line maintenance. The Rafale F2 will enable aircraftcrews to perform air-to-air or air-to-surface attack and air defense missions during a single flight, while “connected” to the command network.

Our new sky is digital

Because of technological development, the aircraft isevolving towards complex airborne systems, which is closer to reality, integrating numerous digitalfacilities, in both civil and military markets.

Page 14: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Rethinking the industry

Use of computerized assembly working

instructions whereby the data fromthe digital model is recovered on a PC tablet. The direct displayenables the designer to verify the compliance of the actual designwith the validated model.

Page 15: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Traditionally, the manufacturer’sengineering design departmentdefines the aircraft as it is for flight.The manufacturing departments thendisassemble and reassemble theaircraft parts in order to organizeproduction. This process leads tonumerous modifications,replacements and adjustments,sometimes even new designs, thatare costly in terms of time andmoney. Each production phase, eveneach aircraft, may require specificmodifications that are difficult tomanage in time.

At Dassault Aviation, the variousaircraft parts are analyzed using theDassault Systèmes CATIA® softwareas from the design engineeringphase with all the manufacturingprocess constraints already present.The replacement and adjustmenttools are no longer needed. Theparts are correctly designed at thefirst attempt. The Company hasapplied this method since the Rafale.Based on the Product LifecycleManagement specificallyimplemented with the Falcon 7X, thesuccessive stages in thedevelopment of a program aremanaged, monitored and listed inaddition to the specific modificationsto each aircraft operated by thecustomers.

Any basic aircraft can be reproducedidentically. There are multiple gains:quality of the primary parts, precisionassembly, tool simplification, shorterassembly time due to simplifiedactions, improved learning curve and acquisition of know-how onspecific matters that can be reusedfor other aircraft.

The precision obtained can lead to a reduction in manufacturingcosts. This facilitates cooperationwith companies using the same ITtools and a considerable share ofthe workload can be subcontractedto small or medium-sizedcompanies in France or abroad.

Dassault Aviation Annual Report 2006

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Saving time and obtaining precision

Through the creation of Product Lifecycle Management,Dassault Aviation has paved the way for an industrialrevolution. For the first time ever, an aircraft, the Falcon 7X, has been fully assembled without the slightest adjustment or modification. Assembly and fitting deadlines have thus been considerably reduced.

Page 16: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Customer service

Dassault Aviation attaches great importance to

the customer support that it providesto assist customers with their dailyoperational needs.

Page 17: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation Annual Report 2006

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Dassault Aviation adapts to themarket, i.e. the expectations of thecustomers who ensure theCompany’s continuation and whowish to benefit from top-performingproducts and services at a fairprice. Cutting overhead andprogram costs is one of theCompany’s primary objectives. AllCompany employees haveintegrated the guidelines on a dailybasis: doing “just enough,” avoidingover-specification, not simplyseeking technical excellence for itsown sake and “doing things rightthe first time”.

This is the case for our latestexecutive aircraft, the Falcon 7X,with in addition, due to theinstallation of Product LifecyleManagement (PLM) tools, the guaranteed optimal integrationof the skills and expertise of all theindustrial partners, reduced leadtimes and improved aircraftmaintainability taken into account as from the initial design phase.

Dassault Aviation takes great care in listening to its customers,understanding their needs, beingavailable to serve them andhonoring its commitments.Accordingly, it organizes an internal"Business Class" training seminar,which is aimed at the Company’sengineers and management andexecutive grades. They areencouraged to focus their attentionon the knowledge of DassaultAviation’s markets and customersso as to “Put the customer first”and identify their individualcontribution to this strategy.

Dassault Aviation attaches greatimportance to the customer supportthat it provides to assist customerswith their daily operational needs.

The main objectives are to:• offer customers a range

of products and services to facilitate aircraft operational use and maintenance in order to ensure successful missions;

• offer armed forces customizedsupport based on their wishes;

• maintain the product’smarketability, at a competitiveprice, by proposing improvementand training initiatives, taking into account any feedback.

The criteria used to adapt supportto the customer’s logistical needsare to:• facilitate implementation and

deployment;• simplify use, optimize the required

personnel and resources.

Earning customer satisfaction

Dassault Aviation undertakes to “Put the customerfirst”, offering excellent technical performance,confidentiality and customized follow-up, while optimizingthe cost of business expenses and response times.

Page 18: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Cooperation

nEUROn is Europe’sUnmanned Combat Aircraft

Vehicle (UCAV) demonstrator. The purpose of the nEUROn programis to develop strategic technologiesrequired to design the next EuropeanCombat Aircraft.

Page 19: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

Dassault Aviation has always favoredeffective cooperation. Thanks to itsunique experience as an architect ofcomplex airborne systems, theCompany brings innovativecooperation schemes to the Europeanmilitary aviation sector. To be effective,a cooperative program managementneeds a single point of decision, anda single point of implementation. It is theonly way to drive unique instructionsand to bear full responsibilities.For that reason, nEUROn, Europe’sUCAV technology demonstratorproject, is organized as follows: • A unique Executive Agency, the

French DGA, awards a main contract;• A unique prime contractor,

Dassault Aviation, is in charge ofthe main contract implementation.

The French authorities have statedthat nEUROn is defined as aEuropean program, fully open tocooperation. As such, almost half ofthe tasks, in value terms, is done bynon-French companies.In terms of management, thisorganization guarantees the bestefficiency in a full partnership approachand cooperative relations betweenthe various actors. To achieve such atarget, Dassault Aviation has created ateam of European companies including:Alenia, Saab, EADS, Hellenic AircraftIndustry and RUAG. The French DGA,as the Executive Agency, is incontinuous contact with EuropeanGovernments in order to implementtheir participation to the project.

nEUROn, as a technologicaldemonstrator, will allow development,integration and validation of themost advanced technologicalagenda existing today within theEuropean aerospace industry.For the first time in a military project,it is designed and developed withinthe frame of a completely integratedPLM (Product Lifecycle Management)environment, through a virtualdevelopment platform allowingDassault Aviation and its five partnersin five countries to simultaneouslywork together on the same design.

Dassault Aviation works with morethan 120 universities, institutes andresearch centers worldwide, thuscreating a scientific base for itsbusinesses. The Company activelyparticipates in the Europeanframework program for research,technological development anddemonstration. It enters into variousindustrial partnerships, includingresearch, technology and

development projects, and researchinto future aviation technologies.Dassault Aviation is also involved inEuropean programs as the FACE(Friendly Aircraft Cabin Environment),program to improve comfort in civiljet cabins and cockpits, HISAC(High Speed Aircraft), Clean Sky(impact of air transport on theenvironment) and Europeanlauncher Ariane 5.

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Proposing an effectivecooperation strategy

Thanks to its unique experience as an architect of complex airborne systems, Dassault Aviation brings a pragmatic and dynamic cooperation approach tothe European military aviation sector.

Page 20: 2006 Annual Report - KU Leuven1).pdf · Dassault Aviation is one of the major players in the global civil and military aviation industry. A reasonably sized and financially secure

FalconBusiness Jets

In addition to their handlingqualities and exceptional

comfort, the Falcon name is also synonymous with elegance,reliability and efficiency.

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FALCON, represents more than forty years of success – more than2,000 aircraft have been sold in over 65 countries. These aircraftare considered to be efficient tools for the growth and success forentrepreneurs, companies and governmental organizations.

The Falcon 7X is a tri-jet aircraft (Pratt& Whitney Canada PW 307A with a6,400 pound thrust) that has a substan-tial flight range. With the capacity toreach a maximum speed of Mach 0.9and a range of 5,950 nm (11,000 km),the aircraft is equipped with a newwing design whose aerodynamicperformance has improved by 30%.The Falcon 7X is also the first businessaircraft in the world equipped with fullycomputerized flight controls and side-

sticks. It has the EASy cockpit, outstan-ding comfort, and low operating andmaintenance costs. The first Falcon 7Xflight took place on May 5, 2005. Itmarked the arrival of a new generationof Falcon aircraft equipped withstate-of-the-art technologies inheritedfrom the military aviation industry.

Due to its versatility, the Falcon900EX, equipped with three Honeywell TFE731-60 5,000 poundthrust engines, can combine long (up to 4500 nm – 8,334 km) or short distances during the samemission. The Falcon 900 range offers all thefittings for a wide fuselage, anadditional fuel capacity and EASy,the most sophisticated cockpit inthe world. The cockpit’srevolutionary design redefines theman-machine interface, facilitates

crew coordination, reduces the pilotworkload, and improves safety.

The Falcon Range

Based on the success of the Falcon2000, the Falcon 2000DX and2000EX, equipped with two Pratt & Whitney PW 308C 7,000 poundthrust engines, offer substantiallyimproved performance. The2000DX can climb to 41,000 feet in17 minutes and offers a reducedapproach speed of 112 kts, idealfor short landings. The Falcon 2000DX is equippedwith the same spacious fuselage as the 2000EX. The 2000EX has anexceptional direct flight capacity of

3,800 nm (7,037 km). The 2000DXwill be certified at the end of 2007while the 2000EX was certified inJune 2004.

The Falcon 50EX is the only tri-jetaircraft in its market segment. Its flexibility and ability to operatefrom short airstrips have veryquickly made this aircraft abenchmark in its category. An executive jet of reasonable sizeand considerable operatingflexibility, it has a short take-off andcan cross the Atlantic non-stop. Its new-generation engines(Honeywell TFE731-40 with

3,700 pounds of thrust) provide the aircraft with excellent climbperformance, while lowconsumption offers an extensiveflight range (3,075 nm – 5,695 km).

FALCON 7X

FALCON 900EX FALCON 900DX

FALCON 2000EX FALCON 2000DX

FALCON 50EX

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Combat aircraft

The Rafale is the first ever omnirole combat aircraft

in the world. It will eventually replaceseven types of aircraft currently used by the French Air Force and Navy.

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For many years, combat aircraft has been Dassault Aviation’s mainactivity. These instruments of political independence are used fordefense by thirty countries worldwide.

The Rafale is the first aircraft with a delta-canard configuration, designed for aircraft carrier landing,and can also simultaneouslyperform air superiority, defense,reconnaissance and surface attackmissions during a single flight.Equipped with two Snecma M 88jet engines, it can reach Mach 1.8and an altitude of 55,000 feet.Because of its flight range,considerable storage capacities,firing accuracy and survivability, the Rafale perform its missions with an outstanding efficiency.In 1999, the Rafale's entry into

service in the French Navy was a major success. The first Rafalesquadron was commissioned in the French Air Force at the Saint-Dizier base in 2006.

Belonging to the Mirage 2000range, the advanced and versatileMirage 2000-5 Mk2 fighter, offers greater fire power. Its load stations can be used for various external weaponcombinations of up to 6.3 tons,thus responding to a wide variety of operational constraints.Deployed in various fields of operations, the Mirage 2000 is a world reference in terms of availability and maintenance. Its interoperability with NATO aircraftand its performance have beenproven in combat.Since its launch, no attrition through

loss of control has been reporteddue to its exceptional electric flightcontrol system.

Rafale, Mirage and nEUROn

The goal of the nEUROn program,Europe’s UCAV (Unmanned CombatAir Vehicle) demonstrator, for whichDassault Aviation is the primecontractor, is to join forces withinthe European defense industry, with each partner (Italy, Sweden,Spain, Greece and Switzerland)contributing know-how, appropriatefunding and the political will tosucceed based on the federation ofEuropean “know-how”.The main technological challenge to be addressed during the designare the forms of the vehicle(aerodynamic, composite structure,internal weapon bay, higher relianceon electrical systems and advancedconditioning system). But also,perform demonstration with a modular and reliable avionic

system, using COTS-basedmodular on-board computers andhigh productivity critical real-timesoftware and all the C4Itechnologies, integrated in a Network Centric Warfare.The first flight of the demonstratorprototype is scheduled for 2011.

MIRAGE 2000

nEUROn

RAFALE

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Dassault aircraft worldwide

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Dassault Aviation Annual Report 2006

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