Zodiac Aerospace: still buoyant growth

Zodiac Aerospace: still buoyant growth

Revenue up +9.2% in the first half 2013/2014

Revenue breakdown

The revenues of the AeroSafety Segment (13.5% of total revenues) are up by +5.1% at reported data at €268.7 million, and +8.4% at like-for-like exchange rates. Exchange rates had a negative impact of -3.3  points on the first half's growth. The Evacuation Systems and Emergency Arresting Systems were particularly impacted while the Parachute and Protection activities retreated on a sluggish market.

The Aircraft Systems Segment (31.2% of total revenues) grew sharply thanks to external growth and the increase in deliveries on the contracts won in previous years. It reported a substantial advance in its sales revenue of +22.4% to €623.1 million, and of +15.3% at like-for-like consolidation scope and exchange rates. The consolidation scope effects¹ contributed 10.2 points to the Segment growth in the 1st half, while the impact of exchange rates is negative by -3.1 points on the Segment growth.

Aircraft Interiors activities posted revenues up by +3.9% to €1106.1 million at reported data, and by +4.1% at like-for-like consolidation scope and exchange rates. The integration of NAT into the Cabin & Structures Segment contributed 2.8 points to growth for Aircraft Interiors during the quarter, while exchange rates had a negative impact of -3.0 points.

• The Seats Segment (26.1% of total revenues), which displayed a slight decrease in activity in the 1st quarter (-4.1% at reported data and -0.9% in organic growth), confirms the scenario of a slow take off: its half-year revenues amount to €522.3 million down by -0.9% at reported data and up by +1.7% at like-for-like scope and exchange rates. 

• Revenue for Cabin & Structures Segment (16.9% of total revenues) was up +8.3% at €337.6 million, and +2.6% at like-for-like consolidation and exchange rates. The integration of Northwest Aerospace Technologies (NAT) had a positive impact of 9.7 points on the segment's growth, while exchange rates had a negative impact of -4.0 points.  

• The Galleys & Equipment Segment (12.3% of total revenues) reported increase in revenues of +8.8% at €246.2 million. At like-for-like consolidation scope, the increase stands at +11.7%, boosted by the growth in galleys and galleys equipment activities. 

Second quarter highlights

Split of the par value of the Zodiac Aerospace share
In order to raise the liquidity of the stock and make the Zodiac Aerospace share more accessible to individual shareholders, the Combined General Meeting of shareholders of Zodiac Aerospace decided at its meeting of January 8, 2014 to divide the par value of each of the company's shares into five. Consequently, at the close of the trading day of February 24, 2014, each existing share in circulation was swapped for five new shares, on the specification that the total share capital remained unchanged. This transaction was carried out without any costs or formalities for the shareholders of Zodiac Aerospace and has no impact on their rights.

Zodiac Aerospace acquires Pacific Precision Products (PPP)
On February 27 2014, Zodiac Aerospace finalized the acquisition of Pacific Precision Products (PPP). Based in Irvine in California and employing about 40 people, PPP designs and produces equipment for oxygen systems designed specifically for the market of business aircraft and specialists of cabin furnishing. This company presents a strong complementarity with the oxygen systems already present within the Aircraft Systems Segment of Zodiac Aerospace. PPP is consolidated in the Group's accounts as at February 28, 2014.

Zodiac Aerospace continues to strengthen its financing

In total, Zodiac Aerospace has guaranteed financing up to €1690 million that breaks down between the €660 million from the issue of a Schuldschein and a private placement in France announced in July 2013, and €1030 from the new Club Deal. Zodiac Aerospace is also active on the market of treasury bills (for around €400 million outstanding to date). The average maturity is five years.

Outlook
Zodiac Aerospace continues to operate in a buoyant aeronautic environment. Global economic growth should continue to boost passenger traffic and consequently the growth of the Group's business. Against this background, Zodiac Aerospace expects another year of organic growth in 2013/2014. Zodiac Aerospace will publish its earnings for 1st half 2013/2014 next April 23.

The Group remains exposed to the fluctuations of the dollar/euro exchange rate. The Group did not pass any additional hedges on forecasted transaction exposure compared to the one in place in November 2013.

About Zodiac Aerospace
Zodiac Aerospace is a world leader in aerospace equipment and systems for commercial, regional and business aircraft and for helicopters and spacecraft. Zodiac Aerospace has approximately 30,000 employees worldwide and realized revenue of €3.9bn in 2012/2013, through its five business segments: Zodiac AeroSafety, Zodiac Aircraft Systems, and three segments related to cabin interiors: Zodiac Cabin & Structures, Zodiac Galleys & Equipment and Zodiac Seats. Uwww.zodiacaerospace.com

Zodiac Aerospace will be present at the Aircraft Interiors Trade Show in Hamburg (April 6 to 10)

VARIANCES
(Quarter compared with the same quarter of the previous year)

Organic changes 2012/2013

Cumulative consolidated sales revenue

CHANGES 2013/2014
(Aggregate at end of period compared with the same period of last year)

*Excluding Trains and Airbags businesses

[1] Aircraft Systems Segment: IMS (consolidated since January 1, 2013), IPS (at February 28, 2013), ACC La Jonchère (at August 31, 2013; now Zodiac Aero Duct Systems), Triagnosys (at September 1, 2013)
Cabin & Structures Segment: NAT (at February 28, 2013)
[2] On the anniversary date of the arrangement of the new Club Deal. The initial maturity will therefore be March 14, 2019 and may be postponed to March 14, 2020 then to March 14, 2021.