Zodiac Aerospace confirms its growth objectives

Zodiac Aerospace confirms its growth objectives

An increase of 14.6% in sales over the first nine months of the 2012-2013 fiscal year

Changes in sales - New organizational structure

Changes in sales - Former organizational structure

The major changes in the divisions occurring under the new organizational format in effect since September 1, 2012 are as follows:

• AeroSafety, representing 14.0% of overall sales achieved sales in the amount of € 397.2 million, an increase of 9.1% as reported and of 6.7% at constant exchange rates. As in the first half, business for Emergency Evacuation systems, Elastomer and Parachutes and Protection are driving growth. 

• Sales for Aircraft Systems representing 28.1% of sales rose by 12.5% to € 798.1 million, and by 5.6% on a like-for-like basis and at constant exchange rates. The inclusion of IMS into the scope of consolidation, a "Passenger centric" in-flight entertainment systems specialist for five months, and IPS for three months, contributed 5.1 percentage points to the growth of the division over the first nine months.  

Aircraft Interiors businesses grew by 17.1% to a total of € 1641.6 million, up 7.9% on a like-for-like basis. The perimeter effects (+7.4 points) are mainly related to the Seats segment, and to a smaller extend, to Cabin & Structures.

• The Seats business, accounting for 28.4% of revenue posted gains in sales of 27.7% amounting to € 804.3 million, and an increase of 11.1% on a like-for-like basis and at constant exchange rates. The entry of Contour (Zodiac Seats UK) had a positive impact amounting to 15.2 points on sales for the division over the first nine months.  

• Cabin & Structures, which boasts 17.4% of company sales experienced a gain of 5.6% as reported and 1.0% at constant exchange rates. The inclusion of Northwest Aerospace Technologies (NAT) into the scope of consolidation pushed up growth in the division by 1.9 points. 

• Sales for Galleys & Equipment, representing 12.1% of revenue, are up 12.7% as reported and 11.6% at constant exchange rates, driven by growth in the galley equipment business. 

Significant events of the third quarter

Pursuit of the external growth strategy On June 5, 2013, Zodiac Aerospace signed a definitive agreement to acquire La Jonchère, a French company specializing in ducts and flexible joints. La Jonchère employs 115 people at its Compiègne, France site and produced sales of € 28 million in 2012. This company will round out the expertise of the Fluid Management division of Aircraft Systems in the area of ducts and joints. Nano ball joints manufactured by La Jonchère are used in many motors in the commercial aviation sector. The company's technology has been patented.

A new selection of a fuel and inerting system. The Brazilian manufacturer Embraer has opted for the Zodiac Aerospace fuel and inerting system to fit out its new second generation regional aircraft. These systems are developed by the Fluid Management division of Aircraft Systems.

Renewed and significant commercial success

• The ISIS solution for refitting cabin interiors has met with renewed commercial success. As of today, orders for the full ISIS solution of ISIS elements total around 350 aircraft to equip. A major airline has decided to integrate the ISIS pivoting compartments for its medium distance carriers. Another large U.S airline has chosen to retrofit its aircraft with the new lavatories developed by Zodiac Aerospace.  

• Regarding seats, Air-France-KLM has selected the new business class seat produced by Zodiac Seats to be used in the Boeing 787s. Zodiac Seats was also chosen for the retrofit of Air France's Boeing 777s for both the Business and the Economy class.  

Outlook
The Group is confirming its forecast for another year of organic growth to cover the entire 2012-2013 fiscal year, evolving in a general environment of increased traffic and a ramping up of commercial aviation programs, and a dissymmetrical Current operating income profile to that of the first half. The improvement in the Q3 margin with relation to that of the first half meets Group expectations.

The Group has also decided to increase its currency hedges for euro-dollar parity. Zodiac Aerospace has hedged a bit less of 10% of its 2013/2014 net transaction exposure at 1,2850. Regarding the FY2012/2013, H2 was 55% hedged at 1.2650.

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 employs 30.000 people throughout the world and registered sales of  €3.4 billion in 2011-2012, generated through its five business segments: Zodiac Cabin & Structures, Zodiac Galleys & Equipment, Zodiac Seats, Zodiac Aerosafety and Zodiac Aircraft Systems. www.zodiacaerospace.com

APPENDICES

Reminder: Current Operating Income (new organization)

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

Consolidated sales revenue by quarter - New organizational structure

VARIANCES 2012-2013
(Aggregate at end of period compared with the same period of last year)

*Excluding Landing gear and Airbags businesses

Consolidated sales revenue by quarter - Former organizational structure

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

Organic changes 2011/2012

*Excluding Landing Gear and Airbags businesses

Aggregate consolidated sales revenue by quarter - Former organizational structure

VARIANCES
(Aggregate at end of period compared with the same period of last year)

*Excluding Landing Gear and Airbags businesses

[1] Excluding changes to scope of consolidation and exchange rate effects.
[2] Contour (Zodiac Seats UK) has been within the scope of consolidation since February 29, 2012.